Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Apr 20, 2017 |
signed chap.58 |
Apr 09, 2017 |
delivered to governor |
Apr 05, 2017 |
returned to senate passed assembly message of necessity - 3 day message ordered to third reading rules cal.40 substituted for a3008c |
Apr 05, 2017 |
substituted by s2008c rules report cal.40 reported reported referred to rules |
Apr 04, 2017 |
print number 3008c |
Apr 04, 2017 |
amend (t) and recommit to ways and means |
Mar 13, 2017 |
print number 3008b |
Mar 13, 2017 |
amend (t) and recommit to ways and means |
Feb 17, 2017 |
print number 3008a |
Feb 17, 2017 |
amend (t) and recommit to ways and means |
Jan 23, 2017 |
referred to ways and means |
Assembly Bill A3008C
Signed By Governor2017-2018 Legislative Session
Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Archive: Last Bill Status Via S2008 - Signed by Governor
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
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Floor Vote: Apr 4, 2017
aye (58)- Addabbo Jr.
- Akshar
- Alcantara
- Amedore
- Avella
- Bailey
- Bonacic
- Boyle
- Breslin
- Brooks
- Carlucci
- Comrie
- Croci
- DeFrancisco
- Dilan
- Felder
- Flanagan
- Funke
- Gallivan
- Gianaris
- Golden
- Griffo
- Hamilton
- Hannon
- Helming
- Jacobs
- Kaminsky
- Kennedy
- Klein
- LaValle
- Lanza
- Larkin
- Latimer
- Little
- Marcellino
- Marchione
- Montgomery
- Murphy
- O'Mara
- Ortt
- Parker
- Peralta
- Persaud
- Phillips
- Ranzenhofer
- Ritchie
- Robach
- Sanders Jr.
- Savino
- Serino
- Serrano
- Seward
- Squadron
- Stavisky
- Stewart-Cousins
- Tedisco
- Valesky
- Young
nay (2)absent (1)excused (1)
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Bill Amendments
2017-A3008 - Details
- See Senate Version of this Bill:
- S2008
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3008 - Summary
Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year; increases certain motor vehicle transaction fees (Part A); relates to divisible load permits; provides that after December thirty-first, two thousand sixteen, no more than twenty-seven thousand power units shall be issued annual permits by the department of motor vehicles for any twelve-month period (Part B)
2017-A3008 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 2008 A. 3008 S E N A T E - A S S E M B L Y January 23, 2017 ___________ 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 chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increasing certain motor vehi- cle transaction fees, in relation to the disposition of revenues (Part A); to amend the vehicle and traffic law, in relation to divisible load permits (Part B); to amend the state finance law and the trans- portation law, in relation to enhancing the ability of the state to enforce state and federal law concerning the safety of public trans- portation systems under the oversight of the public transportation safety board (Part C); to amend the vehicle and traffic law in relation to compliance with new federal regulations and strengthening requirements for motor carriers (Part D); to amend the penal law, in relation to including the use of any highway, parkway, road, bridge or tunnel without payment of the lawful toll or charge as a theft of services; and to amend the vehicle and traffic law, in relation to liability of vehicle owners for toll collection violations and the penalty imposed upon the operator of a vehicle with an altered or obscured license plate while on a toll highway, bridge or tunnel (Part E); to amend the vehicle and traffic law and the state finance law, in relation to allocation of three million dollars of assessments from the city of New York to the general fund (Part F); to amend the vehi- cle and traffic law, the insurance law, the executive law, the tax law, and the state finance law, in relation to the regulation of transportation network company services; to establish the New York State TNC Accessibility Task Force; to establish the transportation network company driver's injury compensation fund; and to establish the local transit assistance fund (Part G); to amend the vehicle and traffic law, in relation to the waiver of non-driver identification card fees for crime victims (Part H); to amend the vehicle and traffic law, in relation to the reinstatement fee for non-residents (Part I); to amend the vehicle and traffic law, in relation to increasing fees
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12573-02-7 S. 2008 2 A. 3008 for original and duplicate certificates of title (Part J); to amend the vehicle and traffic law, in relation to additional fees for certain identification cards (Part K); to amend the vehicle and traf- fic law, in relation to the definition of "drug", the scope of the written test, the suspension of a license for driving while impaired by drugs, the license sanctions for refusing to submit to a chemical test and prohibiting the use of mobile telephones and portable elec- tronic devices when a vehicle is not in motion and by persons under 18 (Part L); to amend the New York state urban development corporation act, in relation to extending certain provisions relating to the empire state economic development fund (Part M); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effective- ness thereof (Part N); to amend chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, in relation to the minority and women-owned business enterprise program (Part O); to amend the infras- tructure investment act, in relation to the definition of an author- ized entity that may utilize design-build contracts, and in relation to the effectiveness thereof (Part P); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secre- tary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part Q); to amend the business corporation law, the cooperative corporations law, the executive law, the general associ- ations law, the general business law, the limited liability company law, the not-for-profit corporation law, the partnership law, the private housing finance law, the arts and cultural affairs law, the real property law and the tax law, in relation to streamlining the process by which service of process is served against a corporate or other entity with the secretary of state; and to repeal certain provisions of the real property law relating thereto (Part R); to amend the real property law, in relation to streamlining the licensing process for real estate professionals (Part S); to amend the environ- mental conservation law and the executive law, in relation to local waterfront revitalization (Part T); to amend the executive law, in relation to the chairperson of the state athletic commission (Part U); authorizing utility and cable television assessments to provide funds to the department of health from cable television assessment revenues and to the departments of agriculture and markets, environmental conservation, office of parks, recreation and historic preservation, and state from utility assessment revenues (Part V); to amend chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormitory authority to enter into certain design and construction management agreements, in relation to making permanent certain authority of the dormitory authority of the state of New York (Part W); to amend the insurance law, in relation to administrative supervision (Part X); to amend the banking law, the insurance law, and the financial services law in relation to the enforcement of the bank- ing, insurance, and financial services laws against unlicensed partic- ipants (Part Y); to amend the banking law, in relation to the licens- ing and regulation of student loan servicers (Part Z); to amend the banking law, in relation to protecting vulnerable adults from finan- cial exploitation (Part AA); to amend the financial services law, in S. 2008 3 A. 3008 relation to the disqualification of bad actors from continued partic- ipation in the banking and insurance industries (Part BB); to amend the banking law, in relation to the regulation and authorization of certain lending circle programs (Part CC); to amend the state finance law, in relation to creating a paid family leave risk adjustment fund (Part DD); to amend the banking law, in relation to licensed lenders (Part EE); to amend the real property action and proceedings law and civil practice law and rules, in relation to reverse mortgages (Part FF); to amend the financial services law, in relation to assessments to defray operating expenses of the department (Subpart A); to amend the insurance law, in relation to the distribution of assets (Subpart B); and to amend the insurance law, in relation to insurers deemed to be in a hazardous financial condition (Subpart C)(Part GG); to amend the navigation law, in relation to establishing the New York environ- mental protection and spill remediation account (Part HH); to amend the environmental conservation law, the state finance law, the public authorities law, and the soil and water conservation districts law, in relation to the implementation of the "clean water infrastructure act of 2017"; and to repeal certain provisions of the environmental conservation law and the state finance law relating thereto (Part II); to amend the state finance law and the environmental conservation law, in relation to environmental protection fund deposits and transfers (Part JJ); to amend the environmental conservation law, in relation to the donation of excess food and recycling of food scraps (Part KK); to amend the public authorities law and the public officers law, in relation to the sharing of employees, services and resources by the power authority of the state of New York, canal corporation and department of transportation (Part LL); and to authorize the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, and Fuel NY programs, as well as the department of environmental conservation's climate change program and the department of agriculture and markets' Fuel NY program, from an assessment on gas and electric corporations (Part 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 2017-2018 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. Section 13 of part U1 of chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increas- S. 2008 4 A. 3008 ing certain motor vehicle transaction fees, as amended by section 1 of part A of chapter 58 of the laws of 2015, is amended to read as follows: § 13. This act shall take effect immediately; provided however that sections one through seven of this act, the amendments to subdivision 2 of section 205 of the tax law made by section eight of this act, and section nine of this act shall expire and be deemed repealed on April 1, 2020; [provided further, however, that the amendments to subdivision 3 of section 205 of the tax law made by section eight of this act shall expire and be deemed repealed on March 31, 2018;] provided further, however, that the provisions of section eleven of this act shall take effect April 1, 2004 and shall expire and be deemed repealed on April 1, 2020. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART B Section 1. Paragraph (f) of subdivision 15 of section 385 of the vehi- cle and traffic law, as amended by section 4 of part C of chapter 59 of the laws of 2004, the third undesignated paragraph as amended by chapter 277 of the laws of 2014, is amended to read as follows: (f) 1. The department of transportation, or other issuing authority, may issue an annual permit for a vehicle designed and constructed to carry loads that are not of one piece or item, which is registered in this state. Motor carriers having apportioned vehicles registered under the international registration plan must either have a currently valid permit at the time this provision becomes effective or shall have desig- nated New York as its base state or one of the eligible jurisdictions of operation under the international registration plan in order to be eligible to receive a permit issued pursuant to [subparagraph] CLAUSE (i), (ii) or (ii-a) OF SUBPARAGRAPH EIGHT of this paragraph. No permit issued pursuant to this paragraph shall be valid for the operation or movement of vehicles on any state or other highway within any city not wholly included within one county unless such permit was issued by the city department of transportation of such city. 2. Effective January first, two thousand five, no vehicle or combina- tion of vehicles issued a permit pursuant to this paragraph shall cross a bridge designated as an R-posted bridge by the commissioner of trans- portation or any other permit issuing authority absent a determination by such commissioner or permit issuing authority that the permit appli- cant has demonstrated special circumstances warranting the crossing of such bridge or bridges and a determination by such commissioner or permit issuing authority that such bridge or bridges may be crossed safely, provided, however, that in no event shall a vehicle or combina- tion of vehicles issued a permit under this paragraph be permitted to cross a bridge designated as an R-posted bridge if such vehicle or combination of vehicles has a maximum gross weight exceeding one hundred two thousand pounds, and provided further, however, that nothing contained herein shall be deemed to authorize any vehicle or combination of vehicles to cross any such bridge within any city not wholly included within one county unless such vehicle or combination of vehicles has been issued a valid permit by the city department of transportation of such city pursuant to this subdivision. 3. No vehicle having a model year of two thousand six or newer shall be issued a permit pursuant to this paragraph unless each axle of such vehicle or combination of vehicles, other than steerable or trackable S. 2008 5 A. 3008 axles, is equipped with two tires on each side of the axle, any air pressure controls for lift axles are located outside the cab of the vehicle and are beyond the reach of occupants of the cab while the vehi- cle is in motion, the weight on any grouping of two or more axles is distributed such that no axle in the grouping carries less than eighty percent of any other axle in the grouping and any liftable axle is steerable or trackable; and, further provided, after December thirty- first, two thousand nineteen, no permit shall be issued pursuant to this paragraph to a vehicle of any model year that does not meet the require- ments of this provision, except that such permits may be issued prior to January first, two thousand twenty to a vehicle that does not meet the requirement concerning axle grouping weight distribution, but meets all other requirements of this section. 4. A divisible load permit may only be transferred to a replacement vehicle by the same registrant or transferred with the permitted vehicle as part of the sale or transfer of the permit holder's business; or, if the divisible load permit is issued pursuant to [subparagraph] CLAUSE (iv), (v) or (vi) OF SUBPARAGRAPH EIGHT of this paragraph for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess and has been effective for the five years preceding a transfer of such permit, the permit may be transferred with the permit- ted vehicle in the sale of the permitted vehicle to the holder of a permit issued pursuant to [subparagraph] CLAUSE (iv), (v) or (vi) OF SUBPARAGRAPH EIGHT of this paragraph for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess. 5. If a permit holder operates a vehicle or combination of vehicles in violation of any posted weight restriction, THE COMMISSIONER OF TRANS- PORTATION MAY IMPOSE A CIVIL PENALTY AS PROVIDED BY SECTION ONE HUNDRED FORTY-FIVE OF THE TRANSPORTATION LAW AND/OR CANCEL, SUSPEND OR REVOKE the permit issued to such vehicle or combination of vehicles AND SUCH PERMIT shall be deemed void as of the next day and shall not be reissued for a period of UP TO twelve calendar months. 6. Until June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand power units shall be issued annual permits by the department for any twelve-month period in accordance with this para- graph. After June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand five hundred power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, nineteen hundred ninety-five, no more than seventeen thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand three, no more than twenty-one thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, two thousand five, no more than twenty-two thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand six, no more than twenty-three thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand seven, no more than twenty-four thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand eight, no more than twenty- five thousand power units shall be issued annual permits by the depart- ment for any twelve-month period. AFTER DECEMBER THIRTY-FIRST, TWO THOU- SAND SIXTEEN, NO MORE THAN TWENTY-SEVEN THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, NO MORE THAN TWEN- S. 2008 6 A. 3008 TY-NINE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY, NO MORE THAN THIRTY THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO, NO MORE THAN THIR- TY-ONE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, NO MORE THAN THIRTY-TWO THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR, NO MORE THAN THIRTY-THREE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY-FIVE, NO MORE THAN THIRTY-FIVE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE- MONTH PERIOD. Whenever permit application requests exceed permit availability, the department shall renew annual permits that have been expired for less than four years which meet program requirements, and then shall issue permit applicants having less than three divisible load permits such additional permits as the applicant may request, providing that the total of existing and new permits does not exceed three. Remaining permits shall be allocated by lottery IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE COMMISSIONER IN RULES AND REGULATIONS. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN, THE DEPARTMENT MAY PERMANENTLY INCREASE THE MAXIMUM NUMBER OF POWER UNITS ISSUED AN ANNUAL PERMIT BY NO MORE THAN TWO THOUSAND ADDITIONAL PERMITS ABOVE THE PREVIOUS YEAR'S TOTAL in accordance with procedures established by the commissioner in rules and regulations. 7. The department of transportation may issue a seasonal agricultural permit in accordance with [subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH EIGHT of this paragraph that will be valid for four consec- utive months with a fee equal to one-half the annual permit fees estab- lished under this subdivision. 8. For a vehicle issued a permit in accordance with [subparagraphs] CLAUSES (iii), (iv), (v) and (vi) of this [paragraph] SUBPARAGRAPH, such a vehicle must have been registered in this state prior to January first, nineteen hundred eighty-six or be a vehicle or combination of vehicles which replace such type of vehicle which was registered in this state prior to such date provided that the manufacturer's recommended maximum gross weight of the replacement vehicle or combination of vehi- cles does not exceed the weight for which a permit may be issued and the maximum load to be carried on the replacement vehicle or combination of vehicles does not exceed the maximum load which could have been carried on the vehicle being replaced or the registered weight of such vehicle, whichever is lower, in accordance with the following [subparagraphs] CLAUSES: (i) A permit may be issued for a vehicle having at least three axles and a wheelbase not less than sixteen feet and for a vehicle with a trailer not exceeding forty-eight feet. The maximum gross weight of such a vehicle shall not exceed forty-two thousand five hundred pounds plus one thousand two hundred fifty pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rearmost axle, or one hundred two thousand pounds, which- ever is more restrictive provided, however, that any four axle group weight shall not exceed sixty-two thousand pounds, any tridem axle group weight shall not exceed fifty-seven thousand pounds, any tandem axle S. 2008 7 A. 3008 weight does not exceed forty-seven thousand pounds and any single axle weight shall not exceed twenty-five thousand pounds. Any additional special authorizations contained in a currently valid annual permit shall cease upon the expiration of such current annual permit. (ii) A permit may be issued subject to bridge restrictions for a vehi- cle or a combination of vehicles having at least six axles and a wheel base of at least thirty-six and one-half feet. The maximum gross weight of such vehicle or combination of vehicles shall not exceed one hundred seven thousand pounds and any tridem axle group weight shall not exceed fifty-eight thousand pounds and any tandem axle group weight shall not exceed forty-eight thousand pounds. (ii-a) A permit may be issued subject to bridge restrictions for a combination of vehicles having at least seven axles and a wheelbase of at least forty-three feet. The maximum gross weight of such combination of vehicles shall not exceed one hundred seventeen thousand pounds, any four axle group weight shall not exceed sixty-three thousand pounds, any tridem axle group weight shall not exceed fifty-eight thousand pounds, any tandem axle group weight shall not exceed forty-eight thousand pounds, and any single axle weight shall not exceed twenty-five thousand pounds. Each axle of such combination of vehicles, other than steerable or trackable axles, shall be equipped with two tires on each side of the axle, any air pressure controls for lift axles shall be located outside the cab of the combination of vehicles and shall be beyond the reach of occupants of the cab while the combination of vehicles is in motion, the weight on any grouping of two or more axles shall be distributed such that no axle in the grouping carries less than eighty percent of any other axle in the grouping, and any liftable axle of such combination of vehicles shall be steerable or trackable. (iii) A permit may be issued for a vehicle having two axles and a wheelbase not less than ten feet, with the maximum gross weight not in excess of one hundred twenty-five percent of the total weight limitation as set forth in subdivision ten of this section. Furthermore, until December thirty-first, nineteen hundred ninety-four, any single rear axle weight shall not exceed twenty-eight thousand pounds. After Decem- ber thirty-first, nineteen hundred ninety-four, any axle weight shall not exceed twenty-seven thousand pounds. (iv) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle having at least three axles and a wheelbase not exceeding forty-four feet nor less than seven- teen feet or for a vehicle with a trailer not exceeding forty feet. Until December thirty-first, nineteen hundred ninety-four, a permit may only be issued for such a vehicle having a maximum gross weight not exceeding eighty-two thousand pounds and any tandem axle group weight shall not exceed sixty-two thousand pounds. After January first, nineteen hundred ninety-five, the operation of such a vehicle shall be further limited and a permit may only be issued for such a vehicle having a maximum gross weight not exceeding seventy- nine thousand pounds and any tandem axle group weight shall not exceed fifty-nine thousand pounds, and any tridem shall not exceed sixty-four thousand pounds. A permit may be issued only until December thirty-first, nineteen hundred ninety-four for a vehicle having at least three axles and a wheelbase between fifteen and seventeen feet. The maximum gross weight S. 2008 8 A. 3008 of such a vehicle shall not exceed seventy-three thousand two hundred eighty pounds and any tandem axle group weight shall not exceed fifty- four thousand pounds. No vehicle having a model year of two thousand six or newer shall be issued a permit pursuant to this subparagraph for use within the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess unless it is equipped with at least four axles, and further provided, after December thirty-first, two thousand fourteen, no permit shall be issued pursuant to this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess to a vehicle of any model year unless the vehicle is equipped with at least four axles. (v) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange or Dutch- ess, a permit may be issued only until December thirty-first, nineteen hundred ninety-nine for a vehicle or combination of vehicles that has been permitted within the past four years having five axles and a wheel- base of at least thirty-six and one-half feet. The maximum gross weight of such a vehicle or combination of vehicles shall not exceed one hundred five thousand pounds and any tandem axle group weight shall not exceed fifty-one thousand pounds. Within a city not wholly included within one county and the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle or combination of vehicles having at least five axles and a wheelbase of at least thirty feet. The maximum gross weight of such vehicle or combination of vehicles shall not exceed ninety-three thousand pounds and any tridem axle group weight shall not exceed fifty-seven thousand pounds and any tandem axle group weight shall not exceed forty-five thousand pounds. (vi) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle or combination of vehi- cles having at least five axles or more and a wheelbase of at least thirty-six and one-half feet, provided such permit contains routing restrictions. Until December thirty-first, nineteen hundred ninety-four, the maximum gross weight of a vehicle or combination of vehicles permitted under this [subparagraph] CLAUSE shall not exceed one hundred twenty thousand pounds and any tandem or tridem axle group weight shall not exceed sixty-nine thousand pounds, provided, however, that any replacement vehicle or combination of vehicles permitted after the effective date of this [subparagraph] CLAUSE shall have at least six axles, any tandem axle group shall not exceed fifty thousand pounds and any tridem axle group shall not exceed sixty-nine thousand pounds. After December thirty-first, nineteen hundred ninety-four, the tridem axle group weight of any vehicle or combination of vehicles issued a permit under this [subparagraph] CLAUSE shall not exceed sixty-seven thousand pounds, any tandem axle group weight shall not exceed fifty thousand pounds and any single axle weight shall not exceed twenty-five thousand seven hundred fifty pounds. After December thirty-first, nineteen hundred ninety-nine, all vehi- cles issued a permit under this [subparagraph] CLAUSE must have at least six axles. After December thirty-first, two thousand fourteen, all combinations of vehicles issued a permit under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, S. 2008 9 A. 3008 Orange and Dutchess must have at least seven axles and a wheelbase of at least forty-three feet. After December thirty-first, two thousand six, no permits shall be issued under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for a vehicle or combination of vehicles having less than seven axles or having a wheelbase of less than forty-three feet, provided, however, that permits may be issued for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for vehicles or combinations of vehicles where the permit applicant demonstrates that the applicant acquired the vehicle or combination of vehicles prior to December thirty-first, two thousand six, and that if the vehicle or combination of vehicles was acquired by the applicant after the effec- tive date of this provision, such vehicle or combination of vehicles is less than fifteen years old. In instances where the application is for a combination of vehicles, the applicant shall demonstrate that the power unit of such combination satisfies the conditions of this [subparagraph] CLAUSE. In no event shall a permit be issued under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for a vehicle or combination of vehicles having less than seven axles or having a wheelbase of less than forty-three feet after December thirty-first, two thousand fourteen. Except as otherwise provided by this subparagraph for the period ending December thirty-first, two thousand fourteen, after December thirty-first, two thousand three, any combination of vehicles issued a permit under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess shall not exceed one hundred twenty thousand pounds, shall have at least seven axles, shall have a wheelbase of at least forty-three feet, and single axle weight shall not exceed twenty-five thousand seven hundred fifty pounds, any tandem axle group weight shall not exceed forty-eight thousand pounds, any tridem axle group weight shall not exceed sixty- three thousand pounds and any four axle group shall not exceed sixty- five thousand pounds. From the date of enactment of this paragraph, permit applications under [subparagraphs] CLAUSES (i), (ii), (ii-a), (iii), (iv), (v) and (vi) of this [paragraph] SUBPARAGRAPH for vehicles registered in this state may be honored by the commissioner of transportation or other appropriate authority. The commissioner of transportation and other appropriate authorities may confer and develop a system through rules and regulations to assure compliance herewith. § 2. This act shall take effect immediately. PART C Section 1. Paragraph (b) of subdivision 5 of section 88-a of the state finance law, as added by chapter 481 of the laws of 1981, is amended to read as follows: (b) Moneys in the public transportation systems operating assistance account shall be paid on a quarterly basis beginning October first, nineteen hundred eighty-one. However, if there is a demonstrated cash shortfall in any eligible system, payments to such system may be accel- erated. Such payments shall be made in accordance with a schedule as specified by appropriation for the payment of operating costs of public mass transportation systems outside the metropolitan commuter transpor- tation district as defined by section twelve hundred sixty-two of the S. 2008 10 A. 3008 public authorities law, eligible to receive operating assistance pursu- ant to section eighteen-b of the transportation law. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPORTATION SYSTEM THAT IS OPERATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANSPORTATION SAFE- TY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THE TRANSPORTATION LAW UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTA- TION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHERWISE LIFTED. § 2. Paragraph (b) of subdivision 7 of section 88-a of the state finance law, as amended by chapter 56 of the laws of 1993, is amended to read as follows: (b) Moneys in the metropolitan mass transportation operating assist- ance account shall be paid on a quarterly basis beginning October first, nineteen hundred [eight-one] EIGHTY-ONE. However, if there is a demon- strated cash shortfall in any eligible system, payments to such system may be accelerated. Such moneys shall be paid in accordance with sched- ules as specified by appropriations for payment of operating costs of public transportation systems in the metropolitan transportation commu- ter district in order to meet the operating expenses of such systems, provided, however, with respect to the metropolitan transportation authority, its affiliates and subsidiaries, and notwithstanding any general or special law to the contrary, other than such a law which makes specific reference to this section, and subject to the provisions of section twelve hundred seventy-c of the public authorities law, so long as the metropolitan transportation authority dedicated tax fund established by section twelve hundred seventy-c of the public authori- ties law shall exist, any such appropriation to the metropolitan trans- portation authority, its affiliates or its subsidiaries shall be deemed to be an appropriation to the metropolitan transportation authority and the total amount paid pursuant to such appropriation or appropriations shall be deposited to such metropolitan transportation authority dedi- cated tax fund and distributed in accordance with the provisions of section twelve hundred seventy-c of the public authorities law. Nothing contained in this subdivision shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes producing revenues for deposit in the metropol- itan mass transportation operating assistance account or the appropri- ations relating thereto. The metropolitan transportation authority shall not include within any resolution, contract or agreement with holders of the bonds or notes issued under section twelve hundred sixty-nine of the public authorities law any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter such taxes or appropriations. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPORTATION SYSTEM THAT IS OPERATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANS- PORTATION SAFETY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THE TRANSPORTATION LAW UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTATION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHERWISE LIFTED. § 3. The opening paragraph of subdivision 4 of section 88-b of the state finance law, as added by chapter 13 of the laws of 1987, is amended to read as follows: Moneys of the fund shall be made available for financing any of the following types of capital projects within the counties comprising the metropolitan commuter transportation district, except those counties comprising the city of New York, but only to the extent that such S. 2008 11 A. 3008 projects are on an adopted transportation plan and approved by a desig- nated transportation coordinating committee, if one exists, or by the metropolitan planning organization as created pursuant to section fifteen-a of the transportation law if no designated transportation coordinating committee exists: capacity and infrastructure improvements to state, county, town, city, village roads, highways, parkways and bridges; or state, county, town, city or village mass transportation projects; provided, however, that in Nassau and Suffolk counties such moneys shall be available only for capacity improvements to state roads, highways, parkways and bridges. The amount of state funds historically appropriated statewide, other than bond funds, for transportation capi- tal purposes from other sources shall not be reduced because of the availability of such moneys made available pursuant to this chapter, nor shall such moneys be used to match federal aid. Prior to the allocation of state advance funds appropriated pursuant to this section, the muni- cipality responsible for the project shall certify to the commissioner of transportation that the amount of funds appropriated for transporta- tion capital purposes by that municipality shall not be reduced because of the availability of such state advance funds, and that such moneys shall not be used to match federal aid. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPORTATION SYSTEM THAT IS OPER- ATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANSPORTATION SAFETY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THE TRANSPORTATION LAW UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTATION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHER- WISE LIFTED. § 4. Paragraph a of subdivision 2 of section 18-b of the transporta- tion law, as added by chapter 56 of the laws of 1975, is amended to read as follows: a. The commissioner shall pay to each public transportation system that makes an application therefor, in quarterly installments, a mass transportation operating assistance service payment. For the purposes of this section, the quarters shall be April through June, July through September, October through December and January through March. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPOR- TATION SYSTEM THAT IS OPERATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANSPORTATION SAFETY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THIS CHAPTER UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTATION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHERWISE LIFTED. § 5. Section 217 of the transportation law is amended by adding seven new subdivisions 9, 10, 11, 12, 13, 14 and 15 to read as follows: 9. TO COMPLY WITH THE REQUIREMENTS OF THE NATIONAL PUBLIC TRANSPORTA- TION SAFETY PLAN, AS PROVIDED BY SECTION 5329 OF TITLE 49 OF THE UNITED STATES CODE AND TO PROVIDE THE STATE SAFETY OVERSIGHT PROGRAM REQUIRED THEREBY. 10. TO REVIEW, APPROVE, OVERSEE AND ENFORCE THE IMPLEMENTATION BY THE RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION AGENCY OF THE PUBLIC TRANSPOR- TATION AGENCY SAFETY PLAN THAT IS APPROVED BY THE BOARD. 11. TO INVESTIGATE AND ENFORCE THE SAFETY OF RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS WITH THE PUBLIC TRANSPORTATION AGENCY SAFETY PLAN APPROVED BY THE BOARD. 12. TO PERFORM AUDITS, AT LEAST ONCE TRIENNIALLY, FOR THE COMPLIANCE OF THE RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS WITH THE FEDER- AL TRANSIT ADMINISTRATION. S. 2008 12 A. 3008 13. TO PROVIDE, AT LEAST ONCE ANNUALLY, A STATUS REPORT ON THE SAFETY OF RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS THAT THE BOARD OVERSEES. 14. TO REVIEW, APPROVE, OVERSEE AND ENFORCE THE IMPLEMENTATION OF PUBLIC TRANSPORTATION SYSTEM SAFETY PLANS. 15. TO ISSUE SUCH ADVISORIES, DIRECTIVES OR ORDERS THAT MAY BE DEEMED NECESSARY TO ASSURE SAFETY IN THE OPERATION OF PUBLIC TRANSPORTATION SYSTEMS. § 6. This act shall take effect immediately. PART D Section 1. Paragraph (g) of subdivision 3 of section 385 of the vehi- cle and traffic law, as added by chapter 303 of the laws of 2014, is amended to read as follows: (g) The length of a tow truck or car carrier, inclusive of load and bumpers, shall be not more than forty feet, except that a car carrier may have an overhang that extends beyond the rear bumper of such car carrier by not more than [three] FOUR feet and except, further, that a wheel lift that is less than fifteen feet in length shall not be included as part of the length of a tow truck or car carrier when such wheel lift is in use by such tow truck or car carrier to tow another motor vehicle. § 2. Subparagraphs 5 and 6 of paragraph (b) of subdivision 4 of section 385 of the vehicle and traffic law, subparagraph 5 as amended by chapter 669 of the laws of 2005, and subparagraph 6 as amended by chap- ter 26 of the laws of 2002, are amended and a new subparagraph 7 is added to read as follows: 5. A vehicle or combination of vehicles which is disabled and unable to proceed under its own power and is being towed for a distance not in excess of ten miles for the purpose of repairs or removal from the high- way, except that the distance to the nearest exit of a controlled-access highway shall not be considered in determining such ten mile distance; [and] 6. Stinger-steered automobile transporters or stinger-steered boat transporters, while operating on qualifying and access highways. Such vehicles shall not, however, exceed [seventy-five] EIGHTY feet exclusive of an overhang of not more than [three] FOUR feet on the front and [four] SIX feet on the rear of the vehicle[.]; AND 7. A COMBINATION OF VEHICLES OPERATING ON ANY QUALIFYING OR ACCESS HIGHWAYS CONSISTING OF A POWER UNIT AND TWO TRAILERS OR SEMITRAILERS WITH A TOTAL WEIGHT THAT SHALL NOT EXCEED TWENTY-SIX THOUSAND POUNDS WHEN THE OVERALL LENGTH IS GREATER THAN SIXTY-FIVE FEET BUT SHALL NOT EXCEED EIGHTY-TWO FEET; AND IN WHICH THE TRAILERS OR SEMITRAILERS CARRY NO PROPERTY AND CONSTITUTE INVENTORY PROPERTY OF A MANUFACTURER, DISTRIBUTOR, OR DEALER OF SUCH TRAILERS OR SEMITRAILERS. § 3. Paragraph (c) of subdivision 4 of section 385 of the vehicle and traffic law, as amended by chapter 26 of the laws of 2002, is amended to read as follows: (c) Notwithstanding the provisions of paragraph (a) of this subdivi- sion, an overhang of not more than three feet on the front and four feet on the rear of an automobile transporter or AN OVERHANG OF NOT MORE THAN FOUR FEET ON THE FRONT AND SIX FEET ON THE REAR OF A stinger-steered automobile transporter or a boat transporter or stinger-steered boat transporter shall be permitted. S. 2008 13 A. 3008 § 4. Subdivision 10 of section 385 of the vehicle and traffic law, as amended by chapter 1008 of the laws of 1983, is amended to read as follows: 10. A single vehicle or a combination of vehicles having three axles or more and equipped with pneumatic tires, when loaded, may have a total weight on all axles not to exceed thirty-four thousand pounds, plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rear- most axle. Axles to be counted as provided in subdivision five of this section. In no case, however, shall the total weight exceed eighty thou- sand pounds EXCEPT FOR A VEHICLE IF OPERATED BY AN ENGINE FUELED PRIMA- RILY BY NATURAL GAS WHICH MAY HAVE A MAXIMUM GROSS WEIGHT OF EIGHTY-TWO THOUSAND POUNDS. For any vehicle or combination of vehicles having a total gross weight less than seventy-one thousand pounds, the higher of the following shall apply: (a) the total weight on all axles shall not exceed thirty-four thou- sand pounds plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rearmost axle, or (b) the overall gross weight on a group of two or more consecutive axles shall not exceed the weight produced by application of the follow- ing formula: W = 500 ((LxN)/(N-1) + (12xN)+36) where W equals overall gross weight on any group of two or more consec- utive axles to the nearest five hundred pounds, L equals distance in feet from the center of the foremost axle to the center of the rearmost axle of any group of two or more consecutive axles, and N equals number of axles in group under consideration, except that two consecutive sets of tandem axles may carry a gross load of thirty-four thousand pounds each providing the overall distance between the first and last axles of such consecutive sets of tandem axles is thirty-six feet or more. For any vehicle or combination of vehicles having a total gross weight of seventy-one thousand pounds or greater, paragraph (b) shall apply to determine maximum gross weight which is permitted hereunder. § 5. Section 385 of the vehicle and traffic law is amended by adding a new subdivision 24 to read as follows: 24. THE PROVISIONS OF SUBDIVISIONS SIX, SEVEN, EIGHT, NINE, TEN, ELEV- EN AND TWELVE OF THIS SECTION SHALL NOT APPLY TO ANY TOW TRUCK THAT IS TRANSPORTING A DISABLED VEHICLE FROM THE PLACE WHERE THE VEHICLE BECAME DISABLED TO THE NEAREST APPROPRIATE REPAIR FACILITY AND HAS A GROSS VEHICLE WEIGHT THAT IS EQUAL TO OR EXCEEDS THE GROSS VEHICLE WEIGHT OF THE DISABLED VEHICLE BEING TRANSPORTED. § 6. Subparagraph (iii) of paragraph (b) of subdivision 2 of section 510 of the vehicle and traffic law, as amended by chapter 349 of the laws of 1993, is amended to read as follows: (iii) such registrations shall be suspended when necessary to comply with subdivision nine of section one hundred forty or subdivision four of section one hundred forty-five of the transportation law OR WHEN THE MOTOR CARRIER HAS BEEN ISSUED AN OUT OF SERVICE ORDER BY THE UNITED STATES DEPARTMENT OF TRANSPORTATION. The commissioner shall have the authority to deny a registration or renewal application to any other person for the same vehicle and may deny a registration or renewal application for any other motor vehicle registered in the name of the applicant where it has been determined that such registrant's intent has been to evade the purposes of this subdivision and where the commission- er has reasonable grounds to believe that such registration or renewal S. 2008 14 A. 3008 will have the effect of defeating the purposes of this subdivision. ANY SUSPENSION ISSUED PURSUANT TO THIS SUBPARAGRAPH SHALL REMAIN IN EFFECT UNTIL SUCH TIME AS THE COMMISSIONER IS NOTIFIED BY THE UNITED STATES DEPARTMENT OF TRANSPORTATION OR THE NEW YORK STATE DEPARTMENT OF TRANS- PORTATION THAT THE OUT OF SERVICE ORDER RESULTING IN THE SUSPENSION IS NO LONGER IN EFFECT. § 7. This act shall take effect immediately. PART E Section 1. Subdivision 3 of section 165.15 of the penal law is amended to read as follows: 3. With intent to obtain railroad, subway, bus, air, taxi or any other public transportation service OR TO USE ANY HIGHWAY, PARKWAY, ROAD, BRIDGE OR TUNNEL without payment of the lawful charge OR TOLL therefor, or to avoid payment of the lawful charge OR TOLL for such transportation service which has been rendered to him OR FOR SUCH USE OF ANY HIGHWAY, PARKWAY, ROAD, BRIDGE OR TUNNEL, he obtains or attempts to obtain such service OR USE or avoids or attempts to avoid payment therefor by force, intimidation, stealth, deception or mechanical tampering, or by unjusti- fiable failure or refusal to pay; or § 2. The vehicle and traffic law is amended by adding a new section 518 to read as follows: § 518. RECIPROCAL AGREEMENTS CONCERNING SUSPENSION OR REVOCATION OF REGISTRATION OF A MOTOR VEHICLE FOR VIOLATIONS OF TOLL COLLECTION REGU- LATIONS. A. THE COMMISSIONER MAY EXECUTE A RECIPROCAL COMPACT OR AGREE- MENT REGARDING TOLL COLLECTION VIOLATIONS WITH THE MOTOR VEHICLE ADMIN- ISTRATOR OR OTHER AUTHORIZED OFFICIAL OF ANOTHER STATE NOT INCONSISTENT WITH THE PROVISIONS OF THIS CHAPTER. SUCH COMPACT OR AGREEMENT SHALL PROVIDE THAT IF A REGISTRATION OF A MOTOR VEHICLE WOULD BE SUSPENDED OR REVOKED PURSUANT TO PARAGRAPH D OF SUBDIVISION THREE OF SECTION FIVE HUNDRED TEN OF THIS CHAPTER, OR PURSUANT TO A COMPARABLE LAW OR REGU- LATION OF ANOTHER STATE, BECAUSE AN OWNER OF A MOTOR VEHICLE FAILED TO PAY TOLLS AND VIOLATION FEES, OR HAVE THEM DISMISSED OR TRANSFERRED, THEN THE STATE ISSUING THE REGISTRATION SHALL LIKEWISE SUSPEND OR REVOKE THE REGISTRATION OR BAR RENEWAL OF SUCH REGISTRATION, UNTIL SUCH REGIS- TRANT OR APPLICANT HAS PAID SUCH TOLLS AND FEES OR COMPLIED WITH THE RULES AND REGULATIONS. B. SUCH COMPACT OR AGREEMENT SHALL ALSO PROVIDE SUCH TERMS AND PROCE- DURES AS ARE NECESSARY AND PROPER TO FACILITATE ITS ADMINISTRATION. ANY SUCH COMPACT OR AGREEMENT SHALL SPECIFY THE VIOLATIONS SUBJECT TO THE COMPACT OR AGREEMENT, AND SHALL INCLUDE A DETERMINATION OF COMPARABLE VIOLATIONS IN EACH STATE IF ANY SUCH VIOLATIONS ARE OF A SUBSTANTIALLY SIMILAR NATURE BUT ARE NOT DENOMINATED OR DESCRIBED IN PRECISELY THE SAME WORDS IN EACH PARTY STATE. C. THE WORD "STATE" WHEN USED IN THIS SECTION SHALL MEAN ANY STATE, TERRITORY, A POSSESSION OF THE UNITED STATES, THE DISTRICT OF COLUMBIA OR ANY PROVINCE OF CANADA. § 3. Subdivision 1 of section 402 of the vehicle and traffic law is amended by adding a new paragraph (c) to read as follows: (C) IT SHALL BE UNLAWFUL FOR ANY PERSON TO OPERATE, DRIVE OR PARK A MOTOR VEHICLE ON A TOLL HIGHWAY, BRIDGE AND/OR TUNNEL FACILITY, UNDER THE JURISDICTION OF THE TOLLING AUTHORITY, IF SUCH NUMBER PLATE IS NOT EASILY READABLE, NOR SHALL ANY NUMBER PLATE BE COVERED BY GLASS OR ANY PLASTIC MATERIAL, AND SHALL NOT BE KNOWINGLY COVERED OR COATED WITH ANY ARTIFICIAL OR SYNTHETIC MATERIAL OR SUBSTANCE THAT CONCEALS OR OBSCURES S. 2008 15 A. 3008 SUCH NUMBER PLATES OR THAT DISTORTS A RECORDED OR PHOTOGRAPHIC IMAGE OF SUCH NUMBER PLATES, AND THE VIEW OF SUCH NUMBER PLATES SHALL NOT BE OBSTRUCTED BY ANY PART OF THE VEHICLE OR BY ANYTHING CARRIED THEREON, EXCEPT FOR A RECEIVER-TRANSMITTER ISSUED BY A PUBLICLY OWNED TOLLING FACILITY IN CONNECTION WITH ELECTRONIC TOLL COLLECTION WHEN SUCH RECEIV- ER-TRANSMITTER IS AFFIXED TO THE EXTERIOR OF A VEHICLE IN ACCORDANCE WITH MOUNTING INSTRUCTIONS PROVIDED BY THE TOLLING FACILITY. FOR PURPOSES OF THIS PARAGRAPH, "TOLLING AUTHORITY" SHALL MEAN EVERY PUBLIC AUTHORITY WHICH OPERATES A TOLL HIGHWAY, BRIDGE AND/OR TUNNEL FACILITY AS WELL AS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, A BI-STATE AGENCY CREATED BY COMPACT SET FORTH IN CHAPTER ONE HUNDRED FIFTY-FOUR OF THE LAWS OF NINETEEN HUNDRED TWENTY-ONE, AS AMENDED. § 4. Subdivision 8 of section 402 of the vehicle and traffic law, as amended by chapter 61 of the laws of 1989 and renumbered by chapter 648 of the laws of 2006, is amended to read as follows: 8. The violation of this section shall be punishable by a fine of not less than twenty-five nor more than two hundred dollars EXCEPT FOR VIOLATIONS OF PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, WHICH SHALL BE PUNISHABLE BY A FINE OF NOT LESS THAN ONE HUNDRED NOR MORE THAN FIVE HUNDRED DOLLARS. § 5. This act shall take effect immediately. PART F Section 1. Subdivision 5 of section 227 of the vehicle and traffic law, as amended by section 3 of part CC of chapter 58 of the laws of 2015, is amended to read as follows: 5. All penalties and forfeited security collected pursuant to the provisions of this article shall be paid to the department of audit and control to the credit of the justice court fund and shall be subject to the applicable provisions of section eighteen hundred three of this chapter. After such audit as shall reasonably be required by the comp- troller, such penalties and forfeited security shall be paid quarterly or, in the discretion of the comptroller, monthly, to the appropriate jurisdiction in which the violation occurred in accordance with the provisions of section ninety-nine-a of the state finance law, except that the sum of four dollars for each violation occurring in such juris- diction for which a complaint has been filed with the administrative tribunal established pursuant to this article shall be retained by the state. NOTWITHSTANDING ANY LAW TO THE CONTRARY AN ADDITIONAL ANNUAL SUM OF THREE MILLION DOLLARS COLLECTED FROM FINES AND ASSESSED TO THE CITY OF NEW YORK, SHALL BE DEPOSITED INTO THE GENERAL FUND IN ACCORDANCE WITH THE PROVISIONS OF SECTION NINETY-NINE-A OF THE STATE FINANCE LAW. The amount distributed during the first three quarters to the city of Rochester in any given fiscal year shall not exceed seventy percent of the amount which will be otherwise payable. Provided, however, that if the full costs of administering this article shall exceed the amounts received and retained by the state for any period specified by the commissioner, then such additional sums as shall be required to offset such costs shall be retained by the state out of the penalties and forfeited security collected pursuant to this article. § 2. Paragraph c of subdivision 1 of section 1803 of the vehicle and traffic law, as amended by chapter 385 of the laws of 1999, is amended to read as follows: c. for compliance with or violations of subdivision nineteen of section three hundred eighty-five of this chapter, notwithstanding any S. 2008 16 A. 3008 inconsistent provision of law, except as provided in section ninety of the state finance law, the fees and fines collected by the state pursu- ant to sections two hundred twenty-seven, three hundred eighty-five and eighteen hundred three of this chapter and section ninety-nine-a of the state finance law, shall be made available to the state comptroller for deposit in the general fund except that fines collected within a city not wholly included within one county shall be paid to such city in accordance with the procedures set forth in subdivision four of section two hundred twenty-seven of this chapter for deposit into the general fund of such city, AND EXCEPT THAT AN ANNUAL AMOUNT OF THREE MILLION DOLLARS OF FINES COLLECTED WITHIN THE CITY OF NEW YORK PURSUANT TO ARTI- CLE TWO-A OF THIS CHAPTER BE DEPOSITED BY THE COMPTROLLER TO THE GENERAL FUND. § 3. Subdivision 3 of section 99-a of the state finance law, as amended by section 10 of part CC of chapter 58 of the laws of 2015, is amended to read as follows: 3. The comptroller is hereby authorized to implement alternative procedures, including guidelines in conjunction therewith, relating to the remittance of fines, penalties, forfeitures and other moneys by town and village justice courts, and by the Nassau and Suffolk counties traf- fic and parking violations agencies, and by the city of Buffalo traffic violations agency, AND BY THE CITY OF NEW YORK PURSUANT TO ARTICLE TWO-A OF THE VEHICLE AND TRAFFIC LAW, to the justice court fund and for the distribution of such moneys by the justice court fund. Notwithstanding any law to the contrary, the alternative procedures utilized may include: a. electronic funds transfer; b. remittance of funds by the justice court to the chief fiscal office of the town or village, or, in the case of the Nassau and Suffolk coun- ties traffic and parking violations agencies, to the county treasurer, or, in the case of the Buffalo traffic violations agency, to the city of Buffalo comptroller, for distribution in accordance with instructions by the comptroller OR, IN THE CASE OF THE CITY OF NEW YORK, PURSUANT TO ARTICLE TWO-A OF THE VEHICLE AND TRAFFIC LAW TO THE CITY COMPTROLLER; and/or c. monthly, rather than quarterly, distribution of funds. The comptroller may require such reporting and record keeping as he or she deems necessary to ensure the proper distribution of moneys in accordance with applicable laws. A justice court or the Nassau and Suffolk counties traffic and parking violations agencies or the city of Buffalo traffic violations agency OR THE CITY OF NEW YORK PURSUANT TO ARTICLE TWO-A OF THE VEHICLE AND TRAFFIC LAW may utilize these proce- dures only when permitted by the comptroller, and such permission, once given, may subsequently be withdrawn by the comptroller on due notice. § 4. This act shall take effect immediately. PART G Section 1. Legislative intent. The purpose of this act is to expand access to important and enhanced transportation options for residents and visitors throughout the State, while ensuring the safety, reliabil- ity, and cost-effectiveness of those services within the State of New York. § 2. The vehicle and traffic law is amended by adding a new article 44-B to read as follows: S. 2008 17 A. 3008 ARTICLE 44-B TRANSPORTATION NETWORK COMPANY SERVICES SECTION 1691. DEFINITIONS. 1692. GENERAL PROVISIONS. 1693. FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK COMPA- NIES. 1694. DISCLOSURES. 1695. INSURANCE PROVISIONS. 1696. DRIVER AND VEHICLE REQUIREMENTS. 1697. MAINTENANCE OF RECORDS. 1698. AUDIT PROCEDURES; CONFIDENTIALITY OF RECORDS. 1699. CRIMINAL HISTORY BACKGROUND CHECK OF TRANSPORTATION NETWORK COMPANY DRIVERS. 1700. CONTROLLING AUTHORITY. § 1691. DEFINITIONS. AS USED IN THIS ARTICLE: 1. "TRANSPORTATION NETWORK COMPANY VEHICLE" OR "TNC VEHICLE" MEANS A VEHICLE THAT IS: (A) USED BY A TRANSPORTATION NETWORK COMPANY DRIVER TO PROVIDE A TNC PREARRANGED TRIP ORIGINATING IN THE STATE OF NEW YORK; (B) OWNED, LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA- TION NETWORK COMPANY DRIVER AND SHALL NOT INCLUDE: (I) A TAXICAB, AS DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THIS CHAPTER AND SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (II) A LIVERY VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E OF THIS CHAPTER, OR AS OTHERWISE DEFINED IN LOCAL LAW; (III) A BLACK CAR, LIMOUSINE, OR LUXURY LIMOUSINE, AS DEFINED IN SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (IV) A FOR-HIRE VEHICLE, AS DEFINED IN SECTION 19-502 OF THE ADMINIS- TRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (V) A BUS, AS DEFINED IN SECTION ONE HUNDRED FOUR OF THIS CHAPTER; (VI) ANY MOTOR VEHICLE WEIGHING MORE THAN SIX THOUSAND FIVE HUNDRED POUNDS UNLOADED; (VII) ANY MOTOR VEHICLE HAVING A SEATING CAPACITY OF MORE THAN SEVEN PASSENGERS; AND (VIII) ANY MOTOR VEHICLE SUBJECT TO SECTION THREE HUNDRED SEVENTY OF THIS CHAPTER. 2. "DIGITAL NETWORK" MEANS ANY SYSTEM OR SERVICE OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPANY THAT ENABLES TNC PREARRANGED TRIPS WITH TRANSPORTATION NETWORK COMPANY DRIVERS. 3. "TRANSPORTATION NETWORK COMPANY" OR "TNC" MEANS A PERSON, CORPO- RATION, PARTNERSHIP, SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS LICENSED PURSUANT TO THIS ARTICLE AND IS OPERATING IN NEW YORK STATE EXCLUSIVELY USING A DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK COMPANY PASSENGERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE TNC PREARRANGED TRIPS. 4. "TRANSPORTATION NETWORK COMPANY DRIVER" OR "TNC DRIVER" MEANS AN INDIVIDUAL WHO: (A) RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE TRANSPORTATION NETWORK COMPANY; AND (B) USES A TNC VEHICLE TO OFFER OR PROVIDE A TNC PREARRANGED TRIP TO TRANSPORTATION NETWORK COMPANY PASSENGERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR COMPENSATION OR PAYMENT OF A FEE. S. 2008 18 A. 3008 5. "TRANSPORTATION NETWORK COMPANY PASSENGER" OR "PASSENGER" MEANS A PERSON OR PERSONS WHO USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK COMPANY DRIVER WHO PROVIDES TNC PREARRANGED TRIPS TO THE PASSENGER IN THE TNC VEHICLE BETWEEN POINTS CHOSEN BY THE PASSENGER. 6. "TNC PREARRANGED TRIP" MEANS THE PROVISION OF TRANSPORTATION BY A TRANSPORTATION NETWORK COMPANY DRIVER TO A PASSENGER PROVIDED THROUGH THE USE OF A TNC'S DIGITAL NETWORK: (A) BEGINNING WHEN A TRANSPORTATION NETWORK COMPANY DRIVER ACCEPTS A PASSENGER'S REQUEST FOR A TRIP THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY; (B) CONTINUING WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER TRANS- PORTS THE REQUESTING PASSENGER IN A TNC VEHICLE; AND (C) ENDING WHEN THE LAST REQUESTING PASSENGER DEPARTS FROM THE TNC VEHICLE. (D) THE TERM "TNC PREARRANGED TRIP" DOES NOT INCLUDE TRANSPORTATION PROVIDED THROUGH ANY OF THE FOLLOWING: (I) SHARED EXPENSE CARPOOL OR VANPOOL ARRANGEMENTS, INCLUDING THOSE AS DEFINED IN SECTION ONE HUNDRED FIFTY-EIGHT-B OF THE VEHICLE AND TRAFFIC LAW; (II) USE OF A TAXICAB, LIVERY, LUXURY LIMOUSINE, OR OTHER FOR-HIRE VEHICLE, AS DEFINED IN THE VEHICLE AND TRAFFIC LAW, SECTION 19-502 OF THE NEW YORK CITY ADMINISTRATIVE CODE, OR AS OTHERWISE DEFINED IN LOCAL LAW; AND (III) A REGIONAL TRANSPORTATION PROVIDER. 7. "GROUP POLICY" MEANS AN INSURANCE POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSURANCE LAW. § 1692. GENERAL PROVISIONS. 1. A TNC OR A TNC DRIVER IS NOT A COMMON CARRIER, AS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE TRANSPORTA- TION LAW; A CONTRACT CARRIER OF PASSENGERS BY MOTOR VEHICLE, AS DEFINED IN SUBDIVISION NINE OF SECTION TWO OF THE TRANSPORTATION LAW; OR A MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION TWO OF THE TRANSPORTATION LAW; NOR DO THEY PROVIDE TAXICAB OR FOR-HIRE VEHICLE SERVICE. MOREOVER, A TNC DRIVER SHALL NOT BE REQUIRED TO REGISTER THE TNC VEHICLE SUCH TNC DRIVER USES FOR TNC PREARRANGED TRIPS AS A COMMER- CIAL OR FOR-HIRE VEHICLE, AS SET FORTH IN ARTICLE FOURTEEN OF THIS CHAP- TER. 2. A TNC MAY NOT OPERATE IN THE STATE OF NEW YORK WITHOUT FIRST HAVING OBTAINED A LICENSE ISSUED BY THE DEPARTMENT IN A FORM AND MANNER AND WITH APPLICABLE FEES AS PROVIDED FOR BY REGULATIONS PROMULGATED BY THE COMMISSIONER. AS A CONDITION OF OBTAINING A LICENSE, A TNC SHALL BE REQUIRED TO SUBMIT TO THE DEPARTMENT PROOF OF A GROUP POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSUR- ANCE LAW. FAILURE OF A TNC TO OBTAIN A LICENSE BEFORE OPERATION, PURSU- ANT TO THIS SUBDIVISION SHALL CONSTITUTE A MISDEMEANOR. NO LICENSE SHALL BE SUSPENDED OR REVOKED EXCEPT UPON NOTICE TO THE TNC AND AFTER AN OPPORTUNITY TO BE HEARD. 3. A TNC MUST MAINTAIN AN AGENT FOR SERVICE OF PROCESS IN THE STATE OF NEW YORK. 4. ON BEHALF OF A TNC DRIVER, A TNC MAY CHARGE A FARE FOR THE SERVICES PROVIDED TO PASSENGERS; PROVIDED THAT, IF A FARE IS COLLECTED FROM A PASSENGER, THE TNC SHALL DISCLOSE TO THE PASSENGERS THE FARE OR FARE CALCULATION METHOD ON ITS WEBSITE OR WITHIN THE APPLICATION SERVICE. THE TNC SHALL ALSO PROVIDE THE PASSENGERS WITH THE APPLICABLE RATES BEING CHARGED AND AN ESTIMATED FARE BEFORE THE PASSENGER ENTERS THE TNC VEHI- CLE. S. 2008 19 A. 3008 5. A TNC'S DIGITAL NETWORK SHALL DISPLAY A PICTURE OF THE TNC DRIVER, AND THE MAKE, MODEL, COLOR AND LICENSE PLATE NUMBER OF THE TNC VEHICLE UTILIZED FOR PROVIDING THE TNC PREARRANGED TRIP BEFORE THE PASSENGER ENTERS THE TNC VEHICLE. 6. WITHIN A REASONABLE PERIOD OF TIME FOLLOWING THE COMPLETION OF A TRIP, A TNC SHALL TRANSMIT AN ELECTRONIC RECEIPT TO THE PASSENGER ON BEHALF OF THE TNC DRIVER THAT LISTS: (A) THE ORIGIN AND DESTINATION OF THE TRIP; (B) THE TOTAL TIME AND DISTANCE OF THE TRIP; AND (C) AN ITEMIZATION OF THE TOTAL FARE PAID, IF ANY. 7. A TNC DRIVER SHALL NOT SOLICIT OR ACCEPT STREET HAILS. 8. A TNC SHALL ADOPT A POLICY PROHIBITING SOLICITATION OR ACCEPTANCE OF CASH PAYMENTS FOR THE FARES CHARGED TO PASSENGERS FOR TNC PREARRANGED TRIPS AND NOTIFY TNC DRIVERS OF SUCH POLICY. TNC DRIVERS SHALL NOT SOLICIT OR ACCEPT CASH PAYMENTS FROM PASSENGERS. 9. NOTHING IN THIS ARTICLE SHALL APPLY TO CITIES WITH A POPULATION OF ONE MILLION OR MORE. § 1693. FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK COMPANIES. 1. A TNC DRIVER, OR TNC ON THE TNC DRIVER'S BEHALF THROUGH A GROUP POLI- CY, SHALL MAINTAIN INSURANCE THAT RECOGNIZES THAT THE DRIVER IS A TNC DRIVER AND PROVIDES FINANCIAL RESPONSIBILITY COVERAGE: (A) WHILE THE TNC DRIVER IS LOGGED ONTO THE TNC'S DIGITAL NETWORK; AND (B) WHILE THE TNC DRIVER IS ENGAGED IN A TNC PREARRANGED TRIP. 2. (A) THE FOLLOWING AUTOMOBILE FINANCIAL RESPONSIBILITY INSURANCE REQUIREMENTS SHALL APPLY WHILE A TNC DRIVER IS LOGGED ONTO THE TNC'S DIGITAL NETWORK AND IS AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT IS NOT ENGAGED IN A TNC PREARRANGED TRIP: INSURANCE AGAINST LOSS FROM THE LIABILITY IMPOSED BY LAW FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND LOSS OF SERVICES, BECAUSE OF BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF PROPERTY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, USE OR OPERATION OF A PERSONAL VEHICLE OR VEHICLES WITHIN THIS STATE, EXCLUSIVE OF INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE, OF AT LEAST FIFTY THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH OF ONE PERSON IN ANY ONE ACCIDENT AND, SUBJECT TO SAID LIMIT FOR ONE PERSON, TO A LIMIT OF AT LEAST ONE HUNDRED THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH OF TWO OR MORE PERSONS IN ANY ONE ACCIDENT, AND TO A LIMIT OF AT LEAST TWENTY-FIVE THOUSAND DOLLARS BECAUSE OF INJURY TO OR DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT PROVIDED, HOWEVER, THAT SUCH POLICY NEED NOT BE FOR A PERIOD COTERMINOUS WITH THE REGISTRATION PERIOD OF THE PERSONAL VEHICLE INSURED, AND COVERAGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THE INSURANCE LAW, ARTICLE FIFTY-ONE OF THE INSURANCE LAW, AND SUCH OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE. (B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY BE SATISFIED BY ANY OF THE FOLLOWING: (I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR (II) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE TNC; OR (III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH. 3. (A) THE FOLLOWING AUTOMOBILE FINANCIAL RESPONSIBILITY INSURANCE REQUIREMENTS SHALL APPLY WHILE A TNC DRIVER IS ENGAGED IN A TNC PREAR- RANGED TRIP: INSURANCE AGAINST LOSS FROM THE LIABILITY IMPOSED BY LAW FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND LOSS OF SERVICES, BECAUSE OF S. 2008 20 A. 3008 BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF PROPERTY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, USE, OR OPERATION OF A PERSONAL VEHICLE OR VEHICLES WITHIN THIS STATE, SUBJECT TO A LIMIT, EXCLUSIVE OF INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE, OF AT LEAST ONE MILLION DOLLARS BECAUSE OF BODILY INJURIES, DEATH AND PROPERTY DAMAGE, PROVIDED, HOWEVER, THAT SUCH POLICY NEED NOT BE FOR A PERIOD COTERMINOUS WITH THE REGISTRATION PERIOD OF THE PERSONAL VEHICLE INSURED, AND COVERAGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THE INSURANCE LAW, ARTICLE FIFTY-ONE OF THE INSURANCE LAW, AND SUCH OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE. (B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY BE SATISFIED BY ANY OF THE FOLLOWING: (I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR (II) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE TNC; OR (III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH. 4. A TNC SHALL, UPON ENTERING INTO A CONTRACTUAL AGREEMENT WITH A TNC DRIVER, PROVIDE NOTICE TO THE TNC DRIVER THAT HE OR SHE MAY NEED ADDI- TIONAL INSURANCE COVERAGE INCLUDING MOTOR VEHICLE PHYSICAL DAMAGE COVER- AGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW IF THE TNC VEHICLE BEING USED BY THE TNC DRIVER IS SUBJECT TO A LEASE OR LOAN. A TNC SHALL ALSO POST THIS NOTICE ON ITS WEBSITE. 5. IF INSURANCE MAINTAINED BY A TNC DRIVER PURSUANT TO SUBDIVISIONS TWO AND THREE OF THIS SECTION HAS LAPSED OR DOES NOT PROVIDE THE REQUIRED COVERAGE, THEN THE GROUP POLICY MAINTAINED BY A TNC SHALL PROVIDE THE COVERAGE REQUIRED BY THIS SECTION BEGINNING WITH THE FIRST DOLLAR OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM. 6. COVERAGE UNDER A GROUP POLICY MAINTAINED BY THE TNC SHALL NOT BE DEPENDENT ON THE DENIAL OF A CLAIM BY THE INSURER THAT ISSUED THE INSUR- ANCE POLICY USED TO REGISTER THE TNC VEHICLE, NOR SHALL THAT INSURER BE REQUIRED TO FIRST DENY A CLAIM. 7. (A) EXCEPT AS PROVIDED IN SUBDIVISION TWO OF THIS SECTION, A GROUP POLICY MAINTAINED BY A TNC PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISIONS TWO OR THREE OF THIS SECTION SHALL BE PLACED WITH AN INSURER AUTHORIZED TO WRITE INSURANCE IN THIS STATE. (B) IF A TNC IS UNABLE TO PURCHASE A GROUP POLICY PURSUANT TO SUBPARA- GRAPH (II) OF PARAGRAPH (B) OF SUBDIVISIONS TWO OR THREE OF THIS SECTION BECAUSE SUCH INSURANCE IS UNAVAILABLE FROM AUTHORIZED INSURERS THE TNC MAY ACQUIRE SUCH GROUP INSURANCE WITH AN EXCESS LINE BROKER PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW. (C) THE OBLIGATION TO DETERMINE WHETHER THE INSURANCE REQUIRED BY THIS SECTION IS UNAVAILABLE FROM INSURERS AUTHORIZED TO WRITE INSURANCE IN THIS STATE SHALL BE MADE PRIOR TO THE INITIAL PLACEMENT AND EACH RENEWAL OF A POLICY. 8. INSURANCE SATISFYING THE REQUIREMENTS OF THIS SECTION MAY BE USED, WHEN THE TNC VEHICLE IS BEING USED OR OPERATED DURING THE PERIOD SPECI- FIED IN SUBDIVISION ONE OF THIS SECTION, TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THIS CHAPTER, AND ANY OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE. S. 2008 21 A. 3008 9. A TNC DRIVER SHALL CARRY PROOF OF COVERAGE SATISFYING SUBDIVISIONS TWO AND THREE OF THIS SECTION WITH HIM OR HER AT ALL TIMES DURING HIS OR HER USE OR OPERATION OF A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL NETWORK. SUCH PROOF OF COVERAGE SHALL BE IN SUCH FORM AS THE COMMISSION- ER SHALL PRESCRIBE, WHICH MAY BE IN THE FORM OF AN INSURANCE IDENTIFICA- TION CARD AS DEFINED IN SECTION THREE HUNDRED ELEVEN OF THIS CHAPTER. ANY INSURANCE IDENTIFICATION CARD ISSUED PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL BE IN ADDITION TO THE INSURANCE IDENTIFICATION CARD REQUIRED PURSUANT TO ARTICLE SIX OF THIS CHAPTER, AND NOTHING CONTAINED IN THIS ARTICLE SHALL BE DEEMED TO SUPERSEDE THE REQUIREMENTS OF SUCH ARTICLE SIX. WHENEVER THE PRODUCTION OF AN INSURANCE IDENTIFICATION CARD IS REQUIRED BY LAW, A TNC DRIVER SHALL (A) PRODUCE THE INSURANCE IDEN- TIFICATION CARD ISSUED PURSUANT TO ARTICLE SIX OF THIS CHAPTER AND, (B) IF SUCH DRIVER EITHER (I) WAS LOGGED ONTO THE TNC'S DIGITAL NETWORK OR (II) WAS ENGAGED IN A TNC PREARRANGED TRIP AND THE ACTIVITY UNDER THIS SUBDIVISION IS BEING COVERED PRIMARILY BY INSURANCE PURCHASED BY A TNC SUCH DRIVER SHALL ALSO PRODUCE THE INSURANCE IDENTIFICATION CARD REQUIRED PURSUANT TO THIS ARTICLE. 10. THE SUPERINTENDENT OF FINANCIAL SERVICES IS AUTHORIZED TO ISSUE SUCH RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION. 11. NOTHING IN THIS SECTION SHALL IMPOSE FINANCIAL RESPONSIBILITY REQUIREMENTS UPON ANY ENTITIES OPERATING AS VEHICLES FOR HIRE IN A CITY WITH A POPULATION OF ONE MILLION OR MORE. 12. A GROUP POLICY PLACED BY AN EXCESS LINE BROKER UNDER PARAGRAPH (B) OF SUBDIVISION SEVEN OF THIS SECTION SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A POLICY ISSUED PURSUANT TO THIS SECTION. NOTHING IN THIS SECTION SUPERCEDES THE MANDATORY ARBITRATION REQUIREMENTS CONTAINED IN SECTION FIVE THOUSAND ONE HUNDRED FIVE OF THE INSURANCE LAW. § 1694. DISCLOSURES. A TNC SHALL DISCLOSE IN WRITING TO TNC DRIVERS THE FOLLOWING BEFORE THEY ARE ALLOWED TO ACCEPT A REQUEST FOR A TNC PREARRANGED TRIP ON THE TNC'S DIGITAL NETWORK: 1. THE INSURANCE COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE LIMITS FOR EACH COVERAGE, THAT THE TNC PROVIDES WHILE THE TNC DRIVER USES A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL NETWORK; 2. THAT THE TNC DRIVER'S OWN AUTOMOBILE INSURANCE POLICY MIGHT NOT PROVIDE ANY COVERAGE WHILE THE TNC DRIVER IS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND IS AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A TNC PREARRANGED TRIP, DEPENDING ON ITS TERMS; AND 3. THAT, IF A TNC VEHICLE HAS A LIEN AGAINST IT, THEN THE CONTINUED USE OF SUCH TNC VEHICLE BY ITS TNC DRIVER WITHOUT PHYSICAL DAMAGE COVER- AGE MAY VIOLATE THE TERMS OF THE CONTRACT WITH THE LIENHOLDER. § 1695. INSURANCE PROVISIONS. 1. INSURERS THAT WRITE MOTOR VEHICLE INSURANCE IN THIS STATE MAY, IN THE INSURANCE POLICY, EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER THE POLICY ISSUED TO AN OWNER OR OPERATOR OF A TNC VEHICLE FOR ANY LOSS OR INJURY THAT OCCURS WHILE A TNC DRIVER IS LOGGED ON TO A TNC'S DIGITAL NETWORK OR WHILE A DRIVER PROVIDES A PREAR- RANGED TRIP, INCLUDING: (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE; (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THE INSURANCE LAW; (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW. S. 2008 22 A. 3008 2. SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT UNDER THE LAW TO THE CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES THAT AN OWNER'S POLICY OF LIABILITY INSURANCE OR OTHER MOTOR VEHICLE INSURANCE POLICY PROVIDE COVERAGE WHILE THE TNC DRIVER IS LOGGED ON TO THE TNC'S DIGITAL NETWORK, WHILE THE TNC DRIVER IS ENGAGED IN A TNC PREARRANGED TRIP OR WHILE THE TNC DRIVER OTHERWISE USES OR OPERATES A TNC VEHICLE TO TRANSPORT PASSENGERS FOR COMPENSATION. 3. NOTHING SHALL BE DEEMED TO PRECLUDE AN INSURER FROM PROVIDING PRIMARY, EXCESS, OR UMBRELLA COVERAGE FOR THE TNC DRIVER'S TNC VEHICLE, IF IT CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT. 4. MOTOR VEHICLE INSURERS THAT EXCLUDE THE COVERAGE DESCRIBED IN THIS ARTICLE SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY ANY CLAIM EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL BE DEEMED TO INVALI- DATE OR LIMIT AN EXCLUSION CONTAINED IN A POLICY INCLUDING ANY POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. 5. A MOTOR VEHICLE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM AGAINST A TNC DRIVER THAT IS EXCLUDED UNDER THE TERMS OF ITS POLICY SHALL HAVE A RIGHT OF CONTRIBUTION AGAINST OTHER INSURERS THAT PROVIDE MOTOR VEHICLE INSURANCE TO THE SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE- MENTS OF THE PROVISIONS OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN WHICH ADDED THIS ARTICLE AT THE TIME OF LOSS. 6. IN A CLAIMS COVERAGE INVESTIGATION, A TNC AND ANY INSURER POTEN- TIALLY PROVIDING COVERAGE UNDER THIS ARTICLE SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED, FACILITATE THE EXCHANGE OF RELEVANT INFOR- MATION WITH DIRECTLY INVOLVED PARTIES AND ANY INSURER OF THE TNC DRIVER IF APPLICABLE, INCLUDING THE PRECISE TIMES THAT A TNC DRIVER LOGGED ON AND OFF OF THE TNC'S DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMME- DIATELY PRECEDING AND IN THE TWELVE HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE TO ONE ANOTHER A CLEAR DESCRIPTION OF THE COVERAGE, EXCLUSIONS AND LIMITS PROVIDED UNDER ANY MOTOR VEHICLE INSUR- ANCE MAINTAINED UNDER THIS ARTICLE. 7. (A) THE COMMISSIONER SHALL PROMULGATE REGULATIONS FOR THE PROVISION OF RELEVANT INSURANCE COVERAGE INFORMATION REQUIRED BY THIS ARTICLE TO THE FOLLOWING PERSONS UPON REQUEST: (I) A PERSON TO WHOM AN ACCIDENT REPORT PERTAINS OR WHO IS NAMED IN SUCH REPORT, OR HIS OR HER AUTHORIZED REPRESENTATIVE; AND (II) ANY OTHER PERSON OR HIS OR HER AUTHORIZED REPRESENTATIVE WHO HAS DEMONSTRATED TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH PERSON IS OR MAY BE A PARTY TO A CIVIL ACTION ARISING OUT OF THE CONDUCT DESCRIBED IN SUCH ACCIDENT REPORT. (B) EXCEPT AS PROVIDED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, THE NAME OF A TNC DRIVER ASSOCIATED WITH SUCH INSURANCE INFORMATION IS DESIGNATED CONFIDENTIAL WHETHER OR NOT SO MARKED, IS NOT SUBJECT TO DISCLOSURE BY A THIRD PARTY BY THE DEPARTMENT OF MOTOR VEHICLES WITHOUT PRIOR CONSENT OF THE TNC, AND IS EXEMPT FROM DISCLOSURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW. NOTHING IN THIS SECTION SHALL BE CONSIDERED AS LIMITING THE APPLICABILITY OF ANY OTHER EXEMPTIONS UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 1696. DRIVER AND VEHICLE REQUIREMENTS. 1. (A) AT ALL TIMES, AN INDI- VIDUAL ACTING AS A TNC DRIVER SHALL BE PERMITTED BY THE TNC AS FOLLOWS: (I) THE INDIVIDUAL SHALL SUBMIT AN APPLICATION TO THE TNC, WHICH SHALL INCLUDE INFORMATION REGARDING HIS OR HER ADDRESS, AGE, DRIVER'S LICENSE, MOTOR VEHICLE REGISTRATION, AUTOMOBILE LIABILITY INSURANCE, AND OTHER INFORMATION REQUIRED BY THE TNC; S. 2008 23 A. 3008 (II) THE TNC SHALL CONDUCT OR HAVE A THIRD PARTY CONDUCT, A LOCAL AND NATIONAL, CRIMINAL BACKGROUND CHECK FOR EACH APPLICANT IN ACCORDANCE WITH SECTION SIXTEEN HUNDRED NINETY-NINE OF THIS ARTICLE AND THAT SHALL REVIEW: (A) WHETHER THE APPLICANT IS LISTED ON THE PUBLICLY AVAILABLE NEW YORK STATE SEX OFFENDER REGISTRY PURSUANT TO SECTION ONE HUNDRED SIXTY-EIGHT-Q OF THE CORRECTION LAW; AND (B) THE UNITED STATES DEPARTMENT OF JUSTICE NATIONAL SEX OFFENDER PUBLIC WEBSITE; (III) THE TNC SHALL OBTAIN AND REVIEW, OR HAVE A THIRD PARTY OBTAIN AND REVIEW, A DRIVING HISTORY RESEARCH REPORT FOR SUCH INDIVIDUAL. (B) THE TNC SHALL NOT PERMIT AN APPLICANT WHERE SUCH APPLICANT: (I) FAILS TO MEET ALL QUALIFICATIONS PURSUANT TO SECTION SIXTEEN HUNDRED NINETY-NINE OF THIS ARTICLE; (II) IS A MATCH IN THE UNITED STATES DEPARTMENT OF JUSTICE NATIONAL SEX OFFENDER PUBLIC WEBSITE; (III) DOES NOT POSSESS A VALID NEW YORK DRIVER'S LICENSE, UNLESS SUCH APPLICANT DOES POSSESS A VALID OUT OF STATE DRIVER'S LICENSE AND PROOF THAT SUCH APPLICANT IS AN ACTIVE DUTY MEMBER OF THE ARMED SERVICES OF THE UNITED STATES STATIONED IN THIS STATE OR IS A FAMILY OR HOUSEHOLD MEMBER OF SUCH AN ACTIVE DUTY MEMBER; (IV) DOES NOT POSSESS PROOF OF REGISTRATION FOR THE MOTOR VEHICLE(S) USED TO PROVIDE TNC PREARRANGED TRIPS; (V) DOES NOT POSSESS PROOF OF AUTOMOBILE LIABILITY INSURANCE FOR THE MOTOR VEHICLE(S) USED TO PROVIDE TNC PREARRANGED TRIPS AS A TNC VEHICLE; OR (VI) IS NOT AT LEAST NINETEEN YEARS OF AGE. (C) UPON REVIEW OF ALL INFORMATION RECEIVED AND RETAINED BY THE TNC AND UPON VERIFYING THAT THE INDIVIDUAL IS NOT DISQUALIFIED PURSUANT TO THIS SECTION FROM RECEIVING A TNC DRIVER PERMIT, A TNC MAY ISSUE A TNC DRIVER PERMIT TO THE APPLICANT. THE TNC SHALL REVIEW ALL INFORMATION RECEIVED RELATING TO SUCH APPLICANT AND HOLD SUCH INFORMATION FOR SIX YEARS ALONG WITH A CERTIFICATION THAT SUCH APPLICANT QUALIFIES TO RECEIVE A TNC DRIVER PERMIT. (D) A TNC THAT ISSUES A TNC DRIVER'S PERMIT PURSUANT TO THIS SECTION SHALL PARTICIPATE IN THE NEW YORK LICENSE EVENT NOTIFICATION SERVICE (LENS) ESTABLISHED BY THE DEPARTMENT TO OBTAIN TIMELY NOTICE WHEN ANY OF THE FOLLOWING VIOLATIONS ARE ADDED TO A TNC DRIVER'S DRIVING RECORD: (I) UNLAWFULLY FLEEING A POLICE OFFICER IN A MOTOR VEHICLE IN VIOLATION OF SECTIONS 270.25, 270.30 OR 270.35 OF THE PENAL LAW; (II) RECKLESS DRIVING IN VIOLATION OF SECTION ONE THOUSAND TWO HUNDRED TWELVE OF THIS CHAPTER; (III) OPERATING WHILE LICENSE OR PRIVILEGE IS SUSPENDED OR REVOKED IN VIOLATION OF SECTION FIVE HUNDRED ELEVEN OF THIS CHAPTER, EXCLUDING SUBDIVISION SEVEN OF SUCH SECTION; (IV) OPERATING A MOTOR VEHICLE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS IN VIOLATION OF SECTION ONE THOUSAND ONE HUNDRED NINETY-TWO OF THIS CHAPTER; AND (V) LEAVING THE SCENE OF AN INCIDENT WITHOUT REPORTING IN VIOLATION OF SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER. (E) THE NAME OF A TNC DRIVER ASSOCIATED WITH ENROLLMENT IN THE DEPART- MENT'S LENS REPORTING SYSTEM IS DESIGNATED CONFIDENTIAL WHETHER OR NOT SO MARKED, IS NOT SUBJECT TO DISCLOSURE TO A THIRD PARTY BY THE DEPART- MENT WITHOUT PRIOR CONSENT OF THE TNC, AND IS EXEMPT FROM DISCLOSURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW. NOTHING IN THIS S. 2008 24 A. 3008 SECTION SHALL BE CONSTRUED AS LIMITING THE APPLICABILITY OF ANY OTHER EXEMPTIONS UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. (F) NO PERSON SHALL OPERATE A TNC VEHICLE OR OPERATE AS A TNC DRIVER UNLESS SUCH PERSON HOLDS A VALID TNC DRIVER PERMIT ISSUED PURSUANT TO THIS SECTION. A VIOLATION OF THIS PARAGRAPH SHALL BE A TRAFFIC INFRAC- TION PUNISHABLE BY A FINE OF NOT LESS THAN SEVENTY-FIVE NOR MORE THAN THREE HUNDRED DOLLARS, OR BY IMPRISONMENT FOR NOT MORE THAN FIFTEEN DAYS, OR BY BOTH SUCH FINE AND IMPRISONMENT. 2. A TNC SHALL IMPLEMENT A ZERO-TOLERANCE POLICY REGARDING A TNC DRIV- ER'S ACTIVITIES WHILE ACCESSING THE TNC'S DIGITAL NETWORK. SUCH POLICY SHALL ADDRESS THE ISSUE OF OPERATING A VEHICLE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS WHILE A TNC DRIVER IS PROVIDING TNC PREARRANGED TRIPS OR IS LOGGED ONTO THE TNC'S DIGITAL NETWORK BUT IS NOT PROVIDING TNC PREARRANGED TRIPS, AND THE TNC SHALL PROVIDE NOTICE OF THIS POLICY ON ITS DIGITAL NETWORK, AS WELL AS PROCEDURES TO REPORT A COMPLAINT ABOUT A TNC DRIVER WITH WHOM A TNC PREARRANGED TRIP WAS COMMENCED AND WHOM THE PASSENGER REASONABLY SUSPECTS WAS OPERATING A VEHICLE UNDER THE INFLU- ENCE OF ALCOHOL OR DRUGS DURING THE COURSE OF THE TNC PREARRANGED TRIP. 3. (A) A TNC SHALL ADOPT A POLICY OF NON-DISCRIMINATION ON THE BASIS OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE OR AFFILIATION, SEX, DISABILITY, AGE, SEXUAL ORIENTATION, GENDER IDENTI- TY, OR GENETIC PREDISPOSITION WITH RESPECT TO PASSENGERS AND POTENTIAL PASSENGERS AND NOTIFY TNC DRIVERS OF SUCH POLICY. (B) TNC DRIVERS SHALL COMPLY WITH ALL APPLICABLE LAWS REGARDING NON- DISCRIMINATION AGAINST PASSENGERS OR POTENTIAL PASSENGERS ON THE BASIS OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE OR AFFILIATION, SEX, DISABILITY, AGE, SEXUAL ORIENTATION, GENDER IDENTI- TY, OR GENETIC PREDISPOSITION. (C) TNC DRIVERS SHALL COMPLY WITH ALL APPLICABLE LAWS RELATING TO ACCOMMODATION OF SERVICE ANIMALS. (D) A TNC SHALL IMPLEMENT AND MAINTAIN A POLICY OF PROVIDING ACCESSI- BILITY TO PASSENGERS OR POTENTIAL PASSENGERS WITH A DISABILITY AND ACCOMMODATION OF SERVICE ANIMALS AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED TWENTY-THREE-B OF THE AGRICULTURE AND MARKETS LAW AND SHALL TO THE EXTENT PRACTICABLE ADOPT FINDINGS ESTABLISHED BY THE NEW YORK STATE TNC ACCESSIBILITY TASK FORCE ADOPTED PURSUANT TO SECTION EIGHTEEN OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS SECTION. A TNC SHALL NOT IMPOSE ADDITIONAL CHARGES FOR PROVIDING SERVICES TO PERSONS WITH PHYSICAL DISABILITIES BECAUSE OF THOSE DISABILITIES. 4. A TNC SHALL REQUIRE THAT ANY MOTOR VEHICLE(S) THAT A TNC DRIVER WILL USE AS A TNC VEHICLE TO PROVIDE TNC PREARRANGED TRIPS MEETS APPLI- CABLE NEW YORK STATE VEHICLE SAFETY AND EMISSIONS REQUIREMENTS, AS SET FORTH IN SECTION THREE HUNDRED ONE OF THIS CHAPTER, OR THE VEHICLE SAFE- TY AND EMISSIONS REQUIREMENTS OF THE STATE IN WHICH THE VEHICLE IS REGISTERED. 5. A TNC DRIVER SHALL DISPLAY A CONSISTENT AND DISTINCTIVE TRADE DRESS CONSISTING OF A REMOVABLE LOGO, INSIGNIA, OR EMBLEM AT ALL TIMES THE DRIVER IS PROVIDING TNC SERVICES. THE TRADE DRESS SHALL BE: (A) SUFFICIENTLY LARGE AND COLOR CONTRASTED SO AS TO BE READABLE DURING DAYLIGHT HOURS AT A DISTANCE OF FIFTY FEET; AND (B) REFLECTIVE, ILLUMINATED, OR OTHERWISE PATENTLY VISIBLE IN THE DARKNESS. § 1697. MAINTENANCE OF RECORDS. A TNC SHALL MAINTAIN THE FOLLOWING RECORDS: 1. INDIVIDUAL TRIP RECORDS FOR AT LEAST SIX YEARS FROM THE DATE EACH TRIP WAS PROVIDED; AND S. 2008 25 A. 3008 2. INDIVIDUAL RECORDS OF TNC DRIVERS AT LEAST UNTIL THE SIX YEAR ANNI- VERSARY OF THE DATE ON WHICH A TNC DRIVER'S RELATIONSHIP WITH THE TNC HAS ENDED. § 1698. AUDIT PROCEDURES; CONFIDENTIALITY OF RECORDS. 1. FOR THE SOLE PURPOSE OF VERIFYING THAT A TNC IS IN COMPLIANCE WITH THE REQUIREMENTS OF THIS ARTICLE AND NO MORE THAN BIANNUALLY, THE DEPARTMENT SHALL RESERVE THE RIGHT TO VISUALLY INSPECT A SAMPLE OF RECORDS THAT THE TNC IS REQUIRED TO MAINTAIN, UPON REQUEST BY THE DEPARTMENT THAT SHALL BE FULFILLED IN NO LESS THAN THIRTY BUSINESS DAYS BY THE TNC. THE SAMPLE SHALL BE CHOSEN RANDOMLY BY THE DEPARTMENT IN A MANNER AGREEABLE TO BOTH PARTIES. THE AUDIT SHALL TAKE PLACE AT A MUTUALLY AGREED LOCATION IN NEW YORK. ANY RECORD FURNISHED TO THE DEPARTMENT MAY EXCLUDE INFORMATION THAT WOULD TEND TO IDENTIFY SPECIFIC DRIVERS OR PASSENGERS. 2. (A) THE TNC SHALL ESTABLISH A COMPLAINT PROCEDURE THAT ALLOWS PASSENGERS TO FILE COMPLAINTS WITH THE TNC THROUGH THE TNC'S WEBSITE, MOBILE APPLICATION, EMAIL ADDRESS, OR PHONE NUMBER. (B) THE TNC'S WEBSITE SHALL ALSO PROVIDE A PASSENGER COMPLAINT TELE- PHONE NUMBER AND/OR WEBSITE ADDRESS FOR THE DEPARTMENT, IF APPLICABLE. (C) IN RESPONSE TO A SPECIFIC COMPLAINT AGAINST ANY TNC DRIVER OR TNC, THE DEPARTMENT IS AUTHORIZED TO INSPECT RECORDS HELD BY THE TNC THAT ARE NECESSARY TO INVESTIGATE AND RESOLVE THE COMPLAINT. THE TNC AND THE DEPARTMENT SHALL ENDEAVOR TO HAVE THE INSPECTION TAKE PLACE AT A MUTUAL- LY AGREED LOCATION IN NEW YORK. ANY RECORD FURNISHED TO THE DEPARTMENT MAY EXCLUDE INFORMATION THAT WOULD TEND TO IDENTIFY SPECIFIC DRIVERS OR PASSENGERS, UNLESS THE IDENTITY OF A DRIVER OR PASSENGER IS RELEVANT TO THE COMPLAINT. (D) ANY RECORDS INSPECTED BY THE DEPARTMENT UNDER THIS SECTION ARE DESIGNATED CONFIDENTIAL, ARE NOT SUBJECT TO DISCLOSURE TO A THIRD PARTY BY THE DEPARTMENT WITHOUT PRIOR CONSENT OF THE TNC, AND ARE EXEMPT FROM DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. NOTHING IN THIS SECTION SHALL BE CONSTRUED AS LIMITING THE APPLICABILITY OF ANY OTHER EXEMPTION UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. 3. THE DEPARTMENT SHALL PROMULGATE REGULATIONS FOR THE FILING OF COMPLAINTS PURSUANT TO THIS SECTION. § 1699. CRIMINAL HISTORY BACKGROUND CHECK OF TRANSPORTATION NETWORK COMPANY DRIVERS. 1. A TNC SHALL CONDUCT A CRIMINAL HISTORY BACKGROUND CHECK USING A LAWFUL METHOD APPROVED BY THE DEPARTMENT PURSUANT TO PARA- GRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR PERSONS APPLYING TO DRIVE FOR SUCH COMPANY. 2. (A) THE METHOD USED TO CONDUCT A CRIMINAL HISTORY BACKGROUND CHECK PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE ESTABLISHED IN REGULATIONS ADOPTED BY THE DEPARTMENT WITHIN THIRTY DAYS OF THE EFFEC- TIVE DATE OF THIS SUBDIVISION. SUCH REGULATIONS SHALL ESTABLISH THE METHOD USED TO CONDUCT SUCH BACKGROUND CHECKS AND ANY PROCESSES AND OPERATIONS NECESSARY TO COMPLETE SUCH CHECKS. THE REVIEW OF CRIMINAL HISTORY INFORMATION AND DETERMINATIONS ABOUT WHETHER OR NOT AN APPLICANT IS ISSUED A TNC DRIVER PERMIT SHALL BE CONTROLLED BY PARAGRAPHS (B), (C) AND (D) OF THIS SUBDIVISION. (B) AN APPLICANT SHALL BE DISQUALIFIED TO RECEIVE A TNC DRIVER PERMIT WHERE HE OR SHE: (I) STANDS CONVICTED IN THE LAST THREE YEARS OF: UNLAWFUL FLEEING A POLICE OFFICER IN A MOTOR VEHICLE IN VIOLATION OF SECTIONS 270.35, 270.30 OR 270.25 OF THE PENAL LAW, RECKLESS DRIVING IN VIOLATION OF SECTION TWELVE HUNDRED TWELVE OF THIS CHAPTER, OPERATING WHILE LICENSE OR PRIVILEGE IS SUSPENDED OR REVOKED IN VIOLATION OF SECTION FIVE HUNDRED ELEVEN OF THIS CHAPTER, EXCLUDING SUBDIVISION SEVEN OF SUCH S. 2008 26 A. 3008 SECTION, A MISDEMEANOR OFFENSE OF OPERATING A MOTOR VEHICLE WHILE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS IN VIOLATION OF SECTION ONE THOUSAND ONE HUNDRED NINETY-TWO OF THIS CHAPTER, OR LEAVING THE SCENE OF AN ACCI- DENT IN VIOLATION OF SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER. IN CALCULATING THE THREE YEAR PERIOD UNDER THIS SUBPARAGRAPH, ANY PERIOD OF TIME DURING WHICH THE PERSON WAS INCARCERATED AFTER THE COMMISSION OF SUCH OFFENSE SHALL BE EXCLUDED AND SUCH THREE YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SPENT INCAR- CERATED AND SHALL BE DETERMINED IN A MANNER CONSISTENT WITH REGULATIONS ESTABLISHED BY THE DEPARTMENT; OR (II) STANDS CONVICTED IN THE LAST SEVEN YEARS OF: A SEX OFFENSE DEFINED IN SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-EIGHT-A OF THE CORRECTION LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED TWENTY- FIVE OF THE PENAL LAW, A VIOLENT FELONY OFFENSE DEFINED IN SECTION 70.02 OF THE PENAL LAW, A CLASS A FELONY OFFENSE DEFINED IN THE PENAL LAW, VEHICULAR ASSAULT AS DEFINED IN SECTION 120.03, 120.04 OR 120.04-A OF THE PENAL LAW, A FELONY OFFENSE DEFINED IN SECTION ELEVEN HUNDRED NINE- TY-TWO OF THIS CHAPTER, AN OFFENSE FOR WHICH REGISTRATION AS A SEX OFFENDER IS REQUIRED PURSUANT TO ARTICLE SIX-C OF THE CORRECTION LAW, OR ANY CONVICTION OF AN OFFENSE IN ANY OTHER JURISDICTION THAT HAS ALL THE ESSENTIAL ELEMENTS OF AN OFFENSE LISTED IN THIS SUBPARAGRAPH. IN CALCU- LATING THE SEVEN YEAR PERIOD UNDER THIS SUBPARAGRAPH, ANY PERIOD OF TIME DURING WHICH THE PERSON WAS INCARCERATED AFTER THE COMMISSION OF SUCH OFFENSE SHALL BE EXCLUDED AND SUCH SEVEN YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SPENT INCARCERATED AND SHALL BE DETERMINED IN A MANNER CONSISTENT WITH REGULATIONS ESTABLISHED BY THE DEPARTMENT. (C) A CRIMINAL HISTORY RECORD THAT CONTAINS CRIMINAL CONVICTION INFOR- MATION THAT DOES NOT DISQUALIFY AN APPLICANT PURSUANT TO SUBPARAGRAPHS (I) OR (II) OF PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE REVIEWED AND CONSIDERED ACCORDING TO THE PROVISIONS OF ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW AND SUBDIVISIONS FIFTEEN AND SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW IN DETERMINING WHETHER OR NOT THE APPLICANT SHOULD BE ISSUED A TNC DRIVER'S PERMIT. (D) UPON RECEIPT OF CRIMINAL CONVICTION INFORMATION PURSUANT TO THIS SECTION FOR ANY APPLICANT, SUCH APPLICANT SHALL PROMPTLY BE PROVIDED WITH A COPY OF SUCH INFORMATION AS WELL AS A COPY OF ARTICLE TWENTY- THREE-A OF THE CORRECTION LAW. SUCH APPLICANT SHALL ALSO BE INFORMED OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFORMATION CONTAINED IN SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THE REGU- LATIONS AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES. (E) THE DEPARTMENT SHALL PROMULGATE REGULATIONS CONSISTENT WITH THE PROVISIONS OF THIS SUBDIVISION. 3. A TNC SHALL UPDATE THE CRIMINAL HISTORY BACKGROUND CHECK YEARLY DURING THE PERIOD IN WHICH THE PERSON IS AUTHORIZED TO DRIVE FOR THE COMPANY, HOWEVER, THE COMMISSIONER MAY REQUIRE, PURSUANT TO REGULATION, MORE FREQUENT CRIMINAL HISTORY BACKGROUND CHECKS. 4. A TNC SHALL BE RESPONSIBLE FOR ALL FEES ASSOCIATED WITH THE CRIMI- NAL HISTORY CHECK PURSUANT TO SUBDIVISION ONE OF THIS SECTION. 5. ANY TNC FOUND TO HAVE NEGLIGENTLY, RECKLESSLY, OR INTENTIONALLY VIOLATED ANY REQUIREMENTS ESTABLISHED PURSUANT TO THIS SECTION, SHALL ON THE FIRST INSTANCE, BE SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND DOLLARS. FOR ANY SUBSEQUENT INSTANCE WITHIN THE PERIOD OF TWO YEARS FROM ANY INITIAL VIOLATION, SUCH TNC SHALL BE SUBJECT TO A CIVIL S. 2008 27 A. 3008 PENALTY OF NOT MORE THAN FIFTY THOUSAND DOLLARS, OR THE SUSPENSION OR REVOCATION OF ITS TNC LICENSE OR BOTH. § 1700. CONTROLLING AUTHORITY. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE REGULATION OF TNCS AND TNC DRIVERS IS GOVERNED EXCLUSIVELY BY THE PROVISIONS OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN WHICH ADDED THIS SECTION AND ANY RULES PROMULGATED BY THE STATE THROUGH ITS AGENCIES CONSISTENT WITH SUCH CHAPTER. NO COUNTY, TOWN, CITY OR VILLAGE MAY ENACT A TAX OR ANY FEE OR OTHER SURCHARGE ON A TNC, A TNC DRIVER, OR A TNC VEHICLE USED BY A TNC DRIVER OR REQUIRE A LICENSE, PERMIT, OR ADDITIONAL INSURANCE COVERAGE OR ANY OTHER LIMITATIONS OR RESTRICTIONS, WHERE SUCH FEE, SURCHARGE, UNAUTHORIZED TAX, LICENSE, PERMIT, INSURANCE COVERAGE, LIMITATION OR RESTRICTION, RELATES TO FACIL- ITATING OR PROVIDING TNC PREARRANGED TRIPS, OR SUBJECTS A TNC, A TNC DRIVER, OR A TNC VEHICLE USED BY A TNC DRIVER TO OPERATIONAL, OR OTHER REQUIREMENTS. 2. NOTHING IN THIS ARTICLE SHALL AUTHORIZE ANY TNC DRIVER TO PICK-UP A PASSENGER FOR PURPOSES OF A TNC PREARRANGED TRIP IN A CITY WITH A POPU- LATION OF ONE MILLION OR MORE. 3. NOTHING IN THIS ARTICLE SHALL: (A) LIMIT THE ABILITY OF A COUNTY, TOWN, CITY OR VILLAGE TO ADOPT OR AMEND GENERALLY APPLICABLE LIMITATIONS OR RESTRICTIONS RELATING TO LOCAL TRAFFIC OR PARKING CONTROL AS AUTHOR- IZED BY STATE LAW; OR (B) TO PREEMPT ANY RECIPROCITY AGREEMENTS, INCLUD- ING AGREEMENTS ENTERED INTO PURSUANT TO SECTION FOUR HUNDRED NINETY- EIGHT OF THIS CHAPTER, BETWEEN A COUNTY, TOWN, CITY OR VILLAGE THAT RELATES TO SERVICES REGULATED BY SECTION ONE HUNDRED EIGHTY-ONE OF THE GENERAL MUNICIPAL LAW. § 3. Section 370 of the vehicle and traffic law is amended by adding a new subdivision 8 to read as follows: 8. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, AN INDIVIDUAL SHALL NOT BE DEEMED TO BE ENGAGED IN THE BUSINESS OF CARRYING OR TRANS- PORTING PASSENGERS FOR HIRE IF THE INDIVIDUAL DOES SO SOLELY AS A TRANS- PORTATION NETWORK COMPANY DRIVER IN ACCORDANCE WITH ARTICLE FORTY-FOUR-B OF THIS CHAPTER. § 4. Subdivision 1 of section 312-a of the vehicle and traffic law, as amended by chapter 781 of the laws of 1983, is amended to read as follows: 1. Upon issuance of an owner's policy of liability insurance or other financial security required by this chapter OR THE ARTICLE FORTY-FOUR-B OF THIS CHAPTER, an insurer shall issue proof of insurance in accordance with the regulations promulgated by the commissioner pursuant to para- graph (b) of subdivision two of section three hundred thirteen of this article. § 5. Section 600 of the vehicle and traffic law, as amended by chapter 49 of the laws of 2005, is amended to read as follows: § 600. Leaving scene of an incident without reporting. 1. Property damage. a. Any person operating a motor vehicle who, knowing or having cause to know that damage has been caused to the real property or to the personal property, not including animals, of another, due to an incident involving the motor vehicle operated by such person shall, before leav- ing the place where the damage occurred, stop, exhibit his or her license and insurance identification card for such vehicle, when such card is required pursuant to articles six and eight of this chapter, and give his or her name, residence, including street and number, insurance carrier and insurance identification information including but not limited to the number and effective dates of said individual's insurance policy, and license number to the party sustaining the damage, or in S. 2008 28 A. 3008 case the person sustaining the damage is not present at the place where the damage occurred then he or she shall report the same as soon as physically able to the nearest police station, or judicial officer. IN ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF THIS CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE WHILE THE INCIDENT OCCURRED WHO WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP. b. It shall be the duty of any member of a law enforcement agency who is at the scene of the accident to request the said operator or opera- tors of the motor vehicles, when physically capable of doing so, to exchange the information required hereinabove and such member of a law enforcement agency shall assist such operator or operators in making such exchange of information in a reasonable and harmonious manner. A violation of the provisions of paragraph a of this subdivision shall constitute a traffic infraction punishable by a fine of up to two hundred fifty dollars or a sentence of imprisonment for up to fifteen days or both such fine and imprisonment. 2. Personal injury. a. Any person operating a motor vehicle who, knowing or having cause to know that personal injury has been caused to another person, due to an incident involving the motor vehicle operated by such person shall, before leaving the place where the said personal injury occurred, stop, exhibit his or her license and insurance iden- tification card for such vehicle, when such card is required pursuant to articles six and eight of this chapter, and give his or her name, resi- dence, including street and street number, insurance carrier and insur- ance identification information including but not limited to the number and effective dates of said individual's insurance policy and license number, to the injured party, if practical, and also to a police offi- cer, or in the event that no police officer is in the vicinity of the place of said injury, then, he or she shall report said incident as soon as physically able to the nearest police station or judicial officer. IN ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF THIS CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE AT THE TIME OF THE INCIDENT WHO WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP. b. It shall be the duty of any member of a law enforcement agency who is at the scene of the accident to request the said operator or opera- tors of the motor vehicles, when physically capable of doing so, to exchange the information required hereinabove and such member of a law S. 2008 29 A. 3008 enforcement agency shall assist such operator or operators in making such exchange of information in a reasonable and harmonious manner. c. A violation of the provisions of paragraph a of this subdivision resulting solely from the failure of an operator to exhibit his or her license and insurance identification card for the vehicle or exchange the information required in such paragraph shall constitute a class B misdemeanor punishable by a fine of not less than two hundred fifty nor more than five hundred dollars in addition to any other penalties provided by law. Any subsequent such violation shall constitute a class A misdemeanor punishable by a fine of not less than five hundred nor more than one thousand dollars in addition to any other penalties provided by law. Any violation of the provisions of paragraph a of this subdivision, other than for the mere failure of an operator to exhibit his or her license and insurance identification card for such vehicle or exchange the information required in such paragraph, shall constitute a class A misdemeanor, punishable by a fine of not less than five hundred dollars nor more than one thousand dollars in addition to any other penalties provided by law. Any such violation committed by a person after such person has previously been convicted of such a violation shall constitute a class E felony, punishable by a fine of not less than one thousand nor more than two thousand five hundred dollars in addition to any other penalties provided by law. Any violation of the provisions of paragraph a of this subdivision, other than for the mere failure of an operator to exhibit his or her license and insurance identification card for such vehicle or exchange the information required in such para- graph, where the personal injury involved (i) results in serious phys- ical injury, as defined in section 10.00 of the penal law, shall consti- tute a class E felony, punishable by a fine of not less than one thousand nor more than five thousand dollars in addition to any other penalties provided by law, or (ii) results in death shall constitute a class D felony punishable by a fine of not less than two thousand nor more than five thousand dollars in addition to any other penalties provided by law. 3. FOR THE PURPOSES OF THIS ARTICLE, THE TERMS "TNC", "TNC DRIVER", "TNC VEHICLE", "TNC PREARRANGED TRIP" AND "DIGITAL NETWORK" SHALL HAVE THE SAME MEANINGS AS SUCH TERMS ARE DEFINED IN ARTICLE FORTY-FOUR-B OF THIS CHAPTER. § 5-a. Section 601 of the vehicle and traffic law, as amended by chap- ter 672 of the laws of 2004, is amended to read as follows: § 601. Leaving scene of injury to certain animals without reporting. Any person operating a motor vehicle which shall strike and injure any horse, dog, cat or animal classified as cattle shall stop and endeavor to locate the owner or custodian of such animal or a police, peace or judicial officer of the vicinity, and take any other reasonable and appropriate action so that the animal may have necessary attention, and shall also promptly report the matter to such owner, custodian or offi- cer (or if no one of such has been located, then to a police officer of some other nearby community), exhibiting his or her license and insur- ance identification card for such vehicle, when such card is required pursuant to articles six and eight of this chapter, giving his or her name and residence, including street and street number, insurance carri- er and insurance identification information and license number. IN ADDI- TION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF THIS CHAPTER IS SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE AT THE TIME OF THE INCIDENT WHO WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL S. 2008 30 A. 3008 NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANS- PORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREAR- RANGED TRIP. Violation of this section shall be punishable by a fine of not more than one hundred dollars for a first offense and by a fine of not less than fifty nor more than one hundred fifty dollars for a second offense and each subsequent offense; provided, however where the animal that has been struck and injured is a guide dog, hearing dog or service dog, as such terms are defined in section forty-seven-b of the civil rights law which is actually engaged in aiding or guiding a person with a disability, a violation of this section shall be [publishable] PUNISH- ABLE by a fine of not less than fifty nor more than one hundred fifty dollars for a first offense and by a fine of not less than one hundred fifty dollars nor more than three hundred dollars for a second offense and each subsequent offense. § 6. The insurance law is amended by adding a new section 3455 to read as follows: § 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES. (A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (1) "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE SAME MEANING AS SET FORTH IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (2) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY POLICY, CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR ENDORSEMENT THERETO, ISSUED TO A GROUP MEMBER UNDER A TRANSPORTATION NETWORK COMPANY GROUP POLICY. (3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY" OR "GROUP POLICY" MEANS A GROUP POLICY, INCLUDING CERTIFICATES ISSUED TO THE GROUP MEMBERS, WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPA- NY AND THE POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK COMPANY AND TO GROUP MEMBERS: (A) IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW; (B) OF THE TYPE DESCRIBED IN PARAGRAPH THIRTEEN, FOURTEEN, OR NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER; AND (C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE, SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND SUCH OTHER REQUIRE- MENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERA- TION OF A MOTOR VEHICLE. (4) "GROUP MEMBER" MEANS A TRANSPORTATION NETWORK COMPANY DRIVER AS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY. (6) "TNC VEHICLE" SHALL HAVE THE MEANING SET FORTH IN ARTICLE FORTY- FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS- PORTATION NETWORK COMPANY GROUP POLICY TO A TRANSPORTATION NETWORK COMPANY AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION. S. 2008 31 A. 3008 (C)(1) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL PROVIDE COVERAGE FOR A TNC VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF ARTI- CLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE: (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU- ANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI- LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE; (C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE PURSUANT TO SUBSECTION (G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER. (3) THE COVERAGE DESCRIBED IN PARAGRAPHS ONE AND TWO OF THIS SUBSECTION MAY BE PROVIDED IN ONE GROUP POLICY OR IN SEPARATE GROUP POLICIES. (4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIF- ICATES, SHALL BE ISSUED BY AUTHORIZED INSURERS OR FROM EXCESS LINE BROKERS PURSUANT TO SECTION SIXTEEN HUNDRED NINETY-THREE OF THE VEHICLE AND TRAFFIC LAW. (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY. (D) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP POLICYHOLDER FROM THE FUNDS CONTRIBUTED: (1) WHOLLY BY THE GROUP POLICYHOLDER; (2) WHOLLY BY THE GROUP MEMBERS; OR (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS. (E) (1) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO- SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY- HOLDER MAY: (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY- HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR (B) BE RETAINED BY THE GROUP POLICYHOLDER. (2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC- TIVE PREMIUM REFUND NOT DISTRIBUTED UNDER PARAGRAPH ONE OF THIS SUBSECTION SHALL BE: (A) APPLIED TO REDUCE FUTURE PREMIUMS AND, ACCORDINGLY, FUTURE CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR (B) PAID OR REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED BY THE GROUP POLICYHOLDER, OR ON THE DATE OF MAILING, IF DISTRIBUTED DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS: (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF THE PAYMENT OF REFUND TO THE GROUP MEMBERS; (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THE INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND (III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND, THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. (3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS SUBSECTION, IF A DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A TRANSPORTATION NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR WHICH WAS PAID OUT OF FUNDS CONTRIBUTED BY GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE DIVIDEND SHALL BE PAID OR REFUNDED BY THE GROUP POLICYHOLDER TO THE S. 2008 32 A. 3008 GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES INCURRED BY THE GROUP POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS. (4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY OF EXCESS PREMIUMS TO THE GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI- ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM REFUNDS. THE TERM "DIVIDEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION WITH THE OPERATION OR ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD- ING ADMINISTRATIVE REIMBURSEMENTS, FEES FOR SERVICES PROVIDED BY THE GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES. (F) THE INSURER SHALL TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS OF THE SAME CLASS AND STATUS. (G) EACH POLICY WRITTEN PURSUANT TO THIS SECTION SHALL PROVIDE PER OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER IN AN AMOUNT NOT LESS THAN THAT REQUIRED BY THIS ARTICLE, AND MAY PROVIDE COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW. (H) (1) THE INSURER SHALL BE RESPONSIBLE FOR MAILING OR DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER INSURED UNDER THE TRANS- PORTATION NETWORK COMPANY GROUP POLICY, PROVIDED, HOWEVER, THAT THE INSURER MAY DELEGATE THE MAILING OR DELIVERY TO THE TRANSPORTATION NETWORK COMPANY. THE INSURER SHALL ALSO BE RESPONSIBLE FOR THE MAILING OR DELIVERY TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE IN LIMITS; CHANGE IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMINATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE IF SUCH CHANGE MATERIALLY AFFECTS THE COVERAGE AVAILABLE TO SUCH GROUP MEMBER. (2) THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA- TION NETWORK COMPANY GROUP POLICY IS INCORPORATED BY REFERENCE AND A COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE. (3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA- BLE INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING THE GROUP MEMBERS THAT, IF THE MEMBER HAS OTHER INSURANCE COVERAGE, SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI- CY WILL BE EXCESS OVER THE OTHER INSURANCE. (I) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER AS AN AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR, CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A TRANS- PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE. (J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OR SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE; PROVIDED THAT THE FOLLOWING REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER- AGE: (1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR- AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE; PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT WOULD CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY. S. 2008 33 A. 3008 (B) WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPARAGRAPH (B), (C) OR (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE. (2) (A) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL CERTIFICATES, SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY. (I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY THE GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP POLICY TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS. SUCH CANCEL- LATION SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE TO THE GROUP MEMBER. (II) WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND THE EFFECTIVE DATE OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION FROM THE INSURER. (B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS AND TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE GROUP POLICY. (3) (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR ANY REASON UPON THIRTY DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND (B) THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S CANCELLATION OF THE GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION. THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE TO THE GROUP MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC- TIVE DATE OF CANCELLATION. (4) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR POLICY PERIOD. (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS: (I) THE INSURER MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY, BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER- SARY DATE OF THE POLICY. (5) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER ADVISING THE GROUP MEMBER OF NONRENEWAL OF THE GROUP POLICY AND THE EFFECTIVE DATE OF NONRENEWAL. THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL. (6) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE- NEWAL, OR CONDITIONAL RENEWAL. S. 2008 34 A. 3008 (7) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER- AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE. (B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE. (8) (A) IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP POLICY NOTWITHSTANDING THE CANCELLATION, NONRENEWAL OR CONDITIONAL NONRENEWAL OF THE GROUP POLICY. (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION. (K) ANY MAILING OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL, OR OTHER ELECTRONIC MEANS, IF CONSENT TO SUCH METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER. (L) AN INSURER MAY ISSUE A TRANSPORTATION NETWORK COMPANY GROUP POLICY TO A TRANSPORTATION NETWORK COMPANY, NOTWITHSTANDING THAT IT MAY BE A CONDITION OF OPERATING A VEHICLE ON THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK FOR THE TNC DRIVER TO PARTICIPATE IN SUCH GROUP POLICY. (M) AN INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A POLICY THAT PROVIDES FINANCIAL RESPONSIBILITY COVERAGE UNDER THIS SECTION EXCEPT AS PERMITTED IN SECTION FIVE THOUSAND ONE HUNDRED FIVE OF THIS CHAPTER. § 6-a. Subsection (g) of section 5102 of the insurance law is amended to read as follows: (g) "Insurer" means the insurance company or self-insurer, as the case may be, which provides the financial security required by article six [or], eight, OR FORTY-FOUR-B of the vehicle and traffic law. § 7. Subsection (b) of section 5103 of the insurance law is amended by adding a new paragraph 4 to read as follows: (4) IS INJURED WHILE A MOTOR VEHICLE IS BEING USED OR OPERATED BY A TNC DRIVER PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, PROVIDED, HOWEVER, THAT AN INSURER MAY NOT INCLUDE THIS EXCLUSION IN A POLICY USED TO SATISFY THE REQUIREMENTS UNDER ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. § 8. Subsection (d) of section 5106 of the insurance law, as added by chapter 452 of the laws of 2005, is amended to read as follows: (d) [Where] (1) EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBSECTION, WHERE there is reasonable belief more than one insurer would be the source of first party benefits, the insurers may agree among themselves, if there is a valid basis therefor, that one of them will accept and pay the claim initially. If there is no such agreement, then the first insurer to whom notice of claim is given shall be responsible for payment. Any such dispute shall be resolved in accordance with the arbitration procedures established pursuant to section five thousand one hundred five of this article and [regulation] REGULATIONS as promulgated by the superintendent, and any insurer paying first-party benefits shall be reimbursed by other insurers for their proportionate share of the S. 2008 35 A. 3008 costs of the claim and the allocated expenses of processing the claim, in accordance with the provisions entitled "other coverage" contained in regulation and the provisions entitled "other sources of first-party benefits" contained in regulation. If there is no such insurer and the motor vehicle accident occurs in this state, then an applicant who is a qualified person as defined in article fifty-two of this chapter shall institute the claim against THE motor vehicle accident indemnification corporation. (2) A GROUP POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS CHAPTER, TO SATISFY THE REQUIREMENTS OF SECTION SIXTEEN HUNDRED NINETY-THREE OF THE VEHICLE AND TRAFFIC LAW, SHALL PROVIDE FIRST PARTY BENEFITS WHEN A DISPUTE EXISTS AS TO WHETHER A DRIVER WAS USING OR OPERATING A MOTOR VEHICLE IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY WHEN LOSS, DAMAGE, INJURY, OR DEATH OCCURS. A TRANSPORTATION NETWORK COMPANY SHALL NOTIFY THE INSURER THAT ISSUED THE OWNER'S POLICY OF LIABILITY INSURANCE OF THE DISPUTE WITHIN TEN BUSINESS DAYS OF BECOMING AWARE THAT THE DISPUTE EXISTS. WHEN THERE IS A DISPUTE, THE GROUP INSURER LIABLE FOR THE PAYMENT OF FIRST PARTY BENEFITS UNDER A GROUP POLICY, TO SATISFY THE REQUIREMENTS OF SECTION SIXTEEN HUNDRED NINETY-THREE OF THE VEHICLE AND TRAFFIC LAW, SHALL HAVE THE RIGHT TO RECOVER THE AMOUNT PAID FROM THE DRIVER'S INSURER TO THE EXTENT THAT SUCH INSURER WOULD HAVE BEEN LIABLE TO PAY DAMAGES IN AN ACTION AT LAW. § 9. Subsection (b) of section 2305 of the insurance law, as amended by chapter 11 of the laws of 2008, paragraph 13 as amended by chapter 136 of the laws of 2008, is amended to read as follows: (b) rate filings for: (1) workers' compensation insurance; (2) motor vehicle insurance, or surety bonds, required by section three hundred seventy of the vehicle and traffic law OR ARTICLE FORTY- FOUR-B OF THE VEHICLE AND TRAFFIC LAW; (3) joint underwriting; (4) motor vehicle assigned risk insurance; (5) insurance issued by the New York Property Insurance Underwriting Association; (6) risk sharing plans authorized by section two thousand three hundred eighteen of this article; (7) title insurance; (8) medical malpractice liability insurance; (9) insurance issued by the Medical Malpractice Insurance Association; (10) mortgage guaranty insurance; (11) credit property insurance, as defined in section two thousand three hundred forty of this article; [and] (12) gap insurance; AND (13) [Private] PRIVATE passenger automobile insurance, except as provided in section two thousand three hundred fifty of this article[.], shall be filed with the superintendent and shall not become effective unless either the filing has been approved or thirty days, which the superintendent may with cause extend an additional thirty days and with further cause extend an additional fifteen days, have elapsed and the filing has not been disapproved as failing to meet the requirements of this article, including the standard that rates be not otherwise unrea- sonable. After a rate filing becomes effective, the filing and support- ing information shall be open to public inspection. If a filing is disapproved, THEN notice of such disapproval order shall be given, spec- ifying in what respects such filing fails to meet the requirements of S. 2008 36 A. 3008 this article. Upon his or her request, the superintendent shall be provided with support and assistance from the workers' compensation board and other state agencies and departments with appropriate juris- diction. The loss cost multiplier for each insurer providing coverage for workers' compensation, as defined by regulation promulgated by the superintendent, shall be promptly displayed on the department's website and updated in the event of any change. § 10. Paragraph 1 of subsection (a) of section 3425 of the insurance law, as amended by chapter 235 of the laws of 1989, is amended to read as follows: (1) "Covered policy" means a contract of insurance, referred to in this section as "automobile insurance", issued or issued for delivery in this state, on a risk located or resident in this state, insuring against losses or liabilities arising out of the ownership, operation, or use of a motor vehicle, predominantly used for non-business purposes, when a natural person is the named insured under the policy of automo- bile insurance; PROVIDED, HOWEVER, THAT THE USE OR OPERATION OF THE MOTOR VEHICLE BY A TRANSPORTATION NETWORK DRIVER AS A TNC VEHICLE IN ACCORDANCE WITH ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW SHALL NOT BE INCLUDED IN DETERMINING WHETHER THE MOTOR VEHICLE IS BEING USED PREDOMINANTLY FOR NON-BUSINESS PURPOSES. § 11. The executive law is amended by adding a new article 6-H to read as follows: ARTICLE 6-H TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPENSATION FUND SECTION 160-AAAA. DEFINITIONS. 160-BBBB. TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPEN- SATION FUND, INC. 160-CCCC. SUPERVISION OF TRANSPORTATION NETWORK COMPANIES. 160-DDDD. MANAGEMENT OF THE FUND. 160-EEEE. PLAN OF OPERATION. 160-FFFF. MEMBERSHIP. 160-GGGG. SECURING OF COMPENSATION. 160-HHHH. ASSESSMENT OF FUND MEMBERS. 160-IIII. CERTIFIED FINANCIAL STATEMENTS. 160-JJJJ. EXEMPTION FROM TAXES. 160-KKKK. LIABILITY INSURANCE. 160-LLLL. REGULATIONS. 160-MMMM. VIOLATIONS. § 160-AAAA. DEFINITIONS. AS USED IN THIS ARTICLE: 1. "TRANSPORTATION NETWORK COMPANY DRIVER" OR "TNC DRIVER" MEANS AN INDIVIDUAL WHO: (A) RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE TRANSPORTATION NETWORK COMPANY; (B) USES A TNC VEHICLE TO OFFER OR PROVIDE A TNC PREARRANGED TRIP TO TRANSPORTATION NETWORK COMPANY PASSENGERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR COMPENSATION OR PAYMENT OF A FEE; AND (C) WHOSE INJURY AROSE OUT OF AND IN THE COURSE OF PROVIDING A TNC PREARRANGED TRIP THROUGH A DIGITAL NETWORK OPERATED BY A TRANSPORTATION NETWORK COMPANY THAT IS A REGISTERED MEMBER OF THE NEW YORK TRANSPORTA- TION NETWORK COMPANY DRIVER'S INJURY COMPENSATION FUND, INC. 2. "TRANSPORTATION NETWORK COMPANY PASSENGER" OR "PASSENGER" MEANS A PERSON OR PERSONS WHO USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL S. 2008 37 A. 3008 NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK COMPANY DRIVER WHO PROVIDES TNC PREARRANGED TRIPS TO THE PASSENGER IN THE TNC VEHICLE BETWEEN POINTS CHOSEN BY THE PASSENGER. 3. "BOARD" MEANS THE WORKERS' COMPENSATION BOARD. 4. "DIGITAL NETWORK" MEANS ANY SYSTEM OR SERVICE OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPANY THAT ENABLES TNC PREARRANGED TRIPS WITH TRANSPORTATION NETWORK COMPANY DRIVERS. 5. "TRANSPORTATION NETWORK COMPANY" MEANS A PERSON, CORPORATION, PART- NERSHIP, SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS LICENSED PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW AND IS OPERATING IN NEW YORK STATE EXCLUSIVELY USING A DIGITAL NETWORK TO CONNECT TRANS- PORTATION NETWORK COMPANY PASSENGERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE TNC PREARRANGED TRIPS. 6. "TRANSPORTATION NETWORK COMPANY VEHICLE" OR "TNC VEHICLE" MEANS A VEHICLE THAT IS: (A) USED BY A TRANSPORTATION NETWORK COMPANY DRIVER TO PROVIDE A TNC PREARRANGED TRIP ORIGINATING IN THE STATE OF NEW YORK; (B) OWNED, LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA- TION NETWORK COMPANY DRIVER AND SHALL NOT INCLUDE: (I) A TAXICAB, AS DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THE VEHICLE AND TRAFFIC LAW AND SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (II) A LIVERY VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E OF THE VEHICLE AND TRAFFIC LAW, OR AS OTHERWISE DEFINED IN LOCAL LAW; (III) A BLACK CAR, LIMOUSINE, OR LUXURY LIMOUSINE, AS DEFINED IN SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (IV) A FOR-HIRE VEHICLE, AS DEFINED IN SECTION 19-502 OF THE ADMINIS- TRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (V) A BUS, AS DEFINED IN SECTION ONE HUNDRED FOUR OF THE VEHICLE AND TRAFFIC LAW; (VI) ANY MOTOR VEHICLE WEIGHING MORE THAN SIX THOUSAND FIVE HUNDRED POUNDS UNLOADED; (VII) ANY MOTOR VEHICLE HAVING A SEATING CAPACITY OF MORE THAN SEVEN PASSENGERS; AND (VIII) ANY MOTOR VEHICLE SUBJECT TO SECTION THREE HUNDRED SEVENTY OF THE VEHICLE AND TRAFFIC LAW. 7. (A) "TNC PREARRANGED TRIP" MEANS THE PROVISION OF TRANSPORTATION BY A TRANSPORTATION NETWORK COMPANY DRIVER TO A PASSENGER PROVIDED THROUGH THE USE OF A TNC'S DIGITAL NETWORK: (I) BEGINNING WHEN A TRANSPORTATION NETWORK COMPANY DRIVER ACCEPTS A PASSENGER'S REQUEST FOR A TRIP THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY; (II) CONTINUING WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER TRANS- PORTS THE REQUESTING PASSENGER IN A TNC VEHICLE; AND (III) ENDING WHEN THE LAST REQUESTING PASSENGER DEPARTS FROM THE TNC VEHICLE. (B) THE TERM "TNC PREARRANGED TRIP" DOES NOT INCLUDE TRANSPORTATION PROVIDED THROUGH ANY OF THE FOLLOWING: (I) SHARED EXPENSE CARPOOL OR VANPOOL ARRANGEMENTS, INCLUDING THOSE AS DEFINED IN SECTION ONE HUNDRED FIFTY-EIGHT-B OF THE VEHICLE AND TRAFFIC LAW; (II) USE OF A TAXICAB, LIVERY, LUXURY LIMOUSINE, OR OTHER FOR-HIRE VEHICLE, AS DEFINED IN THE VEHICLE AND TRAFFIC LAW, SECTION 19-502 OF S. 2008 38 A. 3008 THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; OR (III) A REGIONAL TRANSPORTATION PROVIDER. 8. "COVERED SERVICES" MEANS, WITH RESPECT TO TNC PREARRANGED TRIPS USING A DIGITAL NETWORK OF A TRANSPORTATION NETWORK COMPANY LOCATED IN THE STATE, ALL SUCH TNC PREARRANGED TRIPS REGARDLESS OF WHERE THE PICK- UP OR DISCHARGE OCCURS, AND, WITH RESPECT TO TNC PREARRANGED TRIPS USING A DIGITAL NETWORK OF A TRANSPORTATION NETWORK COMPANY LOCATED OUTSIDE THE STATE, ALL PREARRANGED TRIPS INVOLVING A PICK-UP IN THE STATE, REGARDLESS OF WHERE THE DISCHARGE OCCURS. 9. "DEPARTMENT" MEANS THE DEPARTMENT OF STATE. 10. "FUND" MEANS THE NEW YORK TRANSPORTATION NETWORK COMPANY DRIVER'S FUND, INC. 11. "FUND LIABILITY DATE" MEANS THE EARLIER OF: (A) THE DATE AS OF WHICH THE BOARD FIRST APPROVES THE FUND'S APPLICA- TION TO SELF-INSURE PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE; OR (B) THE DATE ON WHICH COVERAGE COMMENCES UNDER THE INITIAL INSURANCE POLICY PURCHASED BY THE FUND PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE. 12. "SECRETARY" MEANS THE SECRETARY OF STATE. § 160-BBBB. TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPEN- SATION FUND, INC. THERE IS HEREBY CREATED A NOT-FOR-PROFIT CORPORATION TO BE KNOWN AS THE NEW YORK TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPENSATION FUND, INC. TO THE EXTENT THAT THE PROVISIONS OF THE NOT-FOR-PROFIT CORPORATION LAW DO NOT CONFLICT WITH THE PROVISIONS OF THIS ARTICLE, OR WITH THE PLAN OF OPERATION ESTABLISHED PURSUANT TO THIS ARTICLE, THE NOT-FOR-PROFIT CORPORATION LAW SHALL APPLY TO THE FUND, WHICH SHALL BE A TYPE C CORPORATION PURSUANT TO SUCH LAW. IF AN APPLICA- BLE PROVISION OF THIS ARTICLE OR OF THE FUND'S PLAN OF OPERATION RELATES TO A MATTER EMBRACED IN A PROVISION OF THE NOT-FOR-PROFIT CORPORATION LAW BUT IS NOT IN CONFLICT THEREWITH, BOTH PROVISIONS SHALL APPLY. THE FUND SHALL PERFORM ITS FUNCTIONS IN ACCORDANCE WITH ITS PLAN OF OPERA- TION ESTABLISHED AND APPROVED PURSUANT TO SECTION ONE HUNDRED SIXTY-EEEE OF THIS ARTICLE AND SHALL EXERCISE ITS POWERS THROUGH A BOARD OF DIREC- TORS ESTABLISHED PURSUANT TO THIS ARTICLE. § 160-CCCC. SUPERVISION OF TRANSPORTATION NETWORK COMPANIES. A TRANS- PORTATION NETWORK COMPANY SHALL, WITH RESPECT TO THE PROVISIONS OF THIS ARTICLE, BE SUBJECT TO THE SUPERVISION AND OVERSIGHT OF THE DEPARTMENT AS PROVIDED IN THIS ARTICLE. § 160-DDDD. MANAGEMENT OF THE FUND. 1. WITHIN THIRTY (30) DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THERE SHALL BE APPOINTED A BOARD OF DIRECTORS OF THE FUND. THE BOARD OF DIRECTORS OF THE FUND SHALL CONSIST OF NINE DIRECTORS APPOINTED BY THE GOVERNOR, ONE OF WHOM SHALL BE CHOSEN BY THE GOVERNOR; ONE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF THE TEMPORARY PRESIDENT OF THE SENATE; ONE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF THE SPEAKER OF THE ASSEMBLY; ONE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF THE AMERICAN FEDERATION OF LABOR-CONGRESS OF INDUS- TRIAL ORGANIZATIONS OF NEW YORK; AND FIVE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF TRANSPORTATION NETWORK COMPANY MEMBERS OF THE FUND. 2. THE DIRECTORS SHALL ELECT ANNUALLY FROM AMONG THEIR NUMBER A CHAIR. 3. FOR THEIR ATTENDANCE AT MEETINGS, THE DIRECTORS OF THE FUND SHALL BE ENTITLED TO COMPENSATION, AS AUTHORIZED BY THE DIRECTORS, IN AN AMOUNT NOT TO EXCEED FIVE HUNDRED DOLLARS PER MEETING PER DIRECTOR AND TO REIMBURSEMENT OF THEIR ACTUAL AND NECESSARY EXPENSES. S. 2008 39 A. 3008 4. DIRECTORS OF THE FUND, EXCEPT AS OTHERWISE PROVIDED BY LAW, MAY ENGAGE IN PRIVATE OR PUBLIC EMPLOYMENT OR IN A PROFESSION OR BUSINESS. 5. (A) ALL OF THE DIRECTORS SHALL HAVE EQUAL VOTING RIGHTS AND FIVE OR MORE DIRECTORS SHALL CONSTITUTE A QUORUM. THE AFFIRMATIVE VOTE OF FOUR DIRECTORS SHALL BE NECESSARY FOR THE TRANSACTION OF ANY BUSINESS OR THE EXERCISE OF ANY POWER OR FUNCTION OF THE FUND. (B) THE FUND MAY DELEGATE TO ONE OR MORE OF ITS DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES SUCH POWERS AND DUTIES AS IT MAY DEEM PROPER. (C) A VACANCY OCCURRING IN A DIRECTOR POSITION SHALL BE FILLED IN THE SAME MANNER AS THE INITIAL APPOINTMENT TO THAT POSITION, PROVIDED HOWEV- ER THAT NO INDIVIDUAL MAY SERVE AS DIRECTOR FOR MORE THAN THREE SUCCES- SIVE TERMS. § 160-EEEE. PLAN OF OPERATION. 1. WITHIN SEVENTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE FUND SHALL FILE WITH THE DEPARTMENT ITS PLAN OF OPERATION, WHICH SHALL BE DESIGNED TO ASSURE THE FAIR, REASONABLE AND EQUITABLE ADMINISTRATION OF THE FUND. THE PLAN OF OPERA- TION AND ANY SUBSEQUENT AMENDMENTS THERETO SHALL BECOME EFFECTIVE UPON BEING FILED WITH THE DEPARTMENT. 2. THE PLAN OF OPERATION SHALL CONSTITUTE THE BY-LAWS OF THE FUND AND SHALL, IN ADDITION TO THE REQUIREMENTS ENUMERATED ELSEWHERE IN THIS ARTICLE: (A) ESTABLISH PROCEDURES FOR COLLECTING AND MANAGING THE ASSETS OF THE FUND; (B) ESTABLISH REGULAR PLACES AND TIMES FOR MEETINGS OF THE FUND'S BOARD OF DIRECTORS; (C) ESTABLISH THE PROCEDURE BY WHICH THE FUND SHALL DETERMINE WHETHER TO PROVIDE THE BENEFITS DUE PURSUANT TO THIS ARTICLE BY SELF-INSURING OR BY PURCHASING INSURANCE; (D) ESTABLISH ACCOUNTING AND RECORD-KEEPING PROCEDURES FOR ALL FINAN- CIAL TRANSACTIONS OF THE FUND, ITS AGENTS, AND THE BOARD OF DIRECTORS; (E) ESTABLISH A PROCEDURE FOR DETERMINING AND COLLECTING THE APPROPRI- ATE AMOUNT OF SURCHARGES AND ASSESSMENTS UNDER THIS ARTICLE; (F) SET FORTH THE PROCEDURES BY WHICH THE FUND MAY EXERCISE THE AUDIT RIGHTS GRANTED TO IT UNDER THIS ARTICLE; (G) ESTABLISH PROCEDURES TO ENSURE PROMPT AND ACCURATE NOTIFICATION TO THE FUND BY ITS MEMBERS OF ALL ACCIDENTS AND INJURIES TO TRANSPORTATION NETWORK COMPANY DRIVERS, AND PROVIDE FOR FULL REIMBURSEMENT OF THE FUND BY ANY TRANSPORTATION NETWORK COMPANY WHOSE FAILURE TO PROVIDE SUCH NOTIFICATION RESULTS IN THE IMPOSITION OF A PENALTY ON THE FUND BY THE BOARD; AND (H) CONTAIN SUCH ADDITIONAL PROVISIONS AS THE BOARD OF THE FUND MAY DEEM NECESSARY OR PROPER FOR THE EXECUTION OF THE POWERS AND DUTIES OF THE FUND. § 160-FFFF. MEMBERSHIP. 1. THE MEMBERSHIP OF THE FUND SHALL BE COMPOSED OF ALL TRANSPORTATION NETWORK COMPANIES. EACH TRANSPORTATION NETWORK COMPANY SHALL BE REQUIRED, AS A CONDITION OF DOING BUSINESS WITHIN THIS STATE, TO PAY THE DEPARTMENT A TEN THOUSAND DOLLAR ANNUAL FEE FOR THE PURPOSE OF REGISTERING AS A MEMBER OF THE FUND AND RECEIVING A CERTIFICATE OF REGISTRATION. SUCH SUMS SHALL BE USED BY THE DEPART- MENT FOR THE ADMINISTRATION OF THIS ARTICLE. THE INITIAL REGISTRATION FEE SHALL BE DUE NO LATER THAN NINETY DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE. THE DEPARTMENT SHALL HAVE THE POWER TO ASSESS AN ADDI- TIONAL FEE AGAINST EACH REGISTRANT IN THE AMOUNT NECESSARY TO PROVIDE IT WITH SUFFICIENT FUNDS TO COVER ITS EXPENSES IN PERFORMING ITS DUTIES PURSUANT TO THIS ARTICLE. THE DEPARTMENT SHALL PROVIDE THE FUND WITH AN UPDATED LIST OF REGISTRANTS ON A MONTHLY BASIS. S. 2008 40 A. 3008 2. ALL TRANSPORTATION NETWORK COMPANIES SHALL BE REQUIRED, AS A CONDI- TION OF OBTAINING OR RETAINING THEIR LICENSE FROM THE DEPARTMENT OF MOTOR VEHICLES PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAF- FIC LAW, TO: (A) BE MEMBERS OF THE FUND; (B) BE REGISTERED WITH THE DEPARTMENT AS MEMBERS OF THE FUND; AND (C) SUBMIT TO THE DEPARTMENT OF MOTOR VEHICLES A COPY OF ITS CERTIF- ICATE OF REGISTRATION AS PROOF OF SUCH MEMBERSHIP AND REGISTRATION. 3. WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE BOARD OF THE FUND SHALL, ON THE BASIS OF INFORMATION FROM TRADE PAPERS AND OTHER SOURCES, IDENTIFY THE TRANSPORTATION NETWORK COMPANIES SUBJECT TO THIS ARTICLE AND, ON A REGULAR AND ONGOING BASIS, CONFIRM THAT ALL SUCH ENTITIES HAVE REGISTERED IN ACCORDANCE WITH SUBDIVISION ONE OF THIS SECTION. 4. THE FUND SHALL, WITHIN SEVENTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, PROVIDE TO ITS MEMBERS A COPY OF THE PROPOSED PLAN OF OPERATION FILED WITH THE DEPARTMENT AND SHALL INFORM ITS MEMBERS OF THEIR RIGHTS AND DUTIES PURSUANT TO THIS ARTICLE. § 160-GGGG. SECURING OF COMPENSATION. 1. WITHIN TWO HUNDRED TEN DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE FUND SHALL SECURE THE PAYMENT OF WORKERS' COMPENSATION TO ALL: TRANSPORTATION NETWORK COMPANY DRIVERS ENTITLED THERETO PURSUANT TO THIS CHAPTER BY EITHER: (A) SELF-INSURING IN ACCORDANCE WITH SUBDIVISION THREE OF SECTION FIFTY OF THE WORKERS' COMPENSATION LAW AND THE RULES PROMULGATED BY THE BOARD PURSUANT TO SUCH SECTION; OR (B) PURCHASING WORKERS' COMPENSATION INSURANCE COVERING, ON A BLANKET BASIS, ALL DRIVERS WHO ARE THE FUND'S EMPLOYEES PURSUANT TO SECTION TWO OF THE WORKERS' COMPENSATION LAW. 2. IF THE FUND INITIALLY SEEKS TO APPLY TO THE BOARD FOR AUTHORIZATION TO SELF-INSURE PURSUANT TO SUBDIVISION THREE OF SECTION FIFTY OF THE WORKERS' COMPENSATION LAW, IT SHALL SUBMIT ITS APPLICATION AND ACCOMPA- NYING PROOF TO THE BOARD WITHIN ONE HUNDRED FIFTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE. THE BOARD SHALL NOTIFY THE FUND AND THE SECRETARY IN WRITING OF ANY CHANGE IN THE FUND'S STATUS AS A SELF-INSURER OR OF ANY ADDITIONAL REQUIREMENTS THAT THE BOARD MAY DEEM NECESSARY FOR CONTINUATION OF SUCH STATUS. 3. IF THE FUND CHOOSES TO SECURE THE PAYMENT OF WORKERS' COMPENSATION PURSUANT TO THE WORKERS' COMPENSATION LAW BY PURCHASING AN INSURANCE POLICY FROM THE STATE INSURANCE FUND OR A LICENSED INSURER, IT SHALL FILE WITH THE DEPARTMENT NO LATER THAN THIRTY DAYS AFTER THE COMMENCE- MENT OF A NEW POLICY YEAR A COPY OF THE POLICY IT HAS PURCHASED. IN SUCH CASE, THE DEPARTMENT SHALL BE TREATED BY THE INSURER AS A CERTIFICATE HOLDER FOR PURPOSES OF RECEIVING NOTICE OF CANCELLATION OF THE POLICY. 4. NO PROVISION OF THIS ARTICLE SHALL BE CONSTRUED TO ALTER OR AFFECT THE LIABILITY UNDER THE WORKERS' COMPENSATION LAW OF ANY TRANSPORTATION NETWORK COMPANY WITH RESPECT TO TRANSPORTATION NETWORK COMPANY DRIVERS PRIOR TO THE FUND LIABILITY DATE. § 160-HHHH. ASSESSMENT OF FUND MEMBERS. 1. TO PAY: (A) THE COSTS OF THE INSURANCE PURCHASED PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE; OR (B) THE BENEFITS DUE UNDER THE WORKERS' COMPENSATION LAW IN THE EVENT THE FUND SELF-INSURES PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE; AND TO PAY (C) ITS EXPENSES IN CARRYING OUT ITS POWERS AND DUTIES UNDER THIS ARTICLE; AND S. 2008 41 A. 3008 (D) ITS LIABILITIES, IF ANY, PURSUANT TO SECTION FOURTEEN-A OF THE WORKERS' COMPENSATION LAW; THE FUND SHALL ASCERTAIN BY REASONABLE ESTI- MATE THE TOTAL FUNDING NECESSARY TO CARRY ON ITS OPERATIONS. 2. BASED UPON ITS ESTIMATION OF OPERATING COSTS, THE FUND SHALL ESTAB- LISH A PROPOSED UNIFORM PERCENTAGE SURCHARGE TO BE ADDED TO: (A) THE INVOICES OR BILLINGS FOR COVERED SERVICES SENT TO TRANSPORTA- TION NETWORK COMPANY PASSENGERS BY A MEMBER OR ITS AGENT; AND (B) THE CREDIT PAYMENTS FOR COVERED SERVICES RECEIVED BY A MEMBER OR ITS AGENT. THE PROPOSED SURCHARGE SHALL BECOME EFFECTIVE THIRTY DAYS AFTER BEING FILED WITH THE DEPARTMENT. NOTWITHSTANDING THE FOREGOING, BEGINNING ON THE FIRST DAY OF THE FIRST CALENDAR MONTH THAT SHALL COMMENCE AT LEAST SEVENTY-FIVE DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, AND UNTIL THE FUND SHALL HAVE FILED WITH THE DEPARTMENT A DIFFERENT SURCHARGE AMOUNT, A TWO PERCENT SURCHARGE SHALL BE ADDED TO EVERY INVOICE OR BILLING FOR COVERED SERVICES SENT BY A MEMBER OR ITS AGENT TO, AND EVERY CREDIT PAYMENT FOR COVERED SERVICES RECEIVED BY A MEMBER OR ITS AGENT FROM, TRANSPORTATION NETWORK COMPANY PASSENGERS. EACH MEMBER OF THE FUND SHALL BE LIABLE FOR PAYMENT TO THE FUND OF AN AMOUNT EQUAL TO THE PRODUCT OF: (A) THE PERCENTAGES SURCHARGE DUE PURSUANT TO THIS ARTICLE, DIVIDED BY ONE HUNDRED; AND (B) ALL PAYMENTS RECEIVED BY THE MEMBER OR ITS AGENT FOR COVERED SERVICES PREARRANGED THROUGH THE MEMBER'S DIGITAL NETWORK, AS PROVIDED IN THIS SUBDIVISION, REGARDLESS OF WHETHER THE SURCHARGE WAS BILLED OR CHARGED. 3. THE DEPARTMENT OF MOTOR VEHICLES OR THE DEPARTMENT SHALL NOT ISSUE, CONTINUE OR RENEW ANY LICENSE OR REGISTRATION CERTIFICATE FOR THE OPERA- TION OF ANY TRANSPORTATION NETWORK COMPANY UNLESS SUCH TRANSPORTATION NETWORK COMPANY, AS A CONDITION OF MAINTAINING ITS LICENSE AND/OR REGIS- TRATION CERTIFICATE, ADDS THE SURCHARGE REQUIRED BY THIS SECTION TO EVERY INVOICE AND BILLING FOR COVERED SERVICES SENT TO, AND EVERY CREDIT PAYMENT FOR COVERED SERVICES RECEIVED FROM, ITS TRANSPORTATION NETWORK COMPANY PASSENGERS AND PAYS TO THE FUND NO LATER THAN THE FIFTEENTH DAY OF EACH MONTH THE TOTAL SURCHARGES DUE PURSUANT TO THIS ARTICLE. 4. EACH TRANSPORTATION NETWORK COMPANY SHALL SUBMIT TO THE FUND WITH ITS MONTHLY PAYMENT A DETAILED ACCOUNTING OF THE CHARGE AND SURCHARGE AMOUNTS CHARGED TO AND RECEIVED FROM TRANSPORTATION NETWORK COMPANY PASSENGERS FOR COVERED SERVICES DURING THE PREVIOUS MONTH. THE FIRST SUCH PAYMENT AND ACCOUNTING SHALL BE DUE ON THE FIFTEENTH DAY OF THE MONTH FOLLOWING THE IMPOSITION OF THE SURCHARGE PURSUANT TO SUBDIVISION TWO OF THIS SECTION. 5. SHOULD THE FUND DETERMINE THAT THE SURCHARGE AMOUNTS THAT HAVE BEEN PAID TO IT ARE INADEQUATE TO MEET ITS OBLIGATIONS UNDER THIS ARTICLE, IT SHALL DETERMINE THE SURCHARGE RATE REQUIRED TO ELIMINATE SUCH DEFICIENCY AND SHALL FILE SUCH REVISED SURCHARGE RATE WITH THE DEPARTMENT IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION. COMMENCING THIRTY DAYS AFTER SUCH FILING, THE MEMBERS OF THE FUND SHALL CHARGE THE REVISED SURCHARGE RATE AND SHALL PAY TO THE FUND THE TOTAL AMOUNT OF SURCHARGES IN ACCORDANCE WITH THIS ARTICLE. 6. FOR THE PURPOSES OF CONDUCTING PAYROLL AUDITS, AN INSURER PROVIDING COVERAGE TO THE FUND PURSUANT TO THIS ARTICLE MAY TREAT THE MEMBERS OF THE FUND AS POLICYHOLDERS. MEMBERS OF THE FUND SHALL BE REQUIRED TO DO ALL THINGS REQUIRED OF EMPLOYERS PURSUANT TO SECTION ONE HUNDRED THIR- TY-ONE OF THE WORKERS' COMPENSATION LAW, AND SHALL BE REQUIRED TO PROVIDE THE BOARD ACCESS TO ANY AND ALL RECORDS AND INFORMATION AS OTHERWISE REQUIRED BY THE WORKERS' COMPENSATION LAW AND THE REGULATIONS S. 2008 42 A. 3008 PROMULGATED THEREUNDER, AND SHALL BE LIABLE AS PROVIDED IN THE WORKERS' COMPENSATION LAW FOR ANY FAILURE SO TO DO. § 160-IIII. CERTIFIED FINANCIAL STATEMENTS. NO LATER THAN MAY FIRST OF EACH YEAR, THE FUND SHALL SUBMIT TO THE GOVERNOR AND LEGISLATURE CERTI- FIED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BY A CERTIFIED PUBLIC ACCOUNTANT. THE MEMBERS OF THE FUND SHALL BE REQUIRED ON AND AFTER JANUARY FIRST OF EACH YEAR TO AFFORD THE CERTIFIED PUBLIC ACCOUNTANT CONVENIENT ACCESS AT ALL REASON- ABLE HOURS TO ALL BOOKS, RECORDS, AND OTHER DOCUMENTS, INCLUDING BUT NOT LIMITED TO INVOICES AND VOUCHERS, NECESSARY OR USEFUL IN THE PREPARATION OF SUCH STATEMENTS AND IN THE VERIFICATION OF THE MONTHLY STATEMENTS SUBMITTED TO THE FUND. § 160-JJJJ. EXEMPTION FROM TAXES. THE FUND SHALL BE EXEMPT FROM PAYMENT OF ALL FEES AND TAXES LEVIED BY THIS STATE OR ANY OF ITS SUBDI- VISIONS, EXCEPT TAXES LEVIED ON REAL PROPERTY. § 160-KKKK. LIABILITY INSURANCE. THE FUND SHALL PURCHASE SUCH INSUR- ANCE AS IS NECESSARY TO PROTECT THE FUND AND ANY DIRECTOR, OFFICER, AGENT, OR OTHER REPRESENTATIVE FROM LIABILITY FOR THEIR ADMINISTRATION OF THE FUND, AND SHALL, TO THE EXTENT PERMITTED BY LAW, INDEMNIFY SUCH DIRECTORS, OFFICERS, AGENTS, OR OTHER REPRESENTATIVES AND HOLD THEM HARMLESS FROM LIABILITY FOR THEIR ADMINISTRATION OF THE FUND. § 160-LLLL. REGULATIONS. THE DEPARTMENT SHALL ADOPT REGULATIONS IMPLE- MENTING THE PROVISIONS OF THIS ARTICLE, INCLUDING THE CONDUCT AND NOTICE OF HEARINGS HELD PURSUANT TO SECTION ONE HUNDRED SIXTY-MMMM OF THIS ARTICLE. § 160-MMMM. VIOLATIONS. 1. IF THE SECRETARY BELIEVES A VIOLATION OF THIS ARTICLE BY A FUND MEMBER MAY HAVE OCCURRED, UPON NOTICE TO THE FUND MEMBER, A HEARING SHALL BE HELD BY THE SECRETARY TO DETERMINE WHETHER SUCH VIOLATION OCCURRED. 2. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A FUND MEMBER THAT IS FOUND, AFTER A HEARING HELD PURSUANT TO SUBDIVISION ONE OF THIS SECTION, TO HAVE VIOLATED A PROVISION OF THIS ARTICLE, OR A RULE PROMULGATED BY THE DEPARTMENT PURSUANT TO THIS ARTICLE, SHALL BE LIABLE FOR A FINE IN AN AMOUNT NOT TO EXCEED TEN THOUSAND DOLLARS PER VIOLATION. 3. WITHIN TWENTY DAYS AFTER ISSUANCE OF A DETERMINATION ADVERSE TO A TRANSPORTATION NETWORK COMPANY FOLLOWING A HEARING HELD PURSUANT TO SUBDIVISION ONE OF THIS SECTION, AN APPEAL MAY BE TAKEN THEREFROM TO THE APPELLATE DIVISION OF THE SUPREME COURT, THIRD DEPARTMENT, BY THE AGGRIEVED TRANSPORTATION NETWORK COMPANY. § 12. Subdivision 1 of section 171-a of the tax law, as amended by chapter 90 of the laws of 2014, 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-six, [twenty-six-B,] twen- ty-eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, TWENTY-NINE-B (EXCEPT AS OTHERWISE PROVIDED IN SECTION TWELVE HUNDRED NINETY-EIGHT THEREOF), 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, S. 2008 43 A. 3008 banking houses or trust companies as may be designated by the comp- troller, to the credit of the comptroller. Such an account may be estab- lished in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comp- troller. 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 comp- troller'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 taxpayers 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 pursu- ant to subdivision five of section one hundred seventy-one-d and subdi- vision six of section one hundred seventy-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, thirty, 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 cred- it to the special offset fiduciary account, pursuant to section ninety- one-c of the state finance law, any such amount creditable as a liabil- ity 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 commissioner as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by article twenty-two of this chap- ter and the interest on such amount which has been credited pursuant to S. 2008 44 A. 3008 section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- ty-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corporation, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy- one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 13. Subdivision 1 of section 171-a of the tax law, as amended by section 54 of part A of chapter 59 of the laws of 2014, 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-six, [twenty-six-B,] twenty-eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, TWENTY-NINE-B (EXCEPT AS OTHER- WISE PROVIDED IN SECTION TWELVE HUNDRED NINETY-EIGHT THEREOF), 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 S. 2008 45 A. 3008 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 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. § 14. Paragraph 34 of subdivision (b) of section 1101 of the tax law, as amended by section 1 of part WW of chapter 57 of the laws of 2010, is amended to read as follows: S. 2008 46 A. 3008 (34) Transportation service. The service of transporting, carrying or conveying a person or persons by livery service; whether to a single destination or to multiple destinations; and whether the compensation paid by or on behalf of the passenger is based on mileage, trip, time consumed or any other basis. A service that begins and ends in this state is deemed intra-state even if it passes outside this state during a portion of the trip. However, transportation service does not include transportation of persons in connection with funerals. Transportation service includes transporting, carrying, or conveying property of the person being transported, whether owned by or in the care of such person. NOTWITHSTANDING THE FOREGOING, TRANSPORTATION SERVICE SHALL NOT INCLUDE A TNC PREARRANGED TRIP, AS THAT TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, THAT IS SUBJECT TO TAX UNDER ARTICLE TWENTY-NINE-B OF THIS CHAPTER. In addition to what is included in the definition of "receipt" in paragraph three of this subdivision, receipts from the sale of transportation service subject to tax include any handling, carrying, baggage, booking service, adminis- trative, mark-up, additional, or other charge, of any nature, made in conjunction with the transportation service. Livery service means service provided by limousine, black car or other motor vehicle, with a driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of one million or more in this state, an affiliated livery vehicle, and excluding any scheduled public service. Limousine means a vehicle with a seating capacity of up to fourteen persons, excluding the driver. Black car means a for-hire vehicle dispatched from a central facility. "Affil- iated livery vehicle" means a for-hire motor vehicle with a seating capacity of up to six persons, including the driver, other than a black car or luxury limousine, that is authorized and licensed by the taxi and limousine commission of a city of one million or more to be dispatched by a base station located in such a city and regulated by such taxi and limousine commission; and the charges for service provided by an affil- iated livery vehicle are on the basis of flat rate, time, mileage, or zones and not on a garage to garage basis. § 15. The tax law is amended by adding a new article 29-B to read as follows: ARTICLE 29-B STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY PREARRANGED TRIPS SECTION 1291. DEFINITIONS. 1292. IMPOSITION. 1293. PRESUMPTION. 1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE. 1295. RECORDS TO BE KEPT. 1296. SECRECY OF RETURNS AND REPORTS. 1297. PRACTICE AND PROCEDURE. 1298. DEPOSIT AND DISPOSITION OF REVENUE. § 1291. DEFINITIONS. (A) "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE, RECEIVER, TRUSTEE, ASSIGNEE, REFEREE OR ANY OTHER PERSON ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A COURT OR OTHERWISE, ANY COMBINATION OF INDIVIDUALS AND ANY OTHER FORM OF UNINCORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR MORE PERSONS. (B) "CITY" MEANS A CITY OF A MILLION OR MORE LOCATED IN THE METROPOL- ITAN COMMUTER TRANSPORTATION DISTRICT ESTABLISHED BY SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW. S. 2008 47 A. 3008 (C) "TRANSPORTATION NETWORK COMPANY" OR "TNC" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (D) "TNC PREARRANGED TRIP" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (E) "TNC DRIVER" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (F) "TNC VEHICLE" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (G) "GROSS TRIP FARE" MEANS THE SUM OF THE BASE FARE CHARGE, DISTANCE CHARGE AND TIME CHARGE FOR A COMPLETE TNC PREARRANGED TRIP AT THE RATE PUBLISHED BY THE TNC BY OR THROUGH WHICH SUCH TRIP IS ARRANGED. § 1292. IMPOSITION. THERE IS HEREBY IMPOSED ON EVERY TNC A STATE ASSESSMENT FEE OF 5.5% OF THE GROSS TRIP FARE OF EVERY TNC PREARRANGED TRIP PROVIDED BY SUCH TNC THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE THE CITY AND TERMINATES ANYWHERE IN THIS STATE. § 1293. PRESUMPTION. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO PREVENT EVASION OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, IT SHALL BE PRESUMED THAT EVERY TNC PREARRANGED TRIP THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE THE CITY IS SUBJECT TO THE STATE ASSESSMENT FEE. THIS PRESUMPTION SHALL PREVAIL UNTIL THE CONTRARY IS PROVEN BY THE PERSON LIABLE FOR THE FEE. § 1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE. (A) EVERY PERSON LIABLE FOR THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE SHALL FILE A RETURN ON A CALENDAR-QUARTERLY BASIS WITH THE COMMISSIONER. EACH RETURN SHALL SHOW THE NUMBER OF TNC PREARRANGED TRIPS IN THE QUARTER FOR WHICH THE RETURN IS FILED, TOGETHER WITH SUCH OTHER INFORMATION AS THE COMMIS- SIONER MAY REQUIRE. THE RETURNS REQUIRED BY THIS SECTION SHALL BE FILED WITHIN THIRTY DAYS AFTER THE END OF THE QUARTERLY PERIOD COVERED THERE- BY. IF THE COMMISSIONER DEEMS IT NECESSARY IN ORDER TO ENSURE THE PAYMENT OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, THE COMMIS- SIONER MAY REQUIRE RETURNS TO BE MADE FOR SHORTER PERIODS THAN PRESCRIBED BY THE FOREGOING PROVISIONS OF THIS SECTION, AND UPON SUCH DATES AS THE COMMISSIONER MAY SPECIFY. THE FORM OF RETURNS SHALL BE PRESCRIBED BY THE COMMISSIONER AND SHALL CONTAIN SUCH INFORMATION AS THE COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINISTRATION OF THIS ARTICLE. THE COMMISSIONER MAY REQUIRE AMENDED RETURNS TO BE FILED WITHIN THIRTY DAYS AFTER NOTICE AND TO CONTAIN THE INFORMATION SPECIFIED IN THE NOTICE. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS BE FILED ELECTRON- ICALLY. (B) EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS ARTICLE SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL OF ALL STATE ASSESSMENT FEES ON THE CORRECT NUMBER OF TRIPS SUBJECT TO SUCH FEE UNDER THIS ARTICLE. THE AMOUNT SO PAYABLE TO THE COMMISSIONER FOR THE PERIOD FOR WHICH A RETURN IS REQUIRED TO BE FILED SHALL BE DUE AND PAYABLE TO THE COMMISSIONER ON THE DATE SPECIFIED FOR THE FILING OF THE RETURN FOR SUCH PERIOD, WITHOUT REGARD TO WHETHER A RETURN IS FILED OR WHETHER THE RETURN THAT IS FILED CORRECTLY SHOWS THE CORRECT NUMBER OF TRIPS OR THE AMOUNT OF FEES DUE THEREON. THE COMMISSIONER MAY REQUIRE THAT THE FEE BE PAID ELECTRONICALLY. § 1295. RECORDS TO BE KEPT. EVERY PERSON LIABLE FOR THE STATE ASSESS- MENT FEE IMPOSED BY THIS ARTICLE SHALL KEEP: (A) RECORDS OF EVERY TNC PREARRANGED TRIP SUBJECT TO THE STATE ASSESS- MENT FEE UNDER THIS ARTICLE, AND OF ALL AMOUNTS PAID, CHARGED OR DUE THEREON, IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE; S. 2008 48 A. 3008 (B) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY A STATE AGENCY THAT IS AUTHORIZED TO PERMIT OR REGULATE A TNC; AND (C) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE. § 1296. SECRECY OF RETURNS AND REPORTS. (A) EXCEPT IN ACCORDANCE WITH PROPER JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART- MENT, ANY PERSON ENGAGED OR RETAINED BY THE 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 WITH THE COMMISSIONER PURSUANT TO THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS SET FORTH OR DISCLOSED IN ANY SUCH RETURN OR REPORT. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS AND 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 COMMISSIONER IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A STATE ASSESSMENT FEE DUE UNDER THIS ARTICLE TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY OR A CLAIMANT, OR ON BEHALF OF ANY PARTY TO ANY ACTION, PROCEEDING OR HEARING UNDER THE PROVISIONS OF THIS ARTICLE WHEN THE RETURNS, REPORTS OR FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION, PROCEEDING OR HEARING, IN ANY OF WHICH EVENTS THE COURT, OR IN THE CASE OF A HEARING, THE DIVISION OF TAX APPEALS MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT INTO EVIDENCE, SO MUCH OF SAID RETURNS, REPORTS OR OF THE FACTS SHOWN THEREBY, AS ARE PERTINENT TO THE ACTION, PROCEEDING OR HEARING AND NO MORE. THE COMMISSIONER OR THE DIVISION OF TAX APPEALS MAY, NEVERTHELESS, PUBLISH A COPY OR A SUMMARY OF ANY DECI- SION RENDERED AFTER A HEARING REQUIRED BY THIS ARTICLE. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY TO A PERSON WHO HAS FILED A RETURN OR REPORT OR TO SUCH PERSON'S DULY AUTHORIZED REPRESEN- TATIVE OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED IN CONNECTION WITH SUCH PERSON'S STATE ASSESSMENT FEE. NOR SHALL ANYTHING IN THIS SECTION BE CONSTRUED TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLAS- SIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF, OR THE INSPECTION BY THE ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF THE STATE OF THE RETURN OR REPORT OF ANY PERSON REQUIRED TO PAY THE STATE ASSESSMENT FEE WHO SHALL BRING ACTION TO REVIEW THE STATE ASSESSMENT FEE BASED THEREON, OR AGAINST WHOM AN ACTION OR PROCEEDING UNDER THIS CHAPTER HAS BEEN RECOMMENDED BY THE COMMISSIONER OR THE ATTORNEY GENERAL OR HAS BEEN INSTITUTED, OR THE INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPART- MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY STATE ASSESSMENT FEE PAID BY A PERSON REQUIRED TO PAY THE STATE ASSESS- MENT FEE UNDER THIS ARTICLE. PROVIDED, FURTHER, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE COMMISSIONER DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDEN- TIFYING INFORMATION OF THOSE PERSONS REQUIRED TO PAY STATE ASSESSMENT FEE UNDER THIS ARTICLE. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR ALL PERSONS LIABLE FOR ANY STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, TO MAKE PAYMENT TO BANKS, BANKING HOUSES OR TRUST COMPANIES DESIGNATED BY THE COMMISSIONER AND TO FILE RETURNS WITH SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES AS AGENTS OF THE COMMISSIONER, IN LIEU OF PAYING ANY SUCH STATE ASSESSMENT FEE DIRECTLY TO THE COMMISSIONER. HOWEVER, THE S. 2008 49 A. 3008 COMMISSIONER SHALL DESIGNATE ONLY SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES AS ARE ALREADY DESIGNATED BY THE COMPTROLLER AS DEPOSITORIES PURSUANT TO SECTION TWELVE HUNDRED EIGHTY-EIGHT OF THIS CHAPTER. (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE UNITED STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF EITHER SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION SHALL BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS OF THE UNITED STATES GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMISSIONER OR OFFICER OF THIS STATE CHARGED WITH THE ADMINISTRATION OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS TO BE USED FOR PURPOSES OF TAX ADMINISTRATION ONLY; AND PROVIDED FURTHER THE COMMISSIONER MAY FURNISH TO THE COMMISSIONER OF INTERNAL REVENUE OR SUCH COMMISSIONER'S AUTHORIZED REPRESENTATIVE SUCH RETURNS FILED UNDER THIS ARTICLE AND OTHER TAX INFORMATION, AS SUCH COMMISSIONER MAY CONSID- ER PROPER, FOR USE IN COURT ACTIONS OR PROCEEDINGS UNDER THE INTERNAL REVENUE CODE, WHETHER CIVIL OR CRIMINAL, WHERE A WRITTEN REQUEST THERE- FOR HAS BEEN MADE TO THE COMMISSIONER BY THE SECRETARY OF THE TREASURY OF THE UNITED STATES OR SUCH SECRETARY'S DELEGATE, PROVIDED THE LAWS OF THE UNITED STATES GRANT SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF THE TREASURY OF THE UNITED STATES OR HIS OR HER DELEGATE. WHERE THE COMMISSIONER HAS SO AUTHORIZED USE OF RETURNS AND OTHER INFORMATION IN SUCH ACTIONS OR PROCEEDINGS, OFFICERS AND EMPLOYEES OF THE DEPARTMENT MAY TESTIFY IN SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR OTHER INFORMATION. (D) RETURNS AND REPORTS FILED UNDER THIS ARTICLE SHALL BE PRESERVED FOR THREE YEARS AND THEREAFTER UNTIL THE COMMISSIONER ORDERS THEM TO BE DESTROYED. (E) (1) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE FOR A PERIOD OF FIVE YEARS THEREAFTER. (2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 1297. PRACTICE AND PROCEDURE. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE ADMINISTRATION OF AND PROCEDURE WITH RESPECT TO THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTI- CLE 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 STATE ASSESSMENT FEE UNDER THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. § 1298. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, FEES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTI- CLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. FROM SUCH TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE, 27.27% SHALL BE DEPOSITED TO THE CREDIT OF THE LOCAL TRAN- SIT ASSISTANCE FUND ESTABLISHED IN SECTION EIGHTY-NINE-I OF THE STATE FINANCE LAW FOR THE SUPPORT OF LOCAL TRANSIT SYSTEMS, OPERATIONS OR S. 2008 50 A. 3008 PROJECTS OTHER THAN THE METROPOLITAN TRANSPORTATION AUTHORITY OR ANY SUBSIDIARY OR AFFILIATE OF THE METROPOLITAN TRANSPORTATION AUTHORITY. § 16. The tax law is amended by adding a new section 1822 to read as follows: § 1822. VIOLATION OF THE STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY PREARRANGED TRIPS. ANY WILLFUL ACT OR OMISSION BY ANY PERSON THAT CONSTITUTES A VIOLATION OF ANY PROVISION OF ARTICLE TWENTY- NINE-B OF THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR. § 17. Section 1825 of the tax law, as amended by section 89 of part A of chapter 59 of the laws of 2014, 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, subdivision one or two of section five hundred fourteen, subsection (e) of section six hundred ninety-seven, subsection (a) of section nine hundred ninety-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-seven, SECTION TWELVE HUNDRED NINETY-SIX, subdivision (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. § 18. 1. For purposes of this section, transportation network company shall mean a transportation network company as defined by article forty-four-B of the vehicle and traffic law. 2. There is hereby established the New York State Transportation Network Company Accessibility Task Force to analyze and advise on how to maximize effective and integrated transportation services for persons with disabilities in the transportation network company market. The New York State Transportation Network Company Accessibility Task Force shall consist of eleven members. Two members of the New York State Transporta- tion Network Company Accessibility Task Force shall be appointed by the speaker of the assembly. Two members of the New York State Transporta- tion Network Company Accessibility Task Force shall be appointed by the temporary president of the senate. Seven members of the New York State Transportation Network Company Accessibility Task Force shall be appointed by the governor and shall include, but not be limited to, two representatives of groups who serve persons with disabilities and two representatives from a transportation network company. The governor shall designate two chairpersons to the New York State Transportation Network Company Accessibility Task Force. 3. The New York State Transportation Network Company Accessibility Task Force shall study the demand responsive transportation marketplace and shall, in addition to any responsibilities assigned by the governor: (a) conduct a needs assessment concerning the demand for demand respon- sive accessible transportation; (b) conduct a resource assessment concerning the availability of accessible demand responsive transporta- tion services for persons with disabilities; (c) identify opportunities for, and barriers to, increasing accessible demand responsive transpor- tation service for persons with mobility disabilities; (d) propose stra- tegies for increasing accessible demand responsive transportation service for persons with disabilities; and (e) any other issues deter- mined important to the task force in establishing a recommendation pursuant to subdivision five of this section. S. 2008 51 A. 3008 4. The New York State Transportation Network Company Accessibility Task Force shall hold public hearings and provide an opportunity for public comment on the activities described in subdivision two of this section. 5. The New York State Transportation Network Company Accessibility Task Force shall complete a report addressing the activities described in subdivision two of this section and make a recommendation, supported by such activities, recommending the amount of accessibility necessary for adequate transportation for disabled passengers in order to utilize such services and present such findings at a public meeting where its members shall accept such report, pursuant to majority vote of the task force, and present such report to the governor, the speaker of the assembly and the temporary president of the senate, and make such report publicly available for review. 6. Upon making the report described in subdivision five of this section, the New York State Transportation Network Company Accessibility Task Force shall be deemed dissolved. § 19. The state finance law is amended by adding a new section 89-i to read as follows: § 89-I. LOCAL TRANSIT ASSISTANCE FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "LOCAL TRANSIT ASSISTANCE FUND". MONEYS IN THE LOCAL TRANSIT ASSISTANCE FUND SHALL BE KEPT SEPA- RATELY FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE JOINT OR SOLE CUSTODY OF THE STATE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE. 2. THE COMPTROLLER SHALL ESTABLISH THE FOLLOWING SEPARATE AND DISTINCT ACCOUNT WITHIN THE LOCAL TRANSIT ASSISTANCE FUND: NON-MTA TRANSIT ASSISTANCE ACCOUNT. 3. THE LOCAL TRANSIT ASSISTANCE FUND SHALL CONSIST OF ALL MONIES COLLECTED THEREFORE OR CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND, ACCOUNT, OR SOURCE, INCLUDING A PORTION OF THE REVENUES DERIVED FROM ARTICLE TWENTY-NINE-B OF THE TAX LAW PURSUANT TO SECTION TWELVE HUNDRED NINETY-EIGHT OF THE TAX LAW. ANY INTEREST RECEIVED BY THE COMP- TROLLER ON MONIES ON DEPOSIT IN THE LOCAL TRANSIT ASSISTANCE FUND SHALL BE RETAINED IN AND BECOME A PART OF SUCH FUND. 4. MONIES IN THE LOCAL TRANSIT ASSISTANCE FUND SHALL, FOLLOWING APPRO- PRIATION BY THE LEGISLATURE, BE UTILIZED FOR THE SUPPORT OF LOCAL TRANS- IT SYSTEMS, OPERATIONS OR PROJECTS, AND SHALL NOT BE APPROPRIATED TO THE METROPOLITAN TRANSPORTATION AUTHORITY, ITS AFFILIATES OR ITS SUBSID- IARIES. IN THE FIRST YEAR THAT MONIES ARE APPROPRIATED FROM THIS FUND, AND IN ANY SUBSEQUENT YEARS AS MAY BE REQUIRED BY THE DIRECTOR OF THE BUDGET, SUCH MONIES SHALL BE DISBURSED ACCORDING TO A PLAN DEVELOPED DURING THE PRIOR FISCAL YEAR BY THE COMMISSIONER OF TRANSPORTATION AND APPROVED BY THE DIRECTOR OF THE BUDGET. THE FIRST SUCH PLAN SHALL BE SUBMITTED BY THE COMMISSIONER BY MARCH THIRTY-FIRST, TWO THOUSAND EIGH- TEEN. 5. ALL PAYMENTS OF MONEY FROM THE LOCAL TRANSIT ASSISTANCE FUND SHALL BE MADE ON THE AUDIT AND WARRANT OF THE COMPTROLLER. § 20. Severability clause. If any provision of this act or the appli- cation thereof is held invalid, such invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable. § 21. Each agency that is designated to perform any function or duty pursuant to this act shall be authorized to establish rules and regu- S. 2008 52 A. 3008 lations for the administration and execution of such authority in a manner consistent with the provisions of this act and for the protection of the public, health, safety and welfare of persons within this state. § 22. This act shall take effect on the ninetieth day after it shall have become a law; provided that the amendments to subdivision 1 of section 171-a of the tax law made by section twelve of this act shall not affect the expiration of such subdivision and shall expire there- with, when upon such date the provisions of section thirteen of this act shall take effect. PART H Section 1. Section 491 of the vehicle and traffic law is amended by adding a new subdivision 3 to read as follows: 3. WAIVER OF FEE. THE COMMISSIONER MAY WAIVE THE PAYMENT OF FEES REQUIRED BY SUBDIVISION TWO OF THIS SECTION IF THE APPLICANT IS A VICTIM OF A CRIME AND THE IDENTIFICATION CARD APPLIED FOR IS A REPLACEMENT FOR ONE THAT WAS LOST OR DESTROYED AS A RESULT OF THE CRIME. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART I Section 1. Paragraph (i) of subdivision 2 of section 503 of the vehi- cle and traffic law, as amended by chapter 55 of the laws of 1992, is amended to read as follows: (i) A non-resident whose driving privileges have been revoked pursuant to sections five hundred ten, eleven hundred ninety-three and eleven hundred ninety-four of this chapter shall, upon application for rein- statement of such driving privileges, pay to the commissioner of motor vehicles a fee of [twenty-five] ONE HUNDRED dollars. WHEN THE BASIS FOR THE REVOCATION IS A FINDING OF DRIVING AFTER HAVING CONSUMED ALCOHOL PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED NINETY-TWO-A OF THIS CHAPTER, THE FEE TO BE PAID TO THE COMMISSIONER SHALL BE ONE HUNDRED DOLLARS. Such fee is not refundable and shall not be returned to the applicant regardless of the action the commissioner may take on such person's application for reinstatement of such driving privileges. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART J Section 1. Paragraphs 1 and 3 of subdivision (a) of section 2125 of the vehicle and traffic law, as amended by section 1-b of part A of chapter 63 of the laws of 2005, are amended to read as follows: (1) for filing an application for a certificate of title, [fifty] SEVENTY-FIVE dollars except where the application relates to a mobile home or a manufactured home as defined in section one hundred twenty- two-c of this chapter, in which case the fee shall be one hundred twen- ty-five dollars; (3) for a duplicate certificate of title, [twenty] FORTY dollars. § 2. Section 2125 of the vehicle and traffic law is amended by adding a new subdivision (h) to read as follows: (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE INCREASE OF TWEN- TY-FIVE DOLLARS FOR THE FEE ASSESSED FOR FILING AN APPLICATION FOR A CERTIFICATE OF TITLE AND THE INCREASE OF TWENTY DOLLARS FOR THE FEE S. 2008 53 A. 3008 ASSESSED FOR FILING AN APPLICATION FOR DUPLICATE TITLE, COLLECTED PURSU- ANT TO PARAGRAPHS ONE AND THREE OF SUBDIVISION (A) OF THIS SECTION, SHALL BE DEPOSITED TO THE CREDIT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND, ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately; provided that the amend- ments to paragraph 1 of subdivision (a) of section 2125 of the vehicle and traffic law made by section one of this act shall not affect the expiration and reversion of such paragraph and shall be deemed to expire therewith. PART K Section 1. Subdivision 2 of section 491 of the vehicle and traffic law is amended by adding a new paragraph (f) to read as follows: (F) IN ADDITION TO ANY OTHER FEE PRESCRIBED IN THIS SECTION, AN ADDI- TIONAL FEE OF FIVE DOLLARS SHALL BE CHARGED FOR ANY NON-DRIVER IDENTIFI- CATION CARD OR RENEWAL OF SUCH CARD THAT IS ISSUED PURSUANT TO AND BEARS A MARKING REFLECTING COMPLIANCE WITH THE REAL ID ACT OF 2005, PUBLIC LAW 109-13, AND REGULATIONS PROMULGATED THEREUNDER AT 6 CFR 37 ET SEQ. THE FEE COLLECTED PURSUANT TO THIS PARAGRAPH SHALL BE PAID TO THE COMMIS- SIONER AND SHALL BE DEPOSITED INTO THE DEDICATED HIGHWAY BRIDGE AND TRUST FUND PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 2. Subdivision 2 of section 503 of the vehicle and traffic law is amended by adding a new paragraph (f-2) to read as follows: (F-2) IN ADDITION TO ANY OTHER FEE PRESCRIBED IN THIS SECTION, AN ADDITIONAL FEE OF FIVE DOLLARS SHALL BE CHARGED FOR ANY LICENSE, RENEWAL OR AMENDMENT OF SUCH LICENSE THAT IS ISSUED PURSUANT TO AND BEARS A MARKING REFLECTING COMPLIANCE WITH THE REAL ID ACT OF 2005, PUBLIC LAW 109-13, AND REGULATIONS PROMULGATED THEREUNDER AT 6 CFR 37 ET SEQ. THE FEE COLLECTED PURSUANT TO THIS PARAGRAPH SHALL BE PAID TO THE COMMIS- SIONER AND SHALL BE DEPOSITED INTO THE DEDICATED HIGHWAY BRIDGE AND TRUST FUND PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately. PART L Section 1. Section 114-a of the vehicle and traffic law, as added by chapter 163 of the laws of 1973, is amended to read as follows: § 114-a. Drug. The term "drug" when used in this chapter, means and includes any substance listed in section thirty-three hundred six of the public health law AND ANY SUBSTANCE OR COMBINATION OF SUBSTANCES THAT IMPAIR, TO ANY EXTENT, THE PHYSICAL AND MENTAL ABILITIES WHICH A DRIVER IS EXPECTED TO POSSESS IN ORDER TO OPERATE A VEHICLE AS A REASONABLE AND PRUDENT DRIVER. § 2. Subparagraph (i) of paragraph (a) of subdivision 4 of section 502 of the vehicle and traffic law, as amended by chapter 97 of the laws of 2016, is amended to read as follows: (i) Upon submission of an application for a driver's license, the applicant shall be required to take and pass a test, or submit evidence of passage of a test, with respect to the laws relating to traffic, the laws relating to driving while ability is impaired and while intoxicat- ed, under the overpowering influence of "Road Rage", or "Work Zone Safe- ty" awareness as defined by the commissioner, the law relating to exer- cising due care to avoid colliding with a parked, stopped or standing authorized emergency vehicle or hazard vehicle pursuant to section elev- S. 2008 54 A. 3008 en hundred forty-four-a of this chapter, the ability to read and compre- hend traffic signs and symbols, BICYCLE AND PEDESTRIAN SAFETY and such other matters as the commissioner may prescribe, and to satisfactorily complete a course prescribed by the commissioner of not less than four hours and not more than five hours, consisting of classroom driver training and highway safety instruction or the equivalent thereof. Such test shall include at least seven written questions concerning the effects of consumption of alcohol or drugs on the ability of a person to operate a motor vehicle and the legal and financial consequences result- ing from violations of section eleven hundred ninety-two of this chap- ter, prohibiting the operation of a motor vehicle while under the influ- ence of alcohol or drugs. Such test shall include one or more written questions concerning the devastating effects of "Road Rage" on the abil- ity of a person to operate a motor vehicle and the legal and financial consequences resulting from assaulting, threatening or interfering with the lawful conduct of another person legally using the roadway. Such test shall include one or more questions concerning the potential dangers to persons and equipment resulting from the unsafe operation of a motor vehicle in a work zone. Such test may include one or more ques- tions concerning the law for exercising due care to avoid colliding with a parked, stopped or standing vehicle pursuant to section eleven hundred forty-four-a of this chapter. SUCH TEST MAY INCLUDE ONE OR MORE QUES- TIONS CONCERNING BICYCLE AND PEDESTRIAN SAFETY. Such test shall be administered by the commissioner. The commissioner shall cause the applicant to take a vision test and a test for color blindness. Upon passage of the vision test, the application may be accepted and the application fee shall be payable. § 3. Subparagraph (v) of paragraph (b) of subdivision 2 of section 510 of the vehicle and traffic law, as amended by chapter 3 of the laws of 1995, is amended to read as follows: (v) For a period of six months where the holder is convicted of, or receives a youthful offender or other juvenile adjudication in connection with, any misdemeanor or felony defined in article two hundred twenty or two hundred twenty-one of the penal law, any violation of the federal controlled substances act, [any crime in violation of subdivision four of section eleven hundred ninety-two of this chapter] or any out-of-state or federal misdemeanor or felony drug-related offense; provided, however, that any time actually served in custody pursuant to a sentence or disposition imposed as a result of such conviction or youthful offender or other juvenile adjudication shall be credited against the period of such suspension and, provided further, that the court shall determine that such suspension need not be imposed where there are compelling circumstances warranting an exception. § 4. Paragraphs i and j of subdivision 6 of section 510 of the vehicle and traffic law, as added by chapter 533 of the laws of 1993, are amended to read as follows: i. Where suspension of a driver's license is mandatory hereunder based upon a conviction of, or youthful offender or other juvenile adjudi- cation in connection with, any misdemeanor or felony as defined in arti- cle two hundred twenty or two hundred twenty-one of the penal law, any violation of the federal controlled substances act, [any crime in violation of subdivision four of section eleven hundred ninety-two of this chapter] or any out-of-state or federal misdemeanor or felony drug- related offense, the commissioner may issue a restricted use license pursuant to section five hundred thirty of this chapter. S. 2008 55 A. 3008 j. Where suspension of a driver's license is mandatory hereunder based upon a conviction of, or youthful offender or other juvenile adjudi- cation in connection with, any misdemeanor or felony as defined in arti- cle two hundred twenty or two hundred twenty-one of the penal law, any violation of the federal controlled substances act, [any crime in violation of subdivision four of section eleven hundred ninety-two of this chapter] or any out-of-state or federal misdemeanor or felony drug- related offense and the individual does not have a driver's license or the individual's driver's license was suspended at the time of conviction or youthful offender or other juvenile adjudication, the commissioner shall not issue a new license nor restore the former license for a period of six months after such individual would otherwise have become eligible to obtain a new license or to have the former license restored; provided, however, that during such delay period the commissioner may issue a restricted use license pursuant to section five hundred thirty of this [chapter] TITLE to such previously suspended licensee. § 5. Paragraph (b) of subdivision 2 of section 1193 of the vehicle and traffic law is amended by adding a new subparagraph 13 to read as follows: (13) WHERE REVOCATION OF A DRIVER'S LICENSE IS MANDATORY HEREUNDER BASED UPON A CONVICTION OF, OR YOUTHFUL OFFENDER OF OTHER JUVENILE ADJU- DICATION IN CONNECTION WITH ANY CRIME IN VIOLATION OF SUBDIVISION FOUR OF SECTION ELEVEN HUNDRED NINETY-TWO OF THIS ARTICLE AND THE INDIVIDUAL DOES NOT HAVE A DRIVER'S LICENSE OR THE INDIVIDUAL'S DRIVER'S LICENSE WAS SUSPENDED OR REVOKED AT THE TIME OF CONVICTION OR YOUTHFUL OFFENDER OR OTHER JUVENILE ADJUDICATION, THE COMMISSIONER SHALL NOT ISSUE A NEW LICENSE NOR RESTORE THE FORMER LICENSE FOR A PERIOD OF SIX MONTHS AFTER SUCH INDIVIDUAL WOULD OTHERWISE HAVE BECOME ELIGIBLE TO OBTAIN A NEW LICENSE OR TO HAVE THE FORMER LICENSE RESTORED; PROVIDED, HOWEVER, THAT DURING SUCH PERIOD THE COMMISSIONER MAY ISSUE A CONDITIONAL LICENSE PURSUANT TO SECTION ELEVEN HUNDRED NINETY-SIX OF THIS ARTICLE TO SUCH PREVIOUSLY REVOKED LICENSEE. § 6. Clauses a and b of subparagraph 1 of paragraph (d) of subdivision 2 of section 1194 of the vehicle and traffic law, as amended by chapter 732 of the laws of 2006, are amended to read as follows: a. Any license which has been revoked pursuant to paragraph (c) of this subdivision shall not be restored for at least [one year] EIGHTEEN MONTHS after such revocation, nor thereafter, except in the discretion of the commissioner. However, no such license shall be restored for at least [eighteen] TWENTY-FOUR months after such revocation, nor thereaft- er except in the discretion of the commissioner, in any case where the person has had a prior revocation resulting from refusal to submit to a chemical test, or has been convicted of or found to be in violation of any subdivision of section eleven hundred ninety-two or section eleven hundred ninety-two-a of this article not arising out of the same inci- dent, within the five years immediately preceding the date of such revo- cation; provided, however, a prior finding that a person under the age of twenty-one has refused to submit to a chemical test pursuant to subdivision three of section eleven hundred ninety-four-a of this arti- cle shall have the same effect as a prior finding of a refusal pursuant to this subdivision solely for the purpose of determining the length of any license suspension or revocation required to be imposed under any provision of this article, provided that the subsequent offense or refusal is committed or occurred prior to the expiration of the S. 2008 56 A. 3008 retention period for such prior refusal as set forth in paragraph (k) of subdivision one of section two hundred one of this chapter. b. Any license which has been revoked pursuant to paragraph (c) of this subdivision or pursuant to subdivision three of section eleven hundred ninety-four-a of this article, where the holder was under the age of twenty-one years at the time of such refusal, shall not be restored for at least [one year] EIGHTEEN MONTHS, nor thereafter, except in the discretion of the commissioner. Where such person under the age of twenty-one years has a prior finding, conviction or youthful offender adjudication resulting from a violation of section eleven hundred nine- ty-two or section eleven hundred ninety-two-a of this article, not aris- ing from the same incident, such license shall not be restored for at least [one year] TWENTY-FOUR MONTHS or until such person reaches the age of twenty-one years, whichever is the greater period of time, nor there- after, except in the discretion of the commissioner. § 7. Paragraphs (a) and (b) of subdivision 2 of section 1225-c of the vehicle and traffic law, as amended by section 4 of part C of chapter 58 of the laws of 2013, are amended to read as follows: (a) Except as otherwise provided in this section, no person shall operate a motor vehicle upon a public highway while using a mobile tele- phone to engage in a call while such vehicle is in motion; provided, however, that no person shall operate a commercial motor vehicle while using a mobile telephone to engage in a call on a public highway [including while temporarily stationary because of traffic, a traffic control device, or other momentary delays]. Provided further, however, that a person shall not be deemed to be operating a [commercial] motor vehicle while using a mobile telephone to engage in a call on a public highway when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer. (b) An operator of any motor vehicle UPON A PUBLIC HIGHWAY who holds a mobile telephone to, or in the immediate proximity of, his or her ear [while such vehicle is in motion] is presumed to be engaging in a call within the meaning of this section[; provided, however, that an operator of a commercial motor vehicle who holds a mobile telephone to, or in the immediate proximity of, his or her ear while such vehicle is temporarily stationary because of traffic, a traffic control device, or other momen- tary delays is also presumed to be engaging in a call within the meaning of this section except that a person operating a commercial motor vehi- cle while using a mobile telephone to engage in a call when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer shall not be presumed to be engaging in a call within the meaning of this section]. The presumption established by this subdivision is rebuttable by evidence tending to show that the operator was not engaged in a call. § 8. Subdivision 3 of section 1225-c of the vehicle and traffic law, as added by chapter 69 of the laws of 2001, is amended and a new subdi- vision 2-a is added to read as follows: 2-A. NO PERSON UNDER EIGHTEEN YEARS OF AGE SHALL OPERATE A MOTOR VEHI- CLE UPON A PUBLIC HIGHWAY WHILE ENGAGING IN A CALL WITH A HAND HELD OR HANDS FREE MOBILE TELEPHONE. FOR THE PURPOSES OF THIS SUBDIVISION, ENGAGING IN A CALL SHALL INCLUDE MAKING OR RECEIVING A CALL WITH A HAND HELD OR HANDS FREE MOBILE TELEPHONE. S. 2008 57 A. 3008 3. [Subdivision] SUBDIVISIONS two AND TWO-A of this section shall not apply to (a) the use of a mobile telephone for the sole purpose of communicating with any of the following regarding an emergency situ- ation: an emergency response operator; a hospital, physician's office or health clinic; an ambulance company or corps; a fire department, district or company; or a police department, (b) any of the following persons while in the performance of their official duties: a police officer or peace officer; a member of a fire department, district or company; or the operator of an authorized emergency vehicle as defined in section one hundred one of this chapter, or (c) the use of a hands- free mobile telephone EXCEPT AS APPLIED TO PERSONS UNDER THE AGE OF EIGHTEEN YEARS. § 9. Subdivisions 1 and 4 of section 1225-d of the vehicle and traffic law, subdivision 1 as amended by section 6 and subdivision 4 as amended by section 10 of part C of chapter 58 of the laws of 2013, are amended to read as follows: 1. Except as otherwise provided in this section, no person shall oper- ate a motor vehicle while using any portable electronic device [while such vehicle is in motion; provided, however, that no person shall oper- ate a commercial motor vehicle while using any portable electronic device on a public highway including while temporarily stationary because of traffic, a traffic control device, or other momentary delays]. Provided further, however, that a person shall not be deemed to be operating a [commercial] motor vehicle while using a portable elec- tronic device on a public highway when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer. 4. A person who [holds] USES a portable electronic device in a conspicuous manner while operating a motor vehicle or while operating a [commercial] motor vehicle on a public highway [including while tempo- rarily stationary because of traffic, a traffic control device, or other momentary delays] but not including when such [commercial] motor vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer is presumed to be using such device[, except that a person operating a commercial motor vehicle while using a portable electronic device when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police offi- cer shall not be presumed to be using such device]. The presumption established by this subdivision is rebuttable by evidence tending to show that the operator was not using the device within the meaning of this section. § 10. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of the vehicle and traffic law, as amended by section 8 of part C of chapter 58 of the laws of 2013, are amended to read as follows: (a) "Portable electronic device" shall mean any hand-held mobile tele- phone, as defined by subdivision one of section twelve hundred twenty- five-c of this article, personal digital assistant (PDA), handheld device with mobile data access, laptop computer, pager, broadband personal communication device, two-way messaging device, electronic game, or portable computing device, or any other [electronic] PERSONAL WIRELESS COMMUNICATIONS device when used to input, write, send, receive, or read text OR IMAGES for present or future communication INCLUDING S. 2008 58 A. 3008 DOING SO FOR THE PURPOSE OF SMS TEXTING, EMAILING, INSTANT MESSAGING OR ENGAGING IN ANY OTHER FORM OF ELECTRONIC DATA RETRIEVAL OR ELECTRONIC DATA COMMUNICATION. (b) "Using" shall mean holding OR MAKING CONTACT WITH a portable elec- tronic device [while] FOR THE PURPOSE OF viewing, taking or transmitting images, playing games, or, for the purpose of present or future communi- cation: performing a command or request to access a world wide web page, composing, sending, reading, viewing, accessing, browsing, transmitting, saving or retrieving e-mail, text messages, instant messages, or other electronic data. § 11. Subdivision 2 of section 1225-d of the vehicle and traffic law, is amended by adding a new paragraph (e) to read as follows: (E) "PERSONAL WIRELESS COMMUNICATIONS DEVICE" SHALL: (I) MEAN A DEVICE THROUGH WHICH PERSONAL WIRELESS SERVICES (AS DEFINED IN SECTION 332(C)(7)(C)(I) OF THE COMMUNICATIONS ACT OF 1934 (47 U.S.C. 332 (C)(7)(C)(I)), ARE TRANSMITTED; AND (II) DOES NOT INCLUDE A GLOBAL NAVIGATION SATELLITE SYSTEM RECEIVER USED FOR POSITIONING, EMERGENCY NOTIFICATION, OR NAVIGATION PURPOSES. § 12. Subdivision 3 of section 1229-c of the vehicle and traffic law, as added by chapter 365 of the laws of 1984, is amended to read as follows: 3. No person shall operate a motor vehicle unless such person is restrained by a safety belt approved by the commissioner. No person sixteen years of age or over shall be a passenger in [the front seat of] a motor vehicle unless such person is restrained by a safety belt approved by the commissioner. § 13. This act shall take effect on the first of October next succeed- ing the date on which it shall have become a law. PART M Section 1. Subdivision 3 of section 16-m of section 1 of chapter 174 of the laws of 1968 constituting the New York state urban development corporation act, as amended by section 1 of part F of chapter 58 of the laws of 2016, is amended to read as follows: 3. The provisions of this section shall expire, notwithstanding any inconsistent provision of subdivision 4 of section 469 of chapter 309 of the laws of 1996 or of any other law, on July 1, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2017. PART N Section 1. Section 2 of chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, as amended by section 1 of part G of chapter 58 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect immediately provided, however, that section one of this act shall expire on July 1, [2017] 2018, at which time the provisions of subdivision 26 of section 5 of the New York state urban development corporation act shall be deemed repealed; provided, however, that neither the expiration nor the repeal of such subdivision as provided for herein shall be deemed to affect or impair in any manner any loan made pursuant to the authority of such subdivision prior to such expiration and repeal. S. 2008 59 A. 3008 § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART O Section 1. The opening paragraph of subdivision (h) of section 121 of chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, as amended by section 2 of part Q of chapter 58 of the laws of 2015, is amended to read as follows: The provisions of [section] SECTIONS sixty-two through sixty-six of this act shall expire on December thirty-first, two thousand [seventeen] EIGHTEEN, except that: § 2. This act shall take effect immediately. PART P Section 1. Subdivision (a) of section 2 of part F of chapter 60 of the laws of 2015 constituting the infrastructure investment act, is amended to read as follows: (a) "authorized [state] entity" shall mean the New York state thruway authority, [the department of transportation, the office of parks, recreation and historic preservation, the department of environmental conservation and] the New York state bridge authority, ANY AUTHORITY AS SUCH TERM IS DEFINED IN SECTION 2 OF THE PUBLIC AUTHORITIES LAW, EVERY STATE AGENCY, AS SUCH TERM IS DEFINED IN SECTION 160 OF THE STATE FINANCE LAW AND INCLUDING THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK, AND ANY AND ALL AFFILIATES OR SUBSIDIARIES OF SUCH ENTITIES, AND COUNTIES AS SUCH TERM IS DEFINED IN SECTION 3 OF THE COUNTY LAW, EXCLUDING BRONX, KINGS, NEW YORK, QUEENS, AND RICHMOND COUN- TIES. § 2. Section 2 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended by adding a new subdi- vision (b-1) to read as follows: (B-1) "CAPITAL ASSETS" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED BY SUBDIVISION 6-B OF SECTION 2 OF THE STATE FINANCE LAW. § 3. Section 3 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 3. Notwithstanding the provisions of section 38 of the highway law, section 136-a of the state finance law, [section] SECTIONS 359, 1678, 1680, 1680-A AND 2879-A of the public authorities law, [section] SECTIONS 407-A, 6281 AND 7210 of the education law, SECTIONS 8 AND 9 OF THE PUBLIC BUILDINGS LAW, SECTION 11 OF CHAPTER 795 OF THE LAWS OF 1967, SECTIONS 8 AND 9 OF SECTION 1 OF CHAPTER 359 OF THE LAWS OF 1968 AS AMENDED, SECTION 29 OF CHAPTER 337 OF THE LAWS OF 1972, SECTION 21 OF CHAPTER 464 OF THE LAWS OF 1972, SECTION 103 OF THE GENERAL MUNICIPAL LAW, and the provisions of any other law to the contrary, and in conformity with the requirements of this act, an authorized [state] entity may utilize the alternative delivery method referred to as design-build contracts, in consultation with relevant local labor organ- izations and construction industry, for capital projects related to [the state's physical infrastructure, including, but not limited to, the state's highways, bridges, dams, flood control projects, canals, and parks, including, but not limited to, to repair damage caused by natural disaster, to correct health and safety defects, to comply with federal and state laws, standards, and regulations, to extend the useful life of S. 2008 60 A. 3008 or replace the state's highways, bridges, dams, flood control projects, canals, and parks or to improve or add to the state's highways, bridges, dams, flood control projects, canals, and parks] PUBLICLY OWNED CAPITAL ASSETS; provided that [for the contracts executed by the department of transportation, the office of parks, recreation and historic preserva- tion, or the department of environmental conservation,] the total cost of each such project shall not be less than one million two hundred thousand dollars ($1,200,000). § 4. Section 4 of part F of chapter 60 of he laws of 2015 constituting the infrastructure investment act, is amended to read as follows: § 4. An entity selected by an authorized [state] entity to enter into a design-build contract shall be selected through a two-step method, as follows: (a) Step one. Generation of a list of entities that have demonstrated the general capability to perform the design-build contract. Such list shall consist of a specified number of entities, as determined by an authorized [state] entity, and shall be generated based upon the author- ized [state] entity's review of responses to a publicly advertised request for qualifications. The authorized [state] entity's request for qualifications shall include a general description of the project, the maximum number of entities to be included on the list, and the selection criteria to be used in generating the list. Such selection criteria shall include the qualifications and experience of the design and construction team, organization, demonstrated responsibility, ability of the team or of a member or members of the team to comply with applicable requirements, including the provisions of articles 145, 147 and 148 of the education law, past record of compliance with the labor law, and such other qualifications the authorized [state] entity deems appropri- ate which may include but are not limited to project understanding, financial capability and record of past performance. The authorized [state] entity shall evaluate and rate all entities responding to the request for qualifications. Based upon such ratings, the authorized [state] entity shall list the entities that shall receive a request for proposals in accordance with subdivision (b) of this section. To the extent consistent with applicable federal law, the authorized [state] entity shall consider, when awarding any contract pursuant to this section, the participation of: (i) firms certified pursuant to article 15-A of the executive law as minority or women-owned businesses and the ability of other businesses under consideration to work with minority and women-owned businesses so as to promote and assist participation by such businesses; [and] (ii) small business concerns identified pursuant to subdivision (b) of section 139-g of the state finance law. (b) Step two. Selection of the proposal which is the best value to the [state] AUTHORIZED ENTITY. The authorized [state] entity shall issue a request for proposals to the entities listed pursuant to subdivision (a) of this section. If such an entity consists of a team of separate enti- ties, the entities that comprise such a team must remain unchanged from the entity as listed pursuant to subdivision (a) of this section unless otherwise approved by the authorized [state] entity. The request for proposals shall set forth the project's scope of work, and other requirements, as determined by the authorized [state] entity. The request for proposals shall specify the criteria to be used to evaluate the responses and the relative weight of each such criteria. Such criteria shall include the proposal's cost, the quality of the proposal's solution, the qualifications and experience of the design- build entity, and other factors deemed pertinent by the authorized S. 2008 61 A. 3008 [state] entity, which may include, but shall not be limited to, the proposal's project implementation, ability to complete the work in a timely and satisfactory manner, maintenance costs of the completed project, maintenance of traffic approach, and community impact. Any contract awarded pursuant to this act shall be awarded to a responsive and responsible entity that submits the proposal, which, in consider- ation of these and other specified criteria deemed pertinent to the project, offers the best value to the [state] AUTHORIZED ENTITY, as determined by the authorized [state] entity. Nothing herein shall be construed to prohibit the authorized entity from negotiating final contract terms and conditions including cost. § 5. Section 6 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 6. Construction for each capital project undertaken by the author- ized [state] entity pursuant to this act shall be deemed a "public work" to be performed in accordance with the provisions of article 8 of the labor law, as well as subject to sections 200, 240, 241 and 242 of the labor law and enforcement of prevailing wage requirements by the New York state department of labor. § 6. Section 7 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 7. If otherwise applicable, capital projects undertaken by the authorized [state] entity pursuant to this act shall be subject to section 135 of the state finance law, SECTION 101 OF THE GENERAL MUNICI- PAL LAW, and section 222 of the labor law; PROVIDED, HOWEVER, THAT AN AUTHORIZED ENTITY MAY FULFILL ITS OBLIGATIONS UNDER SECTION 135 OF THE STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW BY REQUIR- ING THE CONTRACTOR TO PREPARE SEPARATE SPECIFICATIONS IN ACCORDANCE WITH SECTION 135 OF THE STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW, AS THE CASE MAY BE. § 7. Section 8 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 8. Each contract entered into by the authorized [state] entity pursuant to this section shall comply with the objectives and goals of minority and women-owned business enterprises pursuant to article 15-A of the executive law or, for projects receiving federal aid, shall comply with applicable federal requirements for disadvantaged business enterprises. § 8. Section 9 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 9. Capital projects undertaken by the authorized [state] entity pursuant to this act shall be subject to the requirements of article 8 of the environmental conservation law, and, where applicable, the requirements of the national environmental policy act. § 9. Section 10 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 10. If otherwise applicable, capital projects undertaken by the authorized [state] entity pursuant to this act shall be governed by sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph g of subdivision 9 of section 163 of the state finance law. § 10. Section 12 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 12. Nothing contained in this act shall limit the right or obli- gation of the authorized [state] entity to comply with the provisions of any existing contract, including any existing contract with or for the S. 2008 62 A. 3008 benefit of the holders of the obligations of the authorized [state] entity, or to award contracts as otherwise provided by law. § 11. Section 13 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 13. Alternative construction awarding processes. (a) Notwithstand- ing the provisions of any other law to the contrary, the authorized [state] entity may award a construction contract: 1. To the contractor offering the best value; or 2. Utilizing a cost-plus not to exceed guaranteed maximum price form of contract in which the authorized [state] entity shall be entitled to monitor and audit all project costs. In establishing the schedule and process for determining a guaranteed maximum price, the contract between the authorized [state] entity and the contractor shall: (i) describe the scope of the work and the cost of performing such work; (ii) include a detailed line item cost breakdown; (iii) include a list of all drawings, specifications and other infor- mation on which the guaranteed maximum price is based; (iv) include the dates for substantial and final completion on which the guaranteed maximum price is based; and (v) include a schedule of unit prices; or 3. Utilizing a lump sum contract in which the contractor agrees to accept a set dollar amount for a contract which comprises a single bid without providing a cost breakdown for all costs such as for equipment, labor, materials, as well as such contractor's profit for completing all items of work comprising the project. (b) Capital projects undertaken by an authorized [state] entity may include an incentive clause in the contract for various performance objectives, but the incentive clause shall not include an incentive that exceeds the quantifiable value of the benefit received by the [state] AUTHORIZED ENTITY. The authorized [state] entity shall establish such performance and payment bonds as it deems necessary. § 12. Section 14 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 14. Prequalified contractors. (a) Notwithstanding any other provision of law, the authorized [state] entity may maintain a list of prequalified contractors who are eligible to submit a proposal pursuant to this act and entry into such list shall be continuously available. Prospective contractors may be prequalified as contractors to provide particular types of construction, in accordance with general criteria established by the authorized [state] entity which may include, but shall not be limited to, the experience, past performance, ability to undertake the type and complexity of work, financial capability, respon- sibility, compliance with equal employment opportunity requirements and anti-discrimination laws, and reliability. Such prequalification may be by categories designed by size and other factors. (b) A contractor who is denied prequalification or whose prequalifica- tion is revoked or suspended by the authorized [state] entity may appeal such decision to the authorized [state] entity. If such a suspension extends for more than three months, it shall be deemed a revocation of the prequalification. The authorized [state] entity may proceed with the contract award during any appeal. § 13. Part F of chapter 60 of the laws of 2015 constituting the infrastructure investment act, is amended by adding a new section 15-a to read as follows: S. 2008 63 A. 3008 § 15-A. ANY CONTRACT AWARDED PURSUANT TO THIS ACT SHALL BE DEEMED TO BE AWARDED PURSUANT TO A COMPETITIVE PROCUREMENT FOR PURPOSES OF SECTION 2879-A OF THE PUBLIC AUTHORITIES LAW. § 14. Section 17 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 17. This act shall take effect immediately [and shall expire and be deemed repealed 2 years after such date, provided that, projects with requests for qualifications issued prior to such repeal shall be permit- ted to continue under this act notwithstanding such repeal]. § 15. This act shall take effect immediately; provided, however that the amendments to the infrastructure investment act made by sections one through thirteen of this act shall not affect the repeal of such act and shall be deemed repealed therewith. PART Q Section 1. Section 2 of chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, as amended by section 1 of part M of chapter 58 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect immediately, provided however, that section one of this act shall be deemed to have been in full force and effect on and after April 1, 2003 and shall expire March 31, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after March 31, 2017. PART R Section 1. Paragraph (d) of section 304 of the business corporation law is amended to read as follows: (d) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC CORPORATION OR FOREIGN CORPORATION FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH CORPORATION AS REQUIRED BY THIS ARTICLE. Any designated [post-office] POST OFFICE address to which the secretary of state OR A PERSON shall mail a copy of ANY process served upon [him] THE SECRETARY OF STATE as agent of a domestic corporation or a foreign corporation, shall continue until the filing of a certificate under this chapter directing the mail- ing to a different [post-office] POST OFFICE address. § 2. Paragraph (a) of section 305 of the business corporation law, as amended by chapter 131 of the laws of 1985, is amended to read as follows: (a) In addition to such designation of the secretary of state, every domestic corporation or authorized foreign corporation may designate a registered agent in this state upon whom process against such corpo- ration may be served. The agent shall be a natural person who is a resi- dent of or has a business address in this state [or], a domestic corpo- ration or foreign corporation of any type or kind formed[,] or authorized to do business in this state, under this chapter or under any other statute of this state, OR DOMESTIC LIMITED LIABILITY COMPANY OR FOREIGN LIMITED LIABILITY COMPANY FORMED OR AUTHORIZED TO DO BUSINESS IN THIS STATE. S. 2008 64 A. 3008 § 3. Subparagraph 1 of paragraph (b) of section 306 of the business corporation law, as amended by chapter 419 of the laws of 1990, is amended to read as follows: (1) Service of process on the secretary of state as agent of a domes- tic or authorized foreign corporation, OR OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROCESS PURSU- ANT TO ARTICLE NINE OF THIS CHAPTER, shall be made by [personally deliv- ering to and leaving with the secretary of state or a deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, dupli- cate copies of such process together with the statutory fee, which fee shall be a taxable disbursement] MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. IF A DOMESTIC OR AUTHORIZED FOREIGN CORPORATION HAS NO SUCH ADDRESS ON FILE IN THE DEPARTMENT OF STATE, THE PROCESS AND NOTICE OF SERVICE THEREOF SHALL BE MAILED, IN THE CASE OF A DOMESTIC CORPORATION, IN CARE OF ANY DIRECTOR NAMED IN ITS CERTIFICATE OF INCORPORATION AT THE DIRECTOR'S ADDRESS STATED THEREIN OR, IN THE CASE OF AN AUTHORIZED FOREIGN CORPORATION, TO SUCH CORPORATION AT THE ADDRESS OF ITS OFFICE WITHIN THIS STATE ON FILE IN THE DEPARTMENT. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLI- CATE COPY OF SUCH PROCESS AND PROOF OF MAILING TOGETHER WITH THE STATU- TORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT SHALL BE PERSONALLY DELIVERED TO AND LEFT WITH THE SECRETARY OF STATE OR A DEPUTY, OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, AT THE OFFICE OF THE DEPARTMENT OF STATE IN THE CITY OF ALBANY. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such corporation OR OTHER BUSINESS ENTITY shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such corporation, at the post office address, on file in the department of state, specified for the purpose. If a domes- tic or authorized foreign corporation has no such address on file in the department of state, the secretary of state shall so mail such copy, in the case of a domestic corporation, in care of any director named in its certificate of incorporation at the director's address stated therein or, in the case of an authorized foreign corporation, to such corpo- ration at the address of its office within this state on file in the department.] § 4. Subparagraphs 2 and 3 of paragraph (a) of section 306-A of the business corporation law, as added by chapter 469 of the laws of 1997, are amended to read as follows: (2) That the address of the party has been designated by the corpo- ration as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secretary of state as agent for such corporation, SPECIFYING SUCH ADDRESS, and that such party wishes to resign. (3) That sixty days prior to the filing of the certificate of resigna- tion OR RECEIPT OF PROCESS with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the designating corporation, if other than the party filing the certif- icate of resignation[,] for receipt of process, or if the [resigning] DESIGNATING corporation has no registered agent, then to the last address of the designating corporation known to the party, specifying S. 2008 65 A. 3008 the address to which the copy was sent. If there is no registered agent and no known address of the designating corporation, the party shall attach an affidavit to the certificate stating that a diligent but unsuccessful search was made by the party to locate the corporation, specifying what efforts were made. § 5. Subparagraph 7 of paragraph (a) of section 402 of the business corporation law is amended to read as follows: (7) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 6. Subparagraph (c) of paragraph 1 of section 408 of the business corporation law, as amended by section 3 of part S of chapter 59 of the laws of 2015, is amended to read as follows: (c) The post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE. Such address shall supersede any previous address on file with the department of state for this purpose. § 7. Subparagraph 4 of paragraph (b) of section 801 of the business corporation law is amended to read as follows: (4) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 8. Subparagraph 2 of paragraph (b) of section 803 of the business corporation law, as amended by chapter 803 of the laws of 1965, is amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 9. Paragraph (b) of section 805-A of the business corporation law, as added by chapter 725 of the laws of 1964, is amended to read as follows: (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a corporation served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such corporation, may be signed[, verified] and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subparagraphs [(a)] (1), (2) and (3) OF PARA- GRAPH (A) of this section; that a notice of the proposed change was mailed to the corporation by the party signing the certificate not less than thirty days prior to the date of delivery to the department and that such corporation has not objected thereto; and that the party sign- ing the certificate is the agent of such corporation to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed[, verified] and delivered under this para- graph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certificate is filed. S. 2008 66 A. 3008 § 10. Subparagraph 8 of paragraph (a) of section 904-a of the business corporation law, as amended by chapter 177 of the laws of 2008, is amended to read as follows: (8) If the surviving or resulting entity is a foreign corporation or other business entity, a designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in paragraph (b) of section three hundred six of this chapter, in any action or special proceeding, and a post office address, within or with- out this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed; § 11. Clause (G) of subparagraph 2 of paragraph (e) of section 907 of the business corporation law, as amended by chapter 494 of the laws of 1997, is amended to read as follows: (G) A designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding, and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed. § 12. Subparagraph 6 of paragraph (a) of section 1304 of the business corporation law, as amended by chapter 684 of the laws of 1963 and as renumbered by chapter 590 of the laws of 1982, is amended to read as follows: (6) A designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 13. Subparagraph 7 of paragraph (a) of section 1308 of the business corporation law, as amended by chapter 725 of the laws of 1964 and as renumbered by chapter 186 of the laws of 1983, is amended to read as follows: (7) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 14. Subparagraph 2 of paragraph (a) and paragraph (c) of section 1309-A of the business corporation law, subparagraph 2 of paragraph (a) as added by chapter 725 of the laws of 1964 and paragraph (c) as amended by chapter 172 of the laws of 1999, are amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. (c) A certificate of change of application for authority which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against an authorized foreign corpo- ration served upon [him or which] THE SECRETARY OF STATE AND/OR changes the address of its registered agent, provided such address is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such authorized foreign corporation, may be signed and delivered to the department of state by such agent. The certificate of change of application for authority shall S. 2008 67 A. 3008 set forth the statements required under subparagraphs (1), (2), (3) and (4) of paragraph (b) of this section; that a notice of the proposed change was mailed by the party signing the certificate to the authorized foreign corporation not less than thirty days prior to the date of delivery to the department and that such corporation has not objected thereto; and that the party signing the certificate is the agent of such foreign corporation to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this paragraph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certif- icate is filed. § 15. Subparagraphs 1 and 6 of paragraph (a) of section 1310 of the business corporation law, subparagraph 1 as amended by chapter 590 of the laws of 1982, are amended to read as follows: (1) The name of the foreign corporation as it appears on the index of names of existing domestic and authorized foreign corporations of any type or kind in the department of state, division of corporations [or,] AND the fictitious name, IF ANY, the corporation has agreed to use in this state pursuant to paragraph (d) of section 1301 of this [chapter] ARTICLE. (6) A post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 16. Subparagraph 4 of paragraph (d) of section 1310 of the business corporation law is amended to read as follows: (4) The changed post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 17. Section 1311 of the business corporation law, as amended by chapter 375 of the laws of 1998, is amended to read as follows: § 1311. Termination of existence. When an authorized foreign corporation is dissolved or its authority or existence is otherwise terminated or cancelled in the jurisdiction of its incorporation or when such foreign corporation is merged into or consolidated with another foreign corporation, a certificate of the secretary of state, or official performing the equivalent function as to corporate records, of the jurisdiction of incorporation of such foreign corporation attesting to the occurrence of any such event or a certified copy of an order or decree of a court of such jurisdiction directing the dissolution of such foreign corporation, the termination of its exist- ence or the cancellation of its authority shall be delivered to the department of state. The filing of the certificate, order or decree shall have the same effect as the filing of a certificate of surrender of authority under section 1310 (Surrender of authority). The secretary of state shall continue as agent of the foreign corporation upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding based upon any liability or obligation incurred by the foreign corporation within this state prior to the filing of such certificate, order or decree and [he] THE PERSON SERVING SUCH PROCESS shall [promptly cause a copy of any such] SEND THE process [to be mailed] by [registered] CERTIFIED mail, return receipt requested, to such foreign corporation at the post office address on file in his office specified for such purpose AND SHALL PROVIDE THE SECRETARY OF STATE WITH PROOF OF SUCH MAILING IN THE MANNER SET FORTH IN PARAGRAPH S. 2008 68 A. 3008 (B) OF SECTION 306 (SERVICE OF PROCESS). The post office address may be changed by signing and delivering to the department of state a certif- icate of change setting forth the statements required under section 1309-A (Certificate of change; contents) to effect a change in the post office address under subparagraph SEVEN OF PARAGRAPH (a) [(4)] of section 1308 (Amendments or changes). § 18. Subparagraph 6 of paragraph (a) of section 1530 of the business corporation law, as added by chapter 505 of the laws of 1983, is amended to read as follows: (6) A designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 19. Subdivision 10 of section 11 of the cooperative corporations law, as added by chapter 97 of the laws of 1969, is amended to read as follows: 10. A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 20. Subdivision 10 of section 96 of the executive law, as amended by chapter 39 of the laws of 1987, is amended to read as follows: 10. For service of process on the secretary of state, acting as agent for a third party pursuant to law, except as otherwise specifically provided by law, forty dollars. No fee shall be collected for process served on behalf of [a] ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY, AUTHORITY, county, city, town or village or other political subdivision of the state. The fees paid the secretary of state shall be a taxable disbursement. § 21. The opening paragraph of subdivision 2 and subdivision 3 of section 18 of the general associations law, as amended by chapter 13 of the laws of 1938, are amended and two new subdivisions 5 and 6 are added to read as follows: Every association doing business within this state shall file in the department of state a certificate in its associate name, signed [and acknowledged] by its president, or a vice-president, or secretary, or treasurer, or managing director, or trustee, designating the secretary of state as an agent upon whom process in any action or proceeding against the association may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any process against the association which may be served upon [him] THE SECRETARY OF STATE pursuant to law. Annexed to the certif- icate of designation shall be a statement, executed in the same manner as the certificate is required to be executed under this section, which shall set forth: 3. Any association, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process SERVED ON THE SECRETARY OF STATE, by filing a statement to that effect, executed[,] AND signed [and acknowledged] in like manner as a certificate of designation as herein provided. 5. ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT IN ANY ACTION OR PROCEEDING AGAINST THE ASSOCIATION FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH S. 2008 69 A. 3008 ASSOCIATION AS REQUIRED BY THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAIL- ING TO A DIFFERENT POST OFFICE ADDRESS. 6. "PROCESS" MEANS JUDICIAL PROCESS AND ALL ORDERS, DEMANDS, NOTICES OR OTHER PAPERS REQUIRED OR PERMITTED BY LAW TO BE PERSONALLY SERVED ON AN ASSOCIATION, FOR THE PURPOSE OF ACQUIRING JURISDICTION OF SUCH ASSO- CIATION IN ANY ACTION OR PROCEEDING, CIVIL OR CRIMINAL, WHETHER JUDI- CIAL, ADMINISTRATIVE, ARBITRATIVE OR OTHERWISE, IN THIS STATE OR IN THE FEDERAL COURTS SITTING IN OR FOR THIS STATE. § 22. Section 19 of the general associations law, as amended by chap- ter 166 of the laws of 1991, is amended to read as follows: § 19. Service of process. 1. Service of process against an associ- ation upon the secretary of state shall be made by MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE personally [delivering] DELIVERED to and [leaving] LEFT with [him] THE SECRETARY OF STATE or a deputy [secretary of state or an associate attorney, senior attorney or attorney in the corporation division of the department of state], SO DESIGNATED [duplicate copies of such process at the office of the department of state in the city of Albany]. At the time of such service the plaintiff shall pay a fee of forty dollars to the secretary of state which shall be a taxable disbursement. [If the cost of registered mail for transmitting a copy of the process shall exceed two dollars, an additional fee equal to such excess shall be paid at the time of the service of such process. The secretary of state shall forthwith send by registered mail one of such copies to the association at the address fixed for that purpose, as herein provided.] 2. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. SERVICE OF PROCESS ON SUCH ASSOCIATION SHALL BE COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED. If the action or proceeding is instituted in a court of limited jurisdiction, service of process may be made in the manner provided in this section if the cause of action arose within the territorial jurisdiction of the court and the office of the defendant, as set forth in its statement filed pursuant to section eigh- teen of this [chapter] ARTICLE, is within such territorial jurisdiction. § 23. Subdivision 2 of section 352-b of the general business law, as amended by chapter 252 of the laws of 1983, is amended to read as follows: 2. Service of such process upon the secretary of state shall be made by personally delivering to and leaving with him [or], a deputy secre- tary of state, OR WITH A PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, a copy thereof at the office of the department of state in the city of Albany, and such service shall be sufficient service provided that notice of such service and a copy of such process are forthwith sent by the attorney general to such person, partnership, corporation, company, trust or association, by registered or certified mail with return receipt requested, at his or its office as set forth in the "broker-dealer's statement", "salesman's statement" or "investment advisor's statement" filed in the department of law pursuant to section three hundred fifty-nine-e or section three hundred fifty-nine-eee of this article, or in default of the filing of such statement, at the last address known to the attorney general. Service of such process shall be complete on receipt by the attorney general of a return receipt purport- S. 2008 70 A. 3008 ing to be signed by the addressee or a person qualified to receive his or its registered or certified mail, in accordance with the rules and customs of the post office department, or, if acceptance was refused by the addressee or his or its agent, on return to the attorney general of the original envelope bearing a notation by the postal authorities that receipt thereof was refused. § 24. Section 686 of the general business law, as added by chapter 730 of the laws of 1980, is amended to read as follows: § 686. Designation of secretary of state as agent for service of proc- ess; service of process. Any person who shall offer to sell or sell a franchise in this state as a franchisor, subfranchisor or franchise sales agent shall be deemed to have irrevocably appointed the secretary of state as his or its agent upon whom may be served any summons, complaint, subpoena, subpoena duces tecum, notice, order or other proc- ess directed to such person, or any partner, principal, officer, sales- man or director thereof, or his or its successor, administrator or exec- utor, in any action, investigation, or proceeding which arises under this article or a rule hereunder, with the same force and validity as if served personally on such person. Service of such process upon the secretary of state shall be made by personally delivering to and leaving with [him] THE SECRETARY OF STATE or a deputy [secretary of state], OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, a copy thereof at the office of the department of state, and such service shall be sufficient provided that notice of such service and a copy of such process are sent forthwith by the department to such person, by registered or certified mail with return receipt requested, at his address as set forth in the application for registration of his offering prospectus or in the registered offering prospectus itself filed with the department of law pursuant to this article, or in default of the filing of such application or prospectus, at the last address known to the department. Service of such process shall be complete upon receipt by the department of a return receipt purporting to be signed by the addressee or a person qualified to receive his or its registered or certified mail, in accordance with the rules and customs of the post office department, or, if acceptance was refused or unclaimed by the addressee or his or its agent, or if the addressee moved without leaving a forwarding address, upon return to the department of the original envelope bearing a notation by the postal authorities that receipt ther- eof was refused or that such mail was otherwise undeliverable. § 25. Paragraph 4 of subdivision (e) of section 203 of the limited liability company law, as added by chapter 470 of the laws of 1997, is amended to read as follows: (4) a designation of the secretary of state as agent of the limited liability company upon whom process against it may be served and the post office address, within or without this state, to which [the secre- tary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him or her] THE SECRETARY OF STATE; § 26. Paragraph 4 of subdivision (a) of section 206 of the limited liability company law, as amended by chapter 44 of the laws of 2006, is amended to read as follows: (4) a statement that the secretary of state has been designated as agent of the limited liability company upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; S. 2008 71 A. 3008 § 27. Paragraph 6 of subdivision (d) of section 211 of the limited liability company law is amended to read as follows: (6) a change in the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him or her] THE SECRETARY OF STATE if such change is made other than pursuant to section three hundred one of this chapter; § 28. Section 211-A of the limited liability company law, as added by chapter 448 of the laws of 1998, is amended to read as follows: § 211-A. Certificate of change. (a) A limited liability company may amend its articles of organization from time to time to (i) specify or change the location of the limited liability company's office; (ii) specify or change the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him] THE SECRETARY OF STATE; and (iii) make, revoke or change the designation of a registered agent, or specify or change the address of the registered agent. Any one or more such changes may be accomplished by filing a certificate of change which shall be entitled "Certificate of Change of ....... (name of limited liability company) under section 211-A of the Limited Liability Company Law" and shall be signed and delivered to the department of state. It shall set forth: (1) the name of the limited liability company, and if it has been changed, the name under which it was formed; (2) the date the articles of organization were filed by the department of state; and (3) each change effected thereby. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a limited liability company served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such limited liability company may be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the domestic limited liability company by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such domestic limited liability company has not objected thereto; and that the party signing the certificate is the agent of such limited liability company to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivision shall not be deemed to effect a change of location of the office of the limited liability company in whose behalf such certificate is filed. § 29. Paragraph 2 of subdivision (b) of section 213 of the limited liability company law is amended to read as follows: (2) to change the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him or her] THE SECRETARY OF STATE; and § 30. Subdivisions (c) and (e) of section 301 of the limited liability company law, subdivision (e) as amended by section 5 of part S of chap- ter 59 of the laws of 2015, are amended to read as follows: S. 2008 72 A. 3008 (c) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC LIMITED LIABILITY COMPANY OR FOREIGN LIMIT- ED LIABILITY COMPANY FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH LIMITED LIABILITY COMPANY AS REQUIRED BY THIS ARTICLE. Any designated post office address to which the secretary of state OR A PERSON shall mail a copy of process served upon [him or her] THE SECRETARY OF STATE as agent of a domestic limited liability company or a foreign limited liability company shall continue until the filing of a certificate under this chapter directing the mailing to a different post office address. [(e)] (D) (1) Except as otherwise provided in this subdivision, every limited liability company to which this chapter applies, shall biennial- ly in the calendar month during which its articles of organization or application for authority were filed, or effective date thereof if stat- ed, file on forms prescribed by the secretary of state, a statement setting forth the post office address within or without this state to which [the secretary of state] A PERSON shall mail a copy of any process accepted against it served upon [him or her] THE SECRETARY OF STATE. Such address shall supersede any previous address on file with the department of state for this purpose. (2) The commissioner of taxation and finance and the secretary of state may agree to allow limited liability companies to include the statement specified in paragraph one of this subdivision on tax reports filed with the department of taxation and finance in lieu of biennial statements and in a manner prescribed by the commissioner of taxation and finance. If this agreement is made, starting with taxable years beginning on or after January first, two thousand sixteen, each limited liability company required to file the statement specified in paragraph one of this subdivision that is subject to the filing fee imposed by paragraph three of subsection (c) of section six hundred fifty-eight of the tax law shall provide such statement annually on its filing fee payment form filed with the department of taxation and finance in lieu of filing a statement under this section with the department of state. However, each limited liability company required to file a statement under this section must continue to file the biennial statement required by this section with the department of state until the limited liability company in fact has filed a filing fee payment form with the department of taxation and finance that includes all required information. After that time, the limited liability company shall continue to provide annu- ally the statement specified in paragraph one of this subdivision on its filing fee payment form in lieu of the biennial statement required by this subdivision. (3) If the agreement described in paragraph two of this subdivision is made, the department of taxation and finance shall deliver to the department of state the statement specified in paragraph one of this subdivision contained on filing fee payment forms. The department of taxation and finance must, to the extent feasible, also include the current name of the limited liability company, department of state iden- tification number for such limited liability company, the name, signa- ture and capacity of the signer of the statement, name and street address of the filer of the statement, and the email address, if any, of the filer of the statement. § 31. Paragraphs 2 and 3 of subdivision (a), subparagraph (ii) of paragraph 2 and subparagraph (ii) of paragraph 3 of subdivision (e) of S. 2008 73 A. 3008 section 301-A of the limited liability company law, as added by chapter 448 of the laws of 1998, are amended to read as follows: (2) that the address of the party has been designated by the limited liability company as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secretary of state as agent for such limited liability company, SUCH ADDRESS and that such party wishes to resign. (3) that sixty days prior to the filing of the certificate of resigna- tion OR RECEIPT OF PROCESS with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the designated limited liability company, if other than the party filing the certificate of resignation[,] for receipt of process, or if the [resigning] DESIGNATING limited liability company has no registered agent, then to the last address of the designated limited liability company known to the party, specifying the address to which the copy was sent. If there is no registered agent and no known address of the desig- nating limited liability company, the party shall attach an affidavit to the certificate stating that a diligent but unsuccessful search was made by the party to locate the limited liability company, specifying what efforts were made. (ii) sent by or on behalf of the plaintiff to such limited LIABILITY company by registered or certified mail with return receipt requested to the last address of such limited liability company known to the plain- tiff. (ii) Where service of a copy of process was effected by mailing in accordance with this section, proof of service shall be by affidavit of compliance with this section filed, together with the process, within thirty days after receipt of the return receipt signed by the limited liability company or other official proof of delivery or of the original envelope mailed. If a copy of the process is mailed in accordance with this section, there shall be filed with the affidavit of compliance either the return receipt signed by such limited LIABILITY company or other official proof of delivery, if acceptance was refused by it, the original envelope with a notation by the postal authorities that accept- ance was refused. If acceptance was refused a copy of the notice and process together with notice of the mailing by registered or certified mail and refusal to accept shall be promptly sent to such limited liability company at the same address by ordinary mail and the affidavit of compliance shall so state. Service of process shall be complete ten days after such papers are filed with the clerk of the court. The refusal to accept delivery of the registered or certified mail or to sign the return receipt shall not affect the validity of the service and such limited liability company refusing to accept such registered or certified mail shall be charged with knowledge of the contents thereof. § 32. Subdivision (a) of section 303 of the limited liability company law, as relettered by chapter 341 of the laws of 1999, is amended to read as follows: (a) Service of process on the secretary of state as agent of a domes- tic limited liability company [or], authorized foreign limited liability company, OR OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROCESS PURSUANT TO ARTICLE TEN OF THIS CHAPTER, SHALL BE MADE BY MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH LIMITED LIABILITY COMPANY OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE S. 2008 74 A. 3008 SAME DAY AS SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING shall be [made by] personally [delivering] DELIVERED to and [leaving] LEFT with the secretary of state or his or her deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [duplicate copies of such process] together with the statutory fee, which fee shall be a taxable disbursement. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such limited liability company OR OTHER BUSINESS ENTITY shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such limited liability company at the post office address on file in the department of state specified for that purpose.] § 33. Section 305 of the limited liability company law is amended to read as follows: § 305. Records of process served on the secretary of state. The [secretary of state] DEPARTMENT OF STATE shall keep a record of each process served upon the secretary of state under this chapter, including the date of such service [and the action of the secretary of state with reference thereto]. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF THE PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY THE DEPART- MENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. § 34. Paragraph 4 of subdivision (a) of section 802 of the limited liability company law, as amended by chapter 470 of the laws of 1997, is amended to read as follows: (4) a designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 35. Section 804-A of the limited liability company law, as added by chapter 448 of the laws of 1998, is amended to read as follows: § 804-A. Certificate of change. (a) A foreign limited liability compa- ny may amend its application for authority from time to time to (i) specify or change the location of the limited liability company's office; (ii) specify or change the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him] THE SECRETARY OF STATE; and (iii) to make, revoke or change the designation of a registered agent, or to specify or change the address of a registered agent. Any one or more such changes may be accomplished by filing a certificate of change which shall be entitled "Certificate of Change of ........ (name of limited liability company) under section 804-A of the Limited Liabil- ity Company Law" and shall be signed and delivered to the department of state. It shall set forth: (1) the name of the foreign limited liability company and, if applica- ble, the fictitious name the limited liability company has agreed to use in this state pursuant to section eight hundred two of this article; (2) the date its application for authority was filed by the department of state; and (3) each change effected thereby[,]. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any S. 2008 75 A. 3008 process against a foreign limited liability company served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partner- ship [or], corporation OR OTHER LIMITED LIABILITY COMPANY whose address, as agent, is the address to be changed or who has been designated as registered agent for such limited liability company may be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the foreign limited liability company by the party signing the certificate not less than thirty days prior to the date of delivery to the depart- ment of state and that such foreign limited liability company has not objected thereto; and that the party signing the certificate is the agent of such foreign limited liability company to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivision shall not be deemed to effect a change of location of the office of the foreign limited liability company in whose behalf such certificate is filed. § 36. Paragraph 6 of subdivision (b) of section 806 of the limited liability company law is amended to read as follows: (6) a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE. § 37. Paragraph 11 of subdivision (a) of section 1003 of the limited liability company law, as amended by chapter 374 of the laws of 1998, is amended to read as follows: (11) a designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in article three of this chapter in any action or special proceeding, and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process served upon [him or her] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed; § 38. Clause (iv) of subparagraph (A) of paragraph 2 of subdivision (c) of section 1203 of the limited liability company law, as amended by chapter 44 of the laws of 2006, is amended to read as follows: (iv) a statement that the secretary of state has been designated as agent of the professional service limited liability company upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 39. Paragraph 6 of subdivision (a) and subparagraph 5 of paragraph (i) of subdivision (d) of section 1306 of the limited liability company law, subparagraph 5 of paragraph (i) of subdivision (d) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (6) a designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; and (5) a statement that the secretary of state has been designated as agent of the foreign professional service limited liability company upon S. 2008 76 A. 3008 whom process against it may be served and the post office address, with- in or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 40. Paragraph (d) of section 304 of the not-for-profit corporation law, as amended by chapter 358 of the laws of 2015, is amended to read as follows: (d) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC NOT-FOR-PROFIT CORPORATION OR FOREIGN NOT- FOR-PROFIT CORPORATION FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH CORPORATION AS REQUIRED BY THIS ARTICLE. Any designated [post-office] POST OFFICE address to which the secretary of state OR A PERSON shall mail a copy of process served upon [him or her] THE SECRETARY OF STATE as agent of a domestic corporation formed under article four of this chapter or foreign corporation, shall contin- ue until the filing of a certificate under this chapter directing the mailing to a different [post-office] POST OFFICE address. § 41. Paragraph (a) of section 305 of the not-for-profit corporation law, as amended by chapter 549 of the laws of 2013, is amended to read as follows: (a) Every domestic corporation or authorized foreign corporation may designate a registered agent in this state upon whom process against such corporation may be served. The agent shall be a natural person who is a resident of or has a business address in this state or a domestic corporation or foreign corporation of any kind formed[,] or authorized to do business in this state, under this chapter or under any other statute of this state, OR A DOMESTIC LIMITED LIABILITY COMPANY OR A FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE. § 42. Paragraph (b) of section 306 of the not-for-profit corporation law, as amended by chapter 23 of the laws of 2014, is amended to read as follows: (b) Service of process on the secretary of state as agent of a domes- tic corporation formed under article four of this chapter or an author- ized foreign corporation shall be made by MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE personally [delivering] DELIVERED to and [leaving] LEFT with the secretary of state or his or her deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [dupli- cate copies of such process] together with the statutory fee, which fee shall be a taxable disbursement. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such corporation OR OTHER BUSINESS ENTITY shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such corporation, at the post office address, on file in the department of state, speci- fied for the purpose.] If a domestic corporation formed under article four of this chapter or an authorized foreign corporation has no such address on file in the department of state, the [secretary of state shall so mail such] DUPLICATE copy OF THE PROCESS SHALL BE MAILED to S. 2008 77 A. 3008 such corporation at the address of its office within this state on file in the department. § 43. Subparagraph 6 of paragraph (a) of section 402 of the not-for- profit corporation law, as added by chapter 564 of the laws of 1981 and as renumbered by chapter 132 of the laws of 1985, is amended to read as follows: (6) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 44. Subparagraph 7 of paragraph (b) of section 801 of the not-for- profit corporation law, as amended by chapter 438 of the laws of 1984, is amended to read as follows: (7) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 45. Subparagraph 2 of paragraph (c) of section 802 of the not-for- profit corporation law, as amended by chapter 186 of the laws of 1983, is amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 46. Subparagraph 6 of paragraph (a) of section 803 of the not-for- profit corporation law, as amended by chapter 23 of the laws of 2014, is amended to read as follows: (6) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon the secretary OF STATE. § 47. Paragraph (b) of section 803-A of the not-for-profit corporation law, as amended by chapter 172 of the laws of 1999, is amended to read as follows: (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the corporation served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such corporation, may be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subparagraphs (1), (2) and (3) of paragraph (a) of this section; that a notice of the proposed change was mailed to the corpo- ration by the party signing the certificate not less than thirty days prior to the date of delivery to the department and that such corpo- ration has not objected thereto; and that the party signing the certif- icate is the agent of such corporation to whose address [the secretary of state] A PERSON is required to mail copies of any process against the corporation served upon [him] THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this paragraph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certificate is filed. S. 2008 78 A. 3008 § 48. Clause (E) of subparagraph 2 of paragraph (d) of section 906 of the not-for-profit corporation law, as amended by chapter 1058 of the laws of 1971, is amended to read as follows: (E) A designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding described in [subparagraph] CLAUSE (D) OF THIS SUBPARAGRAPH and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of the process in such action or special proceeding SERVED UPON THE SECRETARY OF STATE. § 49. Clause (F) of subparagraph 2 of paragraph (d) of section 908 of the not-for-profit corporation law is amended to read as follows: (F) A designation of the secretary of state as his agent upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding described in [subparagraph] CLAUSE (D) OF THIS SUBPARAGRAPH and a post office address, within or without the state, to which [the secretary of state] A PERSON shall mail a copy of the process in such action or special proceeding SERVED UPON BY THE SECRETARY OF STATE. § 50. Subparagraph 6 of paragraph (a) of section 1304 of the not-for- profit corporation law, as renumbered by chapter 590 of the laws of 1982, is amended to read as follows: (6) A designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 51. Subparagraph 7 of paragraph (a) of section 1308 of the not-for- profit corporation law, as renumbered by chapter 186 of the laws of 1983, is amended to read as follows: (7) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 52. Subparagraph 2 of paragraph (a) and paragraph (c) of section 1310 of the not-for-profit corporation law, paragraph (c) as amended by chapter 172 of the laws of 1999, are amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. (c) A certificate of change of application for authority which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against an authorized foreign corpo- ration served upon [him or] THE SECRETARY OF STATE AND/OR which changes the address of its registered agent, provided such address is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such authorized foreign corporation, may be signed and delivered to the department of state by such agent. The certificate of change of application for authority shall set forth the statements required under subparagraphs (1), (2), (3) and (4) of paragraph (b) of this section; that a notice of the proposed change was mailed by the party signing the certificate to the authorized foreign corporation not less than thirty days prior to the date of delivery to the department and that such corporation has not objected thereto; and that the party signing the certificate is the agent of such foreign corporation to whose address [the secretary of state] A PERSON S. 2008 79 A. 3008 is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this paragraph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certif- icate is filed. § 53. Subparagraph 6 of paragraph (a) and subparagraph 4 of paragraph (d) of section 1311 of the not-for-profit corporation law are amended to read as follows: (6) A post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. (4) The changed post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 54. Section 1312 of the not-for-profit corporation law, as amended by chapter 375 of the laws of 1998, is amended to read as follows: § 1312. Termination of existence. When an authorized foreign corporation is dissolved or its authority or existence is otherwise terminated or cancelled in the jurisdiction of its incorporation or when such foreign corporation is merged into or consolidated with another foreign corporation, a certificate of the secretary of state, or official performing the equivalent function as to corporate records, of the jurisdiction of incorporation of such foreign corporation attesting to the occurrence of any such event or a certified copy of an order or decree of a court of such jurisdiction directing the dissolution of such foreign corporation, the termination of its exist- ence or the cancellation of its authority shall be delivered to the department of state. The filing of the certificate, order or decree shall have the same effect as the filing of a certificate of surrender of authority under section 1311 (Surrender of authority). The secretary of state shall continue as agent of the foreign corporation upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding based upon any liability or obligation incurred by the foreign corporation within this state prior to the filing of such certificate, order or decree and [he] THE PERSON SERVING SUCH PROCESS shall promptly cause a copy of any such process to be mailed by [regis- tered] CERTIFIED mail, return receipt requested, to such foreign corpo- ration at the post office address on file in his office specified for such purpose. The post office address may be changed by signing and delivering to the department of state a certificate of change setting forth the statements required under section 1310 (Certificate of change, contents) to effect a change in the post office address under subpara- graph [(a) (4)] (7) OF PARAGRAPH (A) of section 1308 (Amendments or changes). § 55. Subdivision (c) of section 121-104 of the partnership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (c) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC LIMITED PARTNERSHIP OR FOREIGN LIMITED PARTNERSHIP FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROC- ESS AGAINST SUCH LIMITED PARTNERSHIP AS REQUIRED BY THIS ARTICLE. Any designated post office address to which the secretary of state OR A PERSON shall mail a copy of process served upon [him] THE SECRETARY OF STATE as agent of a domestic limited partnership or foreign limited S. 2008 80 A. 3008 partnership shall continue until the filing of a certificate under this article directing the mailing to a different post office address. § 56. Paragraphs 1, 2 and 3 of subdivision (a) of section 121-104-A of the partnership law, as added by chapter 448 of the laws of 1998, are amended to read as follows: (1) the name of the limited partnership and the date that its [arti- cles of organization] CERTIFICATE OF LIMITED PARTNERSHIP or application for authority was filed by the department of state. (2) that the address of the party has been designated by the limited partnership as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secretary of state as agent for such limited partnership, and that such party wishes to resign. (3) that sixty days prior to the filing of the certificate of resigna- tion FOR RECEIPT OF PROCESS with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the [designated] DESIGNATING limited partnership, if other than the party filing the certificate of resignation[,] for receipt of process, or if the [resigning] DESIGNATING limited partnership has no registered agent, then to the last address of the [designated] DESIGNATING limited partnership, known to the party, specifying the address to which the copy was sent. If there is no registered agent and no known address of the designating limited partnership the party shall attach an affidavit to the certificate stating that a diligent but unsuccessful search was made by the party to locate the limited partnership, specifying what efforts were made. § 57. Subdivision (a) of section 121-105 of the partnership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (a) In addition to the designation of the secretary of state, each limited partnership or authorized foreign limited partnership may desig- nate a registered agent upon whom process against the limited partner- ship may be served. The agent must be (i) a natural person who is a resident of this state or has a business address in this state, [or] (ii) a domestic corporation or a foreign corporation authorized to do business in this state, OR A DOMESTIC LIMITED LIABILITY COMPANY OR A FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE. § 58. Subdivisions (a) and (c) of section 121-109 of the partnership law, as added by chapter 950 of the laws of 1990 and as relettered by chapter 341 of the laws of 1999, are amended to read as follows: (a) Service of process on the secretary of state as agent of a domes- tic or authorized foreign limited partnership, OR OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROC- ESS PURSUANT TO THIS CHAPTER, shall be made [as follows: (1) By] BY MAILING THE PROCESS AND NOTICE OF SERVICE OF PROCESS PURSU- ANT TO THIS SECTION BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH DOMESTIC OR AUTHORIZED FOREIGN LIMITED PARTNERSHIP OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THAT PURPOSE. ON THE SAME DAY AS THE PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE personally [delivering] DELIVERED to and [leaving] LEFT with [him or his] THE SECRETARY OF STATE OR A deputy, or with any person authorized by the secretary of state to receive such service, at the office of the depart- ment of state in the city of Albany, [duplicate copies of such process] together with the statutory fee, which fee shall be a taxable disburse- S. 2008 81 A. 3008 ment. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. SERVICE OF PROCESS ON SUCH LIMITED PARTNERSHIP OR OTHER BUSI- NESS ENTITY SHALL BE COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED. [(2) The service on the limited partnership is complete when the secretary of state is so served. (3) The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, addressed to the limited part- nership at the post office address, on file in the department of state, specified for that purpose.] (c) The [secretary of state] DEPARTMENT OF STATE shall keep a record of all process served upon [him] IT under this section and shall record therein the date of such service [and his action with reference there- to]. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF THE PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY HIM AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. § 59. Paragraph 3 of subdivision (a) and subparagraph 4 of paragraph (i) of subdivision (c) of section 121-201 of the partnership law, para- graph 3 of subdivision (a) as amended by chapter 264 of the laws of 1991, and subparagraph 4 of paragraph (i) of subdivision (c) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (3) a designation of the secretary of state as agent of the limited partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE; (4) a statement that the secretary of state has been designated as agent of the limited partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 60. Paragraph 4 of subdivision (b) of section 121-202 of the part- nership law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (4) a change in the name of the limited partnership, or a change in the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited partnership served on [him] THE SECRETARY OF STATE, or a change in the name or address of the registered agent, if such change is made other than pursuant to section 121-104 or 121-105 of this article. § 61. Section 121-202-A of the partnership law, as added by chapter 448 of the laws of 1998, paragraph 2 of subdivision (a) as amended by chapter 172 of the laws of 1999, is amended to read as follows: § 121-202-A. Certificate of change. (a) A certificate of limited part- nership may be changed by filing with the department of state a certif- icate of change entitled "Certificate of Change of ..... (name of limit- ed partnership) under Section 121-202-A of the Revised Limited Partnership Act" and shall be signed and delivered to the department of state. A certificate of change may (i) specify or change the location of the limited partnership's office; (ii) specify or change the post office address to which [the secretary of state] A PERSON shall mail a copy of process against the limited partnership served upon [him] THE SECRETARY OF STATE; and (iii) make, revoke or change the designation of a regis- S. 2008 82 A. 3008 tered agent, or to specify or change the address of its registered agent. It shall set forth: (1) the name of the limited partnership, and if it has been changed, the name under which it was formed; (2) the date its certificate of limited partnership was filed by the department of state; and (3) each change effected thereby. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a limited partnership served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY CORPORATION or corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such limited partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the domestic limited partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such domestic limited partnership has not objected thereto; and that the party signing the certificate is the agent of such limited partnership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivi- sion shall not be deemed to effect a change of location of the office of the limited partnership in whose behalf such certificate is filed. § 62. Paragraph 4 of subdivision (a) and subparagraph 5 of paragraph (i) of subdivision (d) of section 121-902 of the partnership law, para- graph 4 of subdivision (a) as amended by chapter 172 of the laws of 1999 and subparagraph 5 of paragraph (i) of subdivision (d) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (4) a designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE; (5) a statement that the secretary of state has been designated as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 63. Section 121-903-A of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows: § 121-903-A. Certificate of change. (a) A foreign limited partnership may change its application for authority by filing with the department of state a certificate of change entitled "Certificate of Change of ........ (name of limited partnership) under Section 121-903-A of the Revised Limited Partnership Act" and shall be signed and delivered to the department of state. A certificate of change may (i) change the location of the limited partnership's office; (ii) change the post office address to which [the secretary of state] A PERSON shall mail a copy of process against the limited partnership served upon [him] THE SECRETARY OF STATE; and (iii) make, revoke or change the designation of a registered agent, or to specify or change the address of its regis- tered agent. It shall set forth: S. 2008 83 A. 3008 (1) the name of the foreign limited partnership and, if applicable, the fictitious name the foreign limited partnership has agreed to use in this state pursuant to section 121-902 of this article; (2) the date its application for authority was filed by the department of state; and (3) each change effected thereby. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a foreign limited partnership served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such foreign limited partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the foreign limited partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such foreign limited partnership has not objected thereto; and that the party signing the certificate is the agent of such foreign limited part- nership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the regis- tered agent, if such be the case. A certificate signed and delivered under this subdivision shall not be deemed to effect a change of location of the office of the limited partnership in whose behalf such certificate is filed. § 64. Paragraph 6 of subdivision (b) of section 121-905 of the part- nership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (6) a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 65. Paragraph 7 of subdivision (a) of section 121-1103 of the part- nership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (7) A designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in section 121-109 of this article in any action or special proceeding, and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process served upon [him] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed. § 66. Subparagraphs 2 and 4 of paragraph (I) and clause 4 of subpara- graph (A) of paragraph (II) of subdivision (a) of section 121-1500 of the partnership law, subparagraph 2 of paragraph (I) as added by chapter 576 of the laws of 1994, subparagraph 4 of paragraph (I) as amended by chapter 643 of the laws of 1995 and such paragraph as redesignated by chapter 767 of the laws of 2005 and clause 4 of subparagraph (A) of paragraph (II) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (2) the address, WITHIN THIS STATE, of the principal office of the partnership without limited partners; (4) a designation of the secretary of state as agent of the partner- ship without limited partners upon whom process against it may be served and the post office address, within or without this state, to which the S. 2008 84 A. 3008 [secretary of state] A PERSON shall mail a copy of any process against it or served [upon it] ON THE SECRETARY OF STATE; (4) a statement that the secretary of state has been designated as agent of the registered limited liability partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 67. Paragraphs (ii) and (iii) of subdivision (g) of section 121-1500 of the partnership law, as amended by section 8 of part S of chapter 59 of the laws of 2015, are amended to read as follows: (ii) the address, WITHIN THIS STATE, of the principal office of the registered limited liability partnership, (iii) the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process accepted against it served upon [him or her] THE SECRETARY OF STATE, which address shall supersede any previous address on file with the department of state for this purpose, and § 68. Subdivision (j-1) of section 121-1500 of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows: (j-1) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a registered limited liability partnership served upon [him] THE SECRETARY OF STATE AND/or the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the address to be changed or who has been designated as regis- tered agent for such registered limited liability partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth: (i) the name of the registered limited liability partnership and, if it has been changed, the name under which it was originally filed with the department of state; (ii) the date of filing of its initial registration or notice statement; (iii) each change effected thereby; (iv) that a notice of the proposed change was mailed to the limited liability partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such limited liability partnership has not objected thereto; and (v) that the party signing the certificate is the agent of such limited liability partnership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivi- sion shall not be deemed to effect a change of location of the office of the limited liability partnership in whose behalf such certificate is filed. The certificate of change shall be accompanied by a fee of five dollars. § 69. Subdivision (a) of section 121-1502 of the partnership law, as amended by chapter 643 of the laws of 1995, paragraph (v) as amended by chapter 470 of the laws of 1997, is amended to read as follows: (a) In order for a foreign limited liability partnership to carry on or conduct or transact business or activities as a New York registered foreign limited liability partnership in this state, such foreign limit- ed liability partnership shall file with the department of state a notice which shall set forth: (i) the name under which the foreign limited liability partnership intends to carry on or conduct or transact business or activities in this state; (ii) the date on which and the jurisdiction in which it registered as a limited liability partnership; S. 2008 85 A. 3008 (iii) the address, WITHIN THIS STATE, of the principal office of the foreign limited liability partnership; (iv) the profession or professions to be practiced by such foreign limited liability partner- ship and a statement that it is a foreign limited liability partnership eligible to file a notice under this chapter; (v) a designation of the secretary of state as agent of the foreign limited liability partnership upon whom process against it may be served and the post office address within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it [or] served upon [it] THE SECRETARY OF STATE; (vi) if the foreign limited liability partnership is to have a registered agent, its name and address in this state and a statement that the registered agent is to be the agent of the foreign limited liability partnership upon whom process against it may be served; (vii) a statement that its registration as a limited liability partnership is effective in the jurisdiction in which it registered as a limited liability partnership at the time of the filing of such notice; (viii) a statement that the foreign limited liability partnership is filing a notice in order to obtain status as a New York registered foreign limited liability partnership; (ix) if the registration of the foreign limited liability partnership is to be effective on a date later than the time of filing, the date, not to exceed sixty days from the date of filing, of such proposed effectiveness; and (x) any other matters the foreign limited liability partnership determines to include in the notice. Such notice shall be accompanied by either (1) a copy of the last registration or renewal registration (or similar filing), if any, filed by the foreign limited liability partnership with the juris- diction where it registered as a limited liability partnership or (2) a certificate, issued by the jurisdiction where it registered as a limited liability partnership, substantially to the effect that such foreign limited liability partnership has filed a registration as a limited liability partnership which is effective on the date of the certificate (if such registration, renewal registration or certificate is in a foreign language, a translation thereof under oath of the translator shall be attached thereto). Such notice shall also be accompanied by a fee of two hundred fifty dollars. § 70. Subparagraphs (ii) and (iii) of paragraph (I) of subdivision (f) of section 121-1502 of the partnership law, as amended by section 9 of part S of chapter 59 of the laws of 2015, are amended to read as follows: (ii) the address, WITHIN THIS STATE, of the principal office of the New York registered foreign limited liability partnership, (iii) the post office address, within or without this state, to which [the secre- tary of state] A PERSON shall mail a copy of any process accepted against it served upon [him or her] THE SECRETARY OF STATE, which address shall supersede any previous address on file with the department of state for this purpose, and § 71. Clause 5 of subparagraph (A) of paragraph (II) of subdivision (f) of section 121-1502 of the partnership law, as amended by chapter 44 of the laws of 2006, is amended to read as follows: (5) a statement that the secretary of state has been designated as agent of the foreign limited liability partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; S. 2008 86 A. 3008 § 72. Subdivision (i-1) of section 121-1502 of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows: (i-1) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a New York registered foreign limited liability partnership served upon [him] THE SECRETARY OF STATE AND/or the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corpo- ration whose address, as agent, is the address to be changed or who has been designated as registered agent of such registered foreign limited liability partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth: (i) the name of the New York registered foreign limited liability partnership; (ii) the date of filing of its initial registration or notice statement; (iii) each change effected thereby; (iv) that a notice of the proposed change was mailed to the limited liability partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such limited liability partnership has not objected thereto; and (v) that the party signing the certificate is the agent of such limited liability partnership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivi- sion shall not be deemed to effect a change of location of the office of the limited liability partnership in whose behalf such certificate is filed. The certificate of change shall be accompanied by a fee of five dollars. § 73. Subdivision (a) of section 121-1505 of the partnership law, as added by chapter 470 of the laws of 1997, is amended and two new subdi- visions (d) and (e) are added to read as follows: (a) Service of process on the secretary of state as agent of a regis- tered limited liability partnership OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP under this article shall be made by MAIL- ING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH REGISTERED LIMITED LIABILITY PARTNERSHIP OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP, AT THE POST OFFICE ADDRESS ON FILE IN THE DEPARTMENT OF STATE SPECIFIED FOR SUCH PURPOSE. ON THE SAME DATE THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING TOGETHER WITH THE STATUTORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT SHALL BE personally [deliver- ing] DELIVERED to and [leaving] LEFT with the secretary of state or a deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [duplicate copies of such process] together with the statutory fee, which fee shall be a taxable disbursement. PROOF OF MAIL- ING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such registered limited liability partnership OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such registered limited liability partnership, at the post office address on file in the department of state specified for such purpose.] (D) THE DEPARTMENT OF STATE SHALL KEEP A RECORD OF EACH PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER, INCLUDING THE DATE OF SUCH SERVICE. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH S. 2008 87 A. 3008 SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF THE PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY THE DEPART- MENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. (E) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A REGISTERED LIMITED LIABILITY PARTNERSHIP OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH LIMITED LIABIL- ITY COMPANY AS REQUIRED BY THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAIL- ING TO A DIFFERENT POST OFFICE ADDRESS. § 74. Subdivision (b) of section 121-1506 of the partnership law, as added by chapter 448 of the laws of 1998, paragraph 4 as amended by chapter 172 of the laws of 1999, is amended to read as follows: (b) The party (or the party's legal representative) whose post OFFICE address has been supplied by a limited liability partnership as its address for process may resign. A certificate entitled "Certificate of Resignation for Receipt of Process under Section 121-1506(b) of the Partnership Law" shall be signed by such party and delivered to the department of state. It shall set forth: (1) The name of the limited liability partnership and the date that its certificate of registration was filed by the department of state. (2) That the address of the party has been designated by the limited liability partnership as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secre- tary of state as agent for such limited liability partnership and that such party wishes to resign. (3) That sixty days prior to the filing of the certificate of resigna- tion with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the [desig- nated] DESIGNATING limited liability partnership, if other than the party filing the certificate of resignation, for receipt of process, or if the [resigning] DESIGNATING limited liability partnership has no registered agent, then to the last address of the [designated] DESIGNAT- ING limited liability partnership, known to the party, specifying the address to which the copy was sent. If there is no registered agent and no known address of the designating limited liability partnership the party shall attach an affidavit to the certificate stating that a dili- gent but unsuccessful search was made by the party to locate the limited liability partnership, specifying what efforts were made. (4) That the [designated] DESIGNATING limited liability partnership is required to deliver to the department of state a certificate of amend- ment providing for the designation by the limited liability partnership of a new address and that upon its failure to file such certificate, its authority to do business in this state shall be suspended. § 75. Paragraph 16 of subdivision 1 of section 103 of the private housing finance law, as added by chapter 22 of the laws of 1970, is amended to read as follows: (16) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. S. 2008 88 A. 3008 § 76. Subdivision 7 of section 339-n of the real property law is REPEALED and subdivisions 8 and 9 are renumbered subdivisions 7 and 8. § 76-a. Subdivision 15 of section 20.03 of the arts and cultural affairs law, as added by chapter 656 of the laws of 1991, is amended to read as follows: 15. "Non-institutional portion" shall mean the part or portion of a combined-use facility other than the institutional portion. If the non- institutional portion, or any part thereof, consists of a condominium, the consent of the trust which has developed or approved the developer of such condominium shall be required prior to any amendment of the declaration of such condominium pursuant to subdivision [nine] EIGHT of section three hundred thirty-nine-n of the real property law and prior to any amendment of the by-laws of such condominium pursuant to para- graph (j) of subdivision one of section three hundred thirty-nine-v of the real property law, and whether or not such trust is a unit owner of such condominium, it may exercise the rights of the board of managers and an aggrieved unit owner under section three hundred thirty-nine-j of the real property law in the case of a failure of any unit owner of such condominium to comply with the by-laws of such condominium and with the rules, regulations, and decisions adopted pursuant thereto. § 77. Subdivision 2 of section 339-s of the real property law, as added by chapter 346 of the laws of 1997, is amended to read as follows: 2. [Each such declaration, and any amendment or amendments thereof shall be filed with the department of state] (A) THE BOARD OF MANAGERS FOR EACH CONDOMINIUM SUBJECT TO THIS ARTICLE SHALL FILE WITH THE SECRE- TARY OF STATE A CERTIFICATE, IN WRITING, SIGNED, DESIGNATING THE SECRE- TARY OF STATE AS AGENT OF THE BOARD OF MANAGERS UPON WHOM PROCESS AGAINST IT MAY BE SERVED AND THE POST OFFICE ADDRESS TO WHICH A PERSON SHALL MAIL A COPY OF SUCH PROCESS. THE CERTIFICATE SHALL BE ACCOMPANIED BY A FEE OF SIXTY DOLLARS. (B) ANY BOARD OF MANAGERS MAY CHANGE THE ADDRESS TO WHICH A PERSON SHALL MAIL A COPY OF PROCESS SERVED UPON THE SECRETARY OF STATE, BY FILING A SIGNED CERTIFICATE OF AMENDMENT WITH THE DEPARTMENT OF STATE. SUCH CERTIFICATE SHALL BE ACCOMPANIED BY A FEE OF SIXTY DOLLARS. (C) SERVICE OF PROCESS ON THE SECRETARY OF STATE AS AGENT OF A BOARD OF MANAGERS SHALL BE MADE BY MAILING THE PROCESS AND NOTICE OF SERVICE OF PROCESS PURSUANT TO THIS SECTION BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH BOARD OF MANAGERS, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE PERSONALLY DELIVERED TO AND LEFT WITH THE SECRETARY OF STATE OR A DEPUTY, OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, AT THE OFFICE OF THE DEPART- MENT OF STATE IN THE CITY OF ALBANY, A DUPLICATE COPY OF SUCH PROCESS WITH PROOF OF MAILING TOGETHER WITH THE STATUTORY FEE, WHICH SHALL BE A TAXABLE DISBURSEMENT. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLI- ANCE WITH THIS SECTION. SERVICE OF PROCESS ON A BOARD OF MANAGERS SHALL BE COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED. (D) AS USED IN THIS ARTICLE, "PROCESS" SHALL MEAN JUDICIAL PROCESS AND ALL ORDERS, DEMANDS, NOTICES OR OTHER PAPERS REQUIRED OR PERMITTED BY LAW TO BE PERSONALLY SERVED ON A BOARD OF MANAGERS, FOR THE PURPOSE OF ACQUIRING JURISDICTION OF SUCH BOARD OF MANAGERS IN ANY ACTION OR PROCEEDING, CIVIL OR CRIMINAL, WHETHER JUDICIAL, ADMINISTRATIVE, ARBI- TRATIVE OR OTHERWISE, IN THIS STATE OR IN THE FEDERAL COURTS SITTING IN OR FOR THIS STATE. S. 2008 89 A. 3008 (E) NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. (F) THE DEPARTMENT OF STATE SHALL KEEP A RECORD OF EACH PROCESS SERVED UNDER THIS SECTION, INCLUDING THE DATE OF SERVICE. IT SHALL, UPON REQUEST, MADE WITHIN TEN YEARS OF SUCH SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATU- TORY FEE. PROCESS SERVED ON THE SECRETARY OF STATE UNDER THIS SECTION SHALL BE DESTROYED BY THE DEPARTMENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. (G) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF THE BOARD OF MANAGERS FOR THE PURPOSE OF MAILING PROC- ESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH BOARD AS REQUIRED BY THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAILING TO A DIFFERENT POST OFFICE ADDRESS. § 78. Subdivisions 3 and 4 of section 442-g of the real property law, as amended by chapter 482 of the laws of 1963, are amended to read as follows: 3. Service of such process upon the secretary of state shall be made by personally delivering to and leaving with [him or his] THE SECRETARY OF STATE OR A deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [duplicate copies] A COPY of such process AND PROOF OF MAILING together with a fee of five dollars if the action is solely for the recovery of a sum of money not in excess of two hundred dollars and the process is so endorsed, and a fee of ten dollars in any other action or proceeding, which fee shall be a taxable disbursement. If such process is served upon behalf of a county, city, town or village, or other political subdivision of the state, the fee to be paid to the secretary of state shall be five dollars, irrespective of the amount involved or the nature of the action on account of which such service of process is made. [If the cost of registered mail for trans- mitting a copy of the process shall exceed two dollars, an additional fee equal to such excess shall be paid at the time of the service of such process.] PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Proof of service shall be by affidavit of compliance with this subdivision filed by or on behalf of the plaintiff together with the process, within ten days after such service, with the clerk of the court in which the action or special proceeding is pending. Service made as provided in this section shall be complete ten days after such papers are filed with the clerk of the court and shall have the same force and validity as if served on him personally within the state and within the territorial jurisdiction of the court from which the process issues. 4. The [secretary of state] PERSON SERVING SUCH PROCESS shall [prompt- ly] send [one of] such [copies] PROCESS by [registered] CERTIFIED mail, return receipt requested, to the nonresident broker or nonresident salesman at the post office address of his main office as set forth in the last application filed by him. § 79. Subdivision 2 of section 203 of the tax law, as amended by chap- ter 100 of the laws of 1964, is amended to read as follows: 2. Every foreign corporation (other than a moneyed corporation) subject to the provisions of this article, except a corporation having a certificate of authority [under section two hundred twelve of the gener- S. 2008 90 A. 3008 al corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, shall file in the department of state a certificate of designation in its corporate name, signed and acknowledged by its president or a vice-pre- sident or its secretary or treasurer, under its corporate seal, desig- nating the secretary of state as its agent upon whom process in any action provided for by this article may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any such process against the corporation which may be served upon [him] THE SECRETARY OF STATE. In case any such corpo- ration shall have failed to file such certificate of designation, it shall be deemed to have designated the secretary of state as its agent upon whom such process against it may be served; and until a certificate of designation shall have been filed the corporation shall be deemed to have directed [the secretary of state] A PERSON SERVING PROCESS to mail copies of process served upon [him] THE SECRETARY OF STATE to the corpo- ration at its last known office address within or without the state. When a certificate of designation has been filed by such corporation [the secretary of state] A PERSON SERVING PROCESS shall mail copies of process thereafter served upon [him] THE SECRETARY OF STATE to the address set forth in such certificate. Any such corporation, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process, by filing a certificate to that effect executed, signed and acknowledged in like manner as a certificate of designation as herein provided. Service of process upon any such corporation or upon any corporation having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, in any action commenced at any time pursuant to the provisions of this article, may be made by either (1) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service [duplicate copies] A COPY thereof at the office of the department of state in the city of Albany, in which event [the secretary of state] A PERSON SERVING SUCH PROCESS shall forthwith send by [registered] CERTIFIED mail, return receipt requested, [one of such copies] A DUPLICATE COPY to the corporation at the address designated by it or at its last known office address within or without the state, or (2) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service, a copy thereof at the office of the department of state in the city of Albany and by delivering a copy thereof to, and leaving such copy with, the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer, or cashier of such corporation, or the officer performing corresponding functions under another name, or a director or managing agent of such corporation, personally without the state. Proof of such personal service without the state shall be filed with the clerk of the court in which the action is pending within thirty days after such service, and such service shall be complete ten days after proof thereof is filed. § 80. Section 216 of the tax law, as added by chapter 415 of the laws of 1944, the opening paragraph as amended by chapter 100 of the laws of 1964 and redesignated by chapter 613 of the laws of 1976, is amended to read as follows: S. 2008 91 A. 3008 § 216. Collection of taxes. Every foreign corporation (other than a moneyed corporation) subject to the provisions of this article, except a corporation having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do busi- ness by virtue of section thirteen hundred five of the business corpo- ration law, shall file in the department of state a certificate of designation in its corporate name, signed and acknowledged by its presi- dent or a vice-president or its secretary or treasurer, under its corpo- rate seal, designating the secretary of state as its agent upon whom process in any action provided for by this article may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any such process against the corpo- ration which may be served upon him. In case any such corporation shall have failed to file such certificate of designation, it shall be deemed to have designated the secretary of state as its agent upon whom such process against it may be served; and until a certificate of designation shall have been filed the corporation shall be deemed to have directed [the secretary of state] A PERSON to mail [copies] A COPY of process served upon [him] THE SECRETARY OF STATE to the corporation at its last known office address within or without the state. When a certificate of designation has been filed by such corporation [the secretary of state] A PERSON SERVING SUCH PROCESS shall mail [copies] A COPY of process thereafter served upon [him] A PERSON SERVING SUCH PROCESS to the address set forth in such certificate. Any such corporation, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process, by filing a certificate to that effect executed, signed and acknowledged in like manner as a certificate of designation as herein provided. Service of process upon any such corporation or upon any corporation having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, in any action commenced at any time pursuant to the provisions of this article, may be made by either (1) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service [duplicate copies] A COPY thereof at the office of the department of state in the city of Albany, in which event [the secretary of state] A PERSON SERVING SUCH PROCESS shall forthwith send by [registered] CERTIFIED mail, return receipt requested, [one of such copies] A DUPLICATE COPY to the corporation at the address designated by it or at its last known office address within or without the state, or (2) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service, a copy thereof at the office of the department of state in the city of Albany and by delivering a copy thereof to, and leaving such copy with, the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer, or cashier of such corporation, or the officer performing corresponding functions under another name, or a director or managing agent of such corporation, personally without the state. Proof of such personal service without the state shall be filed with the clerk of the court in which the action is pending within thirty days after such service, and such service shall be complete ten days after proof thereof is filed. § 81. Subdivisions (a) and (b) of section 310 of the tax law, as added by chapter 400 of the laws of 1983, are amended to read as follows: S. 2008 92 A. 3008 (a) Designation for service of process.--Every petroleum business which is a corporation, except such a petroleum business having a certificate of authority [under section two hundred twelve of the gener- al corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, shall file in the department of state a certificate of designation in its corporate name, signed and acknowledged by its president or vice-presi- dent or its secretary or treasurer, under its corporate seal, designat- ing the secretary of state as its agent upon whom process in any action provided for by this article may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any such process against such petroleum business which may be served upon [him] THE SECRETARY OF STATE. In case any such petroleum business shall have failed to file such certificate of desig- nation, it shall be deemed to have designated the secretary of state as its agent upon whom such process against it may be served; and until a certificate of designation shall have been filed such a petroleum busi- ness shall be deemed to have directed [the secretary of state] A PERSON to mail copies of process served upon [him] THE SECRETARY OF STATE to such petroleum business at its last known office address within or with- out the state. When a certificate of designation has been filed by such a petroleum business [the secretary of state] A PERSON SERVING PROCESS shall mail copies of process thereafter served upon [him] THE SECRETARY OF STATE to the address set forth in such certificate. Any such petrole- um business, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process, by filing a certificate to that effect executed, signed and acknowledged in like manner as a certificate of designation as herein provided. (b) Service of process.--Service of process upon any petroleum busi- ness which is a corporation (including any such petroleum business having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law), in any action commenced at any time pursuant to the provisions of this article, may be made by either (1) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service [duplicate copies] A COPY thereof at the office of the department of state in the city of Albany, in which event [the secretary of state] A PERSON SERVING PROCESS shall forthwith send by [registered] CERTIFIED mail, return receipt requested, [one of such copies] A DUPLICATE COPY to such petroleum business at the address designated by it or at its last known office address within or without the state, or (2) personally delivering to and leaving with the secretary of state, a deputy secre- tary of state or with any person authorized by the secretary of state to receive such service, a copy thereof at the office of the department of state in the city of Albany and by delivering a copy thereof to, and leaving such copy with, the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer, or cashier of such petroleum business, or the officer performing corresponding functions under another name, or a director or managing agent of such petroleum business, personally without the state. Proof of such personal service without the state shall be filed with the clerk of the court in which the action is pending within thirty days after such service, and such service shall be complete ten days after proof thereof is filed. S. 2008 93 A. 3008 § 82. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART S Section 1. Subdivision 6 of section 441-a of the real property law, as amended by chapter 183 of the laws of 2006, is amended to read as follows: 6. Pocket card. The department shall prepare, issue and deliver, with the assistance of the department of motor vehicles, [to each licensee] UPON PAYMENT OF A FEE OF FIVE DOLLARS BY A LICENSEE, a pocket card in such form and manner as the department shall prescribe, but which shall contain the photo, name and business address of the licensee, and, in the case of a real estate salesman, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesman, as may be. Such cards must be shown on demand. In the case of loss, destruction or damage, the secretary of state may, upon submission of satisfactory proof, issue a duplicate pocket card upon payment of a fee of ten dollars. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 2 of section 54-1101 of the environmental conservation law, as amended by section 4 of part U of chapter 58 of the laws of 2016, is amended to read as follows: 2. State assistance payments and/or technical assistance, as defined in section nine hundred seventeen of the executive law, shall not exceed [fifty] SEVENTY-FIVE percent of the cost of the program. For the purpose of determining the amount of state assistance payments, costs shall not be more than the amount set forth in the application for state assist- ance payments approved by the secretary. The state assistance payments shall be paid on audit and warrant of the state comptroller on a certif- icate of availability of the director of the budget. § 2. The opening paragraph and paragraph a of subdivision 1 of section 918 of the executive law, as added by chapter 840 of the laws of 1981, are amended to read as follows: The secretary may enter into a contract or contracts for grants OR PAYMENTS to be made, within the limits of any appropriations therefor, for the following: a. To any local governments, or to two or more local governments, for projects approved by the secretary which lead to preparation of a water- front revitalization program; provided, however, that such grants OR PAYMENTS shall not exceed [fifty] SEVENTY-FIVE percent of the approved cost of such projects; § 3. This act shall take effect immediately. PART U Section 1. Paragraph (e) of subdivision 1 of section 169 of the execu- tive law, as amended by section 9 of part A of chapter 60 of the laws of 2012, is amended to read as follows: (e) [chairman of state athletic commission,] director of the office of victim services, chairman of human rights appeal board, chairman of the industrial board of appeals, chairman of the state commission of S. 2008 94 A. 3008 correction, members of the board of parole, member-chairman of unemploy- ment insurance appeal board, director of veterans' affairs, and vice- chairman of the workers' compensation board; § 2. This act shall take effect immediately. PART V Section 1. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of agriculture and markets from the special revenue funds-other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the department of agriculture and markets' participation in general ratemaking proceedings pursuant to section 65 of the public service law or certif- ication proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the department of agriculture and markets shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 2. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of state from the special revenue funds- other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the department of state's participation in general ratemaking proceedings pursuant to section 65 of the public service law or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the secretary of state shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 3. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the office of parks, recreation and historic preservation from the special revenue funds-other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the office of parks, recreation and historic preservation's participation in general ratemaking proceedings pursuant to section 65 of the public service law or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the office of parks, recreation and historic preservation shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, S. 2008 95 A. 3008 to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 4. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of environmental conservation from the special revenue funds-other/state operations, environmental conservation special revenue fund-301, utility environmental regulation account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the department of environmental conservation's participation in state energy policy proceedings, or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the department of environmental conservation shall submit an account- ing of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 5. Notwithstanding any other law, rule or regulation to the contra- ry, expenses of the department of health public service education program incurred pursuant to appropriations from the cable television account of the state miscellaneous special revenue funds shall be deemed expenses of the department of public service. No later than August 15, 2018, the commissioner of the department of health shall submit an accounting of expenses in the 2017 -- 2018 fiscal year to the chair of the public service commission for the chair's review pursuant to the provisions of section 217 of the public service law. § 6. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART W Section 1. Section 2 of part BB of chapter 58 of the laws of 2012, amending the public authorities law relating to authorizing the dormito- ry authority to enter into certain design and construction management agreements, as amended by section 1 of part S of chapter 58 of the laws of 2015, is amended to read as follows: § 2. This act shall take effect immediately [and shall expire and be deemed repealed April 1, 2017]. § 2. This act shall take effect immediately. PART X Section 1. Legislative findings. In order to increase the authority of the superintendent of financial services to respond to the harm posed by impaired insurers in this state, the legislature finds that it is in the best interest of the people of this state to enact an administrative supervision statute. The superintendent of financial services has the right and responsibility to enforce the insurance law and the authority to seek redress against any person responsible for the impairment or insolvency of the insurer, and nothing in this act is intended to restrict or limit such right, responsibility, or authority. § 2. The insurance law is amended by adding a new section 1123 to read as follows: S. 2008 96 A. 3008 § 1123. ADMINISTRATIVE SUPERVISION. (A) FOR THE PURPOSES OF THIS SUBSECTION, "INSURER" SHALL HAVE THE MEANING SET FORTH IN PARAGRAPH ONE OF SUBSECTION (B) OF SECTION SEVEN THOUSAND FOUR HUNDRED ONE OF THIS CHAPTER, AND SHALL INCLUDE A LICENSED UNITED STATES BRANCH OF AN ALIEN INSURER ENTERED THROUGH THIS STATE. (B)(1) THE SUPERINTENDENT MAY ISSUE AN ORDER PLACING A DOMESTIC INSUR- ER UNDER ADMINISTRATIVE SUPERVISION IF THE SUPERINTENDENT DETERMINES THAT ONE OR MORE OF THE CONDITIONS SET FORTH IN SECTION SEVEN THOUSAND FOUR HUNDRED TWO OF THIS CHAPTER EXISTS. UPON SUCH A DETERMINATION, THE SUPERINTENDENT SHALL FURNISH THE INSURER WITH A WRITTEN LIST OF REQUIRE- MENTS TO ABATE THE CONDITION OR CONDITIONS WITHIN THE TIME SPECIFIED IN THE ORDER, WHICH SHALL NOT EXCEED ONE HUNDRED EIGHTY DAYS. THE DOMESTIC INSURER MAY CHALLENGE THE ORDER BY REQUESTING AN ADMINISTRATIVE HEARING PURSUANT TO THE ADJUDICATORY PROCEEDING RULES IN ARTICLE THREE OF THE STATE ADMINISTRATIVE PROCEDURE ACT AND REGULATIONS PROMULGATED BY THE SUPERINTENDENT BUT THE ORDER SHALL REMAIN IN FULL FORCE AND EFFECT DURING THE COURSE OF THE ADJUDICATORY PROCEEDING. UPON ISSUANCE OF THE ORDER, THE SUPERINTENDENT SHALL ADVISE SUCH DOMESTIC INSURER OF ITS RIGHT TO REQUEST A HEARING CHALLENGING THE ORDER PURSUANT TO THE ADJUDI- CATORY PROCEEDING RULES IN ARTICLE THREE OF THE STATE ADMINISTRATIVE PROCEDURE ACT AND REGULATIONS PROMULGATED BY THE SUPERINTENDENT. (2) IF, AT THE END OF THE PERIOD SPECIFIED IN THE ORDER, THE SUPER- INTENDENT DETERMINES THAT THE CONDITION OR CONDITIONS THAT GAVE RISE TO THE ORDER STILL EXISTS OR EXIST, THEN ADMINISTRATIVE SUPERVISION SHALL CONTINUE. THE INSURER MAY REQUEST A HEARING TO CHALLENGE THE SUPERINTEN- DENT'S DETERMINATION TO CONTINUE ADMINISTRATIVE SUPERVISION. (3) IF THE SUPERINTENDENT DETERMINES THAT THE CONDITION OR CONDITIONS THAT GAVE RISE TO ADMINISTRATIVE SUPERVISION NO LONGER EXISTS OR EXIST, THEN THE SUPERINTENDENT SHALL RELEASE THE INSURER FROM SUPERVISION. (C) DURING THE PERIOD OF SUPERVISION, THE SUPERINTENDENT MAY PROHIBIT THE INSURER FROM ENGAGING IN ANY OF THE FOLLOWING ACTIVITIES WITHOUT THE SUPERINTENDENT'S PRIOR APPROVAL: (1) DISPOSING OF, CONVEYING, OR ENCUMBERING ANY OF ITS ASSETS OR ITS BUSINESS IN FORCE; (2) WITHDRAWING ANY FUNDS FROM ITS BANK ACCOUNTS; (3) LENDING ANY OF ITS FUNDS; (4) INVESTING ANY OF ITS FUNDS; (5) PAYING ANY CLAIMS; (6) TRANSFERRING ANY OF ITS PROPERTY; (7) INCURRING ANY DEBT, OBLIGATION, OR LIABILITY; (8) MERGING OR CONSOLIDATING WITH ANOTHER COMPANY; (9) APPROVING NEW PREMIUMS OR RENEWING ANY POLICIES; (10) ENTERING INTO ANY NEW REINSURANCE CONTRACT OR TREATY; (11) TERMINATING, SURRENDERING, FORFEITING, CONVERTING, OR LAPSING ANY INSURANCE POLICY, CERTIFICATE, OR CONTRACT, EXCEPT FOR NONPAYMENT OF PREMIUMS DUE; (12) RELEASING, PAYING, OR REFUNDING PREMIUM DEPOSITS, ACCRUED CASH OR LOAN VALUES, UNEARNED PREMIUMS, OR OTHER RESERVES ON ANY INSURANCE POLI- CY, CERTIFICATE, OR CONTRACT; (13) MAKING ANY MATERIAL CHANGE IN MANAGEMENT; (14) INCREASING SALARIES AND BENEFITS OF OFFICERS OR DIRECTORS OR THE PAYMENT OF BONUSES, DIVIDENDS, OR OTHER PAYMENTS; OR (15) SUCH OTHER ACTIVITIES THAT THE SUPERINTENDENT DETERMINES ARE NECESSARY TO PROTECT POLICYHOLDERS OR THE PEOPLE OF THIS STATE. S. 2008 97 A. 3008 (D) THE SUPERINTENDENT MAY APPOINT AS ADMINISTRATIVE SUPERVISOR, AT THE INSURER'S EXPENSE, ONE OR MORE PERSONS NOT EMPLOYED BY ANY INSURER OR INTERESTED IN SUCH INSURER, EXCEPT AS A POLICYHOLDER. (E)(1) THE EXPENSES OF ADMINISTRATIVE SUPERVISION PURSUANT TO THIS SUBSECTION SHALL BE BORNE AND PAID BY THE INSURER SO SUPERVISED. (2) IN THE EVENT THAT AN INSURER BECOMES SUBJECT TO A PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER WITHIN ONE YEAR OF THE SUPERINTEN- DENT RELEASING THE INSURER FROM ADMINISTRATIVE SUPERVISION, ALL ACCRUED AND OUTSTANDING EXPENSES INCURRED IN CONNECTION WITH ADMINISTRATIVE SUPERVISION SHALL BE TREATED AS ACTUAL AND NECESSARY COSTS AND EXPENSES OF THE ADMINISTRATION OF SUCH PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER. (F) ALL MATTERS PERTAINING TO A PROCEEDING OR DETERMINATION PURSUANT TO THIS SUBSECTION SHALL BE CONFIDENTIAL AND NOT SUBJECT TO SUBPOENA OR PUBLIC INSPECTION UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW OR ANY OTHER STATUTE, EXCEPT TO THE EXTENT THAT THE SUPERINTENDENT FINDS RELEASE OF INFORMATION NECESSARY TO PROTECT THE PUBLIC. (G) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED AS PRECLUDING THE SUPERINTENDENT FROM INITIATING JUDICIAL PROCEEDINGS TO PLACE AN INSURER IN REHABILITATION, LIQUIDATION, CONSERVATION, OR DISSOLUTION PROCEEDINGS. § 3. Subsection (a) of section 1309 of the insurance law is amended to read as follows: (a) Whenever the superintendent finds from a financial statement or report on examination that an authorized insurer is unable to pay its outstanding lawful obligations as they mature in the regular course of business, as shown by an excess of required reserves and other liabil- ities over admitted assets, or by its not having sufficient assets to reinsure all outstanding risks with other solvent authorized assuming insurers after paying all accrued claims owed, such insurer shall be deemed insolvent and the superintendent may proceed against it pursuant to the provisions of article seventy-four of this chapter OR MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 4. Subsection (a) of section 1310 of the insurance law is amended to read as follows: (a) Whenever the superintendent finds from a financial statement, or a report on examination, of any domestic stock insurer that [(i)] (1) the admitted assets are less than the aggregate amount of its liabilities and outstanding capital stock or [(ii)] (2) the admitted assets of any such insurer [which] THAT is required to maintain a minimum surplus to policyholders are less than the aggregate amount of its liabilities and the amount of its minimum surplus to policyholders, [he] THE SUPERINTEN- DENT shall determine the amount of the impairment and order the insurer to eliminate the impairment within such period as [he] THE SUPERINTEN- DENT designates, not more than ninety days from the service of the order. [He] THE SUPERINTENDENT may also order the insurer not to issue any new policies while the impairment exists. If the impairment as determined by the provisions of [item (i) hereof] PARAGRAPH ONE OF THIS SUBSECTION equals or exceeds twenty-five percent of the insurer's outstanding capital stock, or as determined by the provisions of [item (i) or (ii) hereof] PARAGRAPH ONE OR TWO OF THIS SUBSECTION is such that the insurer does not have the minimum capital or minimum surplus to policyholders required by this chapter, and if at the expiration of such designated period, such insurer has not satisfied the superintendent that such impairment has been eliminated, the superintendent may proceed S. 2008 98 A. 3008 against the insurer pursuant to the provisions of article seventy-four of this chapter on the ground that its condition is such that its further transaction of business will be hazardous to its policyholders or its creditors or the public OR THE SUPERINTENDENT MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SECTION ONE THOU- SAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 5. Subsection (c) of section 1311 of the insurance law is amended to read as follows: (c) If the impairment so determined is such that such insurer does not have the minimum surplus required for item (iii) of subsection (a) [hereof] OF THIS SECTION, and if when such designated period expires the insurer has not satisfied the superintendent that such impairment has been eliminated, the superintendent may proceed against such insurer pursuant to the provisions of article seventy-four of this chapter on the ground that its further transaction of business will be hazardous to its policyholders, its creditors or the public OR THE SUPERINTENDENT MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 6. Paragraph 2 of subsection (c) of section 1312 of the insurance law is amended to read as follows: (2) If at the expiration of such designated period such insurer has not satisfied the superintendent that such impairment has been elimi- nated, the superintendent may proceed against such insurer pursuant to the provisions of article seventy-four of this chapter as an insurer whose condition is such that its further transaction of business in the United States will be hazardous to its policyholders, its creditors or the public in the United States OR THE SUPERINTENDENT MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SUBSECTION (B) OF SECTION ONE THOUSAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 7. This act shall take effect immediately. PART Y Section 1. Subsections (c) and (d) of section 109 of the insurance law, paragraph 1 of subsection (c) as amended by section 55 of part A of chapter 62 of the laws of 2011, is amended and a new subsection (e) is added to read as follows: (c) (1) If the superintendent finds after notice and hearing that any [authorized] insurer, representative of the insurer, [licensed] insur- ance agent, [licensed] insurance broker, [licensed] adjuster, or any other person or entity [licensed, certified, registered, or authorized pursuant] SUBJECT to this chapter, has wilfully violated the provisions of this chapter or any regulation promulgated thereunder, then the superintendent may order the person or entity to pay to the people of this state a penalty in a sum not exceeding [one] THE GREATER OF (A) TEN thousand dollars for each offense; (B) A MULTIPLE OF TWO TIMES THE AGGREGATE DAMAGES ATTRIBUTABLE TO THE VIOLATION; OR (C) A MULTIPLE OF TWO TIMES THE AGGREGATE ECONOMIC GAIN ATTRIBUTABLE TO THE VIOLATION. THE SUPERINTENDENT MAY PROMULGATE REGULATIONS IMPLEMENTING THE TERMS OF THIS SUBSECTION. (2) Failure to pay such penalty within thirty days after the order, unless it is suspended by an order of a court of competent jurisdiction, shall constitute a further violation of the provisions of this chapter. (3) No penalty shall be imposed pursuant to this subsection if a mone- tary penalty is otherwise provided in this chapter. S. 2008 99 A. 3008 (d) (1) The superintendent may maintain a civil action in the name of the people of the state to recover a judgment for a money penalty imposed by law OR TO ENFORCE ANY ORDER ISSUED BY THE SUPERINTENDENT for the violation of any provision of this chapter. (2) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, EITHER (A) PROSECUTE ANY SUCH ACTION AND RETAIN CHARGE AND CONTROL OF THE ACTION; OR (B) REFER SUCH ACTION TO THE DEPARTMENT OF LAW FOR PROSECUTION. (E) ANY PERSON OR ENTITY THAT IS REQUIRED BY THIS CHAPTER TO BE LICENSED, CERTIFIED, REGISTERED, OR AUTHORIZED SHALL BE SUBJECT TO THE LAWS OF THIS CHAPTER AND THE PENALTIES CONTAINED HEREIN AS IF THE PERSON OR ENTITY WAS SO LICENSED, CERTIFIED, REGISTERED, OR AUTHORIZED, EVEN IF THE PERSON OR ENTITY DOES NOT POSSESS THE REQUIRED LICENSE, CERTIF- ICATION, REGISTRATION, OR AUTHORIZATION. § 2. Section 44 of the banking law is amended by adding two new subdi- visions 10 and 11 to read as follows: 10. THE SUPERINTENDENT MAY MAINTAIN A CIVIL ACTION IN THE NAME OF THE PEOPLE OF THE STATE TO RECOVER A JUDGEMENT FOR A MONEY PENALTY IMPOSED BY LAW OR TO ENFORCE ANY ORDER ISSUED BY THE SUPERINTENDENT FOR THE VIOLATION OF ANY PROVISION OF THIS CHAPTER. NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, EITHER (A) PROSECUTE ANY SUCH ACTION AND RETAIN CHARGE AND CONTROL OF THE ACTION; OR (B) REFER SUCH ACTION TO THE DEPARTMENT OF LAW FOR PROSE- CUTION. 11. ANY PERSON OR ENTITY WHO ENGAGES IN ACTIVITY THAT IS REGULATED IN THIS CHAPTER WITHOUT BEING LICENSED, CERTIFIED, REGISTERED, AUTHORIZED, CHARTERED, ACCREDITED, INCORPORATED OR OTHERWISE OBTAINING ANY PERMIS- SION OF THE SUPERINTENDENT REQUIRED BY THIS CHAPTER BEFORE ENGAGING IN SUCH ACTIVITY SHALL BE SUBJECT TO THE LAWS OF THIS CHAPTER AND THE PENALTIES CONTAINED HEREIN AS IF THE PERSON OR ENTITY WAS SO LICENSED, CERTIFIED, REGISTERED, AUTHORIZED, CHARTERED, ACCREDITED, INCORPORATED, OR OTHERWISE APPROVED BY THE SUPERINTENDENT. § 3. Subsection (a) of section 309 of the financial services law is amended and a new subsection (c) is added to read as follows: (a) In addition to such other remedies as are provided under this chapter, the superintendent may maintain and prosecute an action against any person subject to this chapter, the insurance law or the banking law, or the person's officers, directors, trustees or agents, for the purpose of obtaining an injunction restraining such person or persons from doing any acts in violation of the provisions of this chapter, the insurance law or the banking law. THE SUPERINTENDENT MAY COMMENCE SUCH ACTION AGAINST ANY PERSON OR ENTITY THAT IS REQUIRED BY THIS CHAPTER, THE BANKING LAW, OR THE INSURANCE LAW TO BE LICENSED, CERTIFIED, REGIS- TERED, AUTHORIZED, CHARTERED, ACCREDITED, OR INCORPORATED, AS IF THE PERSON OR ENTITY WAS SO LICENSED, CERTIFIED, REGISTERED, AUTHORIZED, CHARTERED, ACCREDITED, OR INCORPORATED, EVEN IF THE PERSON OR ENTITY DOES NOT POSSESS THE REQUIRED LICENSE, CERTIFICATION, REGISTRATION, AUTHORIZATION, CHARTER, ACCREDITATION, OR INCORPORATION. (C) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, EITHER (I) PROSECUTE ANY SUCH ACTION AND RETAIN CHARGE AND CONTROL OF THE ACTION; OR (II) REFER SUCH ACTION TO THE DEPARTMENT OF LAW FOR PROSECUTION. § 4. This act shall take effect immediately. PART Z S. 2008 100 A. 3008 Section 1. The banking law is amended by adding a new article 14-A to read as follows: ARTICLE XIV-A STUDENT LOAN SERVICERS SECTION 710. DEFINITIONS. 711. LICENSING. 712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN THE BUSINESS OF STUDENT LOAN SERVICING. 714. CHANGES IN OFFICERS AND DIRECTORS. 715. CHANGES IN CONTROL. 716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE. 717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING. 718. RULES AND REGULATIONS. 719. PROHIBITED PRACTICES. 720. SERVICING STUDENT LOANS WITHOUT A LICENSE. 721. RESPONSIBILITIES. 722. EXAMINATIONS. 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 724. SEVERABILITY OF PROVISIONS. 725. COMPLIANCE WITH OTHER LAWS. § 710. DEFINITIONS. 1. "APPLICANT" SHALL MEAN ANY PERSON APPLYING FOR A LICENSE TO BE A STUDENT LOAN SERVICER. 2. "BORROWER" SHALL MEAN ANY RESIDENT OF THIS STATE WHO HAS RECEIVED A STUDENT LOAN OR AGREED TO PAY A STUDENT LOAN OR ANY PERSON WHO SHARES RESPONSIBILITY WITH SUCH RESIDENT FOR REPAYING A STUDENT LOAN. 3. "BORROWER BENEFIT" SHALL MEAN AN INCENTIVE OFFERED TO A BORROWER IN CONNECTION WITH THE ORIGINATION OF A STUDENT LOAN, INCLUDING BUT NOT LIMITED TO AN INTEREST RATE REDUCTION, PRINCIPAL REBATE, FEE WAIVER OR REBATE, LOAN CANCELLATION, OR COSIGNER RELEASE. 4. "EXEMPT ORGANIZATION" SHALL MEAN ANY BANKING ORGANIZATION, FOREIGN BANKING CORPORATION, NATIONAL BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL CREDIT UNION, OR ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE, OR ANY INSTRUMENTALITY CREATED BY THE UNITED STATES OR ANY STATE WITH THE POWER TO SERVICE STUDENT LOANS, OR ANY PERSON EXEMPTED BY THE SUPERINTENDENT OF FINANCIAL SERVICES PURSUANT TO REGULATIONS PROMULGATED IN ACCORDANCE WITH THIS ARTICLE. 5. "PERSON" SHALL MEAN ANY INDIVIDUAL, ASSOCIATION, CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, TRUST, UNINCORPORATED ORGANIZA- TION, GOVERNMENT OR POLITICAL SUBDIVISION OF A GOVERNMENT, AND ANY OTHER ENTITY. 6. "SERVICER" OR "STUDENT LOAN SERVICER" SHALL MEAN A PERSON LICENSED PURSUANT TO SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE TO ENGAGE IN THE BUSINESS OF SERVICING ANY STUDENT LOAN OF A BORROWER. 7. "SERVICING" SHALL MEAN: (A) RECEIVING ANY PAYMENT FROM A BORROWER PURSUANT TO THE TERMS OF ANY STUDENT LOAN; (B) APPLYING ANY PAYMENT TO A BORROWER'S ACCOUNT PURSUANT TO THE TERMS OF A STUDENT LOAN OR THE CONTRACT GOVERNING THE SERVICING OF ANY SUCH LOAN; (C) PROVIDING ANY NOTIFICATION OF AMOUNTS OWED ON A STUDENT LOAN BY OR ON ACCOUNT OF ANY BORROWER; (D) DURING A PERIOD WHEN A BORROWER IS NOT REQUIRED TO MAKE A PAYMENT ON A STUDENT LOAN, MAINTAINING ACCOUNT RECORDS FOR THE STUDENT LOAN AND S. 2008 101 A. 3008 COMMUNICATING WITH THE BORROWER REGARDING THE STUDENT LOAN ON BEHALF OF THE OWNER OF THE STUDENT LOAN PROMISSORY NOTE; (E) INTERACTING WITH A BORROWER WITH RESPECT TO OR REGARDING ANY ATTEMPT TO AVOID DEFAULT ON THE BORROWER'S STUDENT LOAN, OR FACILITATING THE ACTIVITIES DESCRIBED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION; OR (F) PERFORMING OTHER ADMINISTRATIVE SERVICES WITH RESPECT TO A BORROW- ER'S STUDENT LOAN. 8. "STUDENT LOAN" SHALL MEAN ANY LOAN TO A BORROWER TO FINANCE POSTSE- CONDARY EDUCATION OR EXPENSES RELATED TO POSTSECONDARY EDUCATION. § 711. LICENSING. 1. NO PERSON SHALL ENGAGE IN THE BUSINESS OF SERVIC- ING STUDENT LOANS OWED BY ONE OR MORE BORROWERS RESIDING IN THIS STATE WITHOUT FIRST BEING LICENSED BY THE SUPERINTENDENT AS A STUDENT LOAN SERVICER IN ACCORDANCE WITH THIS ARTICLE AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE SUPERINTENDENT. 2. THE LICENSING PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPT ORGANIZATION, OR ANY PERSON THAT SHALL BE EXEMPTED IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SUPERINTENDENT HEREUNDER; PROVIDED THAT SUCH EXEMPT ORGANIZATION NOTIFIES THE SUPERINTENDENT THAT THE EXEMPT ORGANIZATION IS ACTING AS A STUDENT LOAN SERVICER IN THIS STATE AND COMPLIES WITH SECTIONS SEVEN HUNDRED NINETEEN AND SEVEN HUNDRED TWENTY-ONE OF THIS ARTICLE AND ANY REGULATION APPLICABLE TO STUDENT LOAN SERVICERS PROMULGATED BY THE SUPERINTENDENT. § 712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 1. THE APPLICATION FOR A LICENSE TO BE A STUDENT LOAN SERVICER SHALL BE IN WRITING, UNDER OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION FOR A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE BE MADE OR EXECUTED BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. THE APPLICATION SHALL INCLUDE A DESCRIPTION OF THE ACTIVITIES OF THE APPLICANT, IN SUCH DETAIL AND FOR SUCH PERIODS AS THE SUPERINTENDENT MAY REQUIRE, INCLUDING: (A) AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH CAPITALIZATION REQUIREMENTS AS MAY BE REQUIRED BY THE SUPERINTENDENT, AND ACCESS TO SUCH CREDIT AS MAY BE REQUIRED BY THE SUPERINTENDENT; (B) A FINANCIAL STATEMENT PREPARED BY A CERTIFIED PUBLIC ACCOUNTANT, THE ACCURACY OF WHICH IS SWORN TO UNDER OATH BEFORE A NOTARY PUBLIC BY AN OFFICER OR OTHER REPRESENTATIVE OF THE APPLICANT WHO IS AUTHORIZED TO EXECUTE SUCH DOCUMENTS; (C) THE FINGERPRINTS OF THE APPLICANT, OR ITS MEMBERS, OFFICERS, PART- NERS, DIRECTORS AND PRINCIPALS AS MAY BE APPROPRIATE, WHICH MAY BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL BUREAU OF INVESTIGATION FOR STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS; (D) AN AFFIRMATION THAT THE APPLICANT, OR ITS MEMBERS, OFFICERS, PART- NERS, DIRECTORS AND PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWEN- TY-ONE YEARS OF AGE; (E) INFORMATION AS TO THE CHARACTER, FITNESS, FINANCIAL AND BUSINESS RESPONSIBILITY, BACKGROUND AND EXPERIENCES OF THE APPLICANT, OR ITS MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS AS MAY BE APPRO- PRIATE; (F) ANY ADDITIONAL DETAIL OR INFORMATION REQUIRED BY THE SUPERINTEN- DENT. S. 2008 102 A. 3008 2. AN APPLICATION TO BECOME A STUDENT LOAN SERVICER OR ANY APPLICATION WITH RESPECT TO A STUDENT LOAN SERVICER SHALL BE ACCOMPANIED BY A FEE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER. § 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN THE BUSI- NESS OF STUDENT LOAN SERVICING. 1. UPON THE FILING OF AN APPLICATION FOR A LICENSE, IF THE SUPERINTENDENT SHALL FIND THAT THE FINANCIAL RESPONSI- BILITY, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF THE APPLICANT AND, IF APPLICABLE, THE MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS OF THE APPLICANT ARE SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY AND TO WARRANT BELIEF THAT THE BUSINESS WILL BE OPERATED HONESTLY, FAIR- LY, AND EFFICIENTLY WITHIN THE PURPOSE OF THIS ARTICLE, THE SUPERINTEN- DENT SHALL THEREUPON ISSUE A LICENSE IN DUPLICATE TO ENGAGE IN THE BUSI- NESS OF SERVICING STUDENT LOANS DESCRIBED IN SECTION SEVEN HUNDRED TEN OF THIS ARTICLE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. IF THE SUPERINTENDENT SHALL NOT SO FIND, THE SUPERINTENDENT SHALL NOT ISSUE A LICENSE, AND THE SUPERINTENDENT SHALL SO NOTIFY THE APPLICANT. THE SUPERINTENDENT SHALL TRANSMIT ONE COPY OF A LICENSE TO THE APPLICANT AND FILE ANOTHER COPY IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES. UPON RECEIPT OF SUCH LICENSE, A STUDENT LOAN SERVICER SHALL BE AUTHOR- IZED TO ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. SUCH LICENSE SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL IT IS SURRENDERED BY THE SERVICER OR REVOKED OR SUSPENDED AS HEREINAFTER PROVIDED. 2. THE SUPERINTENDENT MAY REFUSE TO ISSUE A LICENSE PURSUANT TO THIS ARTICLE IF HE OR SHE SHALL FIND THAT THE APPLICANT, OR ANY PERSON WHO IS A DIRECTOR, OFFICER, PARTNER, AGENT, EMPLOYEE, MEMBER, SUBSTANTIAL STOCKHOLDER OF THE APPLICANT, CONSULTANT OR PERSON HAVING A RELATIONSHIP WITH THE APPLICANT SIMILAR TO A CONSULTANT: (A) HAS BEEN CONVICTED OF A CRIME INVOLVING AN ACTIVITY WHICH IS A FELONY UNDER THIS CHAPTER OR UNDER ARTICLE ONE HUNDRED FIFTY-FIVE, ONE HUNDRED SEVENTY, ONE HUNDRED SEVENTY-FIVE, ONE HUNDRED SEVENTY-SIX, ONE HUNDRED EIGHTY, ONE HUNDRED EIGHTY-FIVE, ONE HUNDRED EIGHTY-SEVEN, ONE HUNDRED NINETY, TWO HUNDRED, TWO HUNDRED TEN OR FOUR HUNDRED SEVENTY OF THE PENAL LAW OR ANY COMPARABLE FELONY UNDER THE LAWS OF ANY OTHER STATE OR THE UNITED STATES, PROVIDED THAT SUCH CRIME WOULD BE A FELONY IF COMMITTED AND PROSECUTED UNDER THE LAWS OF THIS STATE; (B) HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; (C) HAS BEEN AN OFFICER, DIRECTOR, PARTNER, MEMBER OR SUBSTANTIAL STOCKHOLDER OF AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; OR (D) HAS BEEN AN AGENT, EMPLOYEE, OFFICER, DIRECTOR, PARTNER OR MEMBER OF AN ENTITY, OR A CONSULTANT TO, OR PERSON HAVING HAD A SIMILAR RELATIONSHIP WITH, ANY ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT WHERE SUCH PERSON SHALL HAVE BEEN FOUND BY THE SUPERINTENDENT TO BEAR RESPONSIBILITY IN CONNECTION WITH THE REVOCA- TION. 3. THE TERM "SUBSTANTIAL STOCKHOLDER", AS USED IN THIS SUBDIVISION, SHALL BE DEEMED TO REFER TO A PERSON OWNING OR CONTROLLING DIRECTLY OR INDIRECTLY TEN PER CENTUM OR MORE OF THE TOTAL OUTSTANDING STOCK OF A CORPORATION. § 714. CHANGES IN OFFICERS AND DIRECTORS. UPON ANY CHANGE OF ANY OF THE EXECUTIVE OFFICERS, DIRECTORS, PARTNERS OR MEMBERS OF ANY STUDENT LOAN SERVICER, THE STUDENT LOAN SERVICER SHALL SUBMIT TO THE SUPERINTEN- DENT THE NAME, ADDRESS, AND OCCUPATION OF EACH NEW OFFICER, DIRECTOR, S. 2008 103 A. 3008 PARTNER OR MEMBER, AND PROVIDE SUCH OTHER INFORMATION AS THE SUPERINTEN- DENT MAY REQUIRE. § 715. CHANGES IN CONTROL. 1. IT SHALL BE UNLAWFUL, EXCEPT WITH THE PRIOR APPROVAL OF THE SUPERINTENDENT, FOR ANY ACTION TO BE TAKEN WHICH RESULTS IN A CHANGE OF CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVI- CER. PRIOR TO ANY CHANGE OF CONTROL, THE PERSON DESIROUS OF ACQUIRING CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVICER SHALL MAKE WRITTEN APPLICATION TO THE SUPERINTENDENT AND PAY AN INVESTIGATION FEE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER TO THE SUPER- INTENDENT. THE APPLICATION SHALL CONTAIN SUCH INFORMATION AS THE SUPER- INTENDENT, BY RULE OR REGULATION, MAY PRESCRIBE AS NECESSARY OR APPRO- PRIATE FOR THE PURPOSE OF MAKING THE DETERMINATION REQUIRED BY SUBDIVISION TWO OF THIS SECTION. SUCH INFORMATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE INFORMATION AND OTHER MATERIAL REQUIRED FOR A STUDENT LOAN SERVICER BY SUBDIVISION ONE OF SECTION SEVEN HUNDRED TWELVE OF THIS ARTICLE. 2. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED CHANGE OF CONTROL OF A STUDENT LOAN SERVICER IN ACCORDANCE WITH THE PROVISIONS OF SECTION SEVEN HUNDRED THIRTEEN OF THIS ARTICLE. 3. FOR A PERIOD OF SIX MONTHS FROM THE DATE OF QUALIFICATION THEREOF AND FOR SUCH ADDITIONAL PERIOD OF TIME AS THE SUPERINTENDENT MAY PRESCRIBE, IN WRITING, THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL NOT APPLY TO A TRANSFER OF CONTROL BY OPERATION OF LAW TO THE LEGAL REPRESENTATIVE, AS HEREINAFTER DEFINED, OF ONE WHO HAS CONTROL OF A STUDENT LOAN SERVICER. THEREAFTER, SUCH LEGAL REPRESEN- TATIVE SHALL COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION. THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL BE APPLICABLE TO AN APPLICATION MADE UNDER THIS SECTION BY A LEGAL REPRESENTATIVE. THE TERM "LEGAL REPRESENTATIVE", FOR THE PURPOSES OF THIS SUBDIVISION, SHALL MEAN A PERSON DULY APPOINTED BY A COURT OF COMPETENT JURISDICTION TO ACT AS EXECUTOR, ADMINISTRATOR, TRUSTEE, COMMITTEE, CONSERVATOR OR RECEIVER, INCLUDING A PERSON WHO SUCCEEDS A LEGAL REPRESENTATIVE AND A PERSON ACTING IN AN ANCILLARY CAPACITY THERE- TO IN ACCORDANCE WITH THE PROVISIONS OF SUCH COURT APPOINTMENT. 4. AS USED IN THIS SECTION THE TERM "CONTROL" MEANS THE POSSESSION, DIRECTLY OR INDIRECTLY, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLICIES OF A STUDENT LOAN SERVICER, WHETHER THROUGH THE OWNERSHIP OF VOTING STOCK OF SUCH STUDENT LOAN SERVICER, THE OWNER- SHIP OF VOTING STOCK OF ANY PERSON WHICH POSSESSES SUCH POWER OR OTHER- WISE. CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER OR OF ANY PERSON WHICH OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER, BUT NO PERSON SHALL BE DEEMED TO CONTROL A STUDENT LOAN SERVICER SOLELY BY REASON OF BEING AN OFFICER OR DIRECTOR OF SUCH STUDENT LOAN SERVICER. THE SUPERINTENDENT MAY IN HIS DISCRETION, UPON THE APPLICATION OF A STUDENT LOAN SERVICER OR ANY PERSON WHO, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE OR SEEKS TO OWN, CONTROL OR HOLD WITH POWER TO VOTE ANY VOTING STOCK OF SUCH STUDENT LOAN SERVICER, DETERMINE WHETHER OR NOT THE OWNERSHIP, CONTROL OR HOLDING OF SUCH VOTING STOCK CONSTITUTES OR WOULD CONSTITUTE CONTROL OF SUCH STUDENT LOAN SERVICER FOR PURPOSES OF THIS SECTION. § 716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE. 1. THE SUPER- INTENDENT MAY REVOKE ANY LICENSE TO ENGAGE IN THE BUSINESS OF A STUDENT S. 2008 104 A. 3008 LOAN SERVICER ISSUED PURSUANT TO THIS ARTICLE IF HE OR SHE SHALL FIND THAT: (A) A SERVICER HAS VIOLATED ANY PROVISION OF THIS ARTICLE, ANY RULE OR REGULATION PROMULGATED BY THE SUPERINTENDENT UNDER AND WITHIN THE AUTHORITY OF THIS ARTICLE, OR ANY OTHER APPLICABLE LAW; (B) ANY FACT OR CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE TIME OF THE ORIGINAL APPLICATION FOR SUCH LICENSE, WOULD HAVE WARRANTED THE SUPERINTENDENT REFUSING ORIGINALLY TO ISSUE SUCH LICENSE; (C) A SERVICER DOES NOT COOPERATE WITH AN EXAMINATION OR INVESTIGATION BY THE SUPERINTENDENT; (D) A SERVICER ENGAGES IN FRAUD, INTENTIONAL MISREPRESENTATION, OR GROSS NEGLIGENCE IN SERVICING A STUDENT LOAN; (E) THE COMPETENCE, EXPERIENCE, CHARACTER, OR GENERAL FITNESS OF THE SERVICER, AN INDIVIDUAL CONTROLLING, DIRECTLY OR INDIRECTLY, TEN PERCENT OR MORE OF THE OUTSTANDING INTERESTS, OR ANY PERSON RESPONSIBLE FOR SERVICING A STUDENT LOAN FOR THE SERVICER INDICATES THAT IT IS NOT IN THE PUBLIC INTEREST TO PERMIT THE SERVICER TO CONTINUE SERVICING STUDENT LOANS; (F) THE SERVICER ENGAGES IN UNSAFE OR INJURIOUS PRACTICE; (G) THE SERVICER IS INSOLVENT, SUSPENDS PAYMENT OF ITS OBLIGATIONS, OR MAKES A GENERAL ASSIGNMENT FOR THE BENEFIT OF ITS CREDITORS; OR (H) A SERVICER HAS VIOLATED THE LAWS OF THIS STATE, ANY OTHER STATE LAW OR ANY FEDERAL LAW INVOLVING FRAUDULENT OR DISHONEST DEALING, OR A FINAL JUDGMENT HAS BEEN ENTERED AGAINST A STUDENT LOAN SERVICER IN A CIVIL ACTION UPON GROUNDS OF FRAUD, MISREPRESENTATION OR DECEIT. 2. AS A PART OF HIS OR HER DETERMINATION REGARDING SUSPENSION OR REVO- CATION, THE SUPERINTENDENT IS AUTHORIZED TO REQUIRE THE FINGERPRINTING OF ANY PERSON, OFFICER, DIRECTOR, PARTNER, MEMBER OR EMPLOYEE OF A STUDENT LOAN SERVICER. SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE DIVI- SION OF CRIMINAL JUSTICE SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK. 3. THE SUPERINTENDENT MAY, ON GOOD CAUSE SHOWN, OR WHERE THERE IS A SUBSTANTIAL RISK OF PUBLIC HARM, SUSPEND ANY LICENSE FOR A PERIOD NOT EXCEEDING THIRTY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN A STUDENT LOAN SERVICER HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTAN- TIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE. 4. EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION, NO LICENSE SHALL BE REVOKED OR SUSPENDED EXCEPT AFTER NOTICE AND A HEARING THEREON. ANY ORDER OF SUSPENSION ISSUED AFTER NOTICE AND A HEARING MAY INCLUDE AS A CONDITION OF REINSTATEMENT THAT THE STUDENT LOAN SERVICER MAKE RESTI- TUTION TO CONSUMERS OF FEES OR OTHER CHARGES WHICH HAVE BEEN IMPROPERLY CHARGED OR COLLECTED, INCLUDING BUT NOT LIMITED TO BY ALLOCATING PAYMENTS CONTRARY TO A BORROWER'S DIRECTION OR IN A MANNER THAT FAILS TO HELP A BORROWER AVOID DEFAULT, AS DETERMINED BY THE SUPERINTENDENT. ANY HEARING HELD PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE NOTICED, CONDUCTED AND ADMINISTERED IN COMPLIANCE WITH THE STATE ADMIN- ISTRATIVE PROCEDURE ACT. 5. ANY STUDENT LOAN SERVICER MAY SURRENDER ANY LICENSE BY DELIVERING TO THE SUPERINTENDENT WRITTEN NOTICE THAT THE STUDENT LOAN SERVICER THEREBY SURRENDERS SUCH LICENSE, BUT SUCH SURRENDER SHALL NOT AFFECT THE SERVICER'S CIVIL OR CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO THE SURRENDER. IF SUCH SURRENDER IS MADE AFTER THE ISSUANCE BY THE SUPER- INTENDENT OF A STATEMENT OF CHARGES AND NOTICE OF HEARING, THE SUPER- S. 2008 105 A. 3008 INTENDENT MAY PROCEED AGAINST THE SERVICER AS IF THE SURRENDER HAD NOT TAKEN PLACE. 6. NO REVOCATION, SUSPENSION, OR SURRENDER OF ANY LICENSE SHALL IMPAIR OR AFFECT THE OBLIGATION OF ANY PRE-EXISTING LAWFUL CONTRACT BETWEEN THE STUDENT LOAN SERVICER AND ANY PERSON, INCLUDING THE DEPARTMENT OF FINAN- CIAL SERVICES. 7. EVERY LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL THE SAME SHALL HAVE BEEN SURRENDERED, REVOKED OR SUSPENDED IN ACCORDANCE WITH ANY OTHER PROVISIONS OF THIS ARTICLE. 8. WHENEVER THE SUPERINTENDENT SHALL REVOKE OR SUSPEND A LICENSE ISSUED PURSUANT TO THIS ARTICLE, HE OR SHE SHALL FORTHWITH EXECUTE IN DUPLICATE A WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT SHALL FILE ONE COPY OF THE ORDER IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES AND SHALL FORTHWITH SERVE THE OTHER COPY UPON THE STUDENT LOAN SERVICER. ANY SUCH ORDER MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTI- CLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. AN APPLICATION FOR REVIEW AS AUTHORIZED BY THIS SECTION MUST BE MADE WITHIN THIRTY DAYS FROM THE DATE OF THE ORDER OF SUSPENSION OR REVOCATION. § 717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING. 1. EACH STUDENT LOAN SERVICER AND EXEMPT ORGANIZATION SHALL KEEP AND USE IN ITS BUSINESS SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTEN- DENT TO DETERMINE WHETHER THE SERVICER OR EXEMPT ORGANIZATION IS COMPLY- ING WITH THE PROVISIONS OF THIS ARTICLE AND WITH THE RULES AND REGU- LATIONS LAWFULLY MADE BY THE SUPERINTENDENT. EVERY SERVICER AND EXEMPT ORGANIZATION SHALL PRESERVE SUCH BOOKS, ACCOUNTS, AND RECORDS, FOR AT LEAST THREE YEARS. 2. (A) EACH STUDENT LOAN SERVICER SHALL ANNUALLY, ON OR BEFORE A DATE TO BE DETERMINED BY THE SUPERINTENDENT, FILE A REPORT WITH THE SUPER- INTENDENT GIVING SUCH INFORMATION AS THE SUPERINTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS DURING THE PRECEDING CALENDAR YEAR OF SUCH SERVICER UNDER AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. (B) IN ADDITION TO ANNUAL REPORTS, THE SUPERINTENDENT MAY REQUIRE SUCH ADDITIONAL REGULAR OR SPECIAL REPORTS AS HE OR SHE MAY DEEM NECESSARY TO THE PROPER SUPERVISION OF STUDENT LOAN SERVICERS UNDER THIS ARTICLE. SUCH ADDITIONAL REPORTS SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. 3. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT ANY SUBMISSION OR APPROVAL AS MAY BE REQUIRED BY THE SUPERINTENDENT BE MADE OR EXECUTED BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT ADMINISTRATION OF THIS ARTICLE. § 718. RULES AND REGULATIONS. 1. IN ADDITION TO SUCH POWERS AS MAY OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY IN THE JUDGMENT OF THE SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO: (A) SUCH RULES AND REGULATIONS IN CONNECTION WITH THE ACTIVITIES OF STUDENT LOAN SERVICERS AND EXEMPT ORGANIZATIONS AS MAY BE NECESSARY AND APPROPRIATE FOR THE PROTECTION OF BORROWERS IN THIS STATE. (B) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE TO DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH S. 2008 106 A. 3008 THE ACTIVITIES OF STUDENT LOAN SERVICERS AND EXEMPT ORGANIZATIONS IN SERVICING STUDENT LOANS. (C) SUCH RULES AND REGULATIONS AS MAY DEFINE THE TERMS USED IN THIS ARTICLE AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND IMPLE- MENT THE PROVISIONS OF THIS ARTICLE. (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT OF THIS ARTICLE. 2. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH SPECIFIC RULINGS, DEMANDS AND FINDINGS AS THE SUPERINTENDENT MAY DEEM NECESSARY FOR THE PROPER CONDUCT OF THE STUDENT LOAN SERVICING INDUSTRY. § 719. PROHIBITED PRACTICES. NO STUDENT LOAN SERVICER SHALL: 1. DIRECTLY OR INDIRECTLY EMPLOY ANY SCHEME, DEVICE OR ARTIFICE TO DEFRAUD OR MISLEAD A BORROWER. 2. ENGAGE IN ANY UNFAIR, DECEPTIVE OR PREDATORY ACT OR PRACTICE TOWARD ANY PERSON OR MISREPRESENT OR OMIT ANY MATERIAL INFORMATION IN CONNECTION WITH THE SERVICING OF A STUDENT LOAN, INCLUDING, BUT NOT LIMITED TO, MISREPRESENTING THE AMOUNT, NATURE OR TERMS OF ANY FEE OR PAYMENT DUE OR CLAIMED TO BE DUE ON A STUDENT LOAN, THE TERMS AND CONDI- TIONS OF THE LOAN AGREEMENT OR THE BORROWER'S OBLIGATIONS UNDER THE LOAN. 3. MISAPPLY PAYMENTS TO THE OUTSTANDING BALANCE OF ANY STUDENT LOAN OR TO ANY RELATED INTEREST OR FEES. 4. PROVIDE INACCURATE INFORMATION TO A CONSUMER REPORTING AGENCY. 5. REFUSE TO COMMUNICATE WITH AN AUTHORIZED REPRESENTATIVE OF THE BORROWER WHO PROVIDES A WRITTEN AUTHORIZATION SIGNED BY THE BORROWER, PROVIDED THAT THE SERVICER MAY ADOPT PROCEDURES REASONABLY RELATED TO VERIFYING THAT THE REPRESENTATIVE IS IN FACT AUTHORIZED TO ACT ON BEHALF OF THE BORROWER. 6. MAKE ANY FALSE STATEMENT OR MAKE ANY OMISSION OF A MATERIAL FACT IN CONNECTION WITH ANY INFORMATION OR REPORTS FILED WITH A GOVERNMENTAL AGENCY OR IN CONNECTION WITH ANY INVESTIGATION CONDUCTED BY THE SUPER- INTENDENT OR ANOTHER GOVERNMENTAL AGENCY. § 720. SERVICING STUDENT LOANS WITHOUT A LICENSE. 1. WHENEVER, IN THE OPINION OF THE SUPERINTENDENT, A PERSON IS ENGAGED IN THE BUSINESS OF SERVICING STUDENT LOANS, EITHER ACTUALLY OR THROUGH SUBTERFUGE, WITHOUT A LICENSE FROM THE SUPERINTENDENT, THE SUPERINTENDENT MAY ORDER THAT PERSON TO DESIST AND REFRAIN FROM ENGAGING IN THE BUSINESS OF SERVICING STUDENT LOANS IN THE STATE. IF, WITHIN THIRTY DAYS AFTER AN ORDER IS SERVED, A REQUEST FOR A HEARING IS FILED IN WRITING AND THE HEARING IS NOT HELD WITHIN SIXTY DAYS OF THE FILING, THE ORDER SHALL BE RESCINDED. 2. THE SUPERINTENDENT MAY MAINTAIN A CIVIL ACTION TO ENFORCE ANY ORDER ISSUED BY THE SUPERINTENDENT PURSUANT TO THIS SECTION. 3. THIS SECTION SHALL NOT APPLY TO EXEMPT ORGANIZATIONS. § 721. RESPONSIBILITIES. 1. IF A STUDENT LOAN SERVICER REGULARLY REPORTS INFORMATION TO A CONSUMER REPORTING AGENCY, THE SERVICER SHALL ACCURATELY REPORT A BORROWER'S PAYMENT PERFORMANCE TO AT LEAST ONE CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE BASIS AS DEFINED IN SECTION 603(P) OF THE FEDERAL FAIR CREDIT REPORTING ACT (15 U.S.C. SEC. 1681A(P)), UPON ACCEPTANCE AS A DATA FURNISHER BY THAT CONSUMER REPORTING AGENCY. 2. (A) EXCEPT AS PROVIDED IN FEDERAL LAW OR REQUIRED BY A STUDENT LOAN AGREEMENT, A STUDENT LOAN SERVICER SHALL INQUIRE OF A BORROWER HOW TO APPLY A BORROWER'S NONCONFORMING PAYMENT. A BORROWER'S DIRECTION ON HOW TO APPLY A NONCONFORMING PAYMENT SHALL REMAIN IN EFFECT FOR ANY FUTURE NONCONFORMING PAYMENT DURING THE TERM OF A STUDENT LOAN UNTIL THE BORROWER PROVIDES DIFFERENT DIRECTIONS. S. 2008 107 A. 3008 (B) FOR PURPOSES OF THIS SUBDIVISION, "NONCONFORMING PAYMENT" SHALL MEAN A PAYMENT THAT IS EITHER MORE OR LESS THAN THE BORROWER'S REQUIRED STUDENT LOAN PAYMENT. 3. (A) IF THE SALE, ASSIGNMENT, OR OTHER TRANSFER OF THE SERVICING OF A STUDENT LOAN RESULTS IN A CHANGE IN THE IDENTITY OF THE PERSON TO WHOM THE BORROWER IS REQUIRED TO SEND SUBSEQUENT PAYMENTS OR DIRECT ANY COMMUNICATIONS CONCERNING THE STUDENT LOAN, A STUDENT LOAN SERVICER SHALL TRANSFER ALL INFORMATION REGARDING A BORROWER, A BORROWER'S ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS ASSOCIATED WITH THE BORROWER'S STUDENT LOAN, TO THE NEW STUDENT LOAN SERVICER SERVICING THE BORROWER'S STUDENT LOAN WITHIN FORTY-FIVE DAYS. (B) A STUDENT LOAN SERVICER SHALL ADOPT POLICIES AND PROCEDURES TO VERIFY THAT IT HAS RECEIVED ALL INFORMATION REGARDING A BORROWER, A BORROWER'S ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS ASSOCIATED WITH THE BORROWER'S STUDENT LOAN, WHEN THE SERVICER OBTAINS THE RIGHT TO SERVICE A STUDENT LOAN. 4. IF A STUDENT LOAN SERVICER SELLS, ASSIGNS, OR OTHERWISE TRANSFERS THE SERVICING OF A STUDENT LOAN TO A NEW SERVICER, THE SALE, ASSIGNMENT OR OTHER TRANSFER SHALL BE COMPLETED AT LEAST SEVEN DAYS BEFORE THE BORROWER'S NEXT PAYMENT IS DUE. 5. (A) A STUDENT LOAN SERVICER THAT SELLS, ASSIGNS, OR OTHERWISE TRANSFERS THE SERVICING OF A STUDENT LOAN SHALL REQUIRE AS A CONDITION OF SUCH SALE, ASSIGNMENT OR OTHER TRANSFER THAT THE NEW STUDENT LOAN SERVICER SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET QUALIFIED. (B) A STUDENT LOAN SERVICER THAT OBTAINS THE RIGHT TO SERVICE A STUDENT LOAN SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET QUALIFIED. 6. A STUDENT LOAN SERVICER SHALL RESPOND WITHIN THIRTY DAYS AFTER RECEIPT TO A WRITTEN INQUIRY FROM A BORROWER OR A BORROWER'S REPRESEN- TATIVE. 7. A STUDENT LOAN SERVICER SHALL PRESERVE RECORDS OF EACH STUDENT LOAN AND ALL COMMUNICATIONS WITH BORROWERS FOR NOT LESS THAN TWO YEARS FOLLOWING THE FINAL PAYMENT ON A STUDENT LOAN OR THE SALE, ASSIGNMENT OR OTHER TRANSFER OF THE SERVICING OF A STUDENT LOAN, WHICHEVER OCCURS FIRST, OR SUCH LONGER PERIOD AS MAY BE REQUIRED BY ANY OTHER PROVISION OF LAW. § 722. EXAMINATIONS. 1. THE SUPERINTENDENT MAY AT ANY TIME, AND AS OFTEN AS HE OR SHE MAY DETERMINE, EITHER PERSONALLY OR BY A PERSON DULY DESIGNATED BY THE SUPERINTENDENT, INVESTIGATE THE BUSINESS AND EXAMINE THE BOOKS, ACCOUNTS, RECORDS, AND FILES USED THEREIN OF EVERY STUDENT LOAN SERVICER. FOR THAT PURPOSE THE SUPERINTENDENT AND HIS OR HER DULY DESIGNATED REPRESENTATIVE SHALL HAVE FREE ACCESS TO THE OFFICES AND PLACES OF BUSINESS, BOOKS, ACCOUNTS, PAPERS, RECORDS, FILES, SAFES AND VAULTS OF ALL STUDENT LOAN SERVICERS. THE SUPERINTENDENT AND ANY PERSON DULY DESIGNATED BY HIM OR HER SHALL HAVE THE AUTHORITY TO REQUIRE THE ATTENDANCE OF AND TO EXAMINE UNDER OATH ALL PERSONS WHOSE TESTIMONY HE OR SHE MAY REQUIRE RELATIVE TO SUCH BUSINESS. S. 2008 108 A. 3008 2. NO PERSON SUBJECT TO INVESTIGATION OR EXAMINATION UNDER THIS SECTION MAY KNOWINGLY WITHHOLD, ABSTRACT, REMOVE, MUTILATE, DESTROY OR SECRETE ANY BOOKS, RECORDS, COMPUTER RECORDS OR OTHER INFORMATION. 3. THE EXPENSES INCURRED IN MAKING ANY EXAMINATION PURSUANT TO THIS SECTION SHALL BE ASSESSED AGAINST AND PAID BY THE STUDENT LOAN SERVICER SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO INCURRED SHALL BE CHARGED AGAINST AND PAID BY SERVICERS IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE, AND SUCH PROPOR- TIONATE CHARGES SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER EXPENSES INCURRED UPON EACH EXAMINATION. UPON WRITTEN NOTICE BY THE SUPERINTEN- DENT OF THE TOTAL AMOUNT OF SUCH ASSESSMENT, THE SERVICER SHALL BECOME LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTENDENT. 4. IN ANY HEARING IN WHICH A DEPARTMENT EMPLOYEE ACTING UNDER AUTHORI- TY OF THIS CHAPTER IS AVAILABLE FOR CROSS-EXAMINATION, ANY OFFICIAL WRITTEN REPORT, WORKSHEET, OTHER RELATED PAPERS, OR DULY CERTIFIED COPY THEREOF, COMPILED, PREPARED, DRAFTED, OR OTHERWISE MADE BY SUCH DEPART- MENT EMPLOYEE, AFTER BEING DULY AUTHENTICATED BY THE EMPLOYEE, MAY BE ADMITTED AS COMPETENT EVIDENCE UPON THE OATH OF THE EMPLOYEE THAT SUCH WORKSHEET, INVESTIGATIVE REPORT, OR OTHER RELATED DOCUMENTS WERE PREPARED AS A RESULT OF AN EXAMINATION OF THE BOOKS AND RECORDS OF A SERVICER OR OTHER PERSON, CONDUCTED PURSUANT TO THE AUTHORITY OF THIS CHAPTER. 5. UNLESS OTHERWISE EXEMPT PURSUANT TO SUBDIVISION TWO OF SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE, AFFILIATES OF A STUDENT LOAN SERVICER SHALL BE SUBJECT TO EXAMINATION BY THE SUPERINTENDENT ON THE SAME TERMS AS THE SERVICER, BUT ONLY WHEN REPORTS FROM, OR EXAMINATION OF, A SERVICER PROVIDES EVIDENCE OF UNLAWFUL ACTIVITY BETWEEN A SERVICER AND AFFILIATE BENEFITTING, AFFECTING, OR ARISING FROM THE ACTIVITIES REGULATED BY THIS ARTICLE. § 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 1. IN ADDITION TO SUCH PENALTIES AS MAY OTHERWISE BE APPLICABLE BY LAW, THE SUPERINTENDENT MAY, AFTER NOTICE AND HEARING, REQUIRE ANY PERSON FOUND VIOLATING THE PROVISIONS OF THIS ARTICLE OR THE RULES OR REGULATIONS PROMULGATED HERE- UNDER TO PAY TO THE PEOPLE OF THIS STATE AN ADDITIONAL PENALTY FOR EACH VIOLATION OF THE ARTICLE OR ANY REGULATION OR POLICY PROMULGATED HERE- UNDER A SUM NOT TO EXCEED AN AMOUNT AS DETERMINED PURSUANT TO SECTION FORTY-FOUR OF THIS CHAPTER FOR EACH SUCH VIOLATION. 2. NOTHING IN THIS ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON-LAW RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF ANY LAW. § 724. SEVERABILITY OF PROVISIONS. IF ANY PROVISION OF THIS ARTICLE, OR THE APPLICATION OF SUCH PROVISION TO ANY PERSON OR CIRCUMSTANCE, SHALL BE HELD INVALID, ILLEGAL OR UNENFORCEABLE, THE REMAINDER OF THE ARTICLE, AND THE APPLICATION OF SUCH PROVISION TO PERSONS OR CIRCUM- STANCES OTHER THAN THOSE AS TO WHICH IT IS HELD INVALID, ILLEGAL OR UNENFORCEABLE, SHALL NOT BE AFFECTED THEREBY. § 725. COMPLIANCE WITH OTHER LAWS. 1. STUDENT LOAN SERVICERS SHALL ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN CONFORMITY WITH THE PROVISIONS OF THIS CHAPTER, SUCH RULES AND REGULATIONS AS MAY BE PROMUL- GATED BY THE SUPERINTENDENT THEREUNDER AND ALL APPLICABLE FEDERAL LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER. 2. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT ANY OTHERWISE APPLICABLE STATE OR FEDERAL LAW OR REGULATIONS. § 2. Subdivision 10 of section 36 of the banking law, as amended by chapter 182 of the laws of 2011, is amended to read as follows: S. 2008 109 A. 3008 10. All reports of examinations and investigations, correspondence and memoranda concerning or arising out of such examination and investi- gations, including any duly authenticated copy or copies thereof in the possession of any banking organization, bank holding company or any subsidiary thereof (as such terms "bank holding company" and "subsid- iary" are defined in article three-A of this chapter), any corporation or any other entity affiliated with a banking organization within the meaning of subdivision six of this section and any non-banking subsid- iary of a corporation or any other entity which is an affiliate of a banking organization within the meaning of subdivision six-a of this section, foreign banking corporation, licensed lender, licensed casher of checks, licensed mortgage banker, registered mortgage broker, licensed mortgage loan originator, licensed sales finance company, registered mortgage loan servicer, LICENSED STUDENT LOAN SERVICER, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, any other person or entity subject to supervision under this chapter, or the department, shall be confidential communications, shall not be subject to subpoena and shall not be made public unless, in the judgment of the superintendent, the ends of justice and the public advantage will be subserved by the publication thereof, in which event the superintendent may publish or authorize the publication of a copy of any such report or any part thereof in such manner as may be deemed proper or unless such laws specifically author- ize such disclosure. For the purposes of this subdivision, "reports of examinations and investigations, and any correspondence and memoranda concerning or arising out of such examinations and investigations", includes any such materials of a bank, insurance or securities regulato- ry agency or any unit of the federal government or that of this state any other state or that of any foreign government which are considered confidential by such agency or unit and which are in the possession of the department or which are otherwise confidential materials that have been shared by the department with any such agency or unit and are in the possession of such agency or unit. § 3. Subdivisions 1, 2, 3 and 5 of section 39 of the banking law, subdivisions 1, 2 and 5 as amended by chapter 123 of the laws of 2009 and subdivision 3 as amended by chapter 155 of the laws of 2012, are amended to read as follows: 1. To appear and explain an apparent violation. Whenever it shall appear to the superintendent that any banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corporation licensed by the superintendent to do business or maintain a representative office in this state has violated any law or regulation, he or she may, in his or her discretion, issue an order describing such apparent violation and requiring such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVI- CER, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or represen- tative or other offices in this state, or foreign banking corporation to S. 2008 110 A. 3008 appear before him or her, at a time and place fixed in said order, to present an explanation of such apparent violation. 2. To discontinue unauthorized or unsafe and unsound practices. When- ever it shall appear to the superintendent that any banking organiza- tion, bank holding company, registered mortgage broker, licensed mort- gage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corpo- ration licensed by the superintendent to do business in this state is conducting business in an unauthorized or unsafe and unsound manner, he or she may, in his or her discretion, issue an order directing the discontinuance of such unauthorized or unsafe and unsound practices, and fixing a time and place at which such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corporation may volun- tarily appear before him or her to present any explanation in defense of the practices directed in said order to be discontinued. 3. To make good impairment of capital or to ensure compliance with financial requirements. Whenever it shall appear to the superintendent that the capital or capital stock of any banking organization, bank holding company or any subsidiary thereof which is organized, licensed or registered pursuant to this chapter, is impaired, or the financial requirements imposed by subdivision one of section two hundred two-b of this chapter or any regulation of the superintendent on any branch or agency of a foreign banking corporation or the financial requirements imposed by this chapter or any regulation of the superintendent on any licensed lender, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner or private banker are not satisfied, the superintendent may, in the superintendent's discretion, issue an order directing that such banking organization, bank holding company, branch or agency of a foreign banking corporation, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, or private bank- er make good such deficiency forthwith or within a time specified in such order. 5. To keep books and accounts as prescribed. Whenever it shall appear to the superintendent that any banking organization, bank holding compa- ny, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, agency or branch of a foreign banking corporation licensed by the superintendent to do business in this state, does not keep its books and accounts in S. 2008 111 A. 3008 such manner as to enable him or her to readily ascertain its true condi- tion, he or she may, in his or her discretion, issue an order requiring such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis- tered mortgage loan servicer, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, or foreign banking corporation, or the officers or agents thereof, or any of them, to open and keep such books or accounts as he or she may, in his or her discretion, determine and prescribe for the purpose of keeping accurate and convenient records of its transactions and accounts. § 4. Paragraph (a) of subdivision 1 of section 44 of the banking law, as amended by chapter 155 of the laws of 2012, is amended to read as follows: (a) Without limiting any power granted to the superintendent under any other provision of this chapter, the superintendent may, in a proceeding after notice and a hearing, require any safe deposit company, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis- tered mortgage broker, licensed mortgage loan originator, registered mortgage loan servicer or licensed budget planner to pay to the people of this state a penalty for any violation of this chapter, any regu- lation promulgated thereunder, any final or temporary order issued pursuant to section thirty-nine of this article, any condition imposed in writing by the superintendent in connection with the grant of any application or request, or any written agreement entered into with the superintendent. § 5. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART AA Section 1. The banking law is amended by adding a new section 4-d to read as follows: § 4-D. PROTECTING VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION. 1. DEFINITIONS. AS USED IN THIS SECTION: (A) "BANKING INSTITUTION" MEANS ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR BRANCH OF A FOREIGN BANK- ING CORPORATION, WHICH IS CHARTERED, ORGANIZED OR LICENSED UNDER THE LAWS OF THIS STATE OR ANY OTHER STATE OR THE UNITED STATES, AND, IN THE ORDINARY COURSE OF BUSINESS TAKES DEPOSIT ACCOUNTS IN THIS STATE. (B) "VULNERABLE ADULT" MEANS AN INDIVIDUAL WHO, BECAUSE OF MENTAL AND/OR PHYSICAL IMPAIRMENT IS POTENTIALLY UNABLE TO MANAGE HIS OR HER OWN RESOURCES OR PROTECT HIMSELF OR HERSELF FROM FINANCIAL EXPLOITATION. (C) "FINANCIAL EXPLOITATION" MEANS: (I) THE IMPROPER TAKING, WITHHOLD- ING, APPROPRIATION, OR USE OF A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY; OR (II) ANY ACT OR OMISSION BY A PERSON, INCLUDING THROUGH THE USE OF A POWER OF ATTORNEY, GUARDIANSHIP, OR ANY OTHER AUTHORITY REGARD- ING A VULNERABLE ADULT TO: (A) OBTAIN CONTROL, THROUGH DECEPTION, INTIM- IDATION OR UNDUE INFLUENCE, OVER THE VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY OR (B) CONVERT THE VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY. S. 2008 112 A. 3008 (D) "TRANSACTION HOLD" MEANS A DELAY IN THE COMPLETION OF ONE OR MORE FINANCIAL TRANSACTIONS PENDING AN INVESTIGATION BY A BANKING INSTITU- TION, ADULT PROTECTIVE SERVICES, OR A LAW ENFORCEMENT AGENCY. (E) "ADULT PROTECTIVE SERVICES" MEANS THE DIVISION OF THE NEW YORK CITY HUMAN RESOURCES ADMINISTRATION AND EACH COUNTY'S DEPARTMENT OF HUMAN SERVICES OR DEPARTMENT OF SOCIAL SERVICES RESPONSIBLE FOR PROVID- ING ADULT PROTECTIVE SERVICES PURSUANT TO SECTION FOUR HUNDRED SEVENTY- THREE OF THE SOCIAL SERVICES LAW. (F) "LAW ENFORCEMENT AGENCY" MEANS ANY AGENCY, INCLUDING THE FINANCIAL FRAUDS AND CONSUMER PROTECTION UNIT OF THE DEPARTMENT OF FINANCIAL SERVICES, WHICH IS EMPOWERED BY LAW TO CONDUCT AN INVESTIGATION OR TO MAKE AN ARREST FOR A FELONY, AND ANY AGENCY WHICH IS AUTHORIZED BY LAW TO PROSECUTE OR PARTICIPATE IN THE PROSECUTION OF A FELONY. 2. APPLICATION OF TRANSACTION HOLD. (A) IF A BANKING INSTITUTION REASONABLY BELIEVES: (I) THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (II) THAT THE PLACEMENT OF A TRANSACTION HOLD MAY BE NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY FROM FINANCIAL EXPLOITATION, THEN THE BANKING INSTITUTION MAY, AT ITS DISCRETION, APPLY A TRANSACTION HOLD ON THE ACCOUNT OF A VULNERABLE ADULT, THE ACCOUNT ON WHICH A VULNERABLE ADULT IS A BENEFICIARY, INCLUDING A TRUST OR GUARDI- ANSHIP ACCOUNT, OR THE ACCOUNT OF A PERSON WHO IS REASONABLY BELIEVED BY THE BANKING INSTITUTION TO BE ENGAGING IN THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT. (B) A BANKING INSTITUTION MAY ALSO APPLY A TRANSACTION HOLD ON THE ACCOUNT OF A VULNERABLE ADULT, THE ACCOUNT ON WHICH A VULNERABLE ADULT IS A BENEFICIARY, INCLUDING A TRUST OR GUARDIANSHIP ACCOUNT, OR THE ACCOUNT OF A PERSON WHO IS REASONABLY BELIEVED BY THE BANKING INSTITU- TION TO BE ENGAGING IN THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT, IF: (I) ADULT PROTECTIVE SERVICES OR A LAW ENFORCEMENT AGENCY PROVIDES INFORMATION TO THE BANKING INSTITUTION ESTABLISHING A REASONABLE BASIS TO BELIEVE THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (II) THE PLACEMENT OF A TRANSACTION HOLD MAY BE NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY FROM FINANCIAL EXPLOITATION. (C) A BANKING INSTITUTION THAT APPLIES A TRANSACTION HOLD SHALL: (I) MAKE A REASONABLE EFFORT TO PROVIDE NOTICE, ORALLY OR IN WRITING, TO ALL PARTIES AUTHORIZED TO TRANSACT BUSINESS ON THE ACCOUNT ON WHICH A TRANSACTION HOLD WAS PLACED WITHIN TWO BUSINESS DAYS OF WHEN THE TRANS- ACTION HOLD WAS PLACED; (II) IMMEDIATELY, BUT NO LATER THAN ONE BUSINESS DAY AFTER THE TRANS- ACTION HOLD IS PLACED, REPORT THE TRANSACTION HOLD, INCLUDING THE BASIS FOR THE BAKING INSTITUTION'S BELIEF THAT THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED, TO ADULT PROTECTIVE SERVICES AND TO A LAW ENFORCEMENT AGENCY; (III) AT THE REQUEST OF ADULT PROTECTIVE SERVICES OR A LAW ENFORCEMENT AGENCY, PROVIDE ALL INFORMATION AND DOCUMENTS THAT RELATE TO THE TRANS- ACTION HOLD WITHIN THREE BUSINESS DAYS OF THE REQUEST FOR THE INFORMA- TION OR DOCUMENTS; AND (IV) NOTWITHSTANDING THE TRANSACTION HOLD, MAKE FUNDS AVAILABLE FROM THE ACCOUNT ON WHICH A TRANSACTION HOLD IS PLACED TO ALLOW THE VULNER- ABLE ADULT OR OTHER ACCOUNT HOLDER TO MEET HIS OR HER ONGOING OBLI- GATIONS SUCH AS HOUSING AND OTHER LIVING EXPENSES OR EMERGENCY EXPENSES AS DETERMINED BY ADULT PROTECTIVE SERVICES, A LAW ENFORCEMENT AGENCY OR A NOT-FOR-PROFIT ORGANIZATION THAT REGULARLY PROVIDES SERVICES TO S. 2008 113 A. 3008 VULNERABLE ADULTS IN THE COMMUNITY IN WHICH THE VULNERABLE ADULT RESIDES. (D) DURING THE PENDENCY OF A TRANSACTION HOLD, A BANKING INSTITUTION MAY, IN ITS DISCRETION, ALSO MAKE FUNDS AVAILABLE FROM THE ACCOUNT ON WHICH A TRANSACTION HOLD IS PLACED TO ALLOW THE VULNERABLE ADULT OR OTHER ACCOUNT HOLDER MEET HIS OR HER ONGOING OBLIGATIONS SUCH AS HOUSING AND OTHER LIVING EXPENSES OR EMERGENCY EXPENSES, PROVIDED THE BANKING INSTITUTION DOES NOT HAVE A REASONABLE BASIS TO BELIEVE THAT THE DISPERSAL OF SUCH FUNDS TO THE VULNERABLE ADULT OR OTHER ACCOUNT HOLDER WILL RESULT IN THE FINANCIAL EXPLOITATION OF THE VULNERABLE ADULT. ANY SUCH DISPERSAL OF FUNDS PURSUANT TO THIS SUBDIVISION SHALL BE REPORTED WITHIN ONE BUSINESS DAY AFTER THE DISPERSAL IS MADE TO ADULT PROTECTIVE SERVICES AND TO A LAW ENFORCEMENT AGENCY. (E) THE SUPERINTENDENT MAY ADOPT REGULATIONS IDENTIFYING THE FACTORS THAT A BANKING INSTITUTION SHOULD CONSIDER IN DETERMINING WHETHER: (I) THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (II) THE PLACEMENT OF A TRANSACTION HOLD IS NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY. 3. DURATION OF TRANSACTION HOLD. (A) SUBJECT TO PARAGRAPHS (B), (C) AND (D) OF THIS SUBDIVISION, A TRANSACTION HOLD THAT A BANKING INSTITU- TION PLACES ON AN ACCOUNT PURSUANT TO THIS SECTION SHALL TERMINATE FIVE BUSINESS DAYS AFTER THE DATE ON WHICH THE TRANSACTION HOLD IS APPLIED BY THE BANKING INSTITUTION. A BANKING INSTITUTION MAY TERMINATE THE TRANS- ACTION HOLD AT ANY TIME DURING THIS FIVE DAY PERIOD IF THE BANKING INSTITUTION IS SATISFIED THAT THE TERMINATION OF THE TRANSACTION HOLD IS NOT LIKELY TO RESULT IN FINANCIAL EXPLOITATION OF A VULNERABLE ADULT. (B) A TRANSACTION HOLD MAY BE EXTENDED BEYOND THE PERIOD SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION FOR UP TO AN ADDITIONAL FIFTEEN DAYS AT THE REQUEST OF EITHER ADULT PROTECTIVE SERVICES OR A LAW ENFORCEMENT AGENCY. (C) A TRANSACTION HOLD MAY BE EXTENDED BEYOND THE PERIODS SET FORTH IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION ONLY PURSUANT TO AN ORDER ISSUED BY A COURT OF COMPETENT JURISDICTION. (D) A TRANSACTION HOLD MAY BE TERMINATED AT ANY TIME PURSUANT AN ORDER ISSUED BY A COURT OF COMPETENT JURISDICTION. 4. IMMUNITY. A BANKING INSTITUTION OR AN EMPLOYEE OF A BANKING INSTI- TUTION SHALL BE IMMUNE FROM CRIMINAL, CIVIL, AND ADMINISTRATIVE LIABIL- ITY FOR ALL GOOD FAITH ACTIONS IN RELATION TO THE APPLICATION OF THIS SECTION INCLUDING ANY GOOD FAITH DETERMINATION TO APPLY OR NOT APPLY A TRANSACTION HOLD ON AN ACCOUNT. WHERE THERE IS REASONABLE BASIS TO CONCLUDE: (A) THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (B) THAT THE PLACEMENT OF A TRANSACTION HOLD MAY BE NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY FROM FINANCIAL EXPLOITA- TION, SUCH IMMUNITY SHALL NOT APPLY TO A DETERMINATION NOT TO APPLY A TRANSACTION HOLD WHEN THE BANKING INSTITUTION OR EMPLOYEE ACTS RECKLESS- LY OR ENGAGES IN INTENTIONAL MISCONDUCT IN MAKING THE DETERMINATION, OR THE DETERMINATION RESULTS FROM A CONFLICT OF INTEREST. 5. CERTIFICATION PROGRAM. THE DEPARTMENT MAY DEVELOP A FINANCIAL EXPLOITATION CERTIFICATION PROGRAM FOR BANKING INSTITUTIONS. UPON COMPLETION OF THE TRAINING COMPONENTS REQUIRED BY THE PROGRAM AND AFTER ESTABLISHING THE NECESSARY INTERNAL POLICIES, PROCEDURES, AND IN-HOUSE TRAINING PROGRAMS, A BANKING INSTITUTION SHALL RECEIVE FROM THE DEPART- MENT AN ADULT FINANCIAL EXPLOITATION PREVENTION CERTIFICATE DEMONSTRAT- ING THAT STAFF AT SUCH BANKING INSTITUTION HAVE BEEN TRAINED ON HOW TO S. 2008 114 A. 3008 IDENTIFY, HELP PREVENT, AND REPORT THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT. AT THE DISCRETION OF THE SUPERINTENDENT, THE CERTIF- ICATION PROGRAM MAY BE MANDATORY FOR BANKING INSTITUTIONS LICENSED BY THE DEPARTMENT. 6. REGULATIONS. THE SUPERINTENDENT MAY ISSUE SUCH RULES AND REGU- LATIONS THAT PROVIDE THE PROCEDURES FOR THE ENFORCEMENT OF THE TERMS OF THIS SECTION AND ANY OTHER RULES AND REGULATIONS THAT HE OR SHE DEEMS NECESSARY TO IMPLEMENT THE TERMS OF THIS SECTION. § 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART BB Section 1. The financial services law is amended by adding a new section 105 to read as follows: § 105. DISQUALIFICATION. (A) DEFINITIONS. (1) COVERED INDIVIDUAL. THE TERM "COVERED INDIVIDUAL," WHEN USED IN THIS SECTION, MEANS (A) AN INDI- VIDUAL OPERATING UNDER OR REQUIRED TO OPERATE UNDER A LICENSE, REGISTRA- TION, PERMIT CERTIFICATION OR AUTHORIZATION UNDER THIS CHAPTER, THE BANKING LAW, THE INSURANCE LAW, OR THE REGULATIONS PROMULGATED THERE- UNDER, (B) AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY, OR (C) AN INDIVIDUAL OTHERWISE ENGAGED IN THE BUSINESS OF BANKING, INSURANCE OR FINANCIAL SERVICES IN THE STATE. (2) COVERED ENTITY. THE TERM "COVERED ENTITY," WHEN USED IN THIS SECTION, MEANS ANY ENTITY (A) OPERATING UNDER OR REQUIRED TO OPERATE UNDER A LICENSE, REGISTRATION, PERMIT, CERTIFICATE OR AUTHORIZATION UNDER THE BANKING LAW OR THE INSURANCE LAW; (B) AUTHORIZED, ACCREDITED, CHARTERED OR INCORPORATED OR POSSESSING OR REQUIRED TO POSSESS OTHER SIMILAR STATUS UNDER THE BANKING LAW, OR THE INSURANCE LAW; (C) REGU- LATED BY THE SUPERINTENDENT PURSUANT TO THIS CHAPTER; (D) THAT HAS SUBMITTED AN APPLICATION TO THE SUPERINTENDENT (I) FOR A LICENSE, REGIS- TRATION, PERMIT, CERTIFICATE OR AUTHORIZATION UNDER THE BANKING LAW OR THE INSURANCE LAW, (II) TO BE AUTHORIZED, ACCREDITED, CHARTERED OR INCORPORATED UNDER THE BANKING LAW, OR THE INSURANCE LAW OR TO BE REGU- LATED PURSUANT TO THIS CHAPTER. (3) DISQUALIFYING EVENT. FOR PURPOSES OF THIS SECTION, AN INDIVIDUAL COMMITS A "DISQUALIFYING EVENT," WHEN HE OR SHE: (A) HAS VIOLATED A WRITTEN AGREEMENT BETWEEN THE SUPERINTENDENT AND THE COVERED INDIVIDUAL; (B) HAS WILLFULLY VIOLATED AN AGREEMENT BETWEEN THE SUPERINTENDENT AND A COVERED ENTITY; (C) HAS ENGAGED OR PARTICIPATED IN ANY UNSAFE OR UNSOUND PRACTICE IN CONNECTION WITH ANY COVERED ENTITY; (D) HAS WILLFULLY MADE OR CAUSED TO BE MADE IN ANY APPLICATION, FILING, OR SUBMISSION WITH THE SUPERINTENDENT, ANY STATEMENT WHICH WAS AT THE TIME AND IN THE LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT WAS MADE FALSE OR MISLEADING WITH RESPECT TO ANY MATERIAL FACT, OR HAS OMIT- TED TO STATE IN ANY SUCH APPLICATION OR REPORT ANY MATERIAL FACT WHICH IS REQUIRED TO BE STATED THEREIN; (E) HAS BEEN CONVICTED WITHIN FIVE YEARS OF ANY FELONY OR MISDEMEANOR THAT: (I) INVOLVES THE PURCHASE OR SALE OF ANY FINANCIAL PRODUCT OR SERVICE, THE TAKING OF A FALSE OATH, THE MAKING OF A FALSE REPORT, BRIBERY, PERJURY, BURGLARY, ANY SUBSTANTIALLY EQUIVALENT ACTIVITY HOWEVER DENOMI- NATED, OR CONSPIRACY TO COMMIT ANY SUCH OFFENSE; S. 2008 115 A. 3008 (II) ARISES OUT OF THE CONDUCT OF THE BUSINESS OF A COVERED ENTITY OR IN CONNECTION WITH THE PROMOTION, SALE OR DELIVERY OF A FINANCIAL PROD- UCT OR SERVICE; (III) INVOLVES THE LARCENY, THEFT, ROBBERY, EXTORTION, FORGERY, COUN- TERFEITING, FRAUDULENT CONCEALMENT, EMBEZZLEMENT, FRAUDULENT CONVERSION, OR MISAPPROPRIATION OF FUNDS, OR SECURITIES, OR SUBSTANTIALLY EQUIVALENT ACTIVITY HOWEVER DENOMINATED; OR (IV) HAS A DIRECT BEARING ON THE INDIVIDUAL'S FITNESS OR ABILITY TO PERFORM ONE OR MORE OF THE DUTIES OR RESPONSIBILITIES NECESSARILY RELATED TO THE LICENSE, POSITION, OR JOB IN QUESTION; (F) HAS BEEN FOUND BY A FEDERAL FINANCIAL REGULATORY AUTHORITY, A STATE FINANCIAL REGULATORY AUTHORITY, OR A FOREIGN FINANCIAL REGULATORY AUTHORITY THAT IS RECOGNIZED BY THE SUPERINTENDENT AS SUCH TO HAVE: (I) MADE OR CAUSED TO BE MADE IN ANY APPLICATION FOR REGISTRATION OR REPORT REQUIRED TO BE FILED WITH THE FINANCIAL REGULATORY AUTHORITY, OR IN ANY PROCEEDING BEFORE THE FINANCIAL REGULATORY AUTHORITY WITH RESPECT TO REGISTRATION, ANY STATEMENT THAT WAS AT THE TIME AND IN THE LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT WAS MADE FALSE OR MISLEADING WITH RESPECT TO ANY MATERIAL FACT, OR HAS OMITTED TO STATE IN ANY APPLICATION OR REPORT TO THE FINANCIAL REGULATORY AUTHORITY ANY MATERIAL FACT THAT IS REQUIRED TO BE STATED THEREIN; OR (II) VIOLATED ANY BANKING LAW, OR STATUTE OR REGULATION REGARDING TRANSACTIONS IN SECURITIES, OR CONTRACTS OF SALE OF A COMMODITY FOR FUTURE DELIVERY, TRADED ON OR SUBJECT TO THE RULES OF A CONTRACT MARKET OR ANY BOARD OF TRADE; OR (G) IS SUBJECT TO ANY FINAL ORDER OF ANY FEDERAL FINANCIAL REGULATORY AUTHORITY, A STATE FINANCIAL REGULATORY AUTHORITY, OR A FOREIGN FINAN- CIAL REGULATORY AUTHORITY THAT IS RECOGNIZED BY THE SUPERINTENDENT AS SUCH THAT: (I) BARS SUCH PERSON FROM ASSOCIATION WITH AN ENTITY REGULATED BY SUCH COMMISSION, AUTHORITY, AGENCY, OR OFFICER, OR FROM ENGAGING IN THE BUSI- NESS OF SECURITIES, INSURANCE, BANKING, SAVINGS ASSOCIATION ACTIVITIES, OR CREDIT UNION ACTIVITIES; OR (II) CONSTITUTES A FINAL ORDER BASED ON VIOLATIONS OF ANY LAWS OR REGULATIONS THAT PROHIBITS FRAUDULENT, MANIPULATIVE, OR DECEPTIVE CONDUCT. (B) DISQUALIFICATION. WITHOUT LIMITING ANY POWER GRANTED TO THE SUPER- INTENDENT UNDER ANY OTHER PROVISION OF STATE OR FEDERAL LAW, (1) WHENEV- ER THE SUPERINTENDENT HAS REASON TO BELIEVE THAT A COVERED INDIVIDUAL HAS COMMITTED A DISQUALIFYING EVENT THAT IS OF SUCH SEVERITY AS TO HAVE A DIRECT BEARING ON THE INDIVIDUAL'S FITNESS OR ABILITY TO (A) SERVE AS AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLD ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORIZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGE IN THE BUSINESS OF BANKING, INSURANCE, OR FINANCIAL SERVICES IN THE STATE, (2) THE SUPERINTENDENT MAY SERVE A STATEMENT OF THE CHARGES AGAINST SUCH COVERED INDIVIDUAL AND A NOTICE OF AN OPPORTUNITY TO APPEAR BEFORE THE SUPERINTENDENT TO SHOW CAUSE WHY HE OR SHE SHOULD NOT BE DISQUALIFIED FROM (A) SERVING AS AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLDING ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORI- ZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGING IN THE BUSI- NESS OF BANKING, INSURANCE, OR FINANCIAL SERVICES IN THE STATE. (C) ORDER OF DISQUALIFICATION. WITHOUT LIMITING ANY POWER GRANTED TO THE SUPERINTENDENT UNDER ANY OTHER PROVISION OF STATE OR FEDERAL LAW, IF S. 2008 116 A. 3008 SUCH COVERED INDIVIDUAL WAIVES A HEARING, OR FAILS TO APPEAR IN PERSON OR BY A DULY AUTHORIZED REPRESENTATIVE WITHOUT GOOD CAUSE SHOWN AT THE TIME AND PLACE SET FOR THE HEARING OR, IF AFTER A HEARING, (1) THE SUPERINTENDENT FINDS THAT THE COVERED INDIVIDUAL HAS ENGAGED IN A DISQUALIFYING EVENT THAT IS OF SUCH SEVERITY AS TO HAVE A DIRECT BEARING ON THE INDIVIDUAL'S FITNESS OR ABILITY TO (A) SERVE AS AN OWNER, DIREC- TOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLD ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORIZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGE IN THE BUSINESS OF BANKING, INSUR- ANCE, OR FINANCIAL SERVICES IN THE STATE, (2) THE SUPERINTENDENT MAY ISSUE AN ORDER DISQUALIFYING THE COVERED INDIVIDUAL FROM (A) SERVING AS AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLDING ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORI- ZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGING IN THE BUSI- NESS OF BANKING, INSURANCE, OR FINANCIAL SERVICES IN THE STATE. SUCH ORDER OF DISQUALIFICATION MAY ALSO PROHIBIT THE COVERED INDIVIDUAL'S PERFORMANCE OF ANY CONTRACTUAL AGREEMENTS WITH ANY COVERED ENTITY. SUCH ORDER OF DISQUALIFICATION MAY BE FOR THE COVERED INDIVIDUAL'S LIFETIME OR FOR ANY SHORTER PERIOD DETERMINED BY THE SUPERINTENDENT TO BE IN THE PUBLIC'S INTEREST. ANY ORDER ISSUED PURSUANT TO THIS SUBSECTION AND THE FINDINGS OF FACT UPON WHICH IT IS BASED MAY NOT BE MADE PUBLIC OR DISCLOSED TO ANYONE, EXCEPT AS PROVIDED IN SUBDIVISION TEN OF SECTION THIRTY-SIX OF THE BANKING LAW OR IN CONNECTION WITH PROCEEDINGS FOR A VIOLATION OF THIS SECTION. (D) SUSPENSION PENDING DETERMINATION OF CHARGES. (1) IN CONNECTION WITH, OR AT ANY TIME AFTER SERVICE OF THE WRITTEN NOTICE PURSUANT TO SUBSECTION (B) OF THIS SECTION, THE SUPERINTENDENT MAY SUSPEND FOR A PERIOD OF UP TO ONE HUNDRED EIGHTY DAYS, PENDING THE DETERMINATION OF THE CHARGES, A COVERED INDIVIDUAL FROM SERVING AS A DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY; OR HOLDING ANY LICENSE, REGISTRATION, CERTIFICATION OR AUTHORIZATION ISSUED BY THE DEPARTMENT, IF THE SUPER- INTENDENT HAS REASON TO BELIEVE THAT BY REASON OF THE CONDUCT GIVING RISE TO THE ALLEGED DISQUALIFYING EVENT: (A) A COVERED ENTITY HAS SUFFERED OR WILL PROBABLY SUFFER FINANCIAL LOSS; (B) THE INTERESTS OF THE DEPOSITORS AT A COVERED ENTITY HAVE BEEN OR COULD BE PREJUDICED; OR (C) THE COVERED INDIVIDUAL DEMONSTRATES WILLFUL DISREGARD FOR THE SAFETY AND SOUNDNESS OF A COVERED ENTITY. (2) THE SUPERINTENDENT MAY EXTEND THE SUSPENSION FOR ADDITIONAL PERI- ODS OF UP TO ONE HUNDRED EIGHTY DAYS IF THE HEARING CONDUCTED PURSUANT TO SUBSECTION (C) OF THIS SECTION IS NOT COMPLETED WITHIN THE PRIOR SUSPENSION PERIOD DUE TO THE REQUEST OF THE COVERED INDIVIDUAL. (3) ANY SUSPENSION ORDER ISSUED PURSUANT TO THIS SUBSECTION SHALL BECOME EFFECTIVE UPON SERVICE, UNLESS IT IS AMENDED OR RESCINDED BY THE SUPERINTENDENT OR A COURT OF COMPETENT JURISDICTION, OR REPLACED BY AN ORDER ISSUED PURSUANT TO SUBSECTION (C) OF THIS SECTION. SUCH SUSPENSION ORDER MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. (E) RULES AND REGULATIONS. THE SUPERINTENDENT MAY ISSUE SUCH RULES AND REGULATIONS AS ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. § 2. This act shall take effect January 1, 2018. S. 2008 117 A. 3008 PART CC Section 1. The banking law is amended by adding a new section 340-a to read as follows: § 340-A. EXEMPTION FOR CERTAIN LENDERS AND PARTNERING ORGANIZATIONS. 1. FOR PURPOSES OF THIS SECTION: (A) "EXEMPT ENTITY" SHALL MEAN AN ENTITY EXEMPTED PURSUANT TO SUBDIVI- SION TWO OF THIS SECTION. (B) "LIMITED LENDING ACTIVITY" SHALL MEAN THE LENDING OF MONEY TO AN INDIVIDUAL BORROWER FOR WHICH NO INTEREST OR FEES, EXCEPT AS OTHERWISE PROVIDED FOR IN THIS SECTION, ARE CHARGED AND FOR WHICH THE BORROWER MAY MAKE FULL OR PARTIAL REPAYMENT OF THE LOAN PRIOR TO THE DISBURSEMENT OF THE LOAN PROCEEDS. 2. NOTWITHSTANDING THIS SECTION AND SECTIONS ONE, TEN, FOURTEEN, THIR- TY-SIX-B AND THIRTY-EIGHT OF THIS CHAPTER, THE SUPERINTENDENT MAY ALLOW AN ENTITY TO ENGAGE IN LIMITED LENDING ACTIVITY WITHOUT BEING SUBJECT TO THE REQUIREMENTS OF THIS CHAPTER, IF THE ENTITY: (A) ENGAGES IN NO ACTIVITY REGULATED BY THIS CHAPTER EXCEPT THE MAKING OF ZERO-INTEREST LOANS AND ANY ACTIVITY INCIDENTAL THERETO; (B) IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501 (C) (3) OF THE INTERNAL REVENUE CODE AND IS ORGANIZED AND OPERATED EXCLUSIVELY FOR ONE OR MORE OF THE PURPOSES DESCRIBED IN SECTION 501 (C) (3) OF THE INTERNAL REVENUE CODE; (C) PAYS NO PART OF ITS NET EARNINGS TO A PRIVATE SHAREHOLDER OR INDI- VIDUAL; (D) PAYS OR RECEIVES NO BROKER'S FEE IN CONNECTION WITH ANY LOAN THAT IT MAKES; AND (E) SATISFIES THE OTHER REQUIREMENTS SET FORTH IN THIS SECTION. 3. (A) AN APPLICATION TO OPERATE AS AN EXEMPT ENTITY SHALL BE FILED WITH THE SUPERINTENDENT, IN A MANNER PRESCRIBED BY THE SUPERINTENDENT, ALONG WITH A FEE IN THE AMOUNT OF FIVE HUNDRED DOLLARS. THE SUPERINTEN- DENT SHALL INVESTIGATE THE FINANCIAL CONDITION AND RESPONSIBILITY, FINANCIAL AND BUSINESS EXPERIENCE, CHARACTER AND GENERAL FITNESS OF THE APPLICANT AND, IF THE SUPERINTENDENT FINDS THESE QUALITIES ARE SUCH AS TO WARRANT THE BELIEF THAT THE APPLICANT'S BUSINESS WILL BE CONDUCTED HONESTLY, FAIRLY, EQUITABLY, CAREFULLY AND EFFICIENTLY WITHIN THE PURPOSES AND INTENT OF THIS SECTION, AND IN A MANNER COMMANDING THE CONFIDENCE AND TRUST OF THE COMMUNITY, THE SUPERINTENDENT SHALL ADVISE THE APPLICANT IN WRITING OF THE SUPERINTENDENT'S APPROVAL OF THE APPLI- CATION FOR AN EXEMPTION PURSUANT TO THIS SECTION. THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, REFUSE TO GRANT AN EXEMPTION IF HE OR SHE FINDS THAT ONE OR MORE OF THE PROVISIONS OF THIS SECTION WERE NOT MET OR ARE NOT BEING MET BY THE APPLICANT OR THAT DENIAL OF THE EXEMPTION IS IN THE BEST INTERESTS OF THE PUBLIC. (B) THE SUPERINTENDENT MAY SUSPEND OR REVOKE ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION, IF HE OR SHE FINDS THAT: (I) ANY SUCH ENTITY, KNOWINGLY OR WITHOUT THE EXERCISE OF DUE CARE TO PREVENT SUCH VIOLATION, HAS VIOLATED ANY PROVISION OF THIS SECTION OR ARTICLE, OR HAS FAILED TO COMPLY WITH ANY DEMAND, OR REQUIREMENT MADE BY THE SUPERINTENDENT; (II) THERE HAS BEEN ANY MATERIAL MISSTATEMENT OR FAILURE TO GIVE A TRUE AND CORRECT ANSWER IN AN APPLICATION OR IN RESPONSE TO ANY QUESTION POSED BY THE SUPERINTENDENT; (III) THE EXEMPT ENTITY HAS DEFRAUDED ANY BORROWER OR WILLFULLY FAILED TO PERFORM ANY WRITTEN AGREEMENT WITH SUCH PERSON; OR S. 2008 118 A. 3008 (IV) ANY FACT OR CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE TIME OF THE ORIGINAL APPLICATION FOR AN EXEMPTION, WOULD HAVE WARRANTED THE SUPERINTENDENT TO REFUSE TO GRANT SUCH EXEMPTION. (C) EXCEPT AS PROVIDED FOR IN PARAGRAPH (D) OF THIS SUBDIVISION, NO EXEMPTION GRANTED HEREUNDER SHALL BE SUSPENDED OR REVOKED EXCEPT AFTER A HEARING. THE SUPERINTENDENT SHALL GIVE THE EXEMPT ENTITY AT LEAST TEN DAYS WRITTEN NOTICE OF THE TIME AND PLACE OF SUCH HEARING BY REGISTERED MAIL ADDRESSED TO THE PRINCIPAL PLACE OF BUSINESS OF THE EXEMPT ENTITY. ANY ORDER SUSPENDING OR REVOKING AN EXEMPTION SHALL RECITE THE GROUNDS UPON WHICH IT IS BASED AND SHALL NOT BE EFFECTIVE UNTIL TEN DAYS AFTER WRITTEN NOTICE HAS BEEN SENT BY REGISTERED MAIL TO THE EXEMPT ENTITY'S PRINCIPAL PLACE OF BUSINESS. (D) UPON, OR AT ANY TIME AFTER SERVICE OF WRITTEN NOTICE PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, THE SUPERINTENDENT MAY SUSPEND, PEND- ING THE DETERMINATION OF THE CHARGES, AN EXEMPTION ISSUED PURSUANT TO THIS SECTION IF THE SUPERINTENDENT HAS REASON TO BELIEVE THAT AN EXEMPT ENTITY: (I) HAS DEFAULTED OR IS LIKELY TO DEFAULT IN THE PERFORMANCE OF ITS FINANCIAL ENGAGEMENTS; (II) IS ENGAGING IN DISHONEST OR INEQUITABLE PRACTICES; OR (III) POSES A SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS SECTION. 4. (A) EVERY EXEMPT ENTITY SHALL MAINTAIN RECORDS RELATING TO ITS LENDING ACTIVITIES FOR AT LEAST FIVE YEARS. (B) EVERY EXEMPT ENTITY SHALL FILE AN ANNUAL REPORT WITH THE SUPER- INTENDENT ON OR BEFORE MARCH FIFTEENTH OF EACH YEAR, CONTAINING INFORMA- TION THAT THE SUPERINTENDENT REQUIRES CONCERNING LENDING ACTIVITIES BY THE ENTITY, INCLUDING ANY LOANS FACILITATED BY A PARTNERING NONPROFIT ORGANIZATION DESCRIBED IN SUBDIVISION THIRTEEN OF THIS SECTION, WITHIN THE STATE DURING THE PRECEDING CALENDAR YEAR. 5. EVERY LOAN MADE BY AN EXEMPT ENTITY SHALL COMPLY WITH THE FOLLOWING REQUIREMENTS: (A) THE LOAN SHALL BE UNSECURED. (B) NO INTEREST MAY BE IMPOSED. (C) EXCEPT FOR A REIMBURSEMENT OF UP TO TEN DOLLARS TO COVER AN INSUF- FICIENT FUNDS FEE INCURRED BY AN EXEMPT ENTITY DUE TO ACTIONS OF THE BORROWER, NO ADMINISTRATIVE OR OTHER FEES MAY BE IMPOSED ON A BORROWER. NO EXEMPT ENTITY SHALL CHARGE MORE THAN TWO INSUFFICIENT FUNDS FEES TO THE SAME BORROWER IN A SINGLE MONTH. (D) THE FOLLOWING INFORMATION SHALL BE DISCLOSED TO THE BORROWER IN WRITING, IN A TYPEFACE NO SMALLER THAN TWELVE-POINT TYPE AND IN THE PRIMARY LANGUAGE OF THE BORROWER, AT THE TIME THE LOAN APPLICATION IS RECEIVED BY THE EXEMPT ENTITY: (I) THE AMOUNT TO BE BORROWED, THAT NO INTEREST WILL BE CHARGED ON THE LOAN, AND THE TOTAL DOLLAR COST OF THE LOAN TO THE BORROWER IF THE LOAN IS PAID BACK ON TIME, INCLUDING THE PRINCIPAL AMOUNT BORROWED, THE REPAYMENT INSTALLMENT AMOUNT, THE FREQUENCY OF PAYMENT, AND THE INSUFFI- CIENT FUNDS FEE, IF APPLICABLE; AND (II) AN EXPLANATION OF WHETHER, AND UNDER WHAT CIRCUMSTANCES, A BORROWER MAY EXIT A LOAN AGREEMENT. (E) THE PRINCIPAL AMOUNT UPON ORIGINATION OF THE LOAN SHALL BE NO LESS THAN TWO HUNDRED FIFTY DOLLARS AND NO MORE THAN TWO THOUSAND FIVE HUNDRED DOLLARS, AND A TERM OF NOT LESS THAN THE FOLLOWING: (I) NINETY DAYS FOR LOANS WHOSE PRINCIPAL BALANCE UPON ORIGINATION IS LESS THAN FIVE HUNDRED DOLLARS; S. 2008 119 A. 3008 (II) ONE HUNDRED TWENTY DAYS FOR LOANS WHOSE PRINCIPAL BALANCE UPON ORIGINATION IS AT LEAST FIVE HUNDRED DOLLARS, BUT IS LESS THAN ONE THOU- SAND FIVE HUNDRED DOLLARS; OR (III) ONE HUNDRED EIGHTY DAYS FOR LOANS WHOSE PRINCIPAL BALANCE UPON ORIGINATION IS AT LEAST ONE THOUSAND FIVE HUNDRED DOLLARS. 6. THE EXEMPT ENTITY MAY RESTRUCTURE A BORROWER'S LOAN ONLY IF THE LOAN AS RESTRUCTURED CONTINUES TO COMPLY WITH THE REQUIREMENTS IN PARA- GRAPHS (A), (B) AND (C) OF SUBDIVISION FIVE OF THIS SECTION. 7. AN EXEMPT ENTITY SHALL NOT SELL OR ASSIGN UNPAID DEBT ARISING OUT OF ANY LOANS MADE PURSUANT TO THE AUTHORITY OF THIS SECTION TO THIRD PARTIES FOR COLLECTION. 8. PRIOR TO DISBURSEMENT OF LOAN PROCEEDS, THE EXEMPT ENTITY SHALL AT NO COST TO THE BORROWER EITHER: (A) PROVIDE A CREDIT EDUCATION PROGRAM OR SEMINAR TO THE BORROWER THAT HAS BEEN PREVIOUSLY REVIEWED AND APPROVED BY THE SUPERINTENDENT FOR USE IN COMPLYING WITH THIS SECTION; OR (B) OBTAIN EVIDENCE THAT THE BORROWER HAS ATTENDED A CREDIT EDUCATION PROGRAM OR SEMINAR OFFERED BY AN INDEPENDENT THIRD PARTY THAT HAS BEEN PREVIOUSLY REVIEWED AND APPROVED BY THE SUPERINTENDENT FOR USE IN COMPLYING WITH THIS SECTION. 9. AN EXEMPT ENTITY SHALL REPORT EACH BORROWER'S PAYMENT PERFORMANCE TO AT LEAST ONE CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE BASIS. FOR PURPOSES OF THIS SECTION, A CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUM- ERS ON A NATIONWIDE BASIS IS ONE THAT MEETS THE DEFINITION IN SECTION 603(P) OF THE FEDERAL FAIR CREDIT REPORTING ACT (15 U.S.C. SEC. 1681A(P)). ANY EXEMPT ENTITY THAT IS ACCEPTED AS A DATA FURNISHER SHALL REPORT ALL BORROWER PAYMENT PERFORMANCE SINCE THE INCEPTION OF LENDING BY SUCH ENTITY, AS SOON AS PRACTICABLE AFTER SUCH INDIVIDUAL IS ACCEPTED INTO THE EXEMPT ENTITY'S LENDING PROGRAM, BUT IN NO EVENT MORE THAN SIX MONTHS AFTER ITS ACCEPTANCE INTO THE PROGRAM. 10. THE EXEMPT ENTITY SHALL UNDERWRITE EACH LOAN AND SHALL ENSURE THAT A LOAN IS NOT MADE IF, THROUGH ITS UNDERWRITING, THE ENTITY DETERMINES THAT THE BORROWER'S TOTAL MONTHLY DEBT SERVICE PAYMENTS, AT THE TIME OF LOAN ORIGINATION, INCLUDING THE LOAN FOR WHICH THE BORROWER IS BEING CONSIDERED, AND ACROSS ALL OUTSTANDING FORMS OF CREDIT THAT CAN BE INDE- PENDENTLY VERIFIED BY THE EXEMPT ENTITY, EXCEEDS FIFTY PERCENT OF THE BORROWER'S GROSS MONTHLY HOUSEHOLD INCOME, UNLESS A LESSER AMOUNT IS MANDATED BY SUBPARAGRAPH (III) OF PARAGRAPH (C) OF THIS SUBDIVISION. THE EXEMPT ENTITY SHALL IN EVERY CASE: (A) OBTAIN INFORMATION AND DOCUMENTATION PERTAINING TO ALL OF A BORROWER'S OUTSTANDING DEBT OBLIGATIONS DURING THE LOAN APPLICATION AND UNDERWRITING PROCESS, INCLUDING BUT NOT LIMITED TO VERIFIED INFORMATION FROM A CREDIT REPORT AND LOANS THAT ARE SELF-REPORTED BY THE BORROWER BUT NOT AVAILABLE THROUGH INDEPENDENT VERIFICATION. (B) NOT INCLUDE FOR PURPOSES OF A DEBT-TO-INCOME RATIO EVALUATION, LOANS FROM FRIENDS OR FAMILY, EXCEPT IF IN THE JUDGMENT OF THE EXEMPT ENTITY, SUCH INCLUSION IS NECESSARY TO PROTECT THE INTERESTS OF THE CONSUMER. (C) VERIFY THE BORROWER'S HOUSEHOLD INCOME TO DETERMINE THE BORROWER'S DEBT-TO-INCOME RATIO USING INFORMATION FROM ANY OF THE FOLLOWING SOURC- ES: (I) ELECTRONIC MEANS OR SERVICES DEEMED ACCEPTABLE BY THE SUPERINTEN- DENT; S. 2008 120 A. 3008 (II) INTERNAL REVENUE SERVICE FORM W-2, TAX RETURNS, PAYROLL RECEIPTS, BANK STATEMENTS, OR OTHER THIRD-PARTY DOCUMENTS THAT PROVIDE REASONABLY RELIABLE EVIDENCE OF THE BORROWER'S ACTUAL INCOME; OR (III) A SIGNED STATEMENT FROM THE BORROWER STATING SOURCES AND AMOUNTS OF INCOME, IF THE BORROWER'S ACTUAL INCOME CANNOT BE INDEPENDENTLY VERI- FIED USING ELECTRONIC MEANS OR SERVICES, INTERNAL REVENUE SERVICE FORMS, TAX RETURNS, PAYROLL RECEIPTS, BANK STATEMENTS, OR OTHER THIRD-PARTY DOCUMENTS. IF INCOME IS VERIFIED USING A SIGNED STATEMENT FROM A BORROW- ER, A LOAN SHALL NOT BE MADE IF THE BORROWER'S TOTAL MONTHLY DEBT SERVICE PAYMENTS, AT THE TIME OF LOAN ORIGINATION, INCLUDING THE LOAN FOR WHICH THE BORROWER IS BEING CONSIDERED, AND ACROSS ALL OUTSTANDING FORMS OF CREDIT, EXCEEDS TWENTY-FIVE PERCENT OF THE BORROWER'S GROSS MONTHLY HOUSEHOLD INCOME. 11. THE EXEMPT ENTITY SHALL NOTIFY EACH BORROWER, AT LEAST TWO DAYS PRIOR TO EACH PAYMENT DUE DATE, OF THE AMOUNT DUE AND THE PAYMENT DUE DATE. NOTIFICATION MAY BE PROVIDED BY ANY MEANS MUTUALLY ACCEPTABLE TO THE BORROWER AND THE EXEMPT ENTITY. A BORROWER SHALL HAVE THE RIGHT TO OPT OUT OF THIS NOTIFICATION AT ANY TIME, UPON ELECTRONIC OR WRITTEN REQUEST TO THE EXEMPT ENTITY. THE EXEMPT ENTITY SHALL NOTIFY EACH BORROWER OF THIS RIGHT PRIOR TO DISBURSING LOAN PROCEEDS. 12. NO EXEMPT ENTITY, IN CONNECTION WITH, OR INCIDENTAL TO, THE FACIL- ITATING OF ANY LOAN MADE PURSUANT TO THIS SECTION, SHALL OFFER, SELL, OR REQUIRE A BORROWER TO CONTRACT FOR "CREDIT INSURANCE" OR INSURANCE ON TANGIBLE PERSONAL OR REAL PROPERTY OF ANY TYPE SECURING ANY LOAN. 13. AN EXEMPT ENTITY MAY PARTNER WITH A NONPROFIT ORGANIZATION FOR THE PURPOSE OF FACILITATING ZERO-INTEREST LOANS BY THE EXEMPT ENTITY PURSU- ANT TO THIS SECTION. THIS NONPROFIT ORGANIZATION SHALL NOT BE SUBJECT TO THIS SECTION, PROVIDED THAT IT SATISFIES THE REQUIREMENTS APPLICABLE TO AN EXEMPT ENTITY SET FORTH IN PARAGRAPHS (B), (C) AND (D) OF SUBDIVISION TWO OF THIS SECTION AND PROVIDED THAT: (A) THE EXEMPT ENTITY NOTIFIES THE SUPERINTENDENT WITHIN FIFTEEN DAYS OF ENTERING INTO A WRITTEN AGREEMENT WITH A PARTNERING NONPROFIT ORGAN- IZATION, ON SUCH FORM AND IN SUCH MANNER AS THE SUPERINTENDENT MAY PRESCRIBE. AT A MINIMUM, THIS NOTIFICATION SHALL INCLUDE THE NAME OF THE PARTNERING NONPROFIT ORGANIZATION, THE CONTACT INFORMATION FOR A PERSON RESPONSIBLE FOR THE LENDING ACTIVITIES FACILITATED BY THAT PARTNERING ORGANIZATION, A COPY OF THE AGREEMENT AND THE ADDRESS OR ADDRESSES AT WHICH THE PARTNERING ORGANIZATION CAN BE REACHED. (B) THE EXEMPT ENTITY INCLUDES INFORMATION REGARDING THE LOANS FACILI- TATED BY THE PARTNERING ORGANIZATION IN THE ANNUAL REPORT REQUIRED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION. (C) THE SUPERINTENDENT MAY, AT HIS OR HER SOLE DISCRETION, DISQUALIFY A PARTNERING NONPROFIT ORGANIZATION UPON A DETERMINATION THAT THIS ORGANIZATION HAS ACTED IN VIOLATION OF THIS SECTION OR ANY REGULATION ADOPTED HEREUNDER. 14. THE SUPERINTENDENT MAY EXAMINE OR REQUEST A SPECIAL REPORT FROM EACH EXEMPT ENTITY AND EACH PARTNERING NONPROFIT ORGANIZATION FOR COMPLIANCE WITH THE PROVISIONS OF THIS SECTION AT ANY TIME. ANY ENTITY SO EXAMINED SHALL MAKE AVAILABLE TO THE SUPERINTENDENT OR HIS OR HER REPRESENTATIVE ALL BOOKS AND RECORDS REQUESTED BY THE SUPERINTENDENT RELATED TO THE LENDING ACTIVITIES FACILITATED BY THAT ENTITY. IN ADDI- TION TO THE APPLICATION FEE PROVIDED FOR IN PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION, THE COST OF ANY SUCH EXAMINATION SHALL BE PAID FOR BY THE ENTITY BEING EXAMINED. 15. ALL REPORTS OF EXAMINATIONS AND INVESTIGATIONS, CORRESPONDENCE AND MEMORANDA CONCERNING OR ARISING OUT OF ANY EXAMINATION OR INVESTIGATION S. 2008 121 A. 3008 OF AN EXEMPT ENTITY SHALL BE SUBJECT TO THE PROVISIONS OF SUBDIVISION TEN OF SECTION THIRTY-SIX OF THIS CHAPTER. 16. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH GENERAL RULES AND REGULATIONS, AND SUCH SPECIFIC RULINGS, DEMANDS AND FINDINGS AS HE OR SHE MAY DEEM NECESSARY FOR THE PROPER CONDUCT OF THE LENDING ACTIVITIES EXEMPTED FROM LICENSING UNDER THIS SECTION. § 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART DD Section 1. The state finance law is amended by adding a new section 89-i to read as follows: § 89-I. PAID FAMILY LEAVE RISK ADJUSTMENT FUND. 1. THERE IS HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE SUPERINTENDENT OF FINANCIAL SERVICES A SPECIAL FUND, TO BE KNOWN AS THE "PAID FAMILY LEAVE RISK ADJUSTMENT FUND". 2. SUCH FUND SHALL CONSIST OF MONEY RECEIVED BY THE SUPERINTENDENT FROM INSURANCE CARRIERS AS PAYMENTS INTO ANY RISK ADJUSTMENT MECHANISM ESTABLISHED BY REGULATION IN ACCORDANCE WITH PARAGRAPH TWO OF SUBSECTION (N) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THE INSURANCE LAW. 3. ALL MONEYS RETAINED IN SUCH FUND SHALL BE HELD ON BEHALF OF INSUR- ANCE CARRIERS AND PAID OUT BY THE SUPERINTENDENT TO INSURANCE CARRIERS PURSUANT TO THE RISK ADJUSTMENT MECHANISM ESTABLISHED BY REGULATION IN ACCORDANCE WITH PARAGRAPH TWO OF SUBSECTION (N) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THE INSURANCE LAW. 4. THE FUNDS SO RECEIVED AND DEPOSITED IN SUCH RISK ADJUSTMENT FUND SHALL NOT BE DEEMED TO BE STATE FUNDS. § 2. This act shall take effect immediately. PART EE Section 1. Section 340 of the banking law, as amended by chapter 22 of the laws of 1990, is amended to read as follows: § 340. Doing business without license prohibited. 1. No person or other entity shall engage in the business of making loans in the princi- pal amount of twenty-five thousand dollars or less for any loan to an individual for personal, family, household, or investment purposes and in a principal amount of fifty thousand dollars or less TO AN INDIVIDUAL OR BUSINESS for business and commercial loans, [and charge, contract for, or receive a greater rate of interest than the lender would be permitted by law to charge if he were not a licensee hereunder] except as authorized by this article OR BY REGULATIONS ISSUED BY THE SUPER- INTENDENT and without first obtaining a license from the superintendent. 2. For the purposes of this section, a person or entity shall be considered as engaging in the business of making loans in New York, and subject to the licensing and other requirements of this article, if it solicits loans in the amounts prescribed by this section [within this state] and, in connection with such solicitation, makes loans, PURCHASES OR OTHERWISE ACQUIRES FROM OTHERS LOANS OR OTHER FORMS OF FINANCING, OR ARRANGES OR FACILITATES THE FUNDING OF LOANS, to individuals then resi- dent in this state OR TO BUSINESSES LOCATED OR DOING BUSINESS IN THIS STATE, except that no person or entity shall be considered as engaging in the business of making loans in this state on the basis of isolated[, S. 2008 122 A. 3008 incidental] or occasional transactions which otherwise meet the require- ments of this section. 3. WHEN NECESSARY TO FACILITATE LOW COST LENDING IN ANY COMMUNITY, THE SUPERINTENDENT SHALL HAVE THE POWER TO ADOPT REGULATIONS THAT PROVIDE AN EXEMPTION FROM THE LICENSURE REQUIREMENT IN SUBDIVISION ONE OF THIS SECTION FOR A PERSON OR ENTITY. THE SUPERINTENDENT MAY ALSO ADOPT ANY SUCH ADDITIONAL RULES OR REGULATIONS THAT HE OR SHE DEEMS NECESSARY TO IMPLEMENT THE TERMS OF THIS SECTION INCLUDING THE EXEMPTION PROVISION IN THIS SUBDIVISION. 4. Nothing in this article shall apply to licensed collateral loan brokers. § 2. This act shall take effect January 1, 2018. PART FF Section 1. Paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, as amended by section 7 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: (b) (1) "Home loan" means a home loan, including an open-end credit plan, [other than a reverse mortgage transaction,] in which: (i) The principal amount of the loan at origination did not exceed the conforming loan size that was in existence at the time of origination for a comparable dwelling as established by the FEDERAL HOUSING ADMINIS- TRATION OR federal national mortgage association; (ii) The borrower is a natural person; (iii) The debt is incurred by the borrower primarily for personal, family, or household purposes; (iv) The loan is secured by a mortgage or deed of trust on real estate upon which there is located or there is to be located a structure or structures intended principally for occupancy of from one to four fami- lies which is or will be occupied by the borrower as the borrower's principal dwelling; and (v) The property is located in this state. (2) A HOME LOAN SHALL INCLUDE A LOAN SECURED BY A REVERSE MORTGAGE THAT MEETS THE REQUIREMENTS OF CLAUSES (I) THROUGH (V) OF SUBPARAGRAPH ONE OF THIS PARAGRAPH. § 2. Subdivision (a) of rule 3408 of the civil practice law and rules, as amended by section 2 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: (a) [In] 1. EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, IN any residential foreclosure action involving a home loan as such term is defined in section thirteen hundred four of the real property actions and proceedings law, in which the defendant is a resident of the proper- ty subject to foreclosure, plaintiff shall file proof of service within twenty days of such service, however service is made, and the court shall hold a mandatory conference within sixty days after the date when proof of service upon such defendant is filed with the county clerk, or on such adjourned date as has been agreed to by the parties, for the purpose of holding settlement discussions pertaining to the relative rights and obligations of the parties under the mortgage loan documents, including, but not limited to: [1.] (I) determining whether the parties can reach a mutually agreeable resolution to help the defendant avoid losing his or her home, and evaluating the potential for a resolution in which payment schedules or amounts may be modified or other workout options may be agreed to, including, but not limited to, a loan modifi- cation, short sale, deed in lieu of foreclosure, or any other loss miti- S. 2008 123 A. 3008 gation option; or [2.] (II) whatever other purposes the court deems appropriate. 2. PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY TO A HOME LOAN SECURED BY A REVERSE MORTGAGE WHERE THE DEFAULT WAS TRIGGERED BY THE DEATH OF THE LAST SURVIVING BORROWER UNLESS THE LAST SURVIVING BORROW- ER'S SPOUSE, IF ANY, IS A RESIDENT OF THE PROPERTY SUBJECT TO FORECLO- SURE. § 3. This act shall take effect immediately; provided, however, that: (a) the amendments to paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, made by section one of this act, shall take effect on the same date and in the same manner as section 7 of part Q of chapter 73 of the laws of 2016 takes effect; and (b) the amendments to subdivision (a) of rule 3408 of the civil prac- tice law and rules, made by section two of this act, shall be subject to the expiration and reversion of such subdivision pursuant to subdivision e of section 25 of chapter 507 of the laws of 2009, as amended. PART GG Section 1. This act enacts into law major components of legislation relating to assessments, distribution of assets, and insurers deemed to be in a hazardous financial condition. Each component is wholly contained within a Subpart identified as Subparts A through C. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes references to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. Subsection (a) of section 206 of the financial services law, is amended and a new subsection (g) is added to read as follows: (a) For each fiscal year commencing on or after April first, two thou- sand twelve, assessments to defray operating expenses, including all direct and indirect costs, of the department, except expenses incurred in the liquidation of banking organizations, shall be assessed by the superintendent in accordance with this subsection. Persons regulated under the insurance law shall be assessed by the superintendent for the operating expenses of the department that are solely attributable to regulating persons under the insurance law, which shall include any expenses that were permissible to be assessed in fiscal year two thou- sand nine-two thousand ten, with the assessments allocated pro rata upon all domestic insurers and all licensed United States branches of alien insurers domiciled in this state within the meaning of paragraph four of subsection (b) of section seven thousand four hundred eight of the insurance law, in proportion to the gross direct premiums and other considerations, written or received by them in this state during the calendar year ending December thirty-first immediately preceding the end of the fiscal year for which the assessment is made (less return premi- ums and considerations thereon) for policies or contracts of insurance covering property or risks resident or located in this state the issu- ance of which policies or contracts requires a license from the super- S. 2008 124 A. 3008 intendent. Persons regulated under the banking law shall be assessed by the superintendent for the operating expenses of the department that are solely attributable to regulating persons under the banking law in such proportions as the superintendent shall deem just and reasonable. PERSONS REGULATED UNDER THIS CHAPTER SHALL BE ASSESSED BY THE SUPER- INTENDENT FOR THE OPERATING EXPENSES OF THE DEPARTMENT THAT ARE SOLELY ATTRIBUTABLE TO REGULATED PERSONS UNDER THIS CHAPTER IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE. Operating expenses of the department not covered by the assessments set forth above shall be assessed by the superintendent in such proportions as the superinten- dent shall deem just and reasonable upon all domestic insurers and all licensed United States branches of alien insurers domiciled in this state within the meaning of paragraph four of subsection (b) of section seven thousand four hundred eight of the insurance law, and upon any regulated person under THIS CHAPTER AND the banking law, other than mortgage loan originators, except as otherwise provided by sections one hundred fifty-one and two hundred twenty-eight of the workers' compen- sation law and by section sixty of the volunteer firefighters' benefit law. The provisions of this subsection shall not be applicable to a bank holding company, as that term is defined in article three-A of the bank- ing law. Persons regulated under the banking law will not be assessed for expenses that the superintendent deems to benefit solely persons regulated under the insurance law, and persons regulated under the insurance law will not be assessed for expenses that the superintendent deems to benefit solely persons regulated under the banking law. (G) THE EXPENSES OF EVERY EXAMINATION OF THE AFFAIRS OF ANY REGULATED PERSON SUBJECT TO THIS CHAPTER, SHALL BE BORNE AND PAID BY THE REGULATED PERSON SO EXAMINED, BUT THE SUPERINTENDENT, WITH THE APPROVAL OF THE COMPTROLLER, MAY, IN THE SUPERINTENDENT'S DISCRETION FOR GOOD CAUSE SHOWN, REMIT SUCH CHARGES. § 2. This act shall take effect January 1, 2018. SUBPART B Section 1. Legislative findings. In order to provide an appropriate scheme of distribution of assets of all insolvent insurers, the legisla- ture finds that it is in the best interest of the people of this state to amend statutes regarding the priority of distribution under Article 74 of the Insurance Law. § 2. Paragraph 1 of subsection (a) of section 7434 of the insurance law, as amended by chapter 134 of the laws of 1999, is amended to read as follows: (1) Upon the recommendation of the superintendent, AS RECEIVER, and under the direction of the court, distribution payments shall be made in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the [liqui- dation] PROCEEDING SUBJECT TO THIS ARTICLE and the protection of unliq- uidated and undetermined claims. The priority of distribution of claims from [an] ALL insolvent [property/casualty insurer] INSURERS in any proceeding subject to this article, UNLESS OTHERWISE SPECIFIED, shall be in accordance with the order in which each class of claims is set forth in this paragraph and as provided in this paragraph. Every claim in each class shall be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. No claim by a shareholder, poli- cyholder, CONTRACT HOLDER or other creditor shall be permitted to S. 2008 125 A. 3008 circumvent the priority classes through the use of equitable remedies. The order of distribution of claims shall be: (i) Class one. Claims with respect to the actual and necessary costs and expenses of administration, incurred by the liquidator, rehabilita- tor or conservator under this article. (ii) Class two. All claims under policies OR CONTRACTS, including such claims of the federal or any state or local government for losses incurred, third party claims, claims for unearned premiums, and all claims of a security fund, guaranty association or the equivalent except claims arising under reinsurance contracts. (iii) Class three. Claims of the federal government except those under class two above. (iv) Class four. Claims for wages owing to employees of an insurer against whom a proceeding under this article is commenced for services rendered within one year before commencement of the proceeding, not exceeding one thousand two hundred dollars to each employee, and claims for unemployment insurance contributions required by article eighteen of the labor law. Such priority shall be in lieu of any other similar priority which may be authorized by law. (v) Class five. Claims of state and local governments except those under class two above. (vi) Class six. Claims of general creditors including[, but not limit- ed to,] claims arising under reinsurance contracts. (vii) Class seven. Claims filed late or any other claims other than claims under class eight or class nine below. (viii) Class eight. Claims for advanced or borrowed funds made pursu- ant to section one thousand three hundred seven of this chapter. (ix) Class nine. Claims of shareholders or other owners in their capacity as shareholders. § 3. Section 7435 of the insurance law, as added by chapter 802 of the laws of 1985, paragraph 7 of subsection (a) as amended by chapter 300 of the laws of 1996, is amended to read as follows: § 7435. Distribution for life insurers. (a) UPON THE RECOMMENDATION OF THE SUPERINTENDENT, AS RECEIVER, AND UNDER THE DIRECTION OF THE COURT, DISTRIBUTION PAYMENTS SHALL BE MADE IN A MANNER THAT WILL ASSURE THE PROPER RECOGNITION OF PRIORITIES AND A REASONABLE BALANCE BETWEEN THE EXPEDITIOUS COMPLETION OF THE PROCEEDING SUBJECT TO THIS ARTICLE AND THE PROTECTION OF UNLIQUIDATED AND UNDETERMINED CLAIMS. The priority of distribution of claims from the estate of [a] AN INSOLVENT life insur- ance company in any proceeding subject to this article shall be in accordance with the order in which each class of claims is [herein] set forth IN THIS SECTION AND AS PROVIDED IN THIS SECTION. Every claim in each class shall[, subject to such limitations as may be prescribed by law and do not directly conflict with the express provisions of this section,] be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. NO CLAIM BY A SHAREHOLDER, POLI- CYHOLDER, ANNUITANT, OR OTHER CREDITOR SHALL BE PERMITTED TO CIRCUMVENT THE PRIORITY CLASSES THROUGH THE USE OF EQUITABLE REMEDIES. The order of distribution of claims shall be: (1) Class one. Claims with respect to the actual and necessary costs and expenses of administration, incurred by the liquidator, rehabilita- tor, conservator or ancillary rehabilitator under this article, or by The Life Insurance Guaranty Corporation or The Life Insurance Company Guaranty Corporation of New York, and claims described in subsection (d) of section seven thousand seven hundred thirteen of this chapter. S. 2008 126 A. 3008 (2) Class two. [Debts due to employees for services performed to the extent that they do not exceed one thousand two hundred dollars and represent payment for services performed within one year before the commencement of a proceeding under this article. Such priority shall be in lieu of any other similar priority which may be authorized by law as to wages or compensation of employees] ALL CLAIMS UNDER INSURANCE POLI- CIES, INCLUDING SUCH CLAIMS OF THE FEDERAL OR ANY STATE OR LOCAL GOVERN- MENT, ANNUITY CONTRACTS, AND FUNDING AGREEMENTS, AND ALL CLAIMS OF THE THE LIFE INSURANCE COMPANY GUARANTY CORPORATION OF NEW YORK OR ANY OTHER GUARANTY CORPORATION OR ASSOCIATION OF THIS STATE OR ANOTHER JURISDIC- TION, OTHER THAN CLAIMS PROVIDED FOR IN PARAGRAPH ONE OF THIS SUBSECTION AND CLAIMS FOR INTEREST. (3) Class three. [All claims for payment for goods furnished or services rendered to the impaired or insolvent insurer in the ordinary course of business within ninety days prior to the date on which the insurer was determined to be impaired or insolvent, whichever is appli- cable] CLAIMS OF THE FEDERAL GOVERNMENT EXCEPT CLAIMS PROVIDED FOR IN PARAGRAPH TWO OF THIS SUBSECTION. (4) Class four. [All claims under insurance policies, annuity contracts and funding agreements, and all claims of The Life Insurance Company Guaranty Corporation of New York or any other guaranty corpo- ration or association of this state or another jurisdiction, other than (i) claims provided for in paragraph one of this subsection, and (ii) claims for interest] DEBTS DUE TO EMPLOYEES FOR SERVICES PERFORMED TO THE EXTENT THAT THEY DO NOT EXCEED ONE THOUSAND TWO HUNDRED DOLLARS AND REPRESENT PAYMENT FOR SERVICES PERFORMED WITHIN ONE YEAR BEFORE THE COMMENCEMENT OF A PROCEEDING UNDER THIS ARTICLE. SUCH PRIORITY SHALL BE IN LIEU OF ANY OTHER SIMILAR PRIORITY THAT MAY BE AUTHORIZED BY LAW AS TO WAGES OR COMPENSATION OF EMPLOYEES. (5) Class five. [Claims of the federal or any state or local govern- ment. Claims, including those of any governmental body for a penalty or forfeiture, shall be allowed to this class only to the extent of the pecuniary loss sustained from the act, transaction or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of such claims shall be postponed to the class of claims under paragraph eight of this subsection] ALL CLAIMS FOR PAYMENT FOR GOODS FURNISHED OR SERVICES RENDERED TO THE IMPAIRED OR INSOLVENT INSURER IN THE ORDINARY COURSE OF BUSINESS WITHIN NINETY DAYS PRIOR TO THE DATE ON WHICH THE INSURER WAS DETERMINED TO BE IMPAIRED OR INSOLVENT, WHICHEVER IS APPLICABLE. (6) Class six. [Claims of general creditors and any other claims other than claims under paragraphs seven and eight of this subsection] CLAIMS OF ANY STATE OR LOCAL GOVERNMENT OTHER THAN CLAIMS PROVIDED FOR UNDER PARAGRAPH TWO OF THIS SUBSECTION. CLAIMS, INCLUDING THOSE OF ANY GOVERN- MENTAL BODY FOR A PENALTY OR FORFEITURE, SHALL BE ALLOWED TO THIS CLASS ONLY TO THE EXTENT OF PECUNIARY LOSS SUSTAINED FROM THE ACT, TRANS- ACTION, OR PROCEEDING OUT OF WHICH THE PENALTY OR FORFEITURE AROSE, WITH REASONABLE AND ACTUAL COSTS OCCASIONED THEREBY. THE REMAINDER OF SUCH CLAIMS SHALL BE POSTPONED TO THE CLASS OF CLAIMS UNDER PARAGRAPH NINE OF THIS SUBSECTION. (7) Class seven. [Surplus, capital or contribution notes, or similar obligations] CLAIMS OF GENERAL CREDITORS AND ANY OTHER CLAIMS OTHER THAN CLAIMS UNDER PARAGRAPHS EIGHT AND NINE OF THIS SUBSECTION. (8) Class eight. [The claims of (i) policyholders, other than claims under paragraph four of this subsection, and (ii) shareholders or other owners] SURPLUS, CAPITAL, OR CONTRIBUTION NOTES, OR SIMILAR OBLIGATIONS. S. 2008 127 A. 3008 (9) CLASS NINE. THE CLAIMS OF POLICYHOLDERS OR ANNUITANTS, OTHER THAN CLAIMS UNDER PARAGRAPH TWO OF THIS SUBSECTION, AND SHAREHOLDERS OR OTHER OWNERS. (b) Every claim under a separate account agreement providing, in effect, that the assets in the separate account shall not be chargeable with liabilities arising out of any other business of the insurer shall be satisfied out of the assets in the separate account equal to the reserves maintained in such account for such agreement and, to the extent, if any, not fully discharged thereby, shall be treated as a class four claim against the estate of the life insurance company. (c) For purposes of this section: (1) "The estate of the life insurance company" shall mean the general assets of such company less any assets held in separate accounts that, pursuant to section four thousand two hundred forty of this chapter, are not chargeable with liabilities arising out of any other business of the insurer. (2) "Insurance policies, annuity contracts and funding agreements" shall mean all policies and contracts of any of the kinds of insurance specified in paragraph one, two or three of subsection (a) of section one thousand one hundred thirteen of this chapter and all funding agree- ments described in section three thousand two hundred twenty-two of this chapter, including all separate account agreements, except that separate account agreements referred to in subsection (b) of this section shall be included only to the extent referred to therein. (3) "Separate account agreement or agreements" shall mean any agree- ment or agreements for separate accounts referred to in section four thousand two hundred forty of this chapter. § 4. This act shall take effect immediately. SUBPART C Section 1. Section 1104 of the insurance law, the section heading as amended and subsections (c) and (d) as added by chapter 235 of the laws of 1989, the opening paragraph of subsection (c) as amended by chapter 598 of the laws of 2000, is amended to read as follows: § 1104. Revocation or suspension of license; restriction of license authority or limitation on premiums written. (a) The superintendent may revoke any license, CERTIFICATE OF AUTHORITY, OR REGISTRATION issued to any foreign or alien insurer to do an insurance business in this state if, after notice to and hearing, [he] THE SUPERINTENDENT finds that such insurer has failed to comply with any requirement imposed upon it by the provisions of this chapter and if in [his] THE SUPERINTENDENT'S judgment such revocation is reasonably necessary to protect the interests of the people of this state. The superintendent may, in his OR HER discretion, reinstate any such license, CERTIFICATE OF AUTHORITY, OR REGISTRATION if [he] THE SUPERINTENDENT finds that a ground for such revocation no long- er exists. (b) The superintendent shall revoke the certificate of authority of any corporation or agent convicted of violating section two thousand six hundred three of this chapter. (c) [The] (1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE superintendent may [suspend the license, restrict the license authority, or limit the amount of premiums written in this state of any accident and health insurance company, property/casualty insurance company, co-operative property/casualty insurance company, title insurance compa- ny, mortgage guaranty insurance company, reciprocal insurer, Lloyds S. 2008 128 A. 3008 underwriters or nonprofit property/casualty insurance company] TAKE ONE OR MORE OF THE ACTIONS SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF THIS SUBSECTION AGAINST AN INSURER, except those insurers subject to the provisions of subsection (c) of section two thousand three hundred forty-three of this chapter, if after a hearing on a record, unless waived by the affected insurer, the superintendent determines that such insurer's surplus to policyholders is not adequate in relation to the insurer's outstanding liabilities or to its financial needs OR IF THE SUPERINTENDENT OTHERWISE DETERMINES THAT THE CONTINUED OPERATION OF THE INSURER MIGHT BE DEEMED TO BE HAZARDOUS TO THE INSURER'S POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC. (2) All matters pertaining to a proceeding or determination pursuant to this subsection shall be confidential and not subject to subpoena or public inspection under article six of the public officers law or any other statute, except to the extent that the superintendent finds release of information necessary to protect the public. The hearing shall be initiated within twenty days after written notice to the insur- er. Any determination pursuant to this subsection shall contain findings specifying the factors deemed significant in regard to the particular insurer, and shall set forth the reasons supporting the suspension, restriction or limitation ordered by the superintendent. (3) The SUPERINTENDENT MAY CONSIDER THE following factors [shall be considered by the superintendent] in making [such] A determination AS TO WHETHER AN INSURER'S SURPLUS TO POLICYHOLDERS IS ADEQUATE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES OR TO ITS FINANCIAL NEEDS: [(1)] (A) the size of the insurer as measured by its admitted assets, capital and surplus to policyholders, reserves, premium writings, insur- ance in force and other appropriate criteria, with such surplus to poli- cyholders for foreign insurers adjusted in accordance with section one thousand four hundred thirteen of this chapter; [(2)] (B) the extent to which the insurer's business is diversified among the several kinds of insurance; [(3)] (C) the number and size of risks insured in each kind of insur- ance and the insurer's loss experience in regard to such risks; [(4)] (D) the extent of geographical dispersion of the insurer's risks; [(5)] (E) the nature and extent of the insurer's reinsurance program; [(6)] (F) the quality, diversification and liquidity of the insurer's investment portfolio; [(7)] (G) the recent past and projected future trends in regard to the insurer's loss experience and in the size of the insurer's surplus to policyholders; [(8)] (H) the surplus to policyholders maintained by other comparable insurers; [(9)] (I) the adequacy of the insurer's reserves; and [(10)] (J) the quality and liquidity of investments in subsidiaries made pursuant to this chapter. (4)(A) THE SUPERINTENDENT MAY CONSIDER THE FOLLOWING STANDARDS, EITHER SINGLY OR A COMBINATION OF TWO OR MORE, TO DETERMINE WHETHER THE CONTIN- UED OPERATION OF ANY INSURER MIGHT BE DEEMED TO BE HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC: (I) ADVERSE FINDINGS REPORTED IN FINANCIAL CONDITION AND MARKET CONDUCT EXAMINATION REPORTS, AUDIT REPORTS, ACTUARIAL OPINIONS, REPORTS, OR SUMMARIES, OR OTHER REPORTS; S. 2008 129 A. 3008 (II) THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS INSURANCE REGULATORY INFORMATION SYSTEM AND ITS OTHER FINANCIAL ANALYSIS SOLVENCY TOOLS AND REPORTS; (III) WHETHER THE INSURER HAS MADE ADEQUATE PROVISION, ACCORDING TO PRESENTLY ACCEPTED ACTUARIAL STANDARDS OF PRACTICE, FOR THE ANTICIPATED CASH FLOWS REQUIRED BY THE CONTRACTUAL OBLIGATIONS AND RELATED EXPENSES OF THE INSURER, WHEN CONSIDERED IN LIGHT OF THE ASSETS HELD BY THE INSURER WITH RESPECT TO SUCH RESERVES AND RELATED ACTUARIAL ITEMS, INCLUDING THE INVESTMENT EARNINGS ON SUCH ASSETS, AND THE CONSIDERATIONS ANTICIPATED TO BE RECEIVED AND RETAINED UNDER SUCH POLICIES AND CONTRACTS; (IV) THE ABILITY OF AN ASSUMING REINSURER TO PERFORM AND WHETHER THE INSURER'S REINSURANCE PROGRAM PROVIDES SUFFICIENT PROTECTION FOR THE INSURER'S REMAINING SURPLUS AFTER TAKING INTO ACCOUNT THE INSURER'S CASH FLOW AND THE CLASSES OF BUSINESS WRITTEN AS WELL AS THE FINANCIAL CONDI- TION OF THE ASSUMING REINSURER; (V) WHETHER THE INSURER'S OPERATING LOSS IN THE LAST TWELVE-MONTH PERIOD OR ANY SHORTER PERIOD OF TIME, INCLUDING NET CAPITAL GAIN OR LOSS, CHANGE IN NON-ADMITTED ASSETS, AND CASH DIVIDENDS PAID TO SHARE- HOLDERS, IS GREATER THAN FIFTY PERCENT OF THE INSURER'S REMAINING SURPLUS TO POLICYHOLDERS IN EXCESS OF THE MINIMUM REQUIRED; (VI) WHETHER THE INSURER'S OPERATING LOSS IN THE LAST TWELVE-MONTH PERIOD OR ANY SHORTER PERIOD OF TIME, EXCLUDING NET CAPITAL GAINS, IS GREATER THAN TWENTY PERCENT OF THE INSURER'S REMAINING SURPLUS TO POLI- CYHOLDERS IN EXCESS OF THE MINIMUM REQUIRED; (VII) WHETHER A REINSURER, AN OBLIGOR, ANY ENTITY IN THE INSURER'S HOLDING COMPANY SYSTEM, AS DEFINED IN PARAGRAPH SIX OF SUBSECTION (A) OF SECTION ONE THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, OR ANY SUBSIDIARY OF AN INSURER, IS INSOLVENT, THREATENED WITH INSOLVENCY, OR DELINQUENT IN PAYMENT OF ITS MONETARY OR OTHER OBLIGATIONS, AND WHICH IN THE OPIN- ION OF THE SUPERINTENDENT MAY AFFECT THE SOLVENCY OF THE INSURER; (VIII) CONTINGENT LIABILITIES, PLEDGES, OR GUARANTEES THAT EITHER INDIVIDUALLY OR COLLECTIVELY INVOLVE A TOTAL AMOUNT THAT IN THE SUPER- INTENDENT'S OPINION MAY AFFECT THE INSURER'S SOLVENCY; (IX) WHETHER ANY PERSON WHO CONTROLS AN INSURER, AS DEFINED IN PARA- GRAPH TWO OF SUBSECTION (A) OF SECTION ONE THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, IS DELINQUENT IN THE TRANSMITTING TO, OR PAYMENT OF, NET PREMIUMS TO THE INSURER; (X) THE AGE AND COLLECTABILITY OF RECEIVABLES; (XI) WHETHER THE MANAGEMENT OF AN INSURER, INCLUDING OFFICERS, DIREC- TORS, OR ANY OTHER PERSON WHO DIRECTLY OR INDIRECTLY CONTROLS THE OPERA- TION OF THE INSURER, FAILS TO POSSESS AND DEMONSTRATE THE COMPETENCE, FITNESS, AND REPUTATION DEEMED NECESSARY TO SERVE THE INSURER IN SUCH POSITION; (XII) WHETHER THE INSURER'S MANAGEMENT HAS FAILED TO RESPOND TO AN INQUIRY OF THE SUPERINTENDENT RELATIVE TO THE INSURER'S CONDITION OR HAS FURNISHED FALSE AND MISLEADING INFORMATION CONCERNING SUCH AN INQUIRY; (XIII) WHETHER THE INSURER HAS FAILED TO MEET FINANCIAL FILING REQUIREMENTS OR FILING REQUIREMENTS PURSUANT TO ARTICLES FIFTEEN, SIXTEEN, OR SEVENTEEN OF THIS CHAPTER, OR REGULATIONS PROMULGATED THERE- UNDER, IN THE ABSENCE OF A REASON SATISFACTORY TO THE SUPERINTENDENT; (XIV) WHETHER THE INSURER'S MANAGEMENT EITHER HAS FILED ANY FALSE OR MISLEADING SWORN FINANCIAL STATEMENT, OR HAS RELEASED FALSE OR MISLEAD- ING FINANCIAL STATEMENTS TO LENDING INSTITUTIONS OR TO THE GENERAL PUBLIC, OR HAS MADE A FALSE OR MISLEADING ENTRY, OR HAS OMITTED AN ENTRY OF MATERIAL AMOUNT IN THE INSURER'S BOOKS; S. 2008 130 A. 3008 (XV) WHETHER THE INSURER HAS GROWN SO RAPIDLY AND TO SUCH AN EXTENT THAT IT LACKS ADEQUATE FINANCIAL AND ADMINISTRATIVE CAPACITY TO MEET ITS OBLIGATIONS IN A TIMELY MANNER; (XVI) WHETHER THE INSURER HAS EXPERIENCED OR IS EXPECTED TO EXPERIENCE IN THE FORESEEABLE FUTURE CASH FLOW OR LIQUIDITY PROBLEMS; (XVII) WHETHER MANAGEMENT HAS ESTABLISHED RESERVES THAT DO NOT COMPLY WITH MINIMUM STANDARDS ESTABLISHED BY THIS CHAPTER OR REGULATIONS PROMULGATED THEREUNDER, STATUTORY ACCOUNTING STANDARDS, AS ADOPTED BY THE SUPERINTENDENT, SOUND ACTUARIAL PRINCIPLES AND STANDARDS OF PRAC- TICE; (XVIII) WHETHER MANAGEMENT PERSISTENTLY ENGAGES IN MATERIAL UNDER RESERVING THAT RESULTS IN ADVERSE DEVELOPMENT; (XIX) WHETHER ANY TRANSACTION WITH AN AFFILIATE, A SUBSIDIARY, OR A PARENT FOR WHICH THE INSURER RECEIVES ASSETS OR CAPITAL GAINS, OR BOTH, DO NOT PROVIDE SUFFICIENT VALUE, LIQUIDITY, OR DIVERSITY TO ASSURE THE INSURER'S ABILITY TO MEET ITS OUTSTANDING OBLIGATIONS AS THEY MATURE; AND (XX) ANY OTHER FINDING DETERMINED BY THE SUPERINTENDENT TO BE HAZARD- OUS TO THE INSURER'S POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC. (B) IF THE SUPERINTENDENT DETERMINES THAT THE INSURER'S SURPLUS TO POLICYHOLDERS IS NOT ADEQUATE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES OR TO ITS FINANCIAL NEEDS OR IF THE SUPERINTENDENT OTHERWISE DETERMINES THAT THE CONTINUED OPERATION OF THE INSURER MAY BE HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC, THEN THE SUPERINTENDENT MAY, UPON A DETERMINATION, SUSPEND THE INSURER'S LICENSE, CERTIFICATE OF AUTHORITY, OR REGISTRATION, RESTRICT THE INSURER'S LICENSE, CERTIFICATE OF AUTHORITY, OR REGISTRATION AUTHORITY, OR ISSUE AN ORDER REQUIRING THE INSURER TO DO ONE OR MORE OF THE FOLLOWING: (I) REDUCE THE TOTAL AMOUNT OF PRESENT AND POTENTIAL LIABILITY FOR POLICY BENEFITS BY REINSURANCE; (II) REDUCE, SUSPEND, OR LIMIT THE VOLUME OF BUSINESS BEING ACCEPTED OR RENEWED, OR LIMIT THE AMOUNT OF PREMIUMS WRITTEN IN THIS STATE; (III) REDUCE GENERAL INSURANCE AND COMMISSION EXPENSES BY SPECIFIED METHODS; (IV) INCREASE THE INSURER'S CAPITAL AND SURPLUS; (V) SUSPEND OR LIMIT THE DECLARATION AND PAYMENT OF DIVIDENDS BY AN INSURER TO ITS STOCKHOLDERS OR POLICYHOLDERS; (VI) FILE REPORTS ON A FORM AND IN A MANNER ACCEPTABLE TO THE SUPER- INTENDENT CONCERNING THE MARKET VALUE OF AN INSURER'S ASSETS; (VII) LIMIT OR WITHDRAW FROM CERTAIN INVESTMENTS OR DISCONTINUE CERTAIN INVESTMENT PRACTICES TO THE EXTENT THE SUPERINTENDENT DEEMS NECESSARY; (VIII) DOCUMENT THE ADEQUACY OF PREMIUM RATES IN RELATION TO THE RISKS INSURED; (IX) FILE, IN ADDITION TO REGULAR ANNUAL STATEMENTS, INTERIM FINANCIAL REPORTS ON A FORM AND IN A MANNER PRESCRIBED BY THE SUPERINTENDENT, WHICH MAY INCLUDE A FORM ADOPTED BY THE NATIONAL ASSOCIATION OF INSUR- ANCE COMMISSIONERS; (X) CORRECT CORPORATE GOVERNANCE PRACTICE DEFICIENCIES, AND ADOPT AND UTILIZE GOVERNANCE PRACTICES ACCEPTABLE TO THE SUPERINTENDENT; (XI) PROVIDE A BUSINESS PLAN TO THE SUPERINTENDENT IN ORDER TO CONTIN- UE TO TRANSACT BUSINESS IN THIS STATE; OR (XII) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ADJUST RATES FOR ANY NON-LIFE INSURANCE POLICY OR CONTRACT WRITTEN BY THE INSURER THAT THE SUPERINTENDENT CONSIDERS NECESSARY TO IMPROVE THE INSURER'S FINANCIAL CONDITION. S. 2008 131 A. 3008 (d) [The superintendent shall identify and review those licensed property/casualty insurers needing immediate or targeted regulatory attention, and shall include the number of insurers so identified in the report required by section three hundred thirty-four of this chapter. Such report shall also include the name of each licensed property/casualty insurer placed in formal conservatorship, rehabili- tation or liquidation during the preceding year. Nothing herein shall be construed to restrict or diminish any right or power of the superinten- dent under any other provision of this chapter] FOR THE PURPOSES OF THIS SECTION, "INSURER" SHALL MEAN ANY PERSON, FIRM, ASSOCIATION, CORPO- RATION, OR JOINT-STOCK COMPANY AUTHORIZED TO DO AN INSURANCE BUSINESS IN THIS STATE BY A LICENSE IN FORCE PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR EXEMPTED BY THE PROVISIONS OF THIS CHAPTER FROM SUCH LICENS- ING, EXCEPT THAT, FOR PURPOSES OF THIS SECTION, THE TERM "INSURER" SHALL NOT INCLUDE ANY HEALTH MAINTENANCE ORGANIZATION OPERATING PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED NINE OF THIS CHAPTER OR ANY CONTINUING CARE RETIREMENT COMMUNITY OPERATING PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED NINETEEN OF THIS CHAPTER. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through C of this act shall be as specifically set forth in the last section of such Subparts. PART HH Section 1. Paragraph (a) of subdivision 2 of section 179 of the navi- gation law, as amended by section 2 of part X of chapter 58 of the laws of 2015, is amended to read as follows: (a) An account which shall be credited with all license fees and penalties collected pursuant to paragraph (b) of subdivision one and paragraph (a) of subdivision four of section one hundred seventy-four of this article EXCEPT AS PROVIDED IN SECTION ONE HUNDRED SEVENTY-NINE-A OF THIS PART, the portion of the surcharge collected pursuant to paragraph (d) of subdivision four of section one hundred seventy-four of this article, penalties collected pursuant to paragraph (b) of subdivision four of section one hundred seventy-four-a of this article, money collected pursuant to section one hundred eighty-seven of this [article] PART, all penalties collected pursuant to section one hundred ninety-two of this article, and registration fees collected pursuant to subdivision two of section 17-1009 of the environmental conservation law. § 2. The navigation law is amended by adding a new section 179-a to read as follows: § 179-A. NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT. 1. THERE IS HEREBY CREATED AN ACCOUNT WITHIN THE MISCELLANEOUS CAPITAL PROJECTS FUND, THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT. THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT SHALL CONSIST OF LICENSE FEES RECEIVED BY THE STATE S. 2008 132 A. 3008 PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE, IN AN AMOUNT EQUAL TO EXPENDITURES MADE FROM THIS ACCOUNT. 2. THESE MONEYS, AFTER APPROPRIATION BY THE LEGISLATURE, AND WITHIN THE AMOUNTS SET FORTH AND FOR THE SEVERAL PURPOSES SPECIFIED, SHALL BE AVAILABLE TO REIMBURSE THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR EXPENDITURES ASSOCIATED WITH THE PURPOSES OF COSTS INCURRED UNDER SECTION ONE HUNDRED SEVENTY-SIX OF THIS ARTICLE, INCLUDING CLEANUP AND REMOVAL OF PETROLEUM SPILLS, AND OTHER CAPITAL, INVESTIGATION, MAINTE- NANCE AND REMEDIATION COSTS. 3. ALL PAYMENTS MADE FROM THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT SHALL BE MADE BY THE ADMINISTRATOR UPON CERTIFICATION BY THE COMMISSIONER. 4. SPENDING PURSUANT TO THIS SECTION SHALL BE INCLUDED IN THE ANNUAL REPORT REQUIRED BY SECTION ONE HUNDRED NINETY-SIX OF THIS ARTICLE. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART II Section 1. This act shall be known and may be cited as the "clean water infrastructure act of 2017". § 2. Article 15 of the environmental conservation law is amended by adding a new title 33 to read as follows: TITLE 33 SOURCE WATER PROTECTION PROJECTS SECTION 15-3301. DEFINITIONS. 15-3303. LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION. § 15-3301. DEFINITIONS. AS USED IN THIS TITLE THE FOLLOWING TERMS SHALL MEAN: 1. "LAND ACQUISITION PROJECTS" MEANS OPEN SPACE ACQUISITION PROJECTS UNDERTAKEN WITH WILLING SELLERS INCLUDING, BUT NOT LIMITED TO, THE PURCHASE OF CONSERVATION EASEMENTS, UNDERTAKEN BY A MUNICIPALITY, A NOT-FOR-PROFIT CORPORATION, OR PURCHASE OF CONSERVATION EASEMENTS BY A SOIL AND WATER CONVERSATION DISTRICT. 2. "MUNICIPALITY" MEANS THE SAME AS SUCH TERM AS DEFINED IN SECTION 56-0101 OF THIS CHAPTER. 3. "NOT-FOR-PROFIT CORPORATION" MEANS A CORPORATION FORMED PURSUANT TO THE NOT-FOR-PROFIT CORPORATION LAW AND QUALIFIED FOR TAX-EXEMPT STATUS UNDER THE FEDERAL INTERNAL REVENUE CODE. 4. "SOIL AND WATER CONSERVATION DISTRICT" MEANS THE SAME AS SUCH TERM AS DEFINED IN SECTION FIVE OF THE SOIL AND WATER CONSERVATION DISTRICTS LAW. 5. "STATE ASSISTANCE PAYMENT" MEANS PAYMENT OF THE STATE SHARE OF THE COST OF PROJECTS AUTHORIZED BY THIS TITLE TO PRESERVE, ENHANCE, RESTORE AND IMPROVE THE QUALITY OF THE STATE'S ENVIRONMENT. § 15-3303. LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION. 1. THE COMMISSIONER IS AUTHORIZED TO PROVIDE STATE ASSISTANCE TO MUNI- CIPALITIES, NOT-FOR-PROFIT CORPORATIONS AND SOIL AND WATER CONSERVATION DISTRICTS TO UNDERTAKE LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION, IN COOPERATION WITH WILLING SELLERS. PROJECTS SHALL DEVELOP, EXPAND OR ENHANCE WATER QUALITY PROTECTION, INCLUDING BUT NOT LIMITED TO AQUIFERS, WATERSHEDS, RESERVOIRS, LAKES, RIVERS AND STREAMS. THE DEPARTMENT SHALL SET FORTH THE STATE SHARE OF LAND ACQUISITION PROJECTS IN ANY REQUEST FOR PROPOSAL ISSUED TO SOLICIT PROJECTS. S. 2008 133 A. 3008 2. ANY CONSERVATION EASEMENT ACQUIRED PURSUANT TO THIS SECTION THAT ENCUMBERS LANDS IN A COUNTY DESIGNATED STATE CERTIFIED AGRICULTURAL DISTRICT SHALL ALLOW AGRICULTURAL ACTIVITY ON SUCH LANDS PROVIDED THAT THE ACTIVITY COMPLIES WITH ALL APPLICABLE TECHNICAL STANDARDS ESTAB- LISHED BY THE NATURAL RESOURCES CONSERVATION SERVICE. 3. IN EVALUATING PROJECTS PURSUANT TO THIS SECTION, THE DEPARTMENT SHALL GIVE PRIORITY FIRST TO PROJECTS WHICH PROTECT OR RECHARGE DRINKING WATER SOURCES AND WATERSHEDS INCLUDING RIPARIAN BUFFERS AND SECOND TO PROJECTS WHICH IMPROVE RESILIENCE. 4. NO STATE ASSISTANCE MAY BE PROVIDED PURSUANT TO THIS SECTION TO FUND ANY PROJECT COMMITTED TO IN ANY AGREEMENT PURSUANT TO A FILTRATION AVOIDANCE DETERMINATION. 5. THE COMMISSIONER MAY ENTER INTO A CONTRACT WITH A MUNICIPALITY OR A NOT-FOR-PROFIT CORPORATION FOR THE UNDERTAKING OF A LAND ACQUISITION PROJECT. COSTS UNDER SUCH CONTRACTS ARE SUBJECT TO FINAL COMPUTATION BY THE DEPARTMENT UPON COMPLETION OF THE PROJECT, AND SHALL NOT EXCEED THE MAXIMUM ELIGIBLE COST SET FORTH IN ANY SUCH CONTRACT. 6. THE COST OF A SOURCE WATER PROTECTION LAND ACQUISITION PROJECT MAY INCLUDE THE COST OF PREPARATION OF A PLAN FOR THE PRESERVATION OF THE REAL PROPERTY INTEREST IN LAND ACQUIRED PURSUANT TO THIS SECTION EXCEPT WHERE SUCH CONSIDERATIONS HAVE ALREADY BEEN UNDERTAKEN AS PART OF ANY EXISTING PLAN APPLICABLE TO THE NEWLY ACQUIRED REAL PROPERTY INTEREST IN LAND. 7. THE SOIL AND WATER CONSERVATION COMMITTEE IN CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE AND MARKETS IS AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS TO COUNTY SOIL AND WATER CONSERVATION DISTRICTS FOR LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION CONSISTENT WITH SECTION ELEVEN-B OF THE SOIL AND WATER CONSERVATION DISTRICTS LAW. PROJECTS SHALL DEVELOP, EXPAND OR ENHANCE WATER QUALITY PROTECTION, INCLUDING BUT NOT LIMITED TO AQUIFERS, WATERSHEDS, RESERVOIRS, LAKES, RIVERS AND STREAMS. SUCH COMMITTEE SHALL GIVE PRIORITY TO PROJECTS WHICH ESTABLISH BUFFERS FROM WATERS WHICH SERVES AS OR ARE TRIBUTARIES TO DRINKING WATER SUPPLIES FOR SUCH PROJECTS USING STATE ASSISTANCE PURSUANT TO THIS SECTION. 8. A. REAL PROPERTY ACQUIRED, DEVELOPED, IMPROVED, RESTORED OR REHA- BILITATED BY OR THROUGH A MUNICIPALITY WITH FUNDS MADE AVAILABLE PURSU- ANT TO THIS TITLE SHALL NOT BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF OR USED FOR OTHER THAN WATER QUALITY PROTECTION PURPOSES WITHOUT APPROVAL FROM THE DEPARTMENT, WHICH SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL ENVIRONMENTAL VALUE AND FAIR MARKET VALUE AND REASONABLY EQUIVALENT USEFULNESS AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF, AND SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE COMMISSIONER; PROVIDED, HOWEVER, THAT SUCH REAL PROPERTY MAY BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF TO THE STATE, ANOTHER MUNICIPALITY OR A NOT-FOR-PROFIT FOR THE SAME PURPOSES. B. REAL PROPERTY ACQUIRED BY A NOT-FOR-PROFIT ORGANIZATION WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE SHALL NOT BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF, EXCEPT TO A MUNICIPALITY OR THE STATE FOR THE SAME PURPOSES, WITHOUT THE APPROVAL OF THE DEPARTMENT. 9. IF THE STATE ACQUIRES A REAL PROPERTY INTEREST IN LAND PURCHASED BY A MUNICIPALITY OR NOT-FOR-PROFIT WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE, THE STATE SHALL PAY THE FAIR MARKET VALUE OF SUCH INTEREST LESS THE AMOUNT OF FUNDING PROVIDED BY THE STATE PURSUANT TO THIS SECTION. S. 2008 134 A. 3008 § 3. The public health law is amended by adding a new section 1113 to read as follows: § 1113. LEAD SERVICE LINE REPLACEMENT GRANT PROGRAM. NOTWITHSTANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW OR ANY INCON- SISTENT PROVISION OF LAW TO THE CONTRARY, AND WITHIN AMOUNTS APPROPRI- ATED THEREFOR, THE DEPARTMENT SHALL AWARD GRANTS TO MUNICIPALITIES WITH- OUT A FORMAL COMPETITIVE PROCESS, FOR PURPOSES OF REPLACING LEAD SERVICE LINES USED TO SUPPLY DRINKING WATER. WHEN DETERMINING WHICH MUNICI- PALITIES SHALL RECEIVE AWARDS AND THE AMOUNT OF SUCH AWARDS, THE DEPART- MENT SHALL CONSIDER FOR EACH MUNICIPALITY THE COST OF REPLACING LEAD SERVICE LINES AND THE NUMBER OF PERSONS WHO RECEIVE DRINKING WATER FROM SUCH SERVICE LINES, AND SHALL GIVE PRIORITY TO THOSE MUNICIPALITIES WITH LOW-INCOME COMMUNITIES, ACCORDING TO A METHODOLOGY AS SHALL BE DETER- MINED BY THE DEPARTMENT. § 4. Article 27 of the environmental conservation law is amended by adding a new title 12 to read as follows: TITLE 12 CLEANUP AND ABATEMENT OF CERTAIN SOLID WASTE SITE AND DRINKING WATER CONTAMINATION SECTION 27-1201. DEFINITIONS. 27-1203. MITIGATION AND CLEANUP OF SOLID WASTE SITES. 27-1205. MITIGATION OF CONTAMINANTS IN DRINKING WATER. 27-1207. USE AND REPORTING OF SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 27-1209. RULES AND REGULATIONS. § 27-1201. DEFINITIONS. WHEN USED IN THIS TITLE: 1. "MITIGATION AND CLEANUP" MEANS THE INVESTIGATION, SAMPLING, MANAGE- MENT, REMOVAL, REMEDIATION OR RESTORATION OF A SOLID WASTE SITE AND ALL OTHER ACTIONS REQUIRED TO RESTORE OR PROTECT DRINKING WATER SUPPLIES, GROUNDWATER, OR OTHER ENVIRONMENTAL MEDIA AND RESTORATION OF THE SITE TO A CONDITION THAT IT IS NO LONGER CAUSING OR CONTRIBUTING TO POLLUTION OF GROUNDWATER, WATER SUPPLIES OR THE ENVIRONMENT. 2. "SOLID WASTE SITE" MEANS A DISPOSAL FACILITY AS DEFINED IN REGU- LATIONS WHERE SOLID WASTE HAS BEEN IMPROPERLY DISPOSED AS DETERMINED BY THE DEPARTMENT OR A COURT OF COMPETENT JURISDICTION, OR AN ACTIVE OR INACTIVE SOLID WASTE MANAGEMENT FACILITY AS DEFINED IN REGULATIONS WHERE AN IMPACT TO DRINKING WATER SUPPLIES, GROUNDWATER CONTAMINATION OR OTHER ENVIRONMENTAL CONTAMINATION IS KNOWN OR SUSPECTED. SOLID WASTE SITE SHALL NOT INCLUDE A SITE SUBJECT TO INVESTIGATION OR REMEDIATION PURSU- ANT TO TITLE THIRTEEN OR FOURTEEN OF THIS ARTICLE. 3. "SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT" MEANS THE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION ONE OF SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW. § 27-1203. MITIGATION AND CLEANUP OF SOLID WASTE SITES. 1. THE SOLID WASTE SITE CLEANUP PRIORITIES IN THIS STATE ARE: A. FIRST, TO MITIGATE AND CLEANUP ANY SOLID WASTE SITE CAUSING OR CONTRIBUTING TO IMPAIRMENTS OF DRINKING WATER QUALITY; AND B. SECOND, TO MITIGATE AND CLEANUP SOLID WASTE SITES WHICH ARE CAUSING OR CONTRIBUTING TO OTHER ENVIRONMENTAL CONTAMINATION WHICH MAY IMPACT PUBLIC HEALTH. 2. THE OWNER OR OPERATOR OF A SOLID WASTE SITE SHALL, AT THE DEPART- MENT'S WRITTEN REQUEST, SUBMIT TO AND COOPERATE WITH ANY AND ALL REMEDI- AL MEASURES DEEMED NECESSARY BY THE DEPARTMENT FOR THE MITIGATION AND CLEANUP OF SOLID WASTE. THE DEPARTMENT MAY IMPLEMENT ALL NECESSARY MEAS- S. 2008 135 A. 3008 URES TO MITIGATE AND CLEANUP THE SOLID WASTE SITE AFTER MAKING ALL REASONABLE EFFORTS TO IDENTIFY AND COMPEL THE OWNER OR OPERATOR TO COOP- ERATE WITH THE DEPARTMENT. THE DEPARTMENT IS NOT REQUIRED TO COMMENCE A HEARING OR ISSUE AN ORDER PRIOR TO USING MONEYS FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 3. ALL NECESSARY AND REASONABLE EXPENSES OF MITIGATION AND CLEANUP OF A SOLID WASTE SITE SHALL BE PAID BY THE PERSON OR PERSONS WHO OWNED, OPERATED OR MAINTAINED THE SOLID WASTE SITE EXCEPT AS PROVIDED IN SUBDI- VISION FOUR OF THIS SECTION, OR FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT AND SHALL BE A DEBT RECOVERABLE BY THE STATE FROM ALL PERSONS WHO OWNED, OPERATED OR MAINTAINED THE SOLID WASTE SITE, AND A LIEN MAY BE IMPOSED UPON REAL PROPERTY PURSUANT TO SUBDIVISION SIXTEEN OF SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW, AND A CHARGE MAY BE PLACED ON THE PREMISES UPON WHICH THE SOLID WASTE SITE IS MAINTAINED AND UPON ANY REAL OR PERSONAL PROPERTY, EQUIPMENT, VEHICLES, AND INVENTORY CONTROLLED BY SUCH PERSON OR PERSONS. MONEYS RECOVERED SHALL BE PAID TO THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 4. A. THE DEPARTMENT SHALL MAKE ALL REASONABLE EFFORTS TO RECOVER THE FULL AMOUNT OF ANY FUNDS EXPENDED FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT FOR MITIGATION AND CLEANUP THROUGH LITIGATION OR COOPERATIVE AGREEMENTS. ANY AND ALL MONEYS RECOVERED, REPAID OR REIM- BURSED PURSUANT TO THIS SECTION SHALL BE DEPOSITED WITH THE COMPTROLLER AND CREDITED TO SUCH FUND. B. WHEN A MUNICIPALITY DEVELOPS AND IMPLEMENTS A PLAN TO INVESTIGATE, MITIGATE AND CLEANUP A SOLID WASTE SITE, AS APPROVED BY THE DEPARTMENT, FOR A SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY OR WHEN THE DEPARTMENT, PURSUANT TO AN AGREEMENT WITH A MUNICIPALITY, DEVELOPS AND IMPLEMENTS SUCH A PLAN, THE COMMISSIONER SHALL, IN THE NAME OF THE STATE, AGREE IN SUCH AGREEMENT TO PROVIDE FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT, WITHIN THE LIMITATIONS OF APPROPRI- ATIONS THEREFOR, SEVENTY-FIVE PERCENT OF THE ELIGIBLE DESIGN AND CONSTRUCTION COSTS OF SUCH PROGRAM WHICH ARE NOT RECOVERED FROM OR REIM- BURSED OR PAID BY A RESPONSIBLE PARTY OR THE FEDERAL GOVERNMENT. 5. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO ENTER ALL SOLID WASTE SITES FOR THE PURPOSE OF INVESTIGATION, MITIGATION AND CLEANUP. § 27-1205. MITIGATION OF CONTAMINANTS IN DRINKING WATER. 1. WHENEVER THE COMMISSIONER OF HEALTH HAS REQUIRED A PUBLIC WATER SYSTEM TO TAKE ACTION TO REDUCE EXPOSURE TO CONTAMINANTS PURSUANT TO SECTION ELEVEN HUNDRED TWELVE OF THE PUBLIC HEALTH LAW, OR AT ANY TIME UPON THE REQUEST OF THE COMMISSIONER OF HEALTH, THE DEPARTMENT MAY UNDERTAKE ALL REASONABLE AND NECESSARY MEASURES TO ENSURE THAT SAFE DRINKING WATER IS EXPEDITIOUSLY MADE AVAILABLE TO ALL PEOPLE IN ANY AREA OF THE STATE IN WHICH CONTAMINATION IS KNOWN TO BE PRESENT. SUCH AREA SHALL INCLUDE, AT A MINIMUM, ALL PROPERTIES SERVED BY THE WATER SYSTEM AND ANY LAND AND ANY SURFACE OR UNDERGROUND WATER SOURCES IDENTIFIED BY THE DEPARTMENT OR DEPARTMENT OF HEALTH AS CAUSING OR CONTRIBUTING TO THE CONTAMINATION. THE DEPARTMENT'S MEASURES MAY INCLUDE THE INSTALLATION OF TREATMENT SYSTEMS, INCLUDING BUT NOT LIMITED TO INSTALLATION OF ONSITE WATER SUPPLIES, OR THE PROVISION OF ALTERNATIVE WATER SUPPLY SOURCES TO ENSURE THAT WATER MEETS APPLICABLE MAXIMUM CONTAMINANT LEVELS OR OTHER THRESHOLD CONCENTRATIONS SET BY THE DEPARTMENT OF HEALTH. 2. IF THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF HEALTH, IS ABLE TO IDENTIFY A SOURCE OF CONTAMINATION WHICH CAUSED OR CONTRIB- UTED TO CONTAMINATION, THE DEPARTMENT SHALL REQUIRE THE OWNER OR OPERA- TOR OF THE SOURCE OF CONTAMINATION TO INVESTIGATE, DEVELOP AND IMPLEMENT A PLAN TO REMEDIATE THE SOURCE OF CONTAMINATION. S. 2008 136 A. 3008 3. THE DEPARTMENT SHALL MAKE ALL REASONABLE EFFORTS TO RECOVER THE FULL AMOUNT OF ANY FUNDS EXPENDED FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT FOR A DRINKING WATER RESPONSE THROUGH LITIGATION OR COOPERATIVE AGREEMENTS. ANY AND ALL MONEYS RECOVERED, REPAID OR REIMBURSED PURSUANT TO THIS SECTION SHALL BE DEPOSITED WITH THE COMP- TROLLER AND CREDITED TO SUCH ACCOUNT. A. WHEN A MUNICIPALITY DEVELOPS AND IMPLEMENTS A PLAN TO RESPOND TO DRINKING WATER CONTAMINATION, DETERMINED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, AND THE PLAN IS APPROVED BY THE DEPARTMENT, FOR A SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY OR WHEN THE DEPARTMENT, PURSUANT TO AN AGREEMENT WITH A MUNICIPALITY, DEVELOPS AND IMPLEMENTS SUCH A PLAN, THE COMMISSIONER SHALL, IN THE NAME OF THE STATE, AGREE IN SUCH AGREEMENT TO PROVIDE FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT, WITHIN THE LIMITATIONS OF APPROPRI- ATIONS THEREFOR, SEVENTY-FIVE PERCENT OF THE ELIGIBLE DESIGN AND CONSTRUCTION COSTS OF SUCH PROGRAM AND WHICH ARE NOT RECOVERED FROM OR REIMBURSED OR PAID BY A RESPONSIBLE PARTY OR THE FEDERAL GOVERNMENT. § 27-1207. USE AND REPORTING OF SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 1. THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT SHALL BE MADE AVAILABLE TO THE DEPARTMENT FOR THE FOLLOWING PURPOSES: A. ENUMERATION AND ASSESSMENT OF SOLID WASTE SITES; B. INVESTIGATION AND ENVIRONMENTAL CHARACTERIZATION OF SOLID WASTE SITES, INCLUDING ENVIRONMENTAL SAMPLING; C. MITIGATION AND CLEANUP OF SOLID WASTE SITES; D. MITIGATION OF DRINKING WATER CONTAMINATION; E. MONITORING OF SOLID WASTE SITES; AND F. ADMINISTRATION AND ENFORCEMENT OF THE REQUIREMENTS OF THIS TITLE. 2. ON OR BEFORE JULY FIRST, TWO THOUSAND NINETEEN AND JULY FIRST OF EACH SUCCEEDING YEAR, THE DEPARTMENT SHALL REPORT ON THE STATUS OF THE PROGRAM. § 27-1209. RULES AND REGULATIONS. THE COMMISSIONER SHALL HAVE THE POWER TO PROMULGATE RULES AND REGU- LATIONS NECESSARY AND APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS TITLE. § 5. Subdivisions 1, 2 and 6 and paragraphs (i) and (j) of subdivision 3 of section 97-b of the state finance law, subdivision 1 as amended and paragraph (j) of subdivision 3 as added by section 4 of part I of chap- ter 1 of the laws of 2003, subdivision 2 as amended by section 5 of part X of chapter 58 of the laws of 2015, paragraph (i) of subdivision 3 as amended by section 1 of part R of chapter 59 of the laws of 2007, subdi- vision 6 as amended by chapter 38 of the laws of 1985, are amended and a new paragraph (k) is added to subdivision 3 to read as follows: 1. There is hereby established in the custody of the state comptroller a nonlapsing revolving fund to be known as the "hazardous waste remedial fund", which shall consist of [a "site investigation and construction account",] an "industry fee transfer account", an "environmental resto- ration project account", "hazardous waste cleanup account", [and] a "hazardous waste remediation oversight and assistance account" AND A "SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT". 2. Such fund shall consist of all of the following: (a) [moneys appropriated for transfer to the fund's site investigation and construction account; (b) all fines and other sums accumulated in the fund prior to April first, nineteen hundred eighty-eight pursuant to section 71-2725 of the environmental conservation law for deposit in the fund's site investigation and construction account; (c)] all moneys S. 2008 137 A. 3008 collected or received by the department of taxation and finance pursuant to section 27-0923 of the environmental conservation law for deposit in the fund's industry fee transfer account; [(d)] (B) all moneys paid into the fund pursuant to section 72-0201 of the environmental conservation law which shall be deposited in the fund's industry fee transfer account; [(e)] (C) all moneys paid into the fund pursuant to paragraph (b) of subdivision one of section one hundred eighty-six of the naviga- tion law which shall be deposited in the fund's industry fee transfer account; [(f)] (D) all [monies] MONEYS recovered under sections 56-0503, 56-0505 and 56-0507 of the environmental conservation law into the fund's environmental restoration project account; [(g)] (E) all fees paid into the fund pursuant to section 72-0402 of the environmental conservation law which shall be deposited in the fund's industry fee transfer account; [(h)] (F) payments received for all state costs incurred in negotiating and overseeing the implementation of brownfield site cleanup agreements pursuant to title fourteen of article twenty- seven of the environmental conservation law shall be deposited in the hazardous waste remediation oversight and assistance account; (G) ALL MONEYS RECOVERED PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW INTO THE FUND'S SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT and [(i)] (H) other moneys credited or trans- ferred thereto from any other fund or source for deposit in the fund's [site investigation and construction] HAZARDOUS WASTE CLEANUP account. (i) with respect to moneys in the hazardous waste remediation over- sight and assistance account, non-bondable costs associated with hazard- ous waste remediation projects. Such costs shall be limited to agency staff costs associated with the administration of state assistance for brownfield opportunity areas pursuant to section nine hundred seventy-r of the general municipal law, agency staff costs associated with the administration of technical assistance grants pursuant to titles thir- teen and fourteen of article twenty-seven of the environmental conserva- tion law, and costs of the department of environmental conservation related to the geographic information system required by section 3-0315 of the environmental conservation law; [and] (j) with respect to moneys in the hazardous waste remediation over- sight and assistance account, technical assistance grants pursuant to titles thirteen and fourteen of article twenty-seven of the environ- mental conservation law[.]; AND (K) WITH RESPECT TO MONEYS IN THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT, WHEN ALLOCATED, SHALL BE AVAILABLE TO THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO UNDERTAKE MITIGATION AND CLEANUP AS THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION MAY DETERMINE NECESSARY DUE TO ENVIRONMENTAL CONDITIONS RELATED TO A SOLID WASTE SITE PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW WHICH INDICATES THAT CONDITIONS ON SUCH PROPERTY ARE IMPAIRING DRINKING WATER QUALITY, GROUND WATER QUALITY OR CREATING OTHER ENVIRONMENTAL CONTAMINATION AND TO ENSURE THE PROVISION OF SAFE DRINKING WATER IN AREAS DETERMINED TO HAVE DRINKING WATER CONTAMINATION BY THE DEPARTMENT OF HEALTH. 6. The commissioner of the department of environmental conservation shall make all reasonable efforts to recover the full amount of any funds expended from the fund pursuant to paragraph (a) AND PARAGRAPH (K) of subdivision three of this section through litigation or cooperative agreements with responsible persons. Any and all moneys recovered or reimbursed pursuant to this section through voluntary agreements or S. 2008 138 A. 3008 court orders shall be deposited with the comptroller and credited to the account of such fund from which such expenditures were made. § 6. Section 97-b of the state finance law is amended by adding a new subdivision 16 to read as follows: 16. (A) ALL COSTS AND DAMAGES FOR WHICH A PERSON IS LIABLE TO THE STATE OF NEW YORK UNDER TITLES TWELVE AND THIRTEEN OF ARTICLE TWENTY- SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW SHALL CONSTITUTE A LIEN IN FAVOR OF THE STATE UPON ALL REAL PROPERTY AND RIGHTS TO SUCH PROPERTY WHICH: (I) BELONGS TO SUCH PERSON; AND (II) ARE SUBJECT TO MITIGATION OR CLEANUP PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRON- MENTAL CONSERVATION LAW OR AN INACTIVE HAZARDOUS WASTE DISPOSAL SITE REMEDIAL PROGRAM PURSUANT TO TITLE THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW. (B) THE LIEN IMPOSED BY THIS SUBDIVISION SHALL ARISE AT THE LATER OF THE FOLLOWING: (I) THE TIME COSTS ARE FIRST INCURRED BY THE STATE WITH RESPECT TO A RESPONSE ACTION PURSUANT TO TITLES TWELVE AND THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW; OR (II) THE TIME THAT THE PERSON REFERRED TO IN PARAGRAPH (A) OF THIS SUBDIVISION IS PROVIDED (BY CERTIFIED OR REGISTERED MAIL) WRITTEN NOTICE OF POTENTIAL LIABILITY. SUCH LIEN SHALL CONTINUE UNTIL THE LIABILITY FOR THE COSTS, OR A JUDGMENT AGAINST THE PERSON ARISING OUT OF SUCH LIABILITY, IS SATISFIED, BECOMES UNENFORCEABLE, IS OTHERWISE VACATED BY COURT ORDER OR IS RELEASED BY THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION WHERE A LEGALLY ENFORCEABLE AGREEMENT SATISFACTORY TO THE COMMISSIONER HAS BEEN EXECUTED RELATING TO THE CLEANUP AND REMOVAL COSTS AND DAMAGE COSTS OR REIMBURSING THE HAZARDOUS WASTE REMEDIAL FUND FOR CLEANUP AND REMOVAL COSTS AND DAMAGE COSTS, OR THE ATTACHMENT OR ENFORCEMENT OF THE LIEN IS DETERMINED BY THE COMMISSIONER NOT TO BE IN THE PUBLIC INTEREST. (C) THE LIEN SHALL STATE: (I) THAT THE LIENOR IS THE HAZARDOUS WASTE REMEDIAL FUND; (II) THE NAME OF RECORD OWNER OF THE REAL PROPERTY ON WHICH THE LIEN HAS ATTACHED; (III) THE REAL PROPERTY SUBJECT TO THE LIEN, WITH A DESCRIPTION THEREOF SUFFICIENT FOR IDENTIFICATION; (IV) THAT THE REAL PROPERTY DESCRIBED IN THE NOTICE IS OR HAS BEEN SUBJECT TO MITIGATION OR CLEANUP PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW OR AN INACTIVE HAZARDOUS WASTE DISPOSAL SITE REMEDIAL PROGRAM PURSUANT TO TITLE THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW AND THAT COSTS HAVE BEEN INCURRED BY THE LIENOR AS A RESULT OF SUCH ACTIVITIES; (V) THAT THE OWNER IS POTENTIALLY LIABLE FOR COSTS; AND (VI) THAT A LIEN HAS ATTACHED TO THE DESCRIBED REAL PROPERTY. (D) THE LIEN IMPOSED BY THIS SUBDIVISION SHALL BE SUBJECT TO THE RIGHTS OF ANY PURCHASER ENTITLED TO THE AFFIRMATIVE DEFENSE SET FORTH IN SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION 27-1323 OF THE ENVIRONMENTAL CONSERVATION LAW, HOLDER OF A SECURITY INTEREST, OR JUDGMENT LIEN CREDITOR WHOSE INTEREST IS PERFECTED UNDER NEW YORK STATE LAW BEFORE NOTICE OF THE LIEN HAS BEEN FILED PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION. (E) A NOTICE OF LIEN IMPOSED BY THIS SUBDIVISION SHALL BE FILED PURSU- ANT TO THE REQUIREMENTS OF SECTION ONE HUNDRED EIGHTY-ONE-C OF THE NAVI- GATION LAW; PROVIDED HOWEVER, THAT A COPY OF THE NOTICE OF LIEN IS SERVED UPON THE OWNER OF THE REAL PROPERTY SUBJECT TO THE LIEN IN ACCORDANCE WITH THE PROVISIONS OF SECTION ELEVEN OF THE LIEN LAW. (F) THE COSTS CONSTITUTING THE LIEN MAY BE RECOVERED IN AN ACTION IN REM IN A COURT OF COMPETENT JURISDICTION. NOTHING IN THIS SUBDIVISION SHALL AFFECT THE RIGHT OF THE STATE TO BRING AN ACTION AGAINST ANY PERSON TO RECOVER ALL COSTS AND DAMAGES FOR WHICH SUCH PERSON IS LIABLE S. 2008 139 A. 3008 UNDER TITLES TWELVE AND THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRON- MENTAL CONSERVATION LAW. § 7. The public authorities law is amended by adding a new section 1285-s to read as follows: § 1285-S. NEW YORK STATE REGIONAL WATER INFRASTRUCTURE PROJECTS. 1. FOR PURPOSES OF THIS SECTION, "MUNICIPALITY" MEANS ANY COUNTY, CITY, TOWN, VILLAGE, DISTRICT CORPORATION, COUNTY OR TOWN IMPROVEMENT DISTRICT, ANY PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY ESTABLISHED PURSUANT TO THE LAWS OF NEW YORK OR ANY AGENCY OF NEW YORK STATE WHICH IS EMPOWERED TO CONSTRUCT AND OPERATE A WASTE WATER OR DRINKING WATER INFRASTRUCTURE PROJECT, OR ANY TWO OR MORE OF THE FOREGOING WHICH ARE ACTING JOINTLY IN CONNECTION WITH SUCH A PROJECT. 2. (A) THE CORPORATION SHALL ESTABLISH, WITH FUNDS APPROPRIATED FOR SUCH PURPOSE, A NEW YORK STATE REGIONAL WATER INFRASTRUCTURE GRANTS PROGRAM TO PROVIDE STATE ASSISTANCE TO MUNICIPALITIES FOR WASTE WATER AND DRINKING WATER INFRASTRUCTURE PROJECTS THAT HAVE A REGIONAL IMPACT OR DEMONSTRATED EFFICIENCIES. SUCH REGIONAL PROJECTS SHALL BENEFIT OR SERVE MULTIPLE MUNICIPALITIES, AND MAY INCLUDE SHARED INFRASTRUCTURE, CONSOLIDATION OR INTERCONNECTION OF SYSTEMS OF MULTIPLE MUNICIPALITIES, OR PROJECTS THAT OTHERWISE ACHIEVE EFFICIENCIES. (B) A MUNICIPALITY MAY MAKE AN APPLICATION FOR A REGIONAL WATER INFRASTRUCTURE GRANT IN A MANNER, FORM AND TIMEFRAME AND CONTAINING SUCH INFORMATION AS THE CORPORATION MAY REQUIRE PROVIDED HOWEVER, SUCH REQUIREMENTS SHALL NOT INCLUDE A REQUIREMENT FOR PRIOR LISTING ON THE INTENDED USE PLAN. 3. MONEYS FOR THE REGIONAL WATER INFRASTRUCTURE GRANTS PROGRAM SHALL BE SEGREGATED FROM ALL OTHER FUNDS OF OR IN THE CUSTODY OF THE CORPO- RATION AND SHALL ONLY BE USED TO PROVIDE STATE ASSISTANCE TO MUNICI- PALITIES IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND TO PROVIDE FOR THE ADMINISTRATIVE AND MANAGEMENT COSTS OF THE PROGRAM. 4. MONEYS FOR THE REGIONAL WATER INFRASTRUCTURE GRANTS PROGRAM MAY BE INVESTED AS PROVIDED IN SUBDIVISION SIX OF SECTION TWELVE HUNDRED EIGHT- Y-FIVE-J OF THIS TITLE. 5. CONTRACTS FOR THE CONSTRUCTION OF PROJECTS FINANCED WITH STATE ASSISTANCE MADE AVAILABLE PURSUANT TO THIS SECTION SHALL BE SUBJECT TO THE REQUIREMENTS OF SECTION TWO HUNDRED TWENTY OF THE LABOR LAW AND SHALL BE CONSIDERED "STATE CONTRACTS" SUBJECT TO THE REQUIREMENTS AND PROVISIONS OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. § 8. Section 1285-q of the public authorities law, as added by section 6 of part I of chapter 1 of the laws of 2003, subdivisions 1 and 3 as amended by section 43 of part BB of chapter 56 of the laws of 2015, is amended to read as follows: § 1285-q. Financing of hazardous waste site remediation AND SOLID WASTE AND DRINKING WATER RESPONSE SITE projects. In order to effectuate the purposes of this title, the corporation shall have the following additional special powers: 1. Subject to chapter fifty-nine of the laws of two thousand, but notwithstanding any other provisions of law to the contrary, in order to assist the corporation in undertaking the administration and the financ- ing of hazardous waste site remediation projects for payment of the state's share of the costs of the remediation of hazardous waste sites AND SOLID WASTE AND DRINKING WATER RESPONSE SITES, in accordance with [title] TITLES TWELVE AND thirteen of article twenty-seven of the envi- ronmental conservation law and section ninety-seven-b of the state finance law, and for payment of state costs associated with the remedi- ation of offsite contamination at significant threat sites as provided S. 2008 140 A. 3008 in section 27-1411 of the environmental conservation law, and beginning in state fiscal year two thousand fifteen - two thousand sixteen for environmental restoration projects pursuant to title five of article fifty-six of the environmental conservation law provided that funding for such projects shall not exceed ten percent of the funding appropri- ated for the purposes of financing hazardous waste site remediation projects, pursuant to [title] TITLES TWELVE AND thirteen of article twenty-seven of the environmental conservation law in any state fiscal year pursuant to capital appropriations made to the department of envi- ronmental conservation, the director of the division of budget and the corporation are each authorized to enter into one or more service contracts, none of which shall exceed twenty years in duration, upon such terms and conditions as the director and the corporation may agree, so as to annually provide to the corporation in the aggregate, a sum not to exceed the annual debt service payments and related expenses required for any bonds and notes authorized pursuant to section twelve hundred ninety of this title. Any service contract entered into pursuant to this section shall provide that the obligation of the state to fund or to pay the amounts therein provided for shall not constitute a debt of the state within the meaning of any constitutional or statutory provision and shall be deemed executory only to the extent of moneys available for such purposes, subject to annual appropriation by the legislature. Any such service contract or any payments made or to be made thereunder may be assigned and pledged by the corporation as security for its bonds and notes, as authorized pursuant to section twelve hundred ninety of this title. 2. The comptroller is hereby authorized to receive from the corpo- ration any portion of bond proceeds paid to provide funds for or reim- burse the state for its costs associated with any hazardous waste site remediation AND SOLID WASTE AND DRINKING WATER RESPONSE projects and to credit such amounts to the capital projects fund or any other appropri- ate fund. 3. The maximum amount of bonds that may be issued for the purpose of financing hazardous waste site remediation AND SOLID WASTE AND DRINKING WATER RESPONSE projects and environmental restoration projects author- ized by this section shall not exceed two billion two hundred million dollars and shall not exceed one hundred million dollars for appropri- ations enacted for any state fiscal year, provided that the bonds not issued for such appropriations may be issued pursuant to reappropriation in subsequent fiscal years. No bonds shall be issued for the repayment of any new appropriation enacted after March thirty-first, two thousand twenty-six for hazardous waste site remediation projects authorized by this section. Amounts authorized to be issued by this section shall be exclusive of bonds issued to fund any debt service reserve funds, pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay bonds or notes previously issued. Such bonds and notes of the corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by this state to the corporation for debt service and related expenses pursuant to any service contracts executed pursuant to subdivision one of this section, and such bonds and notes shall contain on the face thereof a statement to such effect. § 9. Subdivision 9 of section 97-b of the state finance law is REPEALED. S. 2008 141 A. 3008 § 10. Subdivision 4 of section 52-0303 of the environmental conserva- tion law, as added by chapter 512 of the laws of 1986, is amended to read as follows: 4. A provision that in the event that any federal payments and respon- sible party payments become available which were not included in the calculation of the state share pursuant to subdivision two of this section, the amount of the state share shall be recalculated accordingly and the municipality shall pay to the state for deposit in the [design and construction] HAZARDOUS WASTE CLEANUP account of the hazardous waste remedial fund established under section ninety-seven-b of the state finance law the amount by which the state payment actually made exceeds the recalculated state share. § 11. The opening paragraph, and paragraphs i and j of subdivision 4 of section 27-1305 of the environmental conservation law, as amended by section 3 of part E of chapter 1 of the laws of 2003, are amended to read as follows: On or before July first, nineteen hundred eighty-six and July first of each succeeding year, the department shall prepare a status report on the implementation of the plan, and an update of the policies, program objectives, methods and strategies as outlined in the plan which guide the overall inactive hazardous waste site remediation program AND SOLID WASTE SITE AND DRINKING WATER RESPONSE MITIGATION AND CLEANUP PROGRAMS. Such status report shall reflect information available to the department as of March thirty-first of each year, and shall include an accounting of all [monies] MONEYS expended or encumbered from the environmental quality bond act of nineteen hundred eighty-six or the hazardous waste remedial fund during the preceding fiscal year, such accounting to sepa- rately list: i. [monies] MONEYS expended or encumbered in stand-by contracts entered into pursuant to section 3-0309 of this chapter and the purposes for which these stand-by contracts were entered into; [and] j. MONEYS EXPENDED OR ENCUMBERED PURSUANT TO TITLE TWELVE OF THIS ARTICLE; AND K. an accounting of payments received and payments obligated to be received pursuant to this title AND TITLE TWELVE OF THIS ARTICLE, and a report of the department's attempts to secure such obligations. § 12. Subparagraph (ii) of paragraph b of subdivision 3 of section 27-1313 of the environmental conservation law is REPEALED. § 13. Paragraph b of subdivision 1 and paragraphs b and f of subdivi- sion 5 of section 27-1313 of the environmental conservation law, para- graph b of subdivision 1 as added by section 5 of part E of chapter 1 of the laws of 2003, paragraph b as amended by and paragraph f of subdivi- sion 5 as added by chapter 857 of the laws of 1982, are amended and a new subdivision 11 is added to read as follows: b. The department shall have the authority to require, AND MAY UNDER- TAKE DIRECTLY, the development and implementation of a department-ap- proved inactive hazardous waste disposal site remedial program, IN ACCORDANCE WITH SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW. b. In the event that the commissioner has found that hazardous wastes at a site constitute a significant threat to the environment, but after a reasonable attempt to determine who may be responsible is either unable to determine who may be responsible, [or] is unable to locate a person who may be responsible, OR IS UNABLE AFTER MAKING ALL REASONABLE EFFORT TO SECURE VOLUNTARY AGREEMENT TO PAY THE COSTS OF NECESSARY REME- DIAL ACTIONS FROM OWNERS OR OPERATORS OR OTHER RESPONSIBLE PERSONS, the department may develop and implement an inactive hazardous waste S. 2008 142 A. 3008 disposal site remedial program for such site. The commissioner shall make every effort, IN AN ACTION BROUGHT BEFORE A COURT OF APPROPRIATE JURISDICTION OR in accordance with the requirements for notice, hearing and review provided for in this title, to secure appropriate relief from any person subsequently identified or located who is responsible for the disposal of hazardous waste at such site, including, but not limited to, development and implementation of an inactive hazardous waste disposal site remedial program, payment of the cost of such a program, recovery of any reasonable expenses incurred by the state, money damages and penalties. f. The commissioner shall make every effort, IN AN ACTION BROUGHT BEFORE A COURT OF APPROPRIATE JURISDICTION OR in accordance with the requirements for notice, hearing and review provided for in this title to secure appropriate relief from the owner or operator of such site and/or any person responsible for the disposal of hazardous wastes at such site PURSUANT TO APPLICABLE PRINCIPLES OF STATUTORY OR COMMON LAW LIABILITY, including, but not limited to, development and implementation of an inactive hazardous waste disposal site remedial program, payment of the cost of such program, recovery of any reasonable expenses incurred by the state, money damages and penalties. 11. A REMEDIAL DECISION BY THE STATE OR THE DEPARTMENT OR A RESPONSE ACTION TAKEN BY THE DEPARTMENT OR ORDERED BY THE DEPARTMENT UNDER THIS SECTION SHALL NOT CONSTITUTE A FINAL DECISION OR ORDER UNTIL THE DEPART- MENT FILES AN ACTION TO ENFORCE SUCH DECISION OR ORDER OR TO COLLECT A PENALTY FOR VIOLATION OF SUCH ORDER OR TO RECOVER ITS RESPONSE COSTS. § 14. The section heading and subdivision 1 of section 27-1316 of the environmental conservation law, as added by section 8 of part E of chap- ter 1 of the laws of 2003, are amended to read as follows: [Citizen technical] TECHNICAL assistance grants. 1. The commissioner is authorized to provide, or order a person acting under order or on consent, to provide grants to any ELIGIBLE MUNICI- PALITY OR not-for-profit corporation exempt from taxation under section 501(c)(3) of the internal revenue code who may be affected by an inac- tive hazardous waste disposal site remedial program. To qualify to receive such assistance, a community group must demonstrate that its membership represents the interests of the community affected by such site, and that members', OR IN THE CASE OF A MUNICIPALITY ITS RESIDENTS, health, economic well-being or enjoyment of the environment are poten- tially affected by such site. AN ELIGIBLE MUNICIPALITY SHALL BE A COUN- TY, CITY, TOWN, VILLAGE, OR INDIAN TRIBE OR NATION RESIDING WITHIN NEW YORK STATE, WITH A POPULATION OF TEN THOUSAND OR LESS, PROVIDED, HOWEV- ER, THAT THE DEPARTMENT MAY MAKE A MUNICIPALITY ELIGIBLE IF IT DETER- MINES THAT A MUNICIPALITY IS A HARDSHIP COMMUNITY. A MUNICIPALITY SHALL NOT BE ELIGIBLE FOR A GRANT FOR ANY SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY. Such grants shall be known as technical assistance grants and may be used to obtain technical assistance in interpreting information with regard to the nature of the hazard posed by hazardous waste located at or emanating from an inactive hazardous waste disposal site or sites and the development and implementation of an inactive hazardous waste disposal site remedial program or programs. Such grants may also be used: (a) to advise affected residents on any health assessment; and (b) for training funds for the education of interested affected commu- nity members OR MUNICIPALITY to enable them to more effectively partic- ipate in the remedy selection process. S. 2008 143 A. 3008 Grants awarded under this section may not be used for the purposes of collecting field sampling data, political activity or lobbying legisla- tive bodies. § 15. Subdivision 1 of section 27-1321 of the environmental conserva- tion law, as amended by section 22 of part G of chapter 58 of the laws of 2012, is amended to read as follows: 1. Notwithstanding any other provision of law to the contrary, any person who is, by professional training or experience and attainment, qualified to analyze and interpret matters pertaining to the treatment, storage, disposal, or transport of hazardous materials or hazardous wastes, and who voluntarily and without expectation of monetary compen- sation provides assistance or advice in mitigating the effects of an accidental or threatened discharge of any hazardous materials or hazard- ous wastes, or in preventing, cleaning up, or disposing of any such discharge, shall not be subject to a penalty or to civil liability for damages or injuries alleged to have been sustained by any person or entity by reason of an act or omission in the giving of such assistance or advice. For the purposes of this section, the term "hazardous materi- als" shall have the same meaning as that term is defined in regulations promulgated by the commissioner of transportation pursuant to section fourteen-f of the transportation law, and the term "hazardous wastes" shall mean those wastes identified or listed pursuant to SUBDIVISION ONE OF section [27-0903] 27-1301 of this article and any rules and regu- lations promulgated thereunder. § 16. Subdivision 10 of section 71-2702 of the environmental conserva- tion law, as added by chapter 671 of the laws of 1986, is amended to read as follows: 10. "Substance hazardous to public health, safety or the environment" means any substance which: (a) is identified or listed as a hazardous waste in regulations promulgated pursuant to section 27-0903 of this chapter and all amend- ments thereto, regardless of whether at the time of release the substance was actually a waste; [or] (b) appears on the list in regulations promulgated pursuant to para- graph (a) of subdivision one of section 37-0103 of this chapter and all amendments thereto[.]; (C) IS PETROLEUM; OR (D) POSES A PRESENT OR POTENTIAL HAZARD TO THE ENVIRONMENT WHEN IMPROPERLY TREATED, STORED, TRANSPORTED, DISPOSED OF, OR OTHERWISE MANAGED. § 17. Paragraph a of subdivision 1 of section 71-2725 of the environ- mental conservation law is REPEALED. § 18. Subdivision 4 of section 11-b of the soil and water conservation districts law, as amended by chapter 538 of the laws of 1996, is amended to read as follows: 4. Eligible costs that may be funded pursuant to this section are architectural and engineering services, plans and specifications, including watershed based or individual agricultural nonpoint source pollution assessments, consultant and legal services, CONSERVATION EASE- MENTS AND ASSOCIATED TRANSACTION COSTS SPECIFIC TO TITLE THIRTY-THREE OF ARTICLE FIFTEEN OF THE ENVIRONMENTAL CONSERVATION LAW and other direct expenses related to project implementation. § 19. If any clause, sentence, paragraph, 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 ther- eof, but shall be confined in its operation to the clause, sentence, S. 2008 144 A. 3008 paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. § 20. This act shall take effect immediately. PART JJ Section 1. Paragraph (a) of subdivision 6 of section 92-s of the state finance law, as amended by chapter 432 of the laws of 1997, is amended to read as follows: (a) All moneys heretofore and hereafter deposited in the environmental protection transfer account shall be transferred by the comptroller to the solid waste account, the parks, recreation and historic preservation account, THE CLIMATE CHANGE MITIGATION AND ADAPTATION ACCOUNT or the open space account upon the request of the director of the budget. § 2. Subdivision 5 of section 27-1012 of the environmental conserva- tion law, as amended by section 6 of part F of chapter 58 of the laws of 2013, is amended to read as follows: 5. All monies collected or received by the department of taxation and finance pursuant to this title shall be deposited to the credit of the comptroller with such responsible banks, banking houses or trust compa- nies as may be designated by the comptroller. Such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected, the comptroller shall retain the amount determined by the commissioner of taxation and finance to be necessary for refunds out of which the comptroller must pay any refunds to which a deposit initiator may be entitled. After reserving the amount to pay refunds, the comptroller must, by the tenth day of each month, pay into the state treasury to the credit of the general fund the revenue deposited under this subdivision during the preceding calendar month and remaining to the comptroller's credit on the last day of that preceding month; provided, however, that, beginning April first, two thousand [thirteen] FOURTEEN, and all fiscal years thereafter, [fifteen] TWENTY-THREE million dollars plus all funds received from the payments due each fiscal year pursuant to subdivision four of this section in excess of [the amount received from April first, two thousand twelve through March thirty-first, two thousand thirteen] ONE HUNDRED TWENTY-TWO MILLION TWO HUNDRED THOUSAND DOLLARS, shall be deposited to the credit of the environmental protection fund established pursuant to section ninety-two-s of the state finance law. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2016. PART KK Section 1. Approximately 40 percent of the food produced in the United States today goes uneaten. Much of this organic waste is disposed of in solid waste landfills, where its decomposition accounts for over 15 percent of our nation's emissions of methane, a potent greenhouse gas. Meanwhile, an estimated 2.8 million New Yorkers are facing hunger and food insecurity. This legislation is designed to address these multiple challenges by: encouraging the prevention of food waste generation by commercial generators and residents; directing the recovery of excess edible food from high-volume commercial food waste generators; and ensuring that a significant portion of inedible food waste from large S. 2008 145 A. 3008 volume food waste generators is managed in a sustainable manner, and does not end up being sent to landfills or incinerators. § 2. Article 27 of the environmental conservation law is amended by adding a new title 22 to read as follows: TITLE 22 FOOD DONATION AND FOOD SCRAPS RECYCLING SECTION 27-2201. DEFINITIONS. 27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES. 27-2205. TRANSPORTER RESPONSIBILITIES. 27-2207. TRANSFER STATION OR OTHER INTERMEDIARY RESPONSIBIL- ITIES. 27-2209. FOOD SCRAPS DISPOSAL PROHIBITION. 27-2211. DEPARTMENT RESPONSIBILITIES. 27-2213. REGULATIONS. 27-2215. EXCLUSIONS. 27-2217. PREEMPTION AND SEVERABILITY. § 27-2201. DEFINITIONS. 1. "DESIGNATED FOOD SCRAPS GENERATOR" MEANS A PERSON WHO GENERATES AT A SINGLE LOCATION AN ANNUAL AVERAGE OF TWO TONS PER WEEK OR MORE OF EXCESS FOOD AND FOOD SCRAPS, INCLUDING, BUT NOT LIMITED TO, SUPERMAR- KETS, RESTAURANTS, HIGHER EDUCATIONAL INSTITUTIONS, HOTELS, FOOD PROCES- SORS, CORRECTIONAL FACILITIES, SPORTS OR ENTERTAINMENT VENUES, HOSPITALS AND OTHER HEALTH CARE FACILITIES. FOR A LOCATION WITH MULTIPLE INDEPEND- ENT FOOD SERVICE BUSINESSES, SUCH AS A MALL OR COLLEGE CAMPUS, THE ENTI- TY RESPONSIBLE FOR CONTRACTING FOR SOLID WASTE HAULING SERVICES IS RESPONSIBLE FOR MANAGING EXCESS FOOD AND FOOD SCRAPS FROM THE INDEPEND- ENT BUSINESSES. 2. "EXCESS FOOD" MEANS EDIBLE FOOD THAT IS NOT SOLD OR USED BY ITS GENERATOR. 3. "FOOD SCRAPS" MEANS INEDIBLE FOOD, TRIMMINGS FROM THE PREPARATION OF FOOD, FOOD-SOILED PAPER, AND EDIBLE FOOD THAT IS NOT DONATED. FOOD SCRAPS SHALL NOT INCLUDE FOOD FROM RESIDENTIAL SOURCES OR ANY FOOD WHICH IS SUBJECT TO A RECALL OR SEIZURE DUE TO THE PRESENCE OF PATHOGENS, INCLUDING BUT NOT LIMITED TO: LISTERIA MONOCYTOGENES, CONFIRMED CLOS- TRIDIUM BOTULINUM, E. COLI 0157:H7 AND ALL SALMONELLA IN READY-TO-EAT FOODS. 4. "ORGANICS RECYCLER" MEANS A FACILITY THAT RECYCLES FOOD SCRAPS THROUGH USE AS ANIMAL FEED OR A FEED INGREDIENT, RENDERING, LAND APPLI- CATION, COMPOSTING, AEROBIC DIGESTION, ANAEROBIC DIGESTION, OR ETHANOL PRODUCTION. ANIMAL SCRAPS, FOOD SOILED PAPER, AND POST-CONSUMER FOOD SCRAPS ARE PROHIBITED FOR USE AS ANIMAL FEED OR AS A FEED INGREDIENT. THE PRODUCT CREATED FROM FOOD SCRAPS BY A COMPOSTING OR DIGESTION FACIL- ITY, OR OTHER TREATMENT SYSTEM, MUST BE USED IN A BENEFICIAL MANNER AS A SOIL AMENDMENT AND SHALL NOT BE COMBUSTED OR LANDFILLED. THE DEPARTMENT MAY DESIGNATE OTHER TECHNIQUES OR TECHNOLOGIES BY REGULATION, PROVIDED THEY DO NOT INCLUDE COMBUSTION OR LANDFILLING. 5. "PERSON" MEANS ANY INDIVIDUAL, BUSINESS ENTITY, PARTNERSHIP, COMPA- NY, CORPORATION, NOT-FOR-PROFIT CORPORATION, ASSOCIATION, GOVERNMENTAL ENTITY, PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY, FIRM, ORGANIZATION OR ANY OTHER GROUP OF INDIVIDUALS, OR ANY OFFICER OR EMPLOYEE OR AGENT THEREOF. 6. "SINGLE LOCATION" MEANS CONTIGUOUS PROPERTY UNDER COMMON OWNERSHIP, WHICH MAY INCLUDE ONE OR MORE BUILDINGS. § 27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES. 1. NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-ONE: S. 2008 146 A. 3008 (A) ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SEPARATE THEIR EXCESS FOOD FOR DONATION FOR HUMAN CONSUMPTION TO THE MAXIMUM EXTENT PRACTICA- BLE, AND IN ACCORDANCE WITH APPLICABLE LAWS, RULES AND REGULATIONS RELATED TO FOOD DONATION; AND (B) EXCEPT AS PROVIDED BY IN PARAGRAPH (C) OF THIS SUBDIVISION, EACH DESIGNATED FOOD SCRAPS GENERATOR THAT IS WITHIN FIFTY MILES OF AN ORGAN- ICS RECYCLER, TO THE EXTENT THAT THE RECYCLER HAS CAPACITY TO ACCEPT A SUBSTANTIAL PORTION OR ALL OF THE GENERATOR'S EXCESS FOOD AND FOOD SCRAPS AS DETERMINED BY THE DEPARTMENT ON A YEARLY BASIS, SHALL: (I) SEPARATE ITS REMAINING EXCESS FOOD AND FOOD SCRAPS FROM OTHER SOLID WASTE THAT CANNOT BE EFFECTIVELY PROCESSED BY THE ORGANICS RECY- CLER THAT WILL BE MANAGING THE MATERIALS. WHENEVER PRACTICABLE, EXCESS FOOD AND FOOD SCRAPS SHOULD BE REMOVED FROM PACKAGING AT THE POINT OF GENERATION OR BE SENT TO A FACILITY THAT CAN REMOVE THE PACKAGING FROM THE PRODUCT; (II) ENSURE PROPER STORAGE FOR EXCESS FOOD AND FOOD SCRAPS COLLECTION ON SITE WHICH SHALL PRECLUDE SUCH MATERIALS FROM BECOMING ODOROUS OR ATTRACTING VECTORS; (III) POST INSTRUCTIONS AND PROVIDE TRAINING FOR EMPLOYEES CONCERNING THE PROPER METHODS TO SEPARATE AND STORE EXCESS FOOD AND FOOD SCRAPS; AND (IV) OBTAIN A TRANSPORTER THAT WILL DELIVER ITS EXCESS FOOD AND FOOD SCRAPS TO AN ORGANICS RECYCLER, EITHER DIRECTLY OR THROUGH AN INTERME- DIARY, SELF-HAUL ITS FOOD SCRAPS TO AN ORGANICS RECYCLER, EITHER DIRECT- LY OR THROUGH AN INTERMEDIARY, OR PROVIDE FOR ORGANICS RECYCLING ON-SITE. (C) THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION SHALL NOT APPLY TO ANY DESIGNATED FOOD SCRAPS GENERATOR THAT HAS ALL OF ITS SOLID WASTE PROCESSED IN A MIXED SOLID WASTE COMPOSTING OR MIXED SOLID WASTE ANAEROBIC DIGESTION FACILITY. 2. ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT ON OR BEFORE MARCH FIRST, TWO THOUSAND TWENTY-TWO, AND ANNUALLY THEREAFTER, IN AN ELECTRONIC FORMAT. THE ANNUAL REPORT MUST SUMMARIZE THE AMOUNT OF EXCESS FOOD DONATED AND THE AMOUNT OF EXCESS FOOD NOT DONATED, THE AMOUNT OF FOOD SCRAPS RECYCLED, THE ORGANICS RECY- CLER OR RECYCLERS AND ASSOCIATED TRANSPORTERS USED, AND ANY OTHER INFOR- MATION AS REQUIRED BY THE DEPARTMENT. 3. A DESIGNATED FOOD SCRAPS GENERATOR MAY PETITION THE DEPARTMENT FOR A TEMPORARY WAIVER FROM SOME OR ALL OF THE REQUIREMENTS OF THIS TITLE. THE PETITION MUST INCLUDE EVIDENCE OF UNDUE HARDSHIP BASED ON THE UNIQUE CIRCUMSTANCES OF THE GENERATOR. A WAIVER SHALL BE NO LONGER THAN ONE YEAR IN DURATION. § 27-2205. TRANSPORTER RESPONSIBILITIES. 1. ANY TRANSPORTER THAT COLLECTS SOURCE-SEPARATED EXCESS FOOD AND FOOD SCRAPS FOR RECYCLING FROM A DESIGNATED FOOD SCRAPS GENERATOR SHALL: (A) DELIVER COLLECTED EXCESS FOOD AND FOOD SCRAPS TO A TRANSFER STATION OR OTHER INTERMEDIARY THAT WILL DELIVER SUCH EXCESS FOOD AND FOOD SCRAPS TO AN ORGANICS RECYCLER; OR (B) DELIVER SUCH FOOD SCRAPS DIRECTLY TO AN ORGANICS RECYCLER. 2. ANY TRANSPORTER THAT COLLECTS SOURCE-SEPARATED EXCESS FOOD AND FOOD SCRAPS FROM A DESIGNATED FOOD SCRAPS GENERATOR SHALL NOT DELIVER THOSE EXCESS FOOD AND FOOD SCRAPS TO A COMBUSTION FACILITY OR A LANDFILL NOR COMMINGLE THE MATERIAL WITH ANY OTHER SOLID WASTE UNLESS SUCH WASTE CAN BE PROCESSED BY AN ORGANICS RECYCLER. § 27-2207. TRANSFER STATION OR OTHER INTERMEDIARY RESPONSIBILITIES. S. 2008 147 A. 3008 ANY TRANSFER STATION OR OTHER INTERMEDIARY THAT RECEIVES SOURCE-SEPA- RATED EXCESS FOOD AND FOOD SCRAPS FROM A DESIGNATED FOOD SCRAPS GENERA- TOR MUST ENSURE THAT THE FOOD SCRAPS ARE TAKEN TO AN ORGANICS RECYCLER. NO TRANSFER STATION OR OTHER INTERMEDIARY MAY COMMINGLE THE MATERIAL WITH ANY OTHER SOLID WASTE UNLESS SUCH WASTE CAN BE PROCESSED BY AN ORGANICS RECYCLER. § 27-2209. FOOD SCRAPS DISPOSAL PROHIBITION. SOLID WASTE COMBUSTION FACILITIES AND LANDFILLS SHALL NOT ACCEPT SOURCE-SEPARATED EXCESS FOOD AND FOOD SCRAPS FROM DESIGNATED FOOD SCRAPS GENERATORS REQUIRED TO SEND THEIR EXCESS FOOD NOT DONATED AND FOOD SCRAPS TO AN ORGANICS RECYCLER AS OUTLINED UNDER SECTION 27-2203 OF THIS TITLE, EITHER DIRECTLY OR FROM AN INTERMEDIARY, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, UNLESS THE DESIGNATED FOOD SCRAPS GENERATOR HAS RECEIVED A TEMPORARY WAIVER UNDER SUBDIVISION THREE OF SECTION 27-2203 OF THIS TITLE. § 27-2211. DEPARTMENT RESPONSIBILITIES. 1. THE DEPARTMENT SHALL, IN CONSULTATION WITH INDUSTRY REPRESEN- TATIVES, PUBLISH ON ITS WEBSITE: (A) THE METHODOLOGY THE DEPARTMENT WILL USE TO DETERMINE WHO IS A DESIGNATED FOOD SCRAP GENERATOR; AND (B) A LIST OF ALL DESIGNATED FOOD SCRAPS GENERATORS, ORGANICS RECYCLERS, AND ALL TRANSPORTERS THAT MANAGE SOURCE-SEPARATED ORGANICS. 2. NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY, THE DEPARTMENT SHALL ASSESS THE CAPACITY OF ORGANIC RECYCLERS AND NOTIFY DESIGNATED FOOD SCRAPS GENERATORS IF THEY ARE REQUIRED TO COMPLY WITH THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE. 3. THE DEPARTMENT SHALL DEVELOP AND MAKE AVAILABLE EDUCATIONAL MATERI- ALS TO ASSIST DESIGNATED FOOD SCRAPS GENERATORS WITH COMPLIANCE WITH THIS TITLE. THE DEPARTMENT SHALL ALSO DEVELOP EDUCATION MATERIALS ON FOOD WASTE MINIMIZATION AND ENCOURAGE MUNICIPALITIES TO DISSEMINATE THESE MATERIALS BOTH ON THEIR MUNICIPAL WEBSITES AND IN ANY SUCH FUTURE MAILINGS TO THEIR RESIDENTS AS THEY MAY DISTRIBUTE. § 27-2213. REGULATIONS. THE DEPARTMENT MAY PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS TITLE. AT A MINIMUM, THE DEPARTMENT SHALL PROMULGATE RULES AND REGULATIONS THAT SET FORTH HOW DESIGNATED FOOD SCRAPS GENERATORS SHALL COMPLY WITH THE PROVISIONS OF PARAGRAPH (A) AND SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE. § 27-2215. EXCLUSIONS. 1. THIS TITLE SHALL NOT APPLY TO ANY DESIGNATED FOOD SCRAPS GENERATORS LOCATED IN A CITY WITH A POPULATION OF ONE MILLION OR MORE WHICH HAS A LOCAL LAW, ORDINANCE OR REGULATION IN PLACE WHICH REQUIRES THE DIVERSION OF EXCESS FOOD AND FOOD SCRAPS FROM DISPOSAL. 2. THIS TITLE DOES NOT APPLY TO ELEMENTARY AND SECONDARY SCHOOLS. § 27-2217. PREEMPTION AND SEVERABILITY. 1. ANY PROVISION OF ANY LOCAL LAW OR ORDINANCE, OR ANY REGULATION PROMULGATED THERETO, GOVERNING THE RECYCLING OF FOOD SCRAPS SHALL UPON THE EFFECTIVE DATE OF THIS TITLE BE PREEMPTED, EXCEPT IN A CITY WITH A POPULATION OF ONE MILLION OF MORE. HOWEVER, LOCAL LAWS OR ORDINANCES, OR PARTS THEREOF, AFFECTING THE RECYCLING OF FOOD SCRAPS THAT INCLUDE GENERATORS NOT COVERED BY THIS TITLE SHALL NOT BE PREEMPTED. 2. THE PROVISIONS OF THIS TITLE SHALL BE SEVERABLE AND IF ANY PORTION THEREOF OR THE APPLICABILITY THEREOF TO ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, THE REMAINDER OF THIS TITLE AND THE APPLICATION THEREOF SHALL NOT BE AFFECTED THEREBY. S. 2008 148 A. 3008 § 3. This act shall take effect immediately. PART LL Section 1. The public authorities law is amended by adding a new section 1005-d to read as follows: § 1005-D. SHARING EMPLOYEES, SERVICES AND RESOURCES; INDEMNITY AND DEFENSE. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT INDICATES ANOTHER MEANING OR INTENT: (A) "DEPARTMENT" MEANS THE DEPARTMENT OF TRANSPORTATION. (B) "SERVICES AND ASSISTANCE" INCLUDES BUT IS NOT LIMITED TO ENGINEER- ING SERVICES; ENVIRONMENTAL SAMPLING AND TESTING; FACILITY, PROPERTY, INFRASTRUCTURE AND EQUIPMENT MAINTENANCE; AND EQUIPMENT AND MATERIALS STORAGE. 2. ONE OR MORE SHARED SERVICES AGREEMENTS MAY BE EXECUTED BETWEEN THE DEPARTMENT AND THE AUTHORITY, CANAL CORPORATION, OR BOTH OF THEM, ONLY FOR (A) AN EMERGENCY SITUATION, (B) EXTREME WEATHER CONDITIONS, AND (C) THE PROVISION OF SERVICES AND ASSISTANCE TO SUPPORT THE OPERATION AND MAINTENANCE OF THE CANAL SYSTEM AND RELATED INFRASTRUCTURE, AS DEEMED APPROPRIATE, INCLUDING BUT LIMITED TO SHARE EMPLOYEES, SERVICES OR RESOURCES AS DEEMED APPROPRIATE INCLUDING, BUT NOT LIMITED TO, FOR THE PERFORMANCE OF WORK AND ACTIVITIES BY THE DEPARTMENT ON THE FACILITIES AND PROPERTY UNDER THE JURISDICTION OF THE AUTHORITY OR CANAL CORPO- RATION, AND FOR THE PERFORMANCE OF WORK AND ACTIVITIES BY THE AUTHORITY OR CANAL CORPORATION ON THE FACILITIES AND PROPERTY UNDER THE JURISDIC- TION OF THE DEPARTMENT. SUCH AGREEMENT OR ANY PROJECT UNDERTAKEN PURSU- ANT TO SUCH AN AGREEMENT SHALL NOT BE DEEMED TO IMPAIR THE RIGHTS OF BONDHOLDERS AND MAY PROVIDE FOR, BUT NOT BE LIMITED TO, THE MANAGEMENT, SUPERVISION AND DIRECTION OF SUCH EMPLOYEES' PERFORMANCE OF SUCH SERVICES. ALL SHARED EMPLOYEES SHALL REMAIN EMPLOYEES OF THEIR RESPEC- TIVE EMPLOYERS AND ALL APPLICABLE COLLECTIVELY BARGAINED AGREEMENTS SHALL REMAIN IN EFFECT FOR THE ENTIRE LENGTH OF THE SHARED SERVICES AGREEMENT. FURTHER, SUCH SHARED SERVICES AGREEMENT SHALL NOT AMEND, REPEAL OR REPLACE THE TERMS OF ANY AGREEMENT THAT IS COLLECTIVELY NEGO- TIATED BETWEEN AN EMPLOYER AND AN EMPLOYEE ORGANIZATION, INCLUDING AN AGREEMENT OR INTEREST ARBITRATION AWARD MADE PURSUANT TO ARTICLE FOUR- TEEN OF THE CIVIL SERVICE LAW. 3. THE AUTHORITY SHALL DEFEND ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT, USING THE FORCES OF THE DEPARTMENT OF LAW PURSUANT TO SUBDIVISION ELEVEN OF THIS SECTION IN ANY ACTION, PROCEEDING, CLAIM, DEMAND OR THE PROSECUTION OF ANY APPEAL ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT IN THE PERFORMANCE OF THE FUNCTIONS OF THE AUTHORITY OR CANAL CORPORATION PURSUANT TO A SHARED SERVICES AGREEMENT. 4. DEFENSE PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL BE CONDITIONED UPON THE FULL COOPERATION OF THE DEPARTMENT. 5. THE AUTHORITY SHALL INDEMNIFY AND HOLD HARMLESS ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT IN THE AMOUNT OF ANY JUDGMENT OBTAINED AGAINST THE DEPARTMENT OR IN THE AMOUNT OF ANY SETTLEMENT THE DEPARTMENT ENTERS INTO WITH THE CONSENT OF THE AUTHORITY FOR ANY AND ALL CLAIMS, DAMAGES OR LIABILITIES ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT OF THE AUTHORITY OR CANAL CORPORATION PURSUANT TO A SHARED SERVICES AGREEMENT; PROVIDED, HOWEVER, THAT THE ACT OR OMISSION FROM WHICH SUCH JUDGMENT OR SETTLEMENT AROSE OCCURRED WHILE THE AUTHORI- TY OR CANAL CORPORATION WAS ACTING WITHIN THE SCOPE OF ITS FUNCTIONS PURSUANT TO A SHARED SERVICES AGREEMENT. NO SUCH SETTLEMENT OF ANY SUCH S. 2008 149 A. 3008 ACTION, PROCEEDING, CLAIM OR DEMAND SHALL BE MADE WITHOUT THE APPROVAL OF THE AUTHORITY'S BOARD OF TRUSTEES OR ITS DESIGNEE. 6. ANY CLAIM OR PROCEEDING COMMENCED AGAINST ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION THAT ARISES PURSUANT TO ANY SHARED SERVICES AGREEMENT SHALL NOT BE CONSTRUED IN ANY WAY TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY IMMUNITY AVAIL- ABLE TO OR CONFERRED UPON ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION, OR TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY RIGHT TO DEFENSE AND INDEMNIFICATION PROVIDED FOR ANY GOVERNMENTAL OFFICER OR EMPLOYEE BY, IN ACCORDANCE WITH, OR BY REASON OF, ANY OTHER PROVISION OF STATE OR FEDERAL STATUTORY OR COMMON LAW. 7. (A) THE STATE SHALL DEFEND ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY AND CANAL CORPORATION USING THE FORCES OF THE DEPARTMENT OF LAW IN ANY ACTION, PROCEEDING, CLAIM, DEMAND OR THE PROSECUTION OF ANY APPEAL ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT IN THE PERFORMANCE OF THE FUNCTIONS OF THE DEPARTMENT PURSUANT TO A SHARED SERVICES AGREEMENT. (B) DEFENSE PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE CONDITIONED UPON THE FULL COOPERATION OF THE AUTHORITY AND CANAL CORPO- RATION. (C) THE STATE SHALL INDEMNIFY AND HOLD HARMLESS ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION IN THE AMOUNT OF ANY JUDGMENT OBTAINED AGAINST THE AUTHORITY OR CANAL CORPORATION IN THE AMOUNT OF ANY SETTLEMENT THE AUTHORITY OR CANAL CORPORATION ENTERS INTO WITH THE CONSENT OF THE STATE FOR ANY AND ALL CLAIMS, DAMAGES OR LIABILITIES ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT ON BEHALF OF THE DEPARTMENT PURSUANT TO A SHARED SERVICES AGREEMENT, PROVIDED, HOWEVER, THAT THE ACT OR OMISSION FROM WHICH SUCH JUDGMENT OR SETTLEMENT AROSE OCCURRED WHILE THE DEPARTMENT WAS ACTING WITHIN THE SCOPE OF ITS FUNCTIONS PURSUANT TO A SHARED SERVICES AGREEMENT. ANY SUCH SETTLEMENT SHALL BE EXECUTED PURSUANT TO SECTION TWENTY-A OF THE COURT OF CLAIMS ACT. (D) ANY CLAIM OR PROCEEDING COMMENCED AGAINST ANY UNIT, ENTITY, OFFI- CER OR EMPLOYEE OF THE DEPARTMENT PURSUANT TO ANY SHARED SERVICES AGREE- MENT SHALL NOT BE CONSTRUED IN ANY WAY TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY IMMUNITY AVAILABLE TO OR CONFERRED UPON ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY RIGHT TO DEFENSE AND INDEMNIFICATION PROVIDED FOR ANY GOVERNMENTAL OFFICER OR EMPLOYEE BY, IN ACCORDANCE WITH, OR BY REASON OF, ANY OTHER PROVISION OF STATE OR FEDER- AL STATUTORY OR COMMON LAW. (E) ANY PAYMENT MADE PURSUANT TO THIS SUBDIVISION OR ANY MONIES PAID FOR A CLAIM AGAINST OR SETTLEMENT WITH THE DEPARTMENT, AUTHORITY OR CANAL CORPORATION PURSUANT TO THIS SUBDIVISION AND PURSUANT TO A SHARED SERVICES AGREEMENT SHALL BE PAID FROM APPROPRIATIONS FOR PAYMENT BY THE STATE PURSUANT TO THE COURT OF CLAIMS ACT. 8. THIS SECTION SHALL NOT IN ANY WAY AFFECT THE OBLIGATION OF ANY CLAIMANT TO GIVE NOTICE TO THE STATE, AUTHORITY, OR CANAL CORPORATION UNDER SECTION TEN AND SECTION ELEVEN OF THE COURT OF CLAIMS ACT OR ANY OTHER PROVISION OF LAW PROVIDED, HOWEVER, THAT NOTICE SERVED UPON THE STATE, AUTHORITY, OR CANAL CORPORATION WHO IS A PARTY TO THE SHARED SERVICES AGREEMENT SHALL BE VALID NOTICE ON ALL PARTIES TO THE AGREE- MENT, WHEN SUCH CLAIM ARISES OUT OF SUCH SHARED SERVICES AGREEMENT. THE STATE, AUTHORITY AND CANAL CORPORATION SHALL NOTIFY EACH OTHER WHEN THEY S. 2008 150 A. 3008 RECEIVE A NOTICE OF CLAIM, NOTICE OF INTENTION TO MAKE A CLAIM OR A CLAIM ARISING OUT OF SUCH AGREEMENT. 9. THE PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED TO IMPAIR, ALTER, LIMIT OR MODIFY THE RIGHTS AND OBLIGATIONS OF ANY INSURER UNDER ANY INSURANCE AGREEMENT. 10. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHEN EMPLOYED PURSUANT TO A SHARED SERVICES AGREEMENT, EMPLOYEES OF THE AUTHORITY, CANAL CORPO- RATION AND DEPARTMENT SHALL BE DEEMED EMPLOYEES OF ALL SUCH ENTITIES AND THE STATE FOR PURPOSES OF THE WORKERS' COMPENSATION LAW. 11. AT THE REQUEST OF THE AUTHORITY OR CANAL CORPORATION, SERVICES AND ASSISTANCE AND LEGAL SERVICES FOR THE AUTHORITY OR CANAL CORPORATION SHALL BE PERFORMED BY FORCES OR OFFICERS OF THE DEPARTMENT AND THE DEPARTMENT OF LAW RESPECTIVELY, AND ALL OTHER STATE OFFICERS, DEPART- MENTS, BOARDS, DIVISIONS AND COMMISSIONS SHALL RENDER SERVICES WITHIN THEIR RESPECTIVE FUNCTIONS. § 2. Subdivision 1 of section 17 of the public officers law is amended by adding a new paragraph (z) to read as follows: (Z) FOR PURPOSES OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE MEMBERS OF THE GOVERNING BOARDS, OFFICERS AND EMPLOYEES OF THE POWER AUTHORITY OF THE STATE OF NEW YORK OR ITS SUBSIDIARIES. § 3. This act, being necessary for the prosperity of the state and its inhabitants, shall be liberally construed to effect the purposes and secure the beneficial intents hereof. § 4. If any provision of any section of this act or the application thereof to any person or circumstance shall be adjudged invalid by a court of competent jurisdiction, such order or judgment shall be confined in its operation to the controversy in which it was rendered, and shall not affect or invalidate the remainder of any provision of any section of this act or the application thereof to any other person or circumstance and to this end the provisions of each section of this act are hereby declared to be severable. § 5. This act shall take effect immediately. PART MM Section 1. Expenditures of moneys by the New York state energy research and development authority for services and expenses of the energy research, development and demonstration program, including grants, the energy policy and planning program, the zero emissions vehi- cle and electric vehicle rebate program, and the Fuel NY program shall be subject to the provisions of this section. Notwithstanding the provisions of subdivision 4-a of section 18-a of the public service law, all moneys committed or expended in an amount not to exceed $19,700,000 shall be reimbursed by assessment against gas corporations, as defined in subdivision 11 of section 2 of the public service law and electric corporations as defined in subdivision 13 of section 2 of the public service law, where such gas corporations and electric corporations have gross revenues from intrastate utility operations in excess of $500,000 in the preceding calendar year, and the total amount which may be charged to any gas corporation and any electric corporation shall not exceed one cent per one thousand cubic feet of gas sold and .010 cent per kilowatt-hour of electricity sold by such corporations in their intrastate utility operations in calendar year 2015. Such amounts shall be excluded from the general assessment provisions of subdivision 2 of section 18-a of the public service law. The chair of the public service commission shall bill such gas and/or electric corporations for such S. 2008 151 A. 3008 amounts on or before August 10, 2017 and such amounts shall be paid to the New York state energy research and development authority on or before September 10, 2017. Upon receipt, the New York state energy research and development authority shall deposit such funds in the ener- gy research and development operating fund established pursuant to section 1859 of the public authorities law. The New York state energy research and development authority is authorized and directed to: (1) transfer $1 million to the state general fund for services and expenses of the department of environmental conservation, $150,000 to the state general fund for services and expenses of the department of agriculture and markets, and $750,000 to the University of Rochester laboratory for laser energetics from the funds received; and (2) commencing in 2016, provide to the chair of the public service commission and the director of the budget and the chairs and secretaries of the legislative fiscal committees, on or before August first of each year, an itemized record, certified by the president and chief executive officer of the authority, or his or her designee, detailing any and all expenditures and commit- ments ascribable to moneys received as a result of this assessment by the chair of the department of public service pursuant to section 18-a of the public service law. This itemized record shall include an item- ized breakdown of the programs being funded by this section and the amount committed to each program. The authority shall not commit for any expenditure, any moneys derived from the assessment provided for in this section, until the chair of such authority shall have submitted, and the director of the budget shall have approved, a comprehensive financial plan encompassing all moneys available to and all anticipated commitments and expenditures by such authority from any source for the operations of such authority. Copies of the approved comprehensive financial plan shall be immediately submitted by the chair to the chairs and secretaries of the legislative fiscal committees. Any such amount not committed by such authority to contracts or contracts to be awarded or otherwise expended by the authority during the fiscal year shall be refunded by such authority on a pro-rata basis to such gas and/or elec- tric corporations, in a manner to be determined by the department of public service. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. § 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.
2017-A3008A - Details
- See Senate Version of this Bill:
- S2008
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3008A - Summary
Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year; increases certain motor vehicle transaction fees (Part A); relates to divisible load permits; provides that after December thirty-first, two thousand sixteen, no more than twenty-seven thousand power units shall be issued annual permits by the department of motor vehicles for any twelve-month period (Part B)
2017-A3008A - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 2008--A A. 3008--A S E N A T E - A S S E M B L Y January 23, 2017 ___________ 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 chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increasing certain motor vehi- cle transaction fees, in relation to the disposition of revenues (Part A); to amend the vehicle and traffic law, in relation to divisible load permits (Part B); to amend the state finance law and the trans- portation law, in relation to enhancing the ability of the state to enforce state and federal law concerning the safety of public trans- portation systems under the oversight of the public transportation safety board (Part C); to amend the vehicle and traffic law in relation to compliance with new federal regulations and strengthening requirements for motor carriers (Part D); to amend the penal law, in relation to including the use of any highway, parkway, road, bridge or tunnel without payment of the lawful toll or charge as a theft of services; and to amend the vehicle and traffic law, in relation to liability of vehicle owners for toll collection violations and the penalty imposed upon the operator of a vehicle with an altered or obscured license plate while on a toll highway, bridge or tunnel (Part E); to amend the vehicle and traffic law and the state finance law, in relation to allocation of three million dollars of assessments from the city of New York to the general fund (Part F); to amend the vehi- cle and traffic law, the insurance law, the executive law, the tax law, and the state finance law, in relation to the regulation of transportation network company services; to establish the New York State TNC Accessibility Task Force; to establish the transportation network company driver's injury compensation fund; and to establish the local transit assistance fund (Part G); to amend the vehicle and traffic law, in relation to the waiver of non-driver identification
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12573-04-7 S. 2008--A 2 A. 3008--A card fees for crime victims (Part H); to amend the vehicle and traffic law, in relation to the reinstatement fee for non-residents (Part I); to amend the vehicle and traffic law, in relation to increasing fees for original and duplicate certificates of title (Part J); to amend the vehicle and traffic law, in relation to additional fees for certain identification cards (Part K); to amend the vehicle and traf- fic law, in relation to the definition of "drug", the scope of the written test, the suspension of a license for driving while impaired by drugs, the license sanctions for refusing to submit to a chemical test and prohibiting the use of mobile telephones and portable elec- tronic devices when a vehicle is not in motion and by persons under 18 (Part L); to amend the New York state urban development corporation act, in relation to extending certain provisions relating to the empire state economic development fund (Part M); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effective- ness thereof (Part N); to amend chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, in relation to the minority and women-owned business enterprise program (Part O); to amend the infras- tructure investment act, in relation to the definition of an author- ized entity that may utilize design-build contracts, and in relation to the effectiveness thereof (Part P); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secre- tary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part Q); to amend the business corporation law, the cooperative corporations law, the executive law, the general associ- ations law, the general business law, the limited liability company law, the not-for-profit corporation law, the partnership law, the private housing finance law, the arts and cultural affairs law, the real property law and the tax law, in relation to streamlining the process by which service of process is served against a corporate or other entity with the secretary of state; and to repeal certain provisions of the real property law relating thereto (Part R); to amend the real property law, in relation to streamlining the licensing process for real estate professionals (Part S); to amend the environ- mental conservation law and the executive law, in relation to local waterfront revitalization (Part T); to amend the executive law, in relation to the chairperson of the state athletic commission (Part U); authorizing utility and cable television assessments to provide funds to the department of health from cable television assessment revenues and to the departments of agriculture and markets, environmental conservation, office of parks, recreation and historic preservation, and state from utility assessment revenues (Part V); to amend chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormitory authority to enter into certain design and construction management agreements, in relation to making permanent certain authority of the dormitory authority of the state of New York (Part W); to amend the insurance law, in relation to administrative supervision (Part X); to amend the insurance law, the banking law, and the financial services law in relation to the enforcement of the insurance, banking, and financial services laws against unlicensed participants (Part Y); to amend the banking law, in relation to the S. 2008--A 3 A. 3008--A licensing and regulation of student loan servicers (Part Z); to amend the banking law, in relation to protecting vulnerable adults from financial exploitation (Part AA); to amend the financial services law, in relation to the disqualification of bad actors from continued participation in the banking and insurance industries (Part BB); to amend the banking law, in relation to the regulation and authorization of certain lending circle programs (Part CC); to amend the state finance law, in relation to creating a paid family leave risk adjust- ment fund (Part DD); to amend the banking law, in relation to licensed lenders (Part EE); to amend the real property action and proceedings law and civil practice law and rules, in relation to reverse mortgages (Part FF); to amend the financial services law, in relation to assess- ments to defray operating expenses of the department (Subpart A); to amend the insurance law, in relation to the distribution of assets (Subpart B); and to amend the insurance law, in relation to insurers deemed to be in a hazardous financial condition (Subpart C)(Part GG); to amend the navigation law, in relation to establishing the New York environmental protection and spill remediation account (Part HH); to amend the environmental conservation law, the state finance law, the public authorities law, and the soil and water conservation districts law, in relation to the implementation of the "clean water infrastruc- ture act of 2017"; and to repeal certain provisions of the environ- mental conservation law and the state finance law relating thereto (Part II); to amend the state finance law and the environmental conservation law, in relation to environmental protection fund depos- its and transfers (Part JJ); to amend the environmental conservation law, in relation to the donation of excess food and recycling of food scraps (Part KK); to amend the public authorities law and the public officers law, in relation to the sharing of employees, services and resources by the power authority of the state of New York, canal corporation and department of transportation (Part LL); and to author- ize the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, and Fuel NY programs, as well as the department of environmental conservation's climate change program and the department of agricul- ture and markets' Fuel NY program, from an assessment on gas and elec- tric corporations (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 2017-2018 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 S. 2008--A 4 A. 3008--A Section 1. Section 13 of part U1 of chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increas- ing certain motor vehicle transaction fees, as amended by section 1 of part A of chapter 58 of the laws of 2015, is amended to read as follows: § 13. This act shall take effect immediately; provided however that sections one through seven of this act, the amendments to subdivision 2 of section 205 of the tax law made by section eight of this act, and section nine of this act shall expire and be deemed repealed on April 1, 2020; [provided further, however, that the amendments to subdivision 3 of section 205 of the tax law made by section eight of this act shall expire and be deemed repealed on March 31, 2018;] provided further, however, that the provisions of section eleven of this act shall take effect April 1, 2004 and shall expire and be deemed repealed on April 1, 2020. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART B Section 1. Paragraph (f) of subdivision 15 of section 385 of the vehi- cle and traffic law, as amended by section 4 of part C of chapter 59 of the laws of 2004, the third undesignated paragraph as amended by chapter 277 of the laws of 2014, is amended to read as follows: (f) 1. The department of transportation, or other issuing authority, may issue an annual permit for a vehicle designed and constructed to carry loads that are not of one piece or item, which is registered in this state. Motor carriers having apportioned vehicles registered under the international registration plan must either have a currently valid permit at the time this provision becomes effective or shall have desig- nated New York as its base state or one of the eligible jurisdictions of operation under the international registration plan in order to be eligible to receive a permit issued pursuant to [subparagraph] CLAUSE (i), (ii) or (ii-a) OF SUBPARAGRAPH EIGHT of this paragraph. No permit issued pursuant to this paragraph shall be valid for the operation or movement of vehicles on any state or other highway within any city not wholly included within one county unless such permit was issued by the city department of transportation of such city. 2. Effective January first, two thousand five, no vehicle or combina- tion of vehicles issued a permit pursuant to this paragraph shall cross a bridge designated as an R-posted bridge by the commissioner of trans- portation or any other permit issuing authority absent a determination by such commissioner or permit issuing authority that the permit appli- cant has demonstrated special circumstances warranting the crossing of such bridge or bridges and a determination by such commissioner or permit issuing authority that such bridge or bridges may be crossed safely, provided, however, that in no event shall a vehicle or combina- tion of vehicles issued a permit under this paragraph be permitted to cross a bridge designated as an R-posted bridge if such vehicle or combination of vehicles has a maximum gross weight exceeding one hundred two thousand pounds, and provided further, however, that nothing contained herein shall be deemed to authorize any vehicle or combination of vehicles to cross any such bridge within any city not wholly included within one county unless such vehicle or combination of vehicles has been issued a valid permit by the city department of transportation of such city pursuant to this subdivision. S. 2008--A 5 A. 3008--A 3. No vehicle having a model year of two thousand six or newer shall be issued a permit pursuant to this paragraph unless each axle of such vehicle or combination of vehicles, other than steerable or trackable axles, is equipped with two tires on each side of the axle, any air pressure controls for lift axles are located outside the cab of the vehicle and are beyond the reach of occupants of the cab while the vehi- cle is in motion, the weight on any grouping of two or more axles is distributed such that no axle in the grouping carries less than eighty percent of any other axle in the grouping and any liftable axle is steerable or trackable; and, further provided, after December thirty- first, two thousand nineteen, no permit shall be issued pursuant to this paragraph to a vehicle of any model year that does not meet the require- ments of this provision, except that such permits may be issued prior to January first, two thousand twenty to a vehicle that does not meet the requirement concerning axle grouping weight distribution, but meets all other requirements of this section. 4. A divisible load permit may only be transferred to a replacement vehicle by the same registrant or transferred with the permitted vehicle as part of the sale or transfer of the permit holder's business; or, if the divisible load permit is issued pursuant to [subparagraph] CLAUSE (iv), (v) or (vi) OF SUBPARAGRAPH EIGHT of this paragraph for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess and has been effective for the five years preceding a transfer of such permit, the permit may be transferred with the permit- ted vehicle in the sale of the permitted vehicle to the holder of a permit issued pursuant to [subparagraph] CLAUSE (iv), (v) or (vi) OF SUBPARAGRAPH EIGHT of this paragraph for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess. 5. If a permit holder operates a vehicle or combination of vehicles in violation of any posted weight restriction, THE COMMISSIONER OF TRANS- PORTATION MAY IMPOSE A CIVIL PENALTY AS PROVIDED BY SECTION ONE HUNDRED FORTY-FIVE OF THE TRANSPORTATION LAW AND/OR CANCEL, SUSPEND OR REVOKE the permit issued to such vehicle or combination of vehicles AND SUCH PERMIT shall be deemed void as of the next day and shall not be reissued for a period of UP TO twelve calendar months. 6. Until June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand power units shall be issued annual permits by the department for any twelve-month period in accordance with this para- graph. After June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand five hundred power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, nineteen hundred ninety-five, no more than seventeen thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand three, no more than twenty-one thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, two thousand five, no more than twenty-two thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand six, no more than twenty-three thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand seven, no more than twenty-four thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand eight, no more than twenty- five thousand power units shall be issued annual permits by the depart- ment for any twelve-month period. AFTER DECEMBER THIRTY-FIRST, TWO THOU- S. 2008--A 6 A. 3008--A SAND SIXTEEN, NO MORE THAN TWENTY-SEVEN THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, NO MORE THAN TWEN- TY-NINE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY, NO MORE THAN THIRTY THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO, NO MORE THAN THIR- TY-ONE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, NO MORE THAN THIRTY-TWO THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR, NO MORE THAN THIRTY-THREE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY- FIRST, TWO THOUSAND TWENTY-FIVE, NO MORE THAN THIRTY-FIVE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE- MONTH PERIOD. Whenever permit application requests exceed permit availability, the department shall renew annual permits that have been expired for less than four years which meet program requirements, and then shall issue permit applicants having less than three divisible load permits such additional permits as the applicant may request, providing that the total of existing and new permits does not exceed three. Remaining permits shall be allocated by lottery IN ACCORDANCE WITH PROCEDURES ESTABLISHED BY THE COMMISSIONER IN RULES AND REGULATIONS. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN, THE DEPARTMENT MAY PERMANENTLY INCREASE THE MAXIMUM NUMBER OF POWER UNITS ISSUED AN ANNUAL PERMIT BY NO MORE THAN TWO THOUSAND ADDITIONAL PERMITS ABOVE THE PREVIOUS YEAR'S TOTAL in accordance with procedures established by the commissioner in rules and regulations. 7. The department of transportation may issue a seasonal agricultural permit in accordance with [subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH EIGHT of this paragraph that will be valid for four consec- utive months with a fee equal to one-half the annual permit fees estab- lished under this subdivision. 8. For a vehicle issued a permit in accordance with [subparagraphs] CLAUSES (iii), (iv), (v) and (vi) of this [paragraph] SUBPARAGRAPH, such a vehicle must have been registered in this state prior to January first, nineteen hundred eighty-six or be a vehicle or combination of vehicles which replace such type of vehicle which was registered in this state prior to such date provided that the manufacturer's recommended maximum gross weight of the replacement vehicle or combination of vehi- cles does not exceed the weight for which a permit may be issued and the maximum load to be carried on the replacement vehicle or combination of vehicles does not exceed the maximum load which could have been carried on the vehicle being replaced or the registered weight of such vehicle, whichever is lower, in accordance with the following [subparagraphs] CLAUSES: (i) A permit may be issued for a vehicle having at least three axles and a wheelbase not less than sixteen feet and for a vehicle with a trailer not exceeding forty-eight feet. The maximum gross weight of such a vehicle shall not exceed forty-two thousand five hundred pounds plus one thousand two hundred fifty pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rearmost axle, or one hundred two thousand pounds, which- S. 2008--A 7 A. 3008--A ever is more restrictive provided, however, that any four axle group weight shall not exceed sixty-two thousand pounds, any tridem axle group weight shall not exceed fifty-seven thousand pounds, any tandem axle weight does not exceed forty-seven thousand pounds and any single axle weight shall not exceed twenty-five thousand pounds. Any additional special authorizations contained in a currently valid annual permit shall cease upon the expiration of such current annual permit. (ii) A permit may be issued subject to bridge restrictions for a vehi- cle or a combination of vehicles having at least six axles and a wheel base of at least thirty-six and one-half feet. The maximum gross weight of such vehicle or combination of vehicles shall not exceed one hundred seven thousand pounds and any tridem axle group weight shall not exceed fifty-eight thousand pounds and any tandem axle group weight shall not exceed forty-eight thousand pounds. (ii-a) A permit may be issued subject to bridge restrictions for a combination of vehicles having at least seven axles and a wheelbase of at least forty-three feet. The maximum gross weight of such combination of vehicles shall not exceed one hundred seventeen thousand pounds, any four axle group weight shall not exceed sixty-three thousand pounds, any tridem axle group weight shall not exceed fifty-eight thousand pounds, any tandem axle group weight shall not exceed forty-eight thousand pounds, and any single axle weight shall not exceed twenty-five thousand pounds. Each axle of such combination of vehicles, other than steerable or trackable axles, shall be equipped with two tires on each side of the axle, any air pressure controls for lift axles shall be located outside the cab of the combination of vehicles and shall be beyond the reach of occupants of the cab while the combination of vehicles is in motion, the weight on any grouping of two or more axles shall be distributed such that no axle in the grouping carries less than eighty percent of any other axle in the grouping, and any liftable axle of such combination of vehicles shall be steerable or trackable. (iii) A permit may be issued for a vehicle having two axles and a wheelbase not less than ten feet, with the maximum gross weight not in excess of one hundred twenty-five percent of the total weight limitation as set forth in subdivision ten of this section. Furthermore, until December thirty-first, nineteen hundred ninety-four, any single rear axle weight shall not exceed twenty-eight thousand pounds. After Decem- ber thirty-first, nineteen hundred ninety-four, any axle weight shall not exceed twenty-seven thousand pounds. (iv) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle having at least three axles and a wheelbase not exceeding forty-four feet nor less than seven- teen feet or for a vehicle with a trailer not exceeding forty feet. Until December thirty-first, nineteen hundred ninety-four, a permit may only be issued for such a vehicle having a maximum gross weight not exceeding eighty-two thousand pounds and any tandem axle group weight shall not exceed sixty-two thousand pounds. After January first, nineteen hundred ninety-five, the operation of such a vehicle shall be further limited and a permit may only be issued for such a vehicle having a maximum gross weight not exceeding seventy- nine thousand pounds and any tandem axle group weight shall not exceed fifty-nine thousand pounds, and any tridem shall not exceed sixty-four thousand pounds. S. 2008--A 8 A. 3008--A A permit may be issued only until December thirty-first, nineteen hundred ninety-four for a vehicle having at least three axles and a wheelbase between fifteen and seventeen feet. The maximum gross weight of such a vehicle shall not exceed seventy-three thousand two hundred eighty pounds and any tandem axle group weight shall not exceed fifty- four thousand pounds. No vehicle having a model year of two thousand six or newer shall be issued a permit pursuant to this subparagraph for use within the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess unless it is equipped with at least four axles, and further provided, after December thirty-first, two thousand fourteen, no permit shall be issued pursuant to this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess to a vehicle of any model year unless the vehicle is equipped with at least four axles. (v) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange or Dutch- ess, a permit may be issued only until December thirty-first, nineteen hundred ninety-nine for a vehicle or combination of vehicles that has been permitted within the past four years having five axles and a wheel- base of at least thirty-six and one-half feet. The maximum gross weight of such a vehicle or combination of vehicles shall not exceed one hundred five thousand pounds and any tandem axle group weight shall not exceed fifty-one thousand pounds. Within a city not wholly included within one county and the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle or combination of vehicles having at least five axles and a wheelbase of at least thirty feet. The maximum gross weight of such vehicle or combination of vehicles shall not exceed ninety-three thousand pounds and any tridem axle group weight shall not exceed fifty-seven thousand pounds and any tandem axle group weight shall not exceed forty-five thousand pounds. (vi) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle or combination of vehi- cles having at least five axles or more and a wheelbase of at least thirty-six and one-half feet, provided such permit contains routing restrictions. Until December thirty-first, nineteen hundred ninety-four, the maximum gross weight of a vehicle or combination of vehicles permitted under this [subparagraph] CLAUSE shall not exceed one hundred twenty thousand pounds and any tandem or tridem axle group weight shall not exceed sixty-nine thousand pounds, provided, however, that any replacement vehicle or combination of vehicles permitted after the effective date of this [subparagraph] CLAUSE shall have at least six axles, any tandem axle group shall not exceed fifty thousand pounds and any tridem axle group shall not exceed sixty-nine thousand pounds. After December thirty-first, nineteen hundred ninety-four, the tridem axle group weight of any vehicle or combination of vehicles issued a permit under this [subparagraph] CLAUSE shall not exceed sixty-seven thousand pounds, any tandem axle group weight shall not exceed fifty thousand pounds and any single axle weight shall not exceed twenty-five thousand seven hundred fifty pounds. After December thirty-first, nineteen hundred ninety-nine, all vehi- cles issued a permit under this [subparagraph] CLAUSE must have at least six axles. S. 2008--A 9 A. 3008--A After December thirty-first, two thousand fourteen, all combinations of vehicles issued a permit under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess must have at least seven axles and a wheelbase of at least forty-three feet. After December thirty-first, two thousand six, no permits shall be issued under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for a vehicle or combination of vehicles having less than seven axles or having a wheelbase of less than forty-three feet, provided, however, that permits may be issued for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for vehicles or combinations of vehicles where the permit applicant demonstrates that the applicant acquired the vehicle or combination of vehicles prior to December thirty-first, two thousand six, and that if the vehicle or combination of vehicles was acquired by the applicant after the effec- tive date of this provision, such vehicle or combination of vehicles is less than fifteen years old. In instances where the application is for a combination of vehicles, the applicant shall demonstrate that the power unit of such combination satisfies the conditions of this [subparagraph] CLAUSE. In no event shall a permit be issued under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for a vehicle or combination of vehicles having less than seven axles or having a wheelbase of less than forty-three feet after December thirty-first, two thousand fourteen. Except as otherwise provided by this subparagraph for the period ending December thirty-first, two thousand fourteen, after December thirty-first, two thousand three, any combination of vehicles issued a permit under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess shall not exceed one hundred twenty thousand pounds, shall have at least seven axles, shall have a wheelbase of at least forty-three feet, and single axle weight shall not exceed twenty-five thousand seven hundred fifty pounds, any tandem axle group weight shall not exceed forty-eight thousand pounds, any tridem axle group weight shall not exceed sixty- three thousand pounds and any four axle group shall not exceed sixty- five thousand pounds. From the date of enactment of this paragraph, permit applications under [subparagraphs] CLAUSES (i), (ii), (ii-a), (iii), (iv), (v) and (vi) of this [paragraph] SUBPARAGRAPH for vehicles registered in this state may be honored by the commissioner of transportation or other appropriate authority. The commissioner of transportation and other appropriate authorities may confer and develop a system through rules and regulations to assure compliance herewith. § 2. This act shall take effect immediately. PART C Section 1. Paragraph (b) of subdivision 5 of section 88-a of the state finance law, as added by chapter 481 of the laws of 1981, is amended to read as follows: (b) Moneys in the public transportation systems operating assistance account shall be paid on a quarterly basis beginning October first, nineteen hundred eighty-one. However, if there is a demonstrated cash shortfall in any eligible system, payments to such system may be accel- erated. Such payments shall be made in accordance with a schedule as S. 2008--A 10 A. 3008--A specified by appropriation for the payment of operating costs of public mass transportation systems outside the metropolitan commuter transpor- tation district as defined by section twelve hundred sixty-two of the public authorities law, eligible to receive operating assistance pursu- ant to section eighteen-b of the transportation law. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPORTATION SYSTEM THAT IS OPERATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANSPORTATION SAFE- TY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THE TRANSPORTATION LAW UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTA- TION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHERWISE LIFTED. § 2. Paragraph (b) of subdivision 7 of section 88-a of the state finance law, as amended by chapter 56 of the laws of 1993, is amended to read as follows: (b) Moneys in the metropolitan mass transportation operating assist- ance account shall be paid on a quarterly basis beginning October first, nineteen hundred [eight-one] EIGHTY-ONE. However, if there is a demon- strated cash shortfall in any eligible system, payments to such system may be accelerated. Such moneys shall be paid in accordance with sched- ules as specified by appropriations for payment of operating costs of public transportation systems in the metropolitan transportation commu- ter district in order to meet the operating expenses of such systems, provided, however, with respect to the metropolitan transportation authority, its affiliates and subsidiaries, and notwithstanding any general or special law to the contrary, other than such a law which makes specific reference to this section, and subject to the provisions of section twelve hundred seventy-c of the public authorities law, so long as the metropolitan transportation authority dedicated tax fund established by section twelve hundred seventy-c of the public authori- ties law shall exist, any such appropriation to the metropolitan trans- portation authority, its affiliates or its subsidiaries shall be deemed to be an appropriation to the metropolitan transportation authority and the total amount paid pursuant to such appropriation or appropriations shall be deposited to such metropolitan transportation authority dedi- cated tax fund and distributed in accordance with the provisions of section twelve hundred seventy-c of the public authorities law. Nothing contained in this subdivision shall be deemed to restrict the right of the state to amend, repeal, modify or otherwise alter statutes imposing or relating to the taxes producing revenues for deposit in the metropol- itan mass transportation operating assistance account or the appropri- ations relating thereto. The metropolitan transportation authority shall not include within any resolution, contract or agreement with holders of the bonds or notes issued under section twelve hundred sixty-nine of the public authorities law any provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or otherwise alter such taxes or appropriations. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPORTATION SYSTEM THAT IS OPERATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANS- PORTATION SAFETY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THE TRANSPORTATION LAW UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTATION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHERWISE LIFTED. § 3. The opening paragraph of subdivision 4 of section 88-b of the state finance law, as added by chapter 13 of the laws of 1987, is amended to read as follows: S. 2008--A 11 A. 3008--A Moneys of the fund shall be made available for financing any of the following types of capital projects within the counties comprising the metropolitan commuter transportation district, except those counties comprising the city of New York, but only to the extent that such projects are on an adopted transportation plan and approved by a desig- nated transportation coordinating committee, if one exists, or by the metropolitan planning organization as created pursuant to section fifteen-a of the transportation law if no designated transportation coordinating committee exists: capacity and infrastructure improvements to state, county, town, city, village roads, highways, parkways and bridges; or state, county, town, city or village mass transportation projects; provided, however, that in Nassau and Suffolk counties such moneys shall be available only for capacity improvements to state roads, highways, parkways and bridges. The amount of state funds historically appropriated statewide, other than bond funds, for transportation capi- tal purposes from other sources shall not be reduced because of the availability of such moneys made available pursuant to this chapter, nor shall such moneys be used to match federal aid. Prior to the allocation of state advance funds appropriated pursuant to this section, the muni- cipality responsible for the project shall certify to the commissioner of transportation that the amount of funds appropriated for transporta- tion capital purposes by that municipality shall not be reduced because of the availability of such state advance funds, and that such moneys shall not be used to match federal aid. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPORTATION SYSTEM THAT IS OPER- ATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANSPORTATION SAFETY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THE TRANSPORTATION LAW UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTATION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHER- WISE LIFTED. § 4. Paragraph a of subdivision 2 of section 18-b of the transporta- tion law, as added by chapter 56 of the laws of 1975, is amended to read as follows: a. The commissioner shall pay to each public transportation system that makes an application therefor, in quarterly installments, a mass transportation operating assistance service payment. For the purposes of this section, the quarters shall be April through June, July through September, October through December and January through March. PROVIDED, HOWEVER THAT NO PAYMENT SHALL BE MADE TO ANY PUBLIC TRANSPOR- TATION SYSTEM THAT IS OPERATING IN VIOLATION OF AN ORDER BY THE PUBLIC TRANSPORTATION SAFETY BOARD PURSUANT TO SUBDIVISION NINE OF SECTION TWO HUNDRED SEVENTEEN OF THIS CHAPTER UNTIL SUCH TIME THAT SAID PUBLIC TRANSPORTATION SYSTEM HAS FULLY COMPLIED WITH SAID ORDER OR UNLESS THE ORDER IS OTHERWISE LIFTED. § 5. Section 217 of the transportation law is amended by adding seven new subdivisions 9, 10, 11, 12, 13, 14 and 15 to read as follows: 9. TO COMPLY WITH THE REQUIREMENTS OF THE NATIONAL PUBLIC TRANSPORTA- TION SAFETY PLAN, AS PROVIDED BY SECTION 5329 OF TITLE 49 OF THE UNITED STATES CODE AND TO PROVIDE THE STATE SAFETY OVERSIGHT PROGRAM REQUIRED THEREBY. 10. TO REVIEW, APPROVE, OVERSEE AND ENFORCE THE IMPLEMENTATION BY THE RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION AGENCY OF THE PUBLIC TRANSPOR- TATION AGENCY SAFETY PLAN THAT IS APPROVED BY THE BOARD. 11. TO INVESTIGATE AND ENFORCE THE SAFETY OF RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS WITH THE PUBLIC TRANSPORTATION AGENCY SAFETY PLAN APPROVED BY THE BOARD. S. 2008--A 12 A. 3008--A 12. TO PERFORM AUDITS, AT LEAST ONCE TRIENNIALLY, FOR THE COMPLIANCE OF THE RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS WITH THE FEDER- AL TRANSIT ADMINISTRATION. 13. TO PROVIDE, AT LEAST ONCE ANNUALLY, A STATUS REPORT ON THE SAFETY OF RAIL FIXED GUIDEWAY PUBLIC TRANSPORTATION SYSTEMS THAT THE BOARD OVERSEES. 14. TO REVIEW, APPROVE, OVERSEE AND ENFORCE THE IMPLEMENTATION OF PUBLIC TRANSPORTATION SYSTEM SAFETY PLANS. 15. TO ISSUE SUCH ADVISORIES, DIRECTIVES OR ORDERS THAT MAY BE DEEMED NECESSARY TO ASSURE SAFETY IN THE OPERATION OF PUBLIC TRANSPORTATION SYSTEMS. § 6. This act shall take effect immediately. PART D Section 1. Paragraph (g) of subdivision 3 of section 385 of the vehi- cle and traffic law, as added by chapter 303 of the laws of 2014, is amended to read as follows: (g) The length of a tow truck or car carrier, inclusive of load and bumpers, shall be not more than forty feet, except that a car carrier may have an overhang that extends beyond the rear bumper of such car carrier by not more than [three] FOUR feet and except, further, that a wheel lift that is less than fifteen feet in length shall not be included as part of the length of a tow truck or car carrier when such wheel lift is in use by such tow truck or car carrier to tow another motor vehicle. § 2. Subparagraphs 5 and 6 of paragraph (b) of subdivision 4 of section 385 of the vehicle and traffic law, subparagraph 5 as amended by chapter 669 of the laws of 2005, and subparagraph 6 as amended by chap- ter 26 of the laws of 2002, are amended and a new subparagraph 7 is added to read as follows: 5. A vehicle or combination of vehicles which is disabled and unable to proceed under its own power and is being towed for a distance not in excess of ten miles for the purpose of repairs or removal from the high- way, except that the distance to the nearest exit of a controlled-access highway shall not be considered in determining such ten mile distance; [and] 6. Stinger-steered automobile transporters or stinger-steered boat transporters, while operating on qualifying and access highways. Such vehicles shall not, however, exceed [seventy-five] EIGHTY feet exclusive of an overhang of not more than [three] FOUR feet on the front and [four] SIX feet on the rear of the vehicle[.]; AND 7. A COMBINATION OF VEHICLES OPERATING ON ANY QUALIFYING OR ACCESS HIGHWAYS CONSISTING OF A POWER UNIT AND TWO TRAILERS OR SEMITRAILERS WITH A TOTAL WEIGHT THAT SHALL NOT EXCEED TWENTY-SIX THOUSAND POUNDS WHEN THE OVERALL LENGTH IS GREATER THAN SIXTY-FIVE FEET BUT SHALL NOT EXCEED EIGHTY-TWO FEET; AND IN WHICH THE TRAILERS OR SEMITRAILERS CARRY NO PROPERTY AND CONSTITUTE INVENTORY PROPERTY OF A MANUFACTURER, DISTRIBUTOR, OR DEALER OF SUCH TRAILERS OR SEMITRAILERS. § 3. Paragraph (c) of subdivision 4 of section 385 of the vehicle and traffic law, as amended by chapter 26 of the laws of 2002, is amended to read as follows: (c) Notwithstanding the provisions of paragraph (a) of this subdivi- sion, an overhang of not more than three feet on the front and four feet on the rear of an automobile transporter or AN OVERHANG OF NOT MORE THAN FOUR FEET ON THE FRONT AND SIX FEET ON THE REAR OF A stinger-steered S. 2008--A 13 A. 3008--A automobile transporter or a boat transporter or stinger-steered boat transporter shall be permitted. § 4. Subdivision 10 of section 385 of the vehicle and traffic law, as amended by chapter 1008 of the laws of 1983, is amended to read as follows: 10. A single vehicle or a combination of vehicles having three axles or more and equipped with pneumatic tires, when loaded, may have a total weight on all axles not to exceed thirty-four thousand pounds, plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rear- most axle. Axles to be counted as provided in subdivision five of this section. In no case, however, shall the total weight exceed eighty thou- sand pounds EXCEPT FOR A VEHICLE IF OPERATED BY AN ENGINE FUELED PRIMA- RILY BY NATURAL GAS WHICH MAY HAVE A MAXIMUM GROSS WEIGHT OF EIGHTY-TWO THOUSAND POUNDS. For any vehicle or combination of vehicles having a total gross weight less than seventy-one thousand pounds, the higher of the following shall apply: (a) the total weight on all axles shall not exceed thirty-four thou- sand pounds plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rearmost axle, or (b) the overall gross weight on a group of two or more consecutive axles shall not exceed the weight produced by application of the follow- ing formula: W = 500 ((LxN)/(N-1) + (12xN)+36) where W equals overall gross weight on any group of two or more consec- utive axles to the nearest five hundred pounds, L equals distance in feet from the center of the foremost axle to the center of the rearmost axle of any group of two or more consecutive axles, and N equals number of axles in group under consideration, except that two consecutive sets of tandem axles may carry a gross load of thirty-four thousand pounds each providing the overall distance between the first and last axles of such consecutive sets of tandem axles is thirty-six feet or more. For any vehicle or combination of vehicles having a total gross weight of seventy-one thousand pounds or greater, paragraph (b) shall apply to determine maximum gross weight which is permitted hereunder. § 5. Section 385 of the vehicle and traffic law is amended by adding a new subdivision 24 to read as follows: 24. THE PROVISIONS OF SUBDIVISIONS SIX, SEVEN, EIGHT, NINE, TEN, ELEV- EN AND TWELVE OF THIS SECTION SHALL NOT APPLY TO ANY TOW TRUCK THAT IS TRANSPORTING A DISABLED VEHICLE FROM THE PLACE WHERE THE VEHICLE BECAME DISABLED TO THE NEAREST APPROPRIATE REPAIR FACILITY AND HAS A GROSS VEHICLE WEIGHT THAT IS EQUAL TO OR EXCEEDS THE GROSS VEHICLE WEIGHT OF THE DISABLED VEHICLE BEING TRANSPORTED. § 6. Subparagraph (iii) of paragraph b of subdivision 2 of section 510 of the vehicle and traffic law, as amended by chapter 349 of the laws of 1993, is amended to read as follows: (iii) such registrations shall be suspended when necessary to comply with subdivision nine of section one hundred forty or subdivision four of section one hundred forty-five of the transportation law OR WHEN THE MOTOR CARRIER HAS BEEN ISSUED AN OUT OF SERVICE ORDER BY THE UNITED STATES DEPARTMENT OF TRANSPORTATION. The commissioner shall have the authority to deny a registration or renewal application to any other person for the same vehicle and may deny a registration or renewal application for any other motor vehicle registered in the name of the applicant where it has been determined that such registrant's intent has S. 2008--A 14 A. 3008--A been to evade the purposes of this subdivision and where the commission- er has reasonable grounds to believe that such registration or renewal will have the effect of defeating the purposes of this subdivision. ANY SUSPENSION ISSUED PURSUANT TO THIS SUBPARAGRAPH SHALL REMAIN IN EFFECT UNTIL SUCH TIME AS THE COMMISSIONER IS NOTIFIED BY THE UNITED STATES DEPARTMENT OF TRANSPORTATION OR THE NEW YORK STATE DEPARTMENT OF TRANS- PORTATION THAT THE OUT OF SERVICE ORDER RESULTING IN THE SUSPENSION IS NO LONGER IN EFFECT. § 7. This act shall take effect immediately. PART E Section 1. Subdivision 3 of section 165.15 of the penal law is amended to read as follows: 3. With intent to obtain railroad, subway, bus, air, taxi or any other public transportation service OR TO USE ANY HIGHWAY, PARKWAY, ROAD, BRIDGE OR TUNNEL without payment of the lawful charge OR TOLL therefor, or to avoid payment of the lawful charge OR TOLL for such transportation service which has been rendered to him OR FOR SUCH USE OF ANY HIGHWAY, PARKWAY, ROAD, BRIDGE OR TUNNEL, he obtains or attempts to obtain such service OR USE or avoids or attempts to avoid payment therefor by force, intimidation, stealth, deception or mechanical tampering, or by unjusti- fiable failure or refusal to pay; or § 2. The vehicle and traffic law is amended by adding a new section 518 to read as follows: § 518. RECIPROCAL AGREEMENTS CONCERNING SUSPENSION OR REVOCATION OF REGISTRATION OF A MOTOR VEHICLE FOR VIOLATIONS OF TOLL COLLECTION REGU- LATIONS. A. THE COMMISSIONER MAY EXECUTE A RECIPROCAL COMPACT OR AGREE- MENT REGARDING TOLL COLLECTION VIOLATIONS WITH THE MOTOR VEHICLE ADMIN- ISTRATOR OR OTHER AUTHORIZED OFFICIAL OF ANOTHER STATE NOT INCONSISTENT WITH THE PROVISIONS OF THIS CHAPTER. SUCH COMPACT OR AGREEMENT SHALL PROVIDE THAT IF A REGISTRATION OF A MOTOR VEHICLE WOULD BE SUSPENDED OR REVOKED PURSUANT TO PARAGRAPH D OF SUBDIVISION THREE OF SECTION FIVE HUNDRED TEN OF THIS CHAPTER, OR PURSUANT TO A COMPARABLE LAW OR REGU- LATION OF ANOTHER STATE, BECAUSE AN OWNER OF A MOTOR VEHICLE FAILED TO PAY TOLLS AND VIOLATION FEES, OR HAVE THEM DISMISSED OR TRANSFERRED, THEN THE STATE ISSUING THE REGISTRATION SHALL LIKEWISE SUSPEND OR REVOKE THE REGISTRATION OR BAR RENEWAL OF SUCH REGISTRATION, UNTIL SUCH REGIS- TRANT OR APPLICANT HAS PAID SUCH TOLLS AND FEES OR COMPLIED WITH THE RULES AND REGULATIONS. B. SUCH COMPACT OR AGREEMENT SHALL ALSO PROVIDE SUCH TERMS AND PROCE- DURES AS ARE NECESSARY AND PROPER TO FACILITATE ITS ADMINISTRATION. ANY SUCH COMPACT OR AGREEMENT SHALL SPECIFY THE VIOLATIONS SUBJECT TO THE COMPACT OR AGREEMENT, AND SHALL INCLUDE A DETERMINATION OF COMPARABLE VIOLATIONS IN EACH STATE IF ANY SUCH VIOLATIONS ARE OF A SUBSTANTIALLY SIMILAR NATURE BUT ARE NOT DENOMINATED OR DESCRIBED IN PRECISELY THE SAME WORDS IN EACH PARTY STATE. C. THE WORD "STATE" WHEN USED IN THIS SECTION SHALL MEAN ANY STATE, TERRITORY, A POSSESSION OF THE UNITED STATES, THE DISTRICT OF COLUMBIA OR ANY PROVINCE OF CANADA. § 3. Subdivision 1 of section 402 of the vehicle and traffic law is amended by adding a new paragraph (c) to read as follows: (C) IT SHALL BE UNLAWFUL FOR ANY PERSON TO OPERATE, DRIVE OR PARK A MOTOR VEHICLE ON A TOLL HIGHWAY, BRIDGE AND/OR TUNNEL FACILITY, UNDER THE JURISDICTION OF THE TOLLING AUTHORITY, IF SUCH NUMBER PLATE IS NOT EASILY READABLE, NOR SHALL ANY NUMBER PLATE BE COVERED BY GLASS OR ANY S. 2008--A 15 A. 3008--A PLASTIC MATERIAL, AND SHALL NOT BE KNOWINGLY COVERED OR COATED WITH ANY ARTIFICIAL OR SYNTHETIC MATERIAL OR SUBSTANCE THAT CONCEALS OR OBSCURES SUCH NUMBER PLATES OR THAT DISTORTS A RECORDED OR PHOTOGRAPHIC IMAGE OF SUCH NUMBER PLATES, AND THE VIEW OF SUCH NUMBER PLATES SHALL NOT BE OBSTRUCTED BY ANY PART OF THE VEHICLE OR BY ANYTHING CARRIED THEREON, EXCEPT FOR A RECEIVER-TRANSMITTER ISSUED BY A PUBLICLY OWNED TOLLING FACILITY IN CONNECTION WITH ELECTRONIC TOLL COLLECTION WHEN SUCH RECEIV- ER-TRANSMITTER IS AFFIXED TO THE EXTERIOR OF A VEHICLE IN ACCORDANCE WITH MOUNTING INSTRUCTIONS PROVIDED BY THE TOLLING FACILITY. FOR PURPOSES OF THIS PARAGRAPH, "TOLLING AUTHORITY" SHALL MEAN EVERY PUBLIC AUTHORITY WHICH OPERATES A TOLL HIGHWAY, BRIDGE AND/OR TUNNEL FACILITY AS WELL AS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, A BI-STATE AGENCY CREATED BY COMPACT SET FORTH IN CHAPTER ONE HUNDRED FIFTY-FOUR OF THE LAWS OF NINETEEN HUNDRED TWENTY-ONE, AS AMENDED. § 4. Subdivision 8 of section 402 of the vehicle and traffic law, as amended by chapter 61 of the laws of 1989 and renumbered by chapter 648 of the laws of 2006, is amended to read as follows: 8. The violation of this section shall be punishable by a fine of not less than twenty-five nor more than two hundred dollars EXCEPT FOR VIOLATIONS OF PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, WHICH SHALL BE PUNISHABLE BY A FINE OF NOT LESS THAN ONE HUNDRED NOR MORE THAN FIVE HUNDRED DOLLARS. § 5. This act shall take effect immediately. PART F Section 1. Subdivision 5 of section 227 of the vehicle and traffic law, as amended by section 3 of part CC of chapter 58 of the laws of 2015, is amended to read as follows: 5. All penalties and forfeited security collected pursuant to the provisions of this article shall be paid to the department of audit and control to the credit of the justice court fund and shall be subject to the applicable provisions of section eighteen hundred three of this chapter. After such audit as shall reasonably be required by the comp- troller, such penalties and forfeited security shall be paid quarterly or, in the discretion of the comptroller, monthly, to the appropriate jurisdiction in which the violation occurred in accordance with the provisions of section ninety-nine-a of the state finance law, except that the sum of four dollars for each violation occurring in such juris- diction for which a complaint has been filed with the administrative tribunal established pursuant to this article shall be retained by the state. NOTWITHSTANDING ANY LAW TO THE CONTRARY AN ADDITIONAL ANNUAL SUM OF THREE MILLION DOLLARS COLLECTED FROM FINES AND ASSESSED TO THE CITY OF NEW YORK, SHALL BE DEPOSITED INTO THE GENERAL FUND IN ACCORDANCE WITH THE PROVISIONS OF SECTION NINETY-NINE-A OF THE STATE FINANCE LAW. The amount distributed during the first three quarters to the city of Rochester in any given fiscal year shall not exceed seventy percent of the amount which will be otherwise payable. Provided, however, that if the full costs of administering this article shall exceed the amounts received and retained by the state for any period specified by the commissioner, then such additional sums as shall be required to offset such costs shall be retained by the state out of the penalties and forfeited security collected pursuant to this article. § 2. Paragraph c of subdivision 1 of section 1803 of the vehicle and traffic law, as amended by chapter 385 of the laws of 1999, is amended to read as follows: S. 2008--A 16 A. 3008--A c. for compliance with or violations of subdivision nineteen of section three hundred eighty-five of this chapter, notwithstanding any inconsistent provision of law, except as provided in section ninety of the state finance law, the fees and fines collected by the state pursu- ant to sections two hundred twenty-seven, three hundred eighty-five and eighteen hundred three of this chapter and section ninety-nine-a of the state finance law, shall be made available to the state comptroller for deposit in the general fund except that fines collected within a city not wholly included within one county shall be paid to such city in accordance with the procedures set forth in subdivision four of section two hundred twenty-seven of this chapter for deposit into the general fund of such city, AND EXCEPT THAT AN ANNUAL AMOUNT OF THREE MILLION DOLLARS OF FINES COLLECTED WITHIN THE CITY OF NEW YORK PURSUANT TO ARTI- CLE TWO-A OF THIS CHAPTER BE DEPOSITED BY THE COMPTROLLER TO THE GENERAL FUND. § 3. Subdivision 3 of section 99-a of the state finance law, as amended by section 10 of part CC of chapter 58 of the laws of 2015, is amended to read as follows: 3. The comptroller is hereby authorized to implement alternative procedures, including guidelines in conjunction therewith, relating to the remittance of fines, penalties, forfeitures and other moneys by town and village justice courts, and by the Nassau and Suffolk counties traf- fic and parking violations agencies, and by the city of Buffalo traffic violations agency, AND BY THE CITY OF NEW YORK PURSUANT TO ARTICLE TWO-A OF THE VEHICLE AND TRAFFIC LAW, to the justice court fund and for the distribution of such moneys by the justice court fund. Notwithstanding any law to the contrary, the alternative procedures utilized may include: a. electronic funds transfer; b. remittance of funds by the justice court to the chief fiscal office of the town or village, or, in the case of the Nassau and Suffolk coun- ties traffic and parking violations agencies, to the county treasurer, or, in the case of the Buffalo traffic violations agency, to the city of Buffalo comptroller, for distribution in accordance with instructions by the comptroller OR, IN THE CASE OF THE CITY OF NEW YORK, PURSUANT TO ARTICLE TWO-A OF THE VEHICLE AND TRAFFIC LAW TO THE CITY COMPTROLLER; and/or c. monthly, rather than quarterly, distribution of funds. The comptroller may require such reporting and record keeping as he or she deems necessary to ensure the proper distribution of moneys in accordance with applicable laws. A justice court or the Nassau and Suffolk counties traffic and parking violations agencies or the city of Buffalo traffic violations agency OR THE CITY OF NEW YORK PURSUANT TO ARTICLE TWO-A OF THE VEHICLE AND TRAFFIC LAW may utilize these proce- dures only when permitted by the comptroller, and such permission, once given, may subsequently be withdrawn by the comptroller on due notice. § 4. This act shall take effect immediately. PART G Section 1. Legislative intent. The purpose of this act is to expand access to important and enhanced transportation options for residents and visitors throughout the State, while ensuring the safety, reliabil- ity, and cost-effectiveness of those services within the State of New York. S. 2008--A 17 A. 3008--A § 2. The vehicle and traffic law is amended by adding a new article 44-B to read as follows: ARTICLE 44-B TRANSPORTATION NETWORK COMPANY SERVICES SECTION 1691. DEFINITIONS. 1692. GENERAL PROVISIONS. 1693. FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK COMPA- NIES. 1694. DISCLOSURES. 1695. INSURANCE PROVISIONS. 1696. DRIVER AND VEHICLE REQUIREMENTS. 1697. MAINTENANCE OF RECORDS. 1698. AUDIT PROCEDURES; CONFIDENTIALITY OF RECORDS. 1699. CRIMINAL HISTORY BACKGROUND CHECK OF TRANSPORTATION NETWORK COMPANY DRIVERS. 1700. CONTROLLING AUTHORITY. § 1691. DEFINITIONS. AS USED IN THIS ARTICLE: 1. "TRANSPORTATION NETWORK COMPANY VEHICLE" OR "TNC VEHICLE" MEANS A VEHICLE THAT IS: (A) USED BY A TRANSPORTATION NETWORK COMPANY DRIVER TO PROVIDE A TNC PREARRANGED TRIP ORIGINATING IN THE STATE OF NEW YORK; (B) OWNED, LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA- TION NETWORK COMPANY DRIVER AND SHALL NOT INCLUDE: (I) A TAXICAB, AS DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THIS CHAPTER AND SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (II) A LIVERY VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E OF THIS CHAPTER, OR AS OTHERWISE DEFINED IN LOCAL LAW; (III) A BLACK CAR, LIMOUSINE, OR LUXURY LIMOUSINE, AS DEFINED IN SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (IV) A FOR-HIRE VEHICLE, AS DEFINED IN SECTION 19-502 OF THE ADMINIS- TRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (V) A BUS, AS DEFINED IN SECTION ONE HUNDRED FOUR OF THIS CHAPTER; (VI) ANY MOTOR VEHICLE WEIGHING MORE THAN SIX THOUSAND FIVE HUNDRED POUNDS UNLOADED; (VII) ANY MOTOR VEHICLE HAVING A SEATING CAPACITY OF MORE THAN SEVEN PASSENGERS; AND (VIII) ANY MOTOR VEHICLE SUBJECT TO SECTION THREE HUNDRED SEVENTY OF THIS CHAPTER. 2. "DIGITAL NETWORK" MEANS ANY SYSTEM OR SERVICE OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPANY THAT ENABLES TNC PREARRANGED TRIPS WITH TRANSPORTATION NETWORK COMPANY DRIVERS. 3. "TRANSPORTATION NETWORK COMPANY" OR "TNC" MEANS A PERSON, CORPO- RATION, PARTNERSHIP, SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS LICENSED PURSUANT TO THIS ARTICLE AND IS OPERATING IN NEW YORK STATE EXCLUSIVELY USING A DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK COMPANY PASSENGERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE TNC PREARRANGED TRIPS. 4. "TRANSPORTATION NETWORK COMPANY DRIVER" OR "TNC DRIVER" MEANS AN INDIVIDUAL WHO: (A) RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE TRANSPORTATION NETWORK COMPANY; AND (B) USES A TNC VEHICLE TO OFFER OR PROVIDE A TNC PREARRANGED TRIP TO TRANSPORTATION NETWORK COMPANY PASSENGERS UPON CONNECTION THROUGH A S. 2008--A 18 A. 3008--A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR COMPENSATION OR PAYMENT OF A FEE. 5. "TRANSPORTATION NETWORK COMPANY PASSENGER" OR "PASSENGER" MEANS A PERSON OR PERSONS WHO USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK COMPANY DRIVER WHO PROVIDES TNC PREARRANGED TRIPS TO THE PASSENGER IN THE TNC VEHICLE BETWEEN POINTS CHOSEN BY THE PASSENGER. 6. "TNC PREARRANGED TRIP" MEANS THE PROVISION OF TRANSPORTATION BY A TRANSPORTATION NETWORK COMPANY DRIVER TO A PASSENGER PROVIDED THROUGH THE USE OF A TNC'S DIGITAL NETWORK: (A) BEGINNING WHEN A TRANSPORTATION NETWORK COMPANY DRIVER ACCEPTS A PASSENGER'S REQUEST FOR A TRIP THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY; (B) CONTINUING WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER TRANS- PORTS THE REQUESTING PASSENGER IN A TNC VEHICLE; AND (C) ENDING WHEN THE LAST REQUESTING PASSENGER DEPARTS FROM THE TNC VEHICLE. (D) THE TERM "TNC PREARRANGED TRIP" DOES NOT INCLUDE TRANSPORTATION PROVIDED THROUGH ANY OF THE FOLLOWING: (I) SHARED EXPENSE CARPOOL OR VANPOOL ARRANGEMENTS, INCLUDING THOSE AS DEFINED IN SECTION ONE HUNDRED FIFTY-EIGHT-B OF THE VEHICLE AND TRAFFIC LAW; (II) USE OF A TAXICAB, LIVERY, LUXURY LIMOUSINE, OR OTHER FOR-HIRE VEHICLE, AS DEFINED IN THE VEHICLE AND TRAFFIC LAW, SECTION 19-502 OF THE NEW YORK CITY ADMINISTRATIVE CODE, OR AS OTHERWISE DEFINED IN LOCAL LAW; AND (III) A REGIONAL TRANSPORTATION PROVIDER. 7. "GROUP POLICY" MEANS AN INSURANCE POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSURANCE LAW. § 1692. GENERAL PROVISIONS. 1. A TNC OR A TNC DRIVER IS NOT A COMMON CARRIER, AS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF THE TRANSPORTA- TION LAW; A CONTRACT CARRIER OF PASSENGERS BY MOTOR VEHICLE, AS DEFINED IN SUBDIVISION NINE OF SECTION TWO OF THE TRANSPORTATION LAW; OR A MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION TWO OF THE TRANSPORTATION LAW; NOR DO THEY PROVIDE TAXICAB OR FOR-HIRE VEHICLE SERVICE. MOREOVER, A TNC DRIVER SHALL NOT BE REQUIRED TO REGISTER THE TNC VEHICLE SUCH TNC DRIVER USES FOR TNC PREARRANGED TRIPS AS A COMMER- CIAL OR FOR-HIRE VEHICLE, AS SET FORTH IN ARTICLE FOURTEEN OF THIS CHAP- TER. 2. A TNC MAY NOT OPERATE IN THE STATE OF NEW YORK WITHOUT FIRST HAVING OBTAINED A LICENSE ISSUED BY THE DEPARTMENT IN A FORM AND MANNER AND WITH APPLICABLE FEES AS PROVIDED FOR BY REGULATIONS PROMULGATED BY THE COMMISSIONER. AS A CONDITION OF OBTAINING A LICENSE, A TNC SHALL BE REQUIRED TO SUBMIT TO THE DEPARTMENT PROOF OF A GROUP POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSUR- ANCE LAW. FAILURE OF A TNC TO OBTAIN A LICENSE BEFORE OPERATION, PURSU- ANT TO THIS SUBDIVISION SHALL CONSTITUTE A MISDEMEANOR. NO LICENSE SHALL BE SUSPENDED OR REVOKED EXCEPT UPON NOTICE TO THE TNC AND AFTER AN OPPORTUNITY TO BE HEARD. 3. A TNC MUST MAINTAIN AN AGENT FOR SERVICE OF PROCESS IN THE STATE OF NEW YORK. 4. ON BEHALF OF A TNC DRIVER, A TNC MAY CHARGE A FARE FOR THE SERVICES PROVIDED TO PASSENGERS; PROVIDED THAT, IF A FARE IS COLLECTED FROM A PASSENGER, THE TNC SHALL DISCLOSE TO THE PASSENGERS THE FARE OR FARE CALCULATION METHOD ON ITS WEBSITE OR WITHIN THE APPLICATION SERVICE. THE TNC SHALL ALSO PROVIDE THE PASSENGERS WITH THE APPLICABLE RATES BEING S. 2008--A 19 A. 3008--A CHARGED AND AN ESTIMATED FARE BEFORE THE PASSENGER ENTERS THE TNC VEHI- CLE. 5. A TNC'S DIGITAL NETWORK SHALL DISPLAY A PICTURE OF THE TNC DRIVER, AND THE MAKE, MODEL, COLOR AND LICENSE PLATE NUMBER OF THE TNC VEHICLE UTILIZED FOR PROVIDING THE TNC PREARRANGED TRIP BEFORE THE PASSENGER ENTERS THE TNC VEHICLE. 6. WITHIN A REASONABLE PERIOD OF TIME FOLLOWING THE COMPLETION OF A TRIP, A TNC SHALL TRANSMIT AN ELECTRONIC RECEIPT TO THE PASSENGER ON BEHALF OF THE TNC DRIVER THAT LISTS: (A) THE ORIGIN AND DESTINATION OF THE TRIP; (B) THE TOTAL TIME AND DISTANCE OF THE TRIP; AND (C) AN ITEMIZATION OF THE TOTAL FARE PAID, IF ANY. 7. A TNC DRIVER SHALL NOT SOLICIT OR ACCEPT STREET HAILS. 8. A TNC SHALL ADOPT A POLICY PROHIBITING SOLICITATION OR ACCEPTANCE OF CASH PAYMENTS FOR THE FARES CHARGED TO PASSENGERS FOR TNC PREARRANGED TRIPS AND NOTIFY TNC DRIVERS OF SUCH POLICY. TNC DRIVERS SHALL NOT SOLICIT OR ACCEPT CASH PAYMENTS FROM PASSENGERS. 9. NOTHING IN THIS ARTICLE SHALL APPLY TO CITIES WITH A POPULATION OF ONE MILLION OR MORE. § 1693. FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK COMPANIES. 1. A TNC DRIVER, OR TNC ON THE TNC DRIVER'S BEHALF THROUGH A GROUP POLI- CY, SHALL MAINTAIN INSURANCE THAT RECOGNIZES THAT THE DRIVER IS A TNC DRIVER AND PROVIDES FINANCIAL RESPONSIBILITY COVERAGE: (A) WHILE THE TNC DRIVER IS LOGGED ONTO THE TNC'S DIGITAL NETWORK; AND (B) WHILE THE TNC DRIVER IS ENGAGED IN A TNC PREARRANGED TRIP. 2. (A) THE FOLLOWING AUTOMOBILE FINANCIAL RESPONSIBILITY INSURANCE REQUIREMENTS SHALL APPLY WHILE A TNC DRIVER IS LOGGED ONTO THE TNC'S DIGITAL NETWORK AND IS AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT IS NOT ENGAGED IN A TNC PREARRANGED TRIP: INSURANCE AGAINST LOSS FROM THE LIABILITY IMPOSED BY LAW FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND LOSS OF SERVICES, BECAUSE OF BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF PROPERTY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, USE OR OPERATION OF A PERSONAL VEHICLE OR VEHICLES WITHIN THIS STATE, EXCLUSIVE OF INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE, OF AT LEAST FIFTY THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH OF ONE PERSON IN ANY ONE ACCIDENT AND, SUBJECT TO SAID LIMIT FOR ONE PERSON, TO A LIMIT OF AT LEAST ONE HUNDRED THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH OF TWO OR MORE PERSONS IN ANY ONE ACCIDENT, AND TO A LIMIT OF AT LEAST TWENTY-FIVE THOUSAND DOLLARS BECAUSE OF INJURY TO OR DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT PROVIDED, HOWEVER, THAT SUCH POLICY NEED NOT BE FOR A PERIOD COTERMINOUS WITH THE REGISTRATION PERIOD OF THE PERSONAL VEHICLE INSURED, AND COVERAGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THE INSURANCE LAW, ARTICLE FIFTY-ONE OF THE INSURANCE LAW, AND SUCH OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE. (B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY BE SATISFIED BY ANY OF THE FOLLOWING: (I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR (II) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE TNC; OR (III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH. 3. (A) THE FOLLOWING AUTOMOBILE FINANCIAL RESPONSIBILITY INSURANCE REQUIREMENTS SHALL APPLY WHILE A TNC DRIVER IS ENGAGED IN A TNC PREAR- S. 2008--A 20 A. 3008--A RANGED TRIP: INSURANCE AGAINST LOSS FROM THE LIABILITY IMPOSED BY LAW FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND LOSS OF SERVICES, BECAUSE OF BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF PROPERTY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, USE, OR OPERATION OF A PERSONAL VEHICLE OR VEHICLES WITHIN THIS STATE, SUBJECT TO A LIMIT, EXCLUSIVE OF INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE, OF AT LEAST ONE MILLION DOLLARS BECAUSE OF BODILY INJURIES, DEATH AND PROPERTY DAMAGE, PROVIDED, HOWEVER, THAT SUCH POLICY NEED NOT BE FOR A PERIOD COTERMINOUS WITH THE REGISTRATION PERIOD OF THE PERSONAL VEHICLE INSURED, AND COVERAGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THE INSURANCE LAW, ARTICLE FIFTY-ONE OF THE INSURANCE LAW, AND SUCH OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE. (B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY BE SATISFIED BY ANY OF THE FOLLOWING: (I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR (II) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE TNC; OR (III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH. 4. A TNC SHALL, UPON ENTERING INTO A CONTRACTUAL AGREEMENT WITH A TNC DRIVER, PROVIDE NOTICE TO THE TNC DRIVER THAT HE OR SHE MAY NEED ADDI- TIONAL INSURANCE COVERAGE INCLUDING MOTOR VEHICLE PHYSICAL DAMAGE COVER- AGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW IF THE TNC VEHICLE BEING USED BY THE TNC DRIVER IS SUBJECT TO A LEASE OR LOAN. A TNC SHALL ALSO POST THIS NOTICE ON ITS WEBSITE. 5. IF INSURANCE MAINTAINED BY A TNC DRIVER PURSUANT TO SUBDIVISIONS TWO AND THREE OF THIS SECTION HAS LAPSED OR DOES NOT PROVIDE THE REQUIRED COVERAGE, THEN THE GROUP POLICY MAINTAINED BY A TNC SHALL PROVIDE THE COVERAGE REQUIRED BY THIS SECTION BEGINNING WITH THE FIRST DOLLAR OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM. 6. COVERAGE UNDER A GROUP POLICY MAINTAINED BY THE TNC SHALL NOT BE DEPENDENT ON THE DENIAL OF A CLAIM BY THE INSURER THAT ISSUED THE INSUR- ANCE POLICY USED TO REGISTER THE TNC VEHICLE, NOR SHALL THAT INSURER BE REQUIRED TO FIRST DENY A CLAIM. 7. (A) EXCEPT AS PROVIDED IN SUBDIVISION TWO OF THIS SECTION, A GROUP POLICY MAINTAINED BY A TNC PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH (B) OF SUBDIVISIONS TWO OR THREE OF THIS SECTION SHALL BE PLACED WITH AN INSURER AUTHORIZED TO WRITE INSURANCE IN THIS STATE. (B) IF A TNC IS UNABLE TO PURCHASE A GROUP POLICY PURSUANT TO SUBPARA- GRAPH (II) OF PARAGRAPH (B) OF SUBDIVISIONS TWO OR THREE OF THIS SECTION BECAUSE SUCH INSURANCE IS UNAVAILABLE FROM AUTHORIZED INSURERS THE TNC MAY ACQUIRE SUCH GROUP INSURANCE WITH AN EXCESS LINE BROKER PURSUANT TO SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW. (C) THE OBLIGATION TO DETERMINE WHETHER THE INSURANCE REQUIRED BY THIS SECTION IS UNAVAILABLE FROM INSURERS AUTHORIZED TO WRITE INSURANCE IN THIS STATE SHALL BE MADE PRIOR TO THE INITIAL PLACEMENT AND EACH RENEWAL OF A POLICY. 8. INSURANCE SATISFYING THE REQUIREMENTS OF THIS SECTION MAY BE USED, WHEN THE TNC VEHICLE IS BEING USED OR OPERATED DURING THE PERIOD SPECI- FIED IN SUBDIVISION ONE OF THIS SECTION, TO SATISFY THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THIS CHAPTER, AND ANY OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL S. 2008--A 21 A. 3008--A RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A MOTOR VEHICLE. 9. A TNC DRIVER SHALL CARRY PROOF OF COVERAGE SATISFYING SUBDIVISIONS TWO AND THREE OF THIS SECTION WITH HIM OR HER AT ALL TIMES DURING HIS OR HER USE OR OPERATION OF A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL NETWORK. SUCH PROOF OF COVERAGE SHALL BE IN SUCH FORM AS THE COMMISSION- ER SHALL PRESCRIBE, WHICH MAY BE IN THE FORM OF AN INSURANCE IDENTIFICA- TION CARD AS DEFINED IN SECTION THREE HUNDRED ELEVEN OF THIS CHAPTER. ANY INSURANCE IDENTIFICATION CARD ISSUED PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL BE IN ADDITION TO THE INSURANCE IDENTIFICATION CARD REQUIRED PURSUANT TO ARTICLE SIX OF THIS CHAPTER, AND NOTHING CONTAINED IN THIS ARTICLE SHALL BE DEEMED TO SUPERSEDE THE REQUIREMENTS OF SUCH ARTICLE SIX. WHENEVER THE PRODUCTION OF AN INSURANCE IDENTIFICATION CARD IS REQUIRED BY LAW, A TNC DRIVER SHALL (A) PRODUCE THE INSURANCE IDEN- TIFICATION CARD ISSUED PURSUANT TO ARTICLE SIX OF THIS CHAPTER AND, (B) IF SUCH DRIVER EITHER (I) WAS LOGGED ONTO THE TNC'S DIGITAL NETWORK OR (II) WAS ENGAGED IN A TNC PREARRANGED TRIP AND THE ACTIVITY UNDER THIS SUBDIVISION IS BEING COVERED PRIMARILY BY INSURANCE PURCHASED BY A TNC SUCH DRIVER SHALL ALSO PRODUCE THE INSURANCE IDENTIFICATION CARD REQUIRED PURSUANT TO THIS ARTICLE. 10. THE SUPERINTENDENT OF FINANCIAL SERVICES IS AUTHORIZED TO ISSUE SUCH RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION. 11. NOTHING IN THIS SECTION SHALL IMPOSE FINANCIAL RESPONSIBILITY REQUIREMENTS UPON ANY ENTITIES OPERATING AS VEHICLES FOR HIRE IN A CITY WITH A POPULATION OF ONE MILLION OR MORE. 12. A GROUP POLICY PLACED BY AN EXCESS LINE BROKER UNDER PARAGRAPH (B) OF SUBDIVISION SEVEN OF THIS SECTION SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A POLICY ISSUED PURSUANT TO THIS SECTION. NOTHING IN THIS SECTION SUPERCEDES THE MANDATORY ARBITRATION REQUIREMENTS CONTAINED IN SECTION FIVE THOUSAND ONE HUNDRED FIVE OF THE INSURANCE LAW. § 1694. DISCLOSURES. A TNC SHALL DISCLOSE IN WRITING TO TNC DRIVERS THE FOLLOWING BEFORE THEY ARE ALLOWED TO ACCEPT A REQUEST FOR A TNC PREARRANGED TRIP ON THE TNC'S DIGITAL NETWORK: 1. THE INSURANCE COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE LIMITS FOR EACH COVERAGE, THAT THE TNC PROVIDES WHILE THE TNC DRIVER USES A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL NETWORK; 2. THAT THE TNC DRIVER'S OWN AUTOMOBILE INSURANCE POLICY MIGHT NOT PROVIDE ANY COVERAGE WHILE THE TNC DRIVER IS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND IS AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS OR IS ENGAGED IN A TNC PREARRANGED TRIP, DEPENDING ON ITS TERMS; AND 3. THAT, IF A TNC VEHICLE HAS A LIEN AGAINST IT, THEN THE CONTINUED USE OF SUCH TNC VEHICLE BY ITS TNC DRIVER WITHOUT PHYSICAL DAMAGE COVER- AGE MAY VIOLATE THE TERMS OF THE CONTRACT WITH THE LIENHOLDER. § 1695. INSURANCE PROVISIONS. 1. INSURERS THAT WRITE MOTOR VEHICLE INSURANCE IN THIS STATE MAY, IN THE INSURANCE POLICY, EXCLUDE ANY AND ALL COVERAGE AFFORDED UNDER THE POLICY ISSUED TO AN OWNER OR OPERATOR OF A TNC VEHICLE FOR ANY LOSS OR INJURY THAT OCCURS WHILE A TNC DRIVER IS LOGGED ON TO A TNC'S DIGITAL NETWORK OR WHILE A DRIVER PROVIDES A PREAR- RANGED TRIP, INCLUDING: (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE; (B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THE INSURANCE LAW; (C) UNINSURED AND UNDERINSURED MOTORIST COVERAGE; AND S. 2008--A 22 A. 3008--A (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW. 2. SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT UNDER THE LAW TO THE CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES THAT AN OWNER'S POLICY OF LIABILITY INSURANCE OR OTHER MOTOR VEHICLE INSURANCE POLICY PROVIDE COVERAGE WHILE THE TNC DRIVER IS LOGGED ON TO THE TNC'S DIGITAL NETWORK, WHILE THE TNC DRIVER IS ENGAGED IN A TNC PREARRANGED TRIP OR WHILE THE TNC DRIVER OTHERWISE USES OR OPERATES A TNC VEHICLE TO TRANSPORT PASSENGERS FOR COMPENSATION. 3. NOTHING SHALL BE DEEMED TO PRECLUDE AN INSURER FROM PROVIDING PRIMARY, EXCESS, OR UMBRELLA COVERAGE FOR THE TNC DRIVER'S TNC VEHICLE, IF IT CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT. 4. MOTOR VEHICLE INSURERS THAT EXCLUDE THE COVERAGE DESCRIBED IN THIS ARTICLE SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY ANY CLAIM EXPRESSLY EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL BE DEEMED TO INVALI- DATE OR LIMIT AN EXCLUSION CONTAINED IN A POLICY INCLUDING ANY POLICY IN USE OR APPROVED FOR USE IN THIS STATE PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. 5. A MOTOR VEHICLE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM AGAINST A TNC DRIVER THAT IS EXCLUDED UNDER THE TERMS OF ITS POLICY SHALL HAVE A RIGHT OF CONTRIBUTION AGAINST OTHER INSURERS THAT PROVIDE MOTOR VEHICLE INSURANCE TO THE SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE- MENTS OF THE PROVISIONS OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN WHICH ADDED THIS ARTICLE AT THE TIME OF LOSS. 6. IN A CLAIMS COVERAGE INVESTIGATION, A TNC AND ANY INSURER POTEN- TIALLY PROVIDING COVERAGE UNDER THIS ARTICLE SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS BEEN FILED, FACILITATE THE EXCHANGE OF RELEVANT INFOR- MATION WITH DIRECTLY INVOLVED PARTIES AND ANY INSURER OF THE TNC DRIVER IF APPLICABLE, INCLUDING THE PRECISE TIMES THAT A TNC DRIVER LOGGED ON AND OFF OF THE TNC'S DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMME- DIATELY PRECEDING AND IN THE TWELVE HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND DISCLOSE TO ONE ANOTHER A CLEAR DESCRIPTION OF THE COVERAGE, EXCLUSIONS AND LIMITS PROVIDED UNDER ANY MOTOR VEHICLE INSUR- ANCE MAINTAINED UNDER THIS ARTICLE. 7. (A) THE COMMISSIONER SHALL PROMULGATE REGULATIONS FOR THE PROVISION OF RELEVANT INSURANCE COVERAGE INFORMATION REQUIRED BY THIS ARTICLE TO THE FOLLOWING PERSONS UPON REQUEST: (I) A PERSON TO WHOM AN ACCIDENT REPORT PERTAINS OR WHO IS NAMED IN SUCH REPORT, OR HIS OR HER AUTHORIZED REPRESENTATIVE; AND (II) ANY OTHER PERSON OR HIS OR HER AUTHORIZED REPRESENTATIVE WHO HAS DEMONSTRATED TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH PERSON IS OR MAY BE A PARTY TO A CIVIL ACTION ARISING OUT OF THE CONDUCT DESCRIBED IN SUCH ACCIDENT REPORT. (B) EXCEPT AS PROVIDED UNDER PARAGRAPH (A) OF THIS SUBDIVISION, THE NAME OF A TNC DRIVER ASSOCIATED WITH SUCH INSURANCE INFORMATION IS DESIGNATED CONFIDENTIAL WHETHER OR NOT SO MARKED, IS NOT SUBJECT TO DISCLOSURE BY A THIRD PARTY BY THE DEPARTMENT OF MOTOR VEHICLES WITHOUT PRIOR CONSENT OF THE TNC, AND IS EXEMPT FROM DISCLOSURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW. NOTHING IN THIS SECTION SHALL BE CONSIDERED AS LIMITING THE APPLICABILITY OF ANY OTHER EXEMPTIONS UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. § 1696. DRIVER AND VEHICLE REQUIREMENTS. 1. (A) AT ALL TIMES, AN INDI- VIDUAL ACTING AS A TNC DRIVER SHALL BE PERMITTED BY THE TNC AS FOLLOWS: (I) THE INDIVIDUAL SHALL SUBMIT AN APPLICATION TO THE TNC, WHICH SHALL INCLUDE INFORMATION REGARDING HIS OR HER ADDRESS, AGE, DRIVER'S LICENSE, S. 2008--A 23 A. 3008--A MOTOR VEHICLE REGISTRATION, AUTOMOBILE LIABILITY INSURANCE, AND OTHER INFORMATION REQUIRED BY THE TNC; (II) THE TNC SHALL CONDUCT OR HAVE A THIRD PARTY CONDUCT, A LOCAL AND NATIONAL, CRIMINAL BACKGROUND CHECK FOR EACH APPLICANT IN ACCORDANCE WITH SECTION SIXTEEN HUNDRED NINETY-NINE OF THIS ARTICLE AND THAT SHALL REVIEW: (A) WHETHER THE APPLICANT IS LISTED ON THE PUBLICLY AVAILABLE NEW YORK STATE SEX OFFENDER REGISTRY PURSUANT TO SECTION ONE HUNDRED SIXTY-EIGHT-Q OF THE CORRECTION LAW; AND (B) THE UNITED STATES DEPARTMENT OF JUSTICE NATIONAL SEX OFFENDER PUBLIC WEBSITE; (III) THE TNC SHALL OBTAIN AND REVIEW, OR HAVE A THIRD PARTY OBTAIN AND REVIEW, A DRIVING HISTORY RESEARCH REPORT FOR SUCH INDIVIDUAL. (B) THE TNC SHALL NOT PERMIT AN APPLICANT WHERE SUCH APPLICANT: (I) FAILS TO MEET ALL QUALIFICATIONS PURSUANT TO SECTION SIXTEEN HUNDRED NINETY-NINE OF THIS ARTICLE; (II) IS A MATCH IN THE UNITED STATES DEPARTMENT OF JUSTICE NATIONAL SEX OFFENDER PUBLIC WEBSITE; (III) DOES NOT POSSESS A VALID NEW YORK DRIVER'S LICENSE, UNLESS SUCH APPLICANT DOES POSSESS A VALID OUT OF STATE DRIVER'S LICENSE AND PROOF THAT SUCH APPLICANT IS AN ACTIVE DUTY MEMBER OF THE ARMED SERVICES OF THE UNITED STATES STATIONED IN THIS STATE OR IS A FAMILY OR HOUSEHOLD MEMBER OF SUCH AN ACTIVE DUTY MEMBER; (IV) DOES NOT POSSESS PROOF OF REGISTRATION FOR THE MOTOR VEHICLE(S) USED TO PROVIDE TNC PREARRANGED TRIPS; (V) DOES NOT POSSESS PROOF OF AUTOMOBILE LIABILITY INSURANCE FOR THE MOTOR VEHICLE(S) USED TO PROVIDE TNC PREARRANGED TRIPS AS A TNC VEHICLE; OR (VI) IS NOT AT LEAST NINETEEN YEARS OF AGE. (C) UPON REVIEW OF ALL INFORMATION RECEIVED AND RETAINED BY THE TNC AND UPON VERIFYING THAT THE INDIVIDUAL IS NOT DISQUALIFIED PURSUANT TO THIS SECTION FROM RECEIVING A TNC DRIVER PERMIT, A TNC MAY ISSUE A TNC DRIVER PERMIT TO THE APPLICANT. THE TNC SHALL REVIEW ALL INFORMATION RECEIVED RELATING TO SUCH APPLICANT AND HOLD SUCH INFORMATION FOR SIX YEARS ALONG WITH A CERTIFICATION THAT SUCH APPLICANT QUALIFIES TO RECEIVE A TNC DRIVER PERMIT. (D) A TNC THAT ISSUES A TNC DRIVER'S PERMIT PURSUANT TO THIS SECTION SHALL PARTICIPATE IN THE NEW YORK LICENSE EVENT NOTIFICATION SERVICE (LENS) ESTABLISHED BY THE DEPARTMENT TO OBTAIN TIMELY NOTICE WHEN ANY OF THE FOLLOWING VIOLATIONS ARE ADDED TO A TNC DRIVER'S DRIVING RECORD: (I) UNLAWFULLY FLEEING A POLICE OFFICER IN A MOTOR VEHICLE IN VIOLATION OF SECTIONS 270.25, 270.30 OR 270.35 OF THE PENAL LAW; (II) RECKLESS DRIVING IN VIOLATION OF SECTION ONE THOUSAND TWO HUNDRED TWELVE OF THIS CHAPTER; (III) OPERATING WHILE LICENSE OR PRIVILEGE IS SUSPENDED OR REVOKED IN VIOLATION OF SECTION FIVE HUNDRED ELEVEN OF THIS CHAPTER, EXCLUDING SUBDIVISION SEVEN OF SUCH SECTION; (IV) OPERATING A MOTOR VEHICLE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS IN VIOLATION OF SECTION ONE THOUSAND ONE HUNDRED NINETY-TWO OF THIS CHAPTER; AND (V) LEAVING THE SCENE OF AN INCIDENT WITHOUT REPORTING IN VIOLATION OF SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER. (E) THE NAME OF A TNC DRIVER ASSOCIATED WITH ENROLLMENT IN THE DEPART- MENT'S LENS REPORTING SYSTEM IS DESIGNATED CONFIDENTIAL WHETHER OR NOT SO MARKED, IS NOT SUBJECT TO DISCLOSURE TO A THIRD PARTY BY THE DEPART- MENT WITHOUT PRIOR CONSENT OF THE TNC, AND IS EXEMPT FROM DISCLOSURE S. 2008--A 24 A. 3008--A PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW. NOTHING IN THIS SECTION SHALL BE CONSTRUED AS LIMITING THE APPLICABILITY OF ANY OTHER EXEMPTIONS UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. (F) NO PERSON SHALL OPERATE A TNC VEHICLE OR OPERATE AS A TNC DRIVER UNLESS SUCH PERSON HOLDS A VALID TNC DRIVER PERMIT ISSUED PURSUANT TO THIS SECTION. A VIOLATION OF THIS PARAGRAPH SHALL BE A TRAFFIC INFRAC- TION PUNISHABLE BY A FINE OF NOT LESS THAN SEVENTY-FIVE NOR MORE THAN THREE HUNDRED DOLLARS, OR BY IMPRISONMENT FOR NOT MORE THAN FIFTEEN DAYS, OR BY BOTH SUCH FINE AND IMPRISONMENT. 2. A TNC SHALL IMPLEMENT A ZERO-TOLERANCE POLICY REGARDING A TNC DRIV- ER'S ACTIVITIES WHILE ACCESSING THE TNC'S DIGITAL NETWORK. SUCH POLICY SHALL ADDRESS THE ISSUE OF OPERATING A VEHICLE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS WHILE A TNC DRIVER IS PROVIDING TNC PREARRANGED TRIPS OR IS LOGGED ONTO THE TNC'S DIGITAL NETWORK BUT IS NOT PROVIDING TNC PREARRANGED TRIPS, AND THE TNC SHALL PROVIDE NOTICE OF THIS POLICY ON ITS DIGITAL NETWORK, AS WELL AS PROCEDURES TO REPORT A COMPLAINT ABOUT A TNC DRIVER WITH WHOM A TNC PREARRANGED TRIP WAS COMMENCED AND WHOM THE PASSENGER REASONABLY SUSPECTS WAS OPERATING A VEHICLE UNDER THE INFLU- ENCE OF ALCOHOL OR DRUGS DURING THE COURSE OF THE TNC PREARRANGED TRIP. 3. (A) A TNC SHALL ADOPT A POLICY OF NON-DISCRIMINATION ON THE BASIS OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE OR AFFILIATION, SEX, DISABILITY, AGE, SEXUAL ORIENTATION, GENDER IDENTI- TY, OR GENETIC PREDISPOSITION WITH RESPECT TO PASSENGERS AND POTENTIAL PASSENGERS AND NOTIFY TNC DRIVERS OF SUCH POLICY. (B) TNC DRIVERS SHALL COMPLY WITH ALL APPLICABLE LAWS REGARDING NON- DISCRIMINATION AGAINST PASSENGERS OR POTENTIAL PASSENGERS ON THE BASIS OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE OR AFFILIATION, SEX, DISABILITY, AGE, SEXUAL ORIENTATION, GENDER IDENTI- TY, OR GENETIC PREDISPOSITION. (C) TNC DRIVERS SHALL COMPLY WITH ALL APPLICABLE LAWS RELATING TO ACCOMMODATION OF SERVICE ANIMALS. (D) A TNC SHALL IMPLEMENT AND MAINTAIN A POLICY OF PROVIDING ACCESSI- BILITY TO PASSENGERS OR POTENTIAL PASSENGERS WITH A DISABILITY AND ACCOMMODATION OF SERVICE ANIMALS AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED TWENTY-THREE-B OF THE AGRICULTURE AND MARKETS LAW AND SHALL TO THE EXTENT PRACTICABLE ADOPT FINDINGS ESTABLISHED BY THE NEW YORK STATE TNC ACCESSIBILITY TASK FORCE ADOPTED PURSUANT TO SECTION EIGHTEEN OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS SECTION. A TNC SHALL NOT IMPOSE ADDITIONAL CHARGES FOR PROVIDING SERVICES TO PERSONS WITH PHYSICAL DISABILITIES BECAUSE OF THOSE DISABILITIES. 4. A TNC SHALL REQUIRE THAT ANY MOTOR VEHICLE(S) THAT A TNC DRIVER WILL USE AS A TNC VEHICLE TO PROVIDE TNC PREARRANGED TRIPS MEETS APPLI- CABLE NEW YORK STATE VEHICLE SAFETY AND EMISSIONS REQUIREMENTS, AS SET FORTH IN SECTION THREE HUNDRED ONE OF THIS CHAPTER, OR THE VEHICLE SAFE- TY AND EMISSIONS REQUIREMENTS OF THE STATE IN WHICH THE VEHICLE IS REGISTERED. 5. A TNC DRIVER SHALL DISPLAY A CONSISTENT AND DISTINCTIVE TRADE DRESS CONSISTING OF A REMOVABLE LOGO, INSIGNIA, OR EMBLEM AT ALL TIMES THE DRIVER IS PROVIDING TNC SERVICES. THE TRADE DRESS SHALL BE: (A) SUFFICIENTLY LARGE AND COLOR CONTRASTED SO AS TO BE READABLE DURING DAYLIGHT HOURS AT A DISTANCE OF FIFTY FEET; AND (B) REFLECTIVE, ILLUMINATED, OR OTHERWISE PATENTLY VISIBLE IN THE DARKNESS. § 1697. MAINTENANCE OF RECORDS. A TNC SHALL MAINTAIN THE FOLLOWING RECORDS: S. 2008--A 25 A. 3008--A 1. INDIVIDUAL TRIP RECORDS FOR AT LEAST SIX YEARS FROM THE DATE EACH TRIP WAS PROVIDED; AND 2. INDIVIDUAL RECORDS OF TNC DRIVERS AT LEAST UNTIL THE SIX YEAR ANNI- VERSARY OF THE DATE ON WHICH A TNC DRIVER'S RELATIONSHIP WITH THE TNC HAS ENDED. § 1698. AUDIT PROCEDURES; CONFIDENTIALITY OF RECORDS. 1. FOR THE SOLE PURPOSE OF VERIFYING THAT A TNC IS IN COMPLIANCE WITH THE REQUIREMENTS OF THIS ARTICLE AND NO MORE THAN BIANNUALLY, THE DEPARTMENT SHALL RESERVE THE RIGHT TO VISUALLY INSPECT A SAMPLE OF RECORDS THAT THE TNC IS REQUIRED TO MAINTAIN, UPON REQUEST BY THE DEPARTMENT THAT SHALL BE FULFILLED IN NO LESS THAN THIRTY BUSINESS DAYS BY THE TNC. THE SAMPLE SHALL BE CHOSEN RANDOMLY BY THE DEPARTMENT IN A MANNER AGREEABLE TO BOTH PARTIES. THE AUDIT SHALL TAKE PLACE AT A MUTUALLY AGREED LOCATION IN NEW YORK. ANY RECORD FURNISHED TO THE DEPARTMENT MAY EXCLUDE INFORMATION THAT WOULD TEND TO IDENTIFY SPECIFIC DRIVERS OR PASSENGERS. 2. (A) THE TNC SHALL ESTABLISH A COMPLAINT PROCEDURE THAT ALLOWS PASSENGERS TO FILE COMPLAINTS WITH THE TNC THROUGH THE TNC'S WEBSITE, MOBILE APPLICATION, EMAIL ADDRESS, OR PHONE NUMBER. (B) THE TNC'S WEBSITE SHALL ALSO PROVIDE A PASSENGER COMPLAINT TELE- PHONE NUMBER AND/OR WEBSITE ADDRESS FOR THE DEPARTMENT, IF APPLICABLE. (C) IN RESPONSE TO A SPECIFIC COMPLAINT AGAINST ANY TNC DRIVER OR TNC, THE DEPARTMENT IS AUTHORIZED TO INSPECT RECORDS HELD BY THE TNC THAT ARE NECESSARY TO INVESTIGATE AND RESOLVE THE COMPLAINT. THE TNC AND THE DEPARTMENT SHALL ENDEAVOR TO HAVE THE INSPECTION TAKE PLACE AT A MUTUAL- LY AGREED LOCATION IN NEW YORK. ANY RECORD FURNISHED TO THE DEPARTMENT MAY EXCLUDE INFORMATION THAT WOULD TEND TO IDENTIFY SPECIFIC DRIVERS OR PASSENGERS, UNLESS THE IDENTITY OF A DRIVER OR PASSENGER IS RELEVANT TO THE COMPLAINT. (D) ANY RECORDS INSPECTED BY THE DEPARTMENT UNDER THIS SECTION ARE DESIGNATED CONFIDENTIAL, ARE NOT SUBJECT TO DISCLOSURE TO A THIRD PARTY BY THE DEPARTMENT WITHOUT PRIOR CONSENT OF THE TNC, AND ARE EXEMPT FROM DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. NOTHING IN THIS SECTION SHALL BE CONSTRUED AS LIMITING THE APPLICABILITY OF ANY OTHER EXEMPTION UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW. 3. THE DEPARTMENT SHALL PROMULGATE REGULATIONS FOR THE FILING OF COMPLAINTS PURSUANT TO THIS SECTION. § 1699. CRIMINAL HISTORY BACKGROUND CHECK OF TRANSPORTATION NETWORK COMPANY DRIVERS. 1. A TNC SHALL CONDUCT A CRIMINAL HISTORY BACKGROUND CHECK USING A LAWFUL METHOD APPROVED BY THE DEPARTMENT PURSUANT TO PARA- GRAPH (A) OF SUBDIVISION TWO OF THIS SECTION FOR PERSONS APPLYING TO DRIVE FOR SUCH COMPANY. 2. (A) THE METHOD USED TO CONDUCT A CRIMINAL HISTORY BACKGROUND CHECK PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE ESTABLISHED IN REGULATIONS ADOPTED BY THE DEPARTMENT WITHIN THIRTY DAYS OF THE EFFEC- TIVE DATE OF THIS SUBDIVISION. SUCH REGULATIONS SHALL ESTABLISH THE METHOD USED TO CONDUCT SUCH BACKGROUND CHECKS AND ANY PROCESSES AND OPERATIONS NECESSARY TO COMPLETE SUCH CHECKS. THE REVIEW OF CRIMINAL HISTORY INFORMATION AND DETERMINATIONS ABOUT WHETHER OR NOT AN APPLICANT IS ISSUED A TNC DRIVER PERMIT SHALL BE CONTROLLED BY PARAGRAPHS (B), (C) AND (D) OF THIS SUBDIVISION. (B) AN APPLICANT SHALL BE DISQUALIFIED TO RECEIVE A TNC DRIVER PERMIT WHERE HE OR SHE: (I) STANDS CONVICTED IN THE LAST THREE YEARS OF: UNLAWFUL FLEEING A POLICE OFFICER IN A MOTOR VEHICLE IN VIOLATION OF SECTIONS 270.35, 270.30 OR 270.25 OF THE PENAL LAW, RECKLESS DRIVING IN VIOLATION OF SECTION TWELVE HUNDRED TWELVE OF THIS CHAPTER, OPERATING WHILE LICENSE S. 2008--A 26 A. 3008--A OR PRIVILEGE IS SUSPENDED OR REVOKED IN VIOLATION OF SECTION FIVE HUNDRED ELEVEN OF THIS CHAPTER, EXCLUDING SUBDIVISION SEVEN OF SUCH SECTION, A MISDEMEANOR OFFENSE OF OPERATING A MOTOR VEHICLE WHILE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS IN VIOLATION OF SECTION ONE THOUSAND ONE HUNDRED NINETY-TWO OF THIS CHAPTER, OR LEAVING THE SCENE OF AN ACCI- DENT IN VIOLATION OF SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER. IN CALCULATING THE THREE YEAR PERIOD UNDER THIS SUBPARAGRAPH, ANY PERIOD OF TIME DURING WHICH THE PERSON WAS INCARCERATED AFTER THE COMMISSION OF SUCH OFFENSE SHALL BE EXCLUDED AND SUCH THREE YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SPENT INCAR- CERATED AND SHALL BE DETERMINED IN A MANNER CONSISTENT WITH REGULATIONS ESTABLISHED BY THE DEPARTMENT; OR (II) STANDS CONVICTED IN THE LAST SEVEN YEARS OF: A SEX OFFENSE DEFINED IN SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-EIGHT-A OF THE CORRECTION LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED TWENTY- FIVE OF THE PENAL LAW, A VIOLENT FELONY OFFENSE DEFINED IN SECTION 70.02 OF THE PENAL LAW, A CLASS A FELONY OFFENSE DEFINED IN THE PENAL LAW, VEHICULAR ASSAULT AS DEFINED IN SECTION 120.03, 120.04 OR 120.04-A OF THE PENAL LAW, A FELONY OFFENSE DEFINED IN SECTION ELEVEN HUNDRED NINE- TY-TWO OF THIS CHAPTER, AN OFFENSE FOR WHICH REGISTRATION AS A SEX OFFENDER IS REQUIRED PURSUANT TO ARTICLE SIX-C OF THE CORRECTION LAW, OR ANY CONVICTION OF AN OFFENSE IN ANY OTHER JURISDICTION THAT HAS ALL THE ESSENTIAL ELEMENTS OF AN OFFENSE LISTED IN THIS SUBPARAGRAPH. IN CALCU- LATING THE SEVEN YEAR PERIOD UNDER THIS SUBPARAGRAPH, ANY PERIOD OF TIME DURING WHICH THE PERSON WAS INCARCERATED AFTER THE COMMISSION OF SUCH OFFENSE SHALL BE EXCLUDED AND SUCH SEVEN YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SPENT INCARCERATED AND SHALL BE DETERMINED IN A MANNER CONSISTENT WITH REGULATIONS ESTABLISHED BY THE DEPARTMENT. (C) A CRIMINAL HISTORY RECORD THAT CONTAINS CRIMINAL CONVICTION INFOR- MATION THAT DOES NOT DISQUALIFY AN APPLICANT PURSUANT TO SUBPARAGRAPHS (I) OR (II) OF PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE REVIEWED AND CONSIDERED ACCORDING TO THE PROVISIONS OF ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW AND SUBDIVISIONS FIFTEEN AND SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW IN DETERMINING WHETHER OR NOT THE APPLICANT SHOULD BE ISSUED A TNC DRIVER'S PERMIT. (D) UPON RECEIPT OF CRIMINAL CONVICTION INFORMATION PURSUANT TO THIS SECTION FOR ANY APPLICANT, SUCH APPLICANT SHALL PROMPTLY BE PROVIDED WITH A COPY OF SUCH INFORMATION AS WELL AS A COPY OF ARTICLE TWENTY- THREE-A OF THE CORRECTION LAW. SUCH APPLICANT SHALL ALSO BE INFORMED OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFORMATION CONTAINED IN SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THE REGU- LATIONS AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES. (E) THE DEPARTMENT SHALL PROMULGATE REGULATIONS CONSISTENT WITH THE PROVISIONS OF THIS SUBDIVISION. 3. A TNC SHALL UPDATE THE CRIMINAL HISTORY BACKGROUND CHECK YEARLY DURING THE PERIOD IN WHICH THE PERSON IS AUTHORIZED TO DRIVE FOR THE COMPANY, HOWEVER, THE COMMISSIONER MAY REQUIRE, PURSUANT TO REGULATION, MORE FREQUENT CRIMINAL HISTORY BACKGROUND CHECKS. 4. A TNC SHALL BE RESPONSIBLE FOR ALL FEES ASSOCIATED WITH THE CRIMI- NAL HISTORY CHECK PURSUANT TO SUBDIVISION ONE OF THIS SECTION. 5. ANY TNC FOUND TO HAVE NEGLIGENTLY, RECKLESSLY, OR INTENTIONALLY VIOLATED ANY REQUIREMENTS ESTABLISHED PURSUANT TO THIS SECTION, SHALL ON THE FIRST INSTANCE, BE SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND DOLLARS. FOR ANY SUBSEQUENT INSTANCE WITHIN THE PERIOD OF TWO S. 2008--A 27 A. 3008--A YEARS FROM ANY INITIAL VIOLATION, SUCH TNC SHALL BE SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN FIFTY THOUSAND DOLLARS, OR THE SUSPENSION OR REVOCATION OF ITS TNC LICENSE OR BOTH. § 1700. CONTROLLING AUTHORITY. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE REGULATION OF TNCS AND TNC DRIVERS IS GOVERNED EXCLUSIVELY BY THE PROVISIONS OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN WHICH ADDED THIS SECTION AND ANY RULES PROMULGATED BY THE STATE THROUGH ITS AGENCIES CONSISTENT WITH SUCH CHAPTER. NO COUNTY, TOWN, CITY OR VILLAGE MAY ENACT A TAX OR ANY FEE OR OTHER SURCHARGE ON A TNC, A TNC DRIVER, OR A TNC VEHICLE USED BY A TNC DRIVER OR REQUIRE A LICENSE, PERMIT, OR ADDITIONAL INSURANCE COVERAGE OR ANY OTHER LIMITATIONS OR RESTRICTIONS, WHERE SUCH FEE, SURCHARGE, UNAUTHORIZED TAX, LICENSE, PERMIT, INSURANCE COVERAGE, LIMITATION OR RESTRICTION, RELATES TO FACIL- ITATING OR PROVIDING TNC PREARRANGED TRIPS, OR SUBJECTS A TNC, A TNC DRIVER, OR A TNC VEHICLE USED BY A TNC DRIVER TO OPERATIONAL, OR OTHER REQUIREMENTS. 2. NOTHING IN THIS ARTICLE SHALL AUTHORIZE ANY TNC DRIVER TO PICK-UP A PASSENGER FOR PURPOSES OF A TNC PREARRANGED TRIP IN A CITY WITH A POPU- LATION OF ONE MILLION OR MORE. 3. NOTHING IN THIS ARTICLE SHALL: (A) LIMIT THE ABILITY OF A COUNTY, TOWN, CITY OR VILLAGE TO ADOPT OR AMEND GENERALLY APPLICABLE LIMITATIONS OR RESTRICTIONS RELATING TO LOCAL TRAFFIC OR PARKING CONTROL AS AUTHOR- IZED BY STATE LAW; OR (B) TO PREEMPT ANY RECIPROCITY AGREEMENTS, INCLUD- ING AGREEMENTS ENTERED INTO PURSUANT TO SECTION FOUR HUNDRED NINETY- EIGHT OF THIS CHAPTER, BETWEEN A COUNTY, TOWN, CITY OR VILLAGE THAT RELATES TO SERVICES REGULATED BY SECTION ONE HUNDRED EIGHTY-ONE OF THE GENERAL MUNICIPAL LAW. § 3. Section 370 of the vehicle and traffic law is amended by adding a new subdivision 8 to read as follows: 8. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, AN INDIVIDUAL SHALL NOT BE DEEMED TO BE ENGAGED IN THE BUSINESS OF CARRYING OR TRANS- PORTING PASSENGERS FOR HIRE IF THE INDIVIDUAL DOES SO SOLELY AS A TRANS- PORTATION NETWORK COMPANY DRIVER IN ACCORDANCE WITH ARTICLE FORTY-FOUR-B OF THIS CHAPTER. § 4. Subdivision 1 of section 312-a of the vehicle and traffic law, as amended by chapter 781 of the laws of 1983, is amended to read as follows: 1. Upon issuance of an owner's policy of liability insurance or other financial security required by this chapter OR THE ARTICLE FORTY-FOUR-B OF THIS CHAPTER, an insurer shall issue proof of insurance in accordance with the regulations promulgated by the commissioner pursuant to para- graph (b) of subdivision two of section three hundred thirteen of this article. § 5. Section 600 of the vehicle and traffic law, as amended by chapter 49 of the laws of 2005, is amended to read as follows: § 600. Leaving scene of an incident without reporting. 1. Property damage. a. Any person operating a motor vehicle who, knowing or having cause to know that damage has been caused to the real property or to the personal property, not including animals, of another, due to an incident involving the motor vehicle operated by such person shall, before leav- ing the place where the damage occurred, stop, exhibit his or her license and insurance identification card for such vehicle, when such card is required pursuant to articles six and eight of this chapter, and give his or her name, residence, including street and number, insurance carrier and insurance identification information including but not limited to the number and effective dates of said individual's insurance S. 2008--A 28 A. 3008--A policy, and license number to the party sustaining the damage, or in case the person sustaining the damage is not present at the place where the damage occurred then he or she shall report the same as soon as physically able to the nearest police station, or judicial officer. IN ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF THIS CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE WHILE THE INCIDENT OCCURRED WHO WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP. b. It shall be the duty of any member of a law enforcement agency who is at the scene of the accident to request the said operator or opera- tors of the motor vehicles, when physically capable of doing so, to exchange the information required hereinabove and such member of a law enforcement agency shall assist such operator or operators in making such exchange of information in a reasonable and harmonious manner. A violation of the provisions of paragraph a of this subdivision shall constitute a traffic infraction punishable by a fine of up to two hundred fifty dollars or a sentence of imprisonment for up to fifteen days or both such fine and imprisonment. 2. Personal injury. a. Any person operating a motor vehicle who, knowing or having cause to know that personal injury has been caused to another person, due to an incident involving the motor vehicle operated by such person shall, before leaving the place where the said personal injury occurred, stop, exhibit his or her license and insurance iden- tification card for such vehicle, when such card is required pursuant to articles six and eight of this chapter, and give his or her name, resi- dence, including street and street number, insurance carrier and insur- ance identification information including but not limited to the number and effective dates of said individual's insurance policy and license number, to the injured party, if practical, and also to a police offi- cer, or in the event that no police officer is in the vicinity of the place of said injury, then, he or she shall report said incident as soon as physically able to the nearest police station or judicial officer. IN ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF THIS CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE AT THE TIME OF THE INCIDENT WHO WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP. b. It shall be the duty of any member of a law enforcement agency who is at the scene of the accident to request the said operator or opera- tors of the motor vehicles, when physically capable of doing so, to exchange the information required hereinabove and such member of a law S. 2008--A 29 A. 3008--A enforcement agency shall assist such operator or operators in making such exchange of information in a reasonable and harmonious manner. c. A violation of the provisions of paragraph a of this subdivision resulting solely from the failure of an operator to exhibit his or her license and insurance identification card for the vehicle or exchange the information required in such paragraph shall constitute a class B misdemeanor punishable by a fine of not less than two hundred fifty nor more than five hundred dollars in addition to any other penalties provided by law. Any subsequent such violation shall constitute a class A misdemeanor punishable by a fine of not less than five hundred nor more than one thousand dollars in addition to any other penalties provided by law. Any violation of the provisions of paragraph a of this subdivision, other than for the mere failure of an operator to exhibit his or her license and insurance identification card for such vehicle or exchange the information required in such paragraph, shall constitute a class A misdemeanor, punishable by a fine of not less than five hundred dollars nor more than one thousand dollars in addition to any other penalties provided by law. Any such violation committed by a person after such person has previously been convicted of such a violation shall constitute a class E felony, punishable by a fine of not less than one thousand nor more than two thousand five hundred dollars in addition to any other penalties provided by law. Any violation of the provisions of paragraph a of this subdivision, other than for the mere failure of an operator to exhibit his or her license and insurance identification card for such vehicle or exchange the information required in such para- graph, where the personal injury involved (i) results in serious phys- ical injury, as defined in section 10.00 of the penal law, shall consti- tute a class E felony, punishable by a fine of not less than one thousand nor more than five thousand dollars in addition to any other penalties provided by law, or (ii) results in death shall constitute a class D felony punishable by a fine of not less than two thousand nor more than five thousand dollars in addition to any other penalties provided by law. 3. FOR THE PURPOSES OF THIS ARTICLE, THE TERMS "TNC", "TNC DRIVER", "TNC VEHICLE", "TNC PREARRANGED TRIP" AND "DIGITAL NETWORK" SHALL HAVE THE SAME MEANINGS AS SUCH TERMS ARE DEFINED IN ARTICLE FORTY-FOUR-B OF THIS CHAPTER. § 5-a. Section 601 of the vehicle and traffic law, as amended by chap- ter 672 of the laws of 2004, is amended to read as follows: § 601. Leaving scene of injury to certain animals without reporting. Any person operating a motor vehicle which shall strike and injure any horse, dog, cat or animal classified as cattle shall stop and endeavor to locate the owner or custodian of such animal or a police, peace or judicial officer of the vicinity, and take any other reasonable and appropriate action so that the animal may have necessary attention, and shall also promptly report the matter to such owner, custodian or offi- cer (or if no one of such has been located, then to a police officer of some other nearby community), exhibiting his or her license and insur- ance identification card for such vehicle, when such card is required pursuant to articles six and eight of this chapter, giving his or her name and residence, including street and street number, insurance carri- er and insurance identification information and license number. IN ADDI- TION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF THIS CHAPTER IS SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE AT THE TIME OF THE INCIDENT WHO WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL S. 2008--A 30 A. 3008--A NETWORK AND AVAILABLE TO RECEIVE TRANSPORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREARRANGED TRIP AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS EITHER (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK AND AVAILABLE TO RECEIVE TRANS- PORTATION REQUESTS BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK AND WAS ENGAGED IN A TNC PREAR- RANGED TRIP. Violation of this section shall be punishable by a fine of not more than one hundred dollars for a first offense and by a fine of not less than fifty nor more than one hundred fifty dollars for a second offense and each subsequent offense; provided, however where the animal that has been struck and injured is a guide dog, hearing dog or service dog, as such terms are defined in section forty-seven-b of the civil rights law which is actually engaged in aiding or guiding a person with a disability, a violation of this section shall be [publishable] PUNISH- ABLE by a fine of not less than fifty nor more than one hundred fifty dollars for a first offense and by a fine of not less than one hundred fifty dollars nor more than three hundred dollars for a second offense and each subsequent offense. § 6. The insurance law is amended by adding a new section 3455 to read as follows: § 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES. (A) FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY: (1) "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE SAME MEANING AS SET FORTH IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (2) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY POLICY, CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR ENDORSEMENT THERETO, ISSUED TO A GROUP MEMBER UNDER A TRANSPORTATION NETWORK COMPANY GROUP POLICY. (3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY" OR "GROUP POLICY" MEANS A GROUP POLICY, INCLUDING CERTIFICATES ISSUED TO THE GROUP MEMBERS, WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPA- NY AND THE POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK COMPANY AND TO GROUP MEMBERS: (A) IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW; (B) OF THE TYPE DESCRIBED IN PARAGRAPH THIRTEEN, FOURTEEN, OR NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER; AND (C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE, SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND TRAFFIC LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND SUCH OTHER REQUIRE- MENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERA- TION OF A MOTOR VEHICLE. (4) "GROUP MEMBER" MEANS A TRANSPORTATION NETWORK COMPANY DRIVER AS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY. (6) "TNC VEHICLE" SHALL HAVE THE MEANING SET FORTH IN ARTICLE FORTY- FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS- PORTATION NETWORK COMPANY GROUP POLICY TO A TRANSPORTATION NETWORK COMPANY AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION. S. 2008--A 31 A. 3008--A (C)(1) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL PROVIDE COVERAGE FOR A TNC VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF ARTI- CLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE: (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU- ANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI- LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE; (C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE PURSUANT TO SUBSECTION (G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND (D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS CHAPTER. (3) THE COVERAGE DESCRIBED IN PARAGRAPHS ONE AND TWO OF THIS SUBSECTION MAY BE PROVIDED IN ONE GROUP POLICY OR IN SEPARATE GROUP POLICIES. (4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIF- ICATES, SHALL BE ISSUED BY AUTHORIZED INSURERS OR FROM EXCESS LINE BROKERS PURSUANT TO SECTION SIXTEEN HUNDRED NINETY-THREE OF THE VEHICLE AND TRAFFIC LAW. (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY. (D) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP POLICYHOLDER FROM THE FUNDS CONTRIBUTED: (1) WHOLLY BY THE GROUP POLICYHOLDER; (2) WHOLLY BY THE GROUP MEMBERS; OR (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS. (E) (1) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO- SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY- HOLDER MAY: (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY- HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR (B) BE RETAINED BY THE GROUP POLICYHOLDER. (2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC- TIVE PREMIUM REFUND NOT DISTRIBUTED UNDER PARAGRAPH ONE OF THIS SUBSECTION SHALL BE: (A) APPLIED TO REDUCE FUTURE PREMIUMS AND, ACCORDINGLY, FUTURE CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR (B) PAID OR REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED BY THE GROUP POLICYHOLDER, OR ON THE DATE OF MAILING, IF DISTRIBUTED DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS: (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF THE PAYMENT OF REFUND TO THE GROUP MEMBERS; (II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THE INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND (III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND, THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. (3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS SUBSECTION, IF A DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A TRANSPORTATION NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR WHICH WAS PAID OUT OF FUNDS CONTRIBUTED BY GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE DIVIDEND SHALL BE PAID OR REFUNDED BY THE GROUP POLICYHOLDER TO THE S. 2008--A 32 A. 3008--A GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES INCURRED BY THE GROUP POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS. (4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY OF EXCESS PREMIUMS TO THE GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI- ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM REFUNDS. THE TERM "DIVIDEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION WITH THE OPERATION OR ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD- ING ADMINISTRATIVE REIMBURSEMENTS, FEES FOR SERVICES PROVIDED BY THE GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES. (F) THE INSURER SHALL TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS OF THE SAME CLASS AND STATUS. (G) EACH POLICY WRITTEN PURSUANT TO THIS SECTION SHALL PROVIDE PER OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER IN AN AMOUNT NOT LESS THAN THAT REQUIRED BY THIS ARTICLE, AND MAY PROVIDE COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW. (H) (1) THE INSURER SHALL BE RESPONSIBLE FOR MAILING OR DELIVERY OF A CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER INSURED UNDER THE TRANS- PORTATION NETWORK COMPANY GROUP POLICY, PROVIDED, HOWEVER, THAT THE INSURER MAY DELEGATE THE MAILING OR DELIVERY TO THE TRANSPORTATION NETWORK COMPANY. THE INSURER SHALL ALSO BE RESPONSIBLE FOR THE MAILING OR DELIVERY TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF INSURANCE OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE IN LIMITS; CHANGE IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMINATION OF COVERAGE; OR ADDITION OF EXCLUSION, UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE IF SUCH CHANGE MATERIALLY AFFECTS THE COVERAGE AVAILABLE TO SUCH GROUP MEMBER. (2) THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA- TION NETWORK COMPANY GROUP POLICY IS INCORPORATED BY REFERENCE AND A COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE. (3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA- BLE INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING THE GROUP MEMBERS THAT, IF THE MEMBER HAS OTHER INSURANCE COVERAGE, SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI- CY WILL BE EXCESS OVER THE OTHER INSURANCE. (I) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER AS AN AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR, CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A TRANS- PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE. (J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OR SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE; PROVIDED THAT THE FOLLOWING REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER- AGE: (1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR- AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE; PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT WOULD CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY. S. 2008--A 33 A. 3008--A (B) WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPARAGRAPH (B), (C) OR (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE. (2) (A) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL CERTIFICATES, SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY. (I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY THE GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP POLICY TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS. SUCH CANCEL- LATION SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE TO THE GROUP MEMBER. (II) WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND THE EFFECTIVE DATE OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION FROM THE INSURER. (B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS AND TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE GROUP POLICY. (3) (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR ANY REASON UPON THIRTY DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND (B) THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S CANCELLATION OF THE GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION. THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE TO THE GROUP MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC- TIVE DATE OF CANCELLATION. (4) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR POLICY PERIOD. (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS: (I) THE INSURER MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY, BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER- SARY DATE OF THE POLICY. (5) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER ADVISING THE GROUP MEMBER OF NONRENEWAL OF THE GROUP POLICY AND THE EFFECTIVE DATE OF NONRENEWAL. THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL. (6) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE- NEWAL, OR CONDITIONAL RENEWAL. S. 2008--A 34 A. 3008--A (7) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER- AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE. (B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE. (8) (A) IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP POLICY NOTWITHSTANDING THE CANCELLATION, NONRENEWAL OR CONDITIONAL NONRENEWAL OF THE GROUP POLICY. (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION. (K) ANY MAILING OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL, OR OTHER ELECTRONIC MEANS, IF CONSENT TO SUCH METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER. (L) AN INSURER MAY ISSUE A TRANSPORTATION NETWORK COMPANY GROUP POLICY TO A TRANSPORTATION NETWORK COMPANY, NOTWITHSTANDING THAT IT MAY BE A CONDITION OF OPERATING A VEHICLE ON THE TRANSPORTATION NETWORK COMPANY'S DIGITAL NETWORK FOR THE TNC DRIVER TO PARTICIPATE IN SUCH GROUP POLICY. (M) AN INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A POLICY THAT PROVIDES FINANCIAL RESPONSIBILITY COVERAGE UNDER THIS SECTION EXCEPT AS PERMITTED IN SECTION FIVE THOUSAND ONE HUNDRED FIVE OF THIS CHAPTER. § 6-a. Subsection (g) of section 5102 of the insurance law is amended to read as follows: (g) "Insurer" means the insurance company or self-insurer, as the case may be, which provides the financial security required by article six [or], eight, OR FORTY-FOUR-B of the vehicle and traffic law. § 7. Subsection (b) of section 5103 of the insurance law is amended by adding a new paragraph 4 to read as follows: (4) IS INJURED WHILE A MOTOR VEHICLE IS BEING USED OR OPERATED BY A TNC DRIVER PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, PROVIDED, HOWEVER, THAT AN INSURER MAY NOT INCLUDE THIS EXCLUSION IN A POLICY USED TO SATISFY THE REQUIREMENTS UNDER ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. § 8. Subsection (d) of section 5106 of the insurance law, as added by chapter 452 of the laws of 2005, is amended to read as follows: (d) [Where] (1) EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBSECTION, WHERE there is reasonable belief more than one insurer would be the source of first party benefits, the insurers may agree among themselves, if there is a valid basis therefor, that one of them will accept and pay the claim initially. If there is no such agreement, then the first insurer to whom notice of claim is given shall be responsible for payment. Any such dispute shall be resolved in accordance with the arbitration procedures established pursuant to section five thousand one hundred five of this article and [regulation] REGULATIONS as promulgated by the superintendent, and any insurer paying first-party benefits shall be reimbursed by other insurers for their proportionate share of the S. 2008--A 35 A. 3008--A costs of the claim and the allocated expenses of processing the claim, in accordance with the provisions entitled "other coverage" contained in regulation and the provisions entitled "other sources of first-party benefits" contained in regulation. If there is no such insurer and the motor vehicle accident occurs in this state, then an applicant who is a qualified person as defined in article fifty-two of this chapter shall institute the claim against THE motor vehicle accident indemnification corporation. (2) A GROUP POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THIS CHAPTER, TO SATISFY THE REQUIREMENTS OF SECTION SIXTEEN HUNDRED NINETY-THREE OF THE VEHICLE AND TRAFFIC LAW, SHALL PROVIDE FIRST PARTY BENEFITS WHEN A DISPUTE EXISTS AS TO WHETHER A DRIVER WAS USING OR OPERATING A MOTOR VEHICLE IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY WHEN LOSS, DAMAGE, INJURY, OR DEATH OCCURS. A TRANSPORTATION NETWORK COMPANY SHALL NOTIFY THE INSURER THAT ISSUED THE OWNER'S POLICY OF LIABILITY INSURANCE OF THE DISPUTE WITHIN TEN BUSINESS DAYS OF BECOMING AWARE THAT THE DISPUTE EXISTS. WHEN THERE IS A DISPUTE, THE GROUP INSURER LIABLE FOR THE PAYMENT OF FIRST PARTY BENEFITS UNDER A GROUP POLICY, TO SATISFY THE REQUIREMENTS OF SECTION SIXTEEN HUNDRED NINETY-THREE OF THE VEHICLE AND TRAFFIC LAW, SHALL HAVE THE RIGHT TO RECOVER THE AMOUNT PAID FROM THE DRIVER'S INSURER TO THE EXTENT THAT SUCH INSURER WOULD HAVE BEEN LIABLE TO PAY DAMAGES IN AN ACTION AT LAW. § 9. Subsection (b) of section 2305 of the insurance law, as amended by chapter 11 of the laws of 2008, paragraph 13 as amended by chapter 136 of the laws of 2008, is amended to read as follows: (b) rate filings for: (1) workers' compensation insurance; (2) motor vehicle insurance, or surety bonds, required by section three hundred seventy of the vehicle and traffic law OR ARTICLE FORTY- FOUR-B OF THE VEHICLE AND TRAFFIC LAW; (3) joint underwriting; (4) motor vehicle assigned risk insurance; (5) insurance issued by the New York Property Insurance Underwriting Association; (6) risk sharing plans authorized by section two thousand three hundred eighteen of this article; (7) title insurance; (8) medical malpractice liability insurance; (9) insurance issued by the Medical Malpractice Insurance Association; (10) mortgage guaranty insurance; (11) credit property insurance, as defined in section two thousand three hundred forty of this article; [and] (12) gap insurance; AND (13) [Private] PRIVATE passenger automobile insurance, except as provided in section two thousand three hundred fifty of this article[.], shall be filed with the superintendent and shall not become effective unless either the filing has been approved or thirty days, which the superintendent may with cause extend an additional thirty days and with further cause extend an additional fifteen days, have elapsed and the filing has not been disapproved as failing to meet the requirements of this article, including the standard that rates be not otherwise unrea- sonable. After a rate filing becomes effective, the filing and support- ing information shall be open to public inspection. If a filing is disapproved, THEN notice of such disapproval order shall be given, spec- ifying in what respects such filing fails to meet the requirements of S. 2008--A 36 A. 3008--A this article. Upon his or her request, the superintendent shall be provided with support and assistance from the workers' compensation board and other state agencies and departments with appropriate juris- diction. The loss cost multiplier for each insurer providing coverage for workers' compensation, as defined by regulation promulgated by the superintendent, shall be promptly displayed on the department's website and updated in the event of any change. § 10. Paragraph 1 of subsection (a) of section 3425 of the insurance law, as amended by chapter 235 of the laws of 1989, is amended to read as follows: (1) "Covered policy" means a contract of insurance, referred to in this section as "automobile insurance", issued or issued for delivery in this state, on a risk located or resident in this state, insuring against losses or liabilities arising out of the ownership, operation, or use of a motor vehicle, predominantly used for non-business purposes, when a natural person is the named insured under the policy of automo- bile insurance; PROVIDED, HOWEVER, THAT THE USE OR OPERATION OF THE MOTOR VEHICLE BY A TRANSPORTATION NETWORK DRIVER AS A TNC VEHICLE IN ACCORDANCE WITH ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW SHALL NOT BE INCLUDED IN DETERMINING WHETHER THE MOTOR VEHICLE IS BEING USED PREDOMINANTLY FOR NON-BUSINESS PURPOSES. § 11. The executive law is amended by adding a new article 6-H to read as follows: ARTICLE 6-H TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPENSATION FUND SECTION 160-AAAA. DEFINITIONS. 160-BBBB. TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPEN- SATION FUND, INC. 160-CCCC. SUPERVISION OF TRANSPORTATION NETWORK COMPANIES. 160-DDDD. MANAGEMENT OF THE FUND. 160-EEEE. PLAN OF OPERATION. 160-FFFF. MEMBERSHIP. 160-GGGG. SECURING OF COMPENSATION. 160-HHHH. ASSESSMENT OF FUND MEMBERS. 160-IIII. CERTIFIED FINANCIAL STATEMENTS. 160-JJJJ. EXEMPTION FROM TAXES. 160-KKKK. LIABILITY INSURANCE. 160-LLLL. REGULATIONS. 160-MMMM. VIOLATIONS. § 160-AAAA. DEFINITIONS. AS USED IN THIS ARTICLE: 1. "TRANSPORTATION NETWORK COMPANY DRIVER" OR "TNC DRIVER" MEANS AN INDIVIDUAL WHO: (A) RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE TO THE TRANSPORTATION NETWORK COMPANY; (B) USES A TNC VEHICLE TO OFFER OR PROVIDE A TNC PREARRANGED TRIP TO TRANSPORTATION NETWORK COMPANY PASSENGERS UPON CONNECTION THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR COMPENSATION OR PAYMENT OF A FEE; AND (C) WHOSE INJURY AROSE OUT OF AND IN THE COURSE OF PROVIDING A TNC PREARRANGED TRIP THROUGH A DIGITAL NETWORK OPERATED BY A TRANSPORTATION NETWORK COMPANY THAT IS A REGISTERED MEMBER OF THE NEW YORK TRANSPORTA- TION NETWORK COMPANY DRIVER'S INJURY COMPENSATION FUND, INC. 2. "TRANSPORTATION NETWORK COMPANY PASSENGER" OR "PASSENGER" MEANS A PERSON OR PERSONS WHO USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL S. 2008--A 37 A. 3008--A NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK COMPANY DRIVER WHO PROVIDES TNC PREARRANGED TRIPS TO THE PASSENGER IN THE TNC VEHICLE BETWEEN POINTS CHOSEN BY THE PASSENGER. 3. "BOARD" MEANS THE WORKERS' COMPENSATION BOARD. 4. "DIGITAL NETWORK" MEANS ANY SYSTEM OR SERVICE OFFERED OR UTILIZED BY A TRANSPORTATION NETWORK COMPANY THAT ENABLES TNC PREARRANGED TRIPS WITH TRANSPORTATION NETWORK COMPANY DRIVERS. 5. "TRANSPORTATION NETWORK COMPANY" MEANS A PERSON, CORPORATION, PART- NERSHIP, SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS LICENSED PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW AND IS OPERATING IN NEW YORK STATE EXCLUSIVELY USING A DIGITAL NETWORK TO CONNECT TRANS- PORTATION NETWORK COMPANY PASSENGERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE TNC PREARRANGED TRIPS. 6. "TRANSPORTATION NETWORK COMPANY VEHICLE" OR "TNC VEHICLE" MEANS A VEHICLE THAT IS: (A) USED BY A TRANSPORTATION NETWORK COMPANY DRIVER TO PROVIDE A TNC PREARRANGED TRIP ORIGINATING IN THE STATE OF NEW YORK; (B) OWNED, LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA- TION NETWORK COMPANY DRIVER AND SHALL NOT INCLUDE: (I) A TAXICAB, AS DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THE VEHICLE AND TRAFFIC LAW AND SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (II) A LIVERY VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E OF THE VEHICLE AND TRAFFIC LAW, OR AS OTHERWISE DEFINED IN LOCAL LAW; (III) A BLACK CAR, LIMOUSINE, OR LUXURY LIMOUSINE, AS DEFINED IN SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (IV) A FOR-HIRE VEHICLE, AS DEFINED IN SECTION 19-502 OF THE ADMINIS- TRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; (V) A BUS, AS DEFINED IN SECTION ONE HUNDRED FOUR OF THE VEHICLE AND TRAFFIC LAW; (VI) ANY MOTOR VEHICLE WEIGHING MORE THAN SIX THOUSAND FIVE HUNDRED POUNDS UNLOADED; (VII) ANY MOTOR VEHICLE HAVING A SEATING CAPACITY OF MORE THAN SEVEN PASSENGERS; AND (VIII) ANY MOTOR VEHICLE SUBJECT TO SECTION THREE HUNDRED SEVENTY OF THE VEHICLE AND TRAFFIC LAW. 7. (A) "TNC PREARRANGED TRIP" MEANS THE PROVISION OF TRANSPORTATION BY A TRANSPORTATION NETWORK COMPANY DRIVER TO A PASSENGER PROVIDED THROUGH THE USE OF A TNC'S DIGITAL NETWORK: (I) BEGINNING WHEN A TRANSPORTATION NETWORK COMPANY DRIVER ACCEPTS A PASSENGER'S REQUEST FOR A TRIP THROUGH A DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY; (II) CONTINUING WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER TRANS- PORTS THE REQUESTING PASSENGER IN A TNC VEHICLE; AND (III) ENDING WHEN THE LAST REQUESTING PASSENGER DEPARTS FROM THE TNC VEHICLE. (B) THE TERM "TNC PREARRANGED TRIP" DOES NOT INCLUDE TRANSPORTATION PROVIDED THROUGH ANY OF THE FOLLOWING: (I) SHARED EXPENSE CARPOOL OR VANPOOL ARRANGEMENTS, INCLUDING THOSE AS DEFINED IN SECTION ONE HUNDRED FIFTY-EIGHT-B OF THE VEHICLE AND TRAFFIC LAW; (II) USE OF A TAXICAB, LIVERY, LUXURY LIMOUSINE, OR OTHER FOR-HIRE VEHICLE, AS DEFINED IN THE VEHICLE AND TRAFFIC LAW, SECTION 19-502 OF S. 2008--A 38 A. 3008--A THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW; OR (III) A REGIONAL TRANSPORTATION PROVIDER. 8. "COVERED SERVICES" MEANS, WITH RESPECT TO TNC PREARRANGED TRIPS USING A DIGITAL NETWORK OF A TRANSPORTATION NETWORK COMPANY LOCATED IN THE STATE, ALL SUCH TNC PREARRANGED TRIPS REGARDLESS OF WHERE THE PICK- UP OR DISCHARGE OCCURS, AND, WITH RESPECT TO TNC PREARRANGED TRIPS USING A DIGITAL NETWORK OF A TRANSPORTATION NETWORK COMPANY LOCATED OUTSIDE THE STATE, ALL PREARRANGED TRIPS INVOLVING A PICK-UP IN THE STATE, REGARDLESS OF WHERE THE DISCHARGE OCCURS. 9. "DEPARTMENT" MEANS THE DEPARTMENT OF STATE. 10. "FUND" MEANS THE NEW YORK TRANSPORTATION NETWORK COMPANY DRIVER'S FUND, INC. 11. "FUND LIABILITY DATE" MEANS THE EARLIER OF: (A) THE DATE AS OF WHICH THE BOARD FIRST APPROVES THE FUND'S APPLICA- TION TO SELF-INSURE PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE; OR (B) THE DATE ON WHICH COVERAGE COMMENCES UNDER THE INITIAL INSURANCE POLICY PURCHASED BY THE FUND PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE. 12. "SECRETARY" MEANS THE SECRETARY OF STATE. § 160-BBBB. TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPEN- SATION FUND, INC. THERE IS HEREBY CREATED A NOT-FOR-PROFIT CORPORATION TO BE KNOWN AS THE NEW YORK TRANSPORTATION NETWORK COMPANY DRIVER'S INJURY COMPENSATION FUND, INC. TO THE EXTENT THAT THE PROVISIONS OF THE NOT-FOR-PROFIT CORPORATION LAW DO NOT CONFLICT WITH THE PROVISIONS OF THIS ARTICLE, OR WITH THE PLAN OF OPERATION ESTABLISHED PURSUANT TO THIS ARTICLE, THE NOT-FOR-PROFIT CORPORATION LAW SHALL APPLY TO THE FUND, WHICH SHALL BE A TYPE C CORPORATION PURSUANT TO SUCH LAW. IF AN APPLICA- BLE PROVISION OF THIS ARTICLE OR OF THE FUND'S PLAN OF OPERATION RELATES TO A MATTER EMBRACED IN A PROVISION OF THE NOT-FOR-PROFIT CORPORATION LAW BUT IS NOT IN CONFLICT THEREWITH, BOTH PROVISIONS SHALL APPLY. THE FUND SHALL PERFORM ITS FUNCTIONS IN ACCORDANCE WITH ITS PLAN OF OPERA- TION ESTABLISHED AND APPROVED PURSUANT TO SECTION ONE HUNDRED SIXTY-EEEE OF THIS ARTICLE AND SHALL EXERCISE ITS POWERS THROUGH A BOARD OF DIREC- TORS ESTABLISHED PURSUANT TO THIS ARTICLE. § 160-CCCC. SUPERVISION OF TRANSPORTATION NETWORK COMPANIES. A TRANS- PORTATION NETWORK COMPANY SHALL, WITH RESPECT TO THE PROVISIONS OF THIS ARTICLE, BE SUBJECT TO THE SUPERVISION AND OVERSIGHT OF THE DEPARTMENT AS PROVIDED IN THIS ARTICLE. § 160-DDDD. MANAGEMENT OF THE FUND. 1. WITHIN THIRTY (30) DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THERE SHALL BE APPOINTED A BOARD OF DIRECTORS OF THE FUND. THE BOARD OF DIRECTORS OF THE FUND SHALL CONSIST OF NINE DIRECTORS APPOINTED BY THE GOVERNOR, ONE OF WHOM SHALL BE CHOSEN BY THE GOVERNOR; ONE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF THE TEMPORARY PRESIDENT OF THE SENATE; ONE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF THE SPEAKER OF THE ASSEMBLY; ONE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF THE AMERICAN FEDERATION OF LABOR-CONGRESS OF INDUS- TRIAL ORGANIZATIONS OF NEW YORK; AND FIVE OF WHOM SHALL BE CHOSEN UPON NOMINATION OF TRANSPORTATION NETWORK COMPANY MEMBERS OF THE FUND. 2. THE DIRECTORS SHALL ELECT ANNUALLY FROM AMONG THEIR NUMBER A CHAIR. 3. FOR THEIR ATTENDANCE AT MEETINGS, THE DIRECTORS OF THE FUND SHALL BE ENTITLED TO COMPENSATION, AS AUTHORIZED BY THE DIRECTORS, IN AN AMOUNT NOT TO EXCEED FIVE HUNDRED DOLLARS PER MEETING PER DIRECTOR AND TO REIMBURSEMENT OF THEIR ACTUAL AND NECESSARY EXPENSES. S. 2008--A 39 A. 3008--A 4. DIRECTORS OF THE FUND, EXCEPT AS OTHERWISE PROVIDED BY LAW, MAY ENGAGE IN PRIVATE OR PUBLIC EMPLOYMENT OR IN A PROFESSION OR BUSINESS. 5. (A) ALL OF THE DIRECTORS SHALL HAVE EQUAL VOTING RIGHTS AND FIVE OR MORE DIRECTORS SHALL CONSTITUTE A QUORUM. THE AFFIRMATIVE VOTE OF FOUR DIRECTORS SHALL BE NECESSARY FOR THE TRANSACTION OF ANY BUSINESS OR THE EXERCISE OF ANY POWER OR FUNCTION OF THE FUND. (B) THE FUND MAY DELEGATE TO ONE OR MORE OF ITS DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES SUCH POWERS AND DUTIES AS IT MAY DEEM PROPER. (C) A VACANCY OCCURRING IN A DIRECTOR POSITION SHALL BE FILLED IN THE SAME MANNER AS THE INITIAL APPOINTMENT TO THAT POSITION, PROVIDED HOWEV- ER THAT NO INDIVIDUAL MAY SERVE AS DIRECTOR FOR MORE THAN THREE SUCCES- SIVE TERMS. § 160-EEEE. PLAN OF OPERATION. 1. WITHIN SEVENTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE FUND SHALL FILE WITH THE DEPARTMENT ITS PLAN OF OPERATION, WHICH SHALL BE DESIGNED TO ASSURE THE FAIR, REASONABLE AND EQUITABLE ADMINISTRATION OF THE FUND. THE PLAN OF OPERA- TION AND ANY SUBSEQUENT AMENDMENTS THERETO SHALL BECOME EFFECTIVE UPON BEING FILED WITH THE DEPARTMENT. 2. THE PLAN OF OPERATION SHALL CONSTITUTE THE BY-LAWS OF THE FUND AND SHALL, IN ADDITION TO THE REQUIREMENTS ENUMERATED ELSEWHERE IN THIS ARTICLE: (A) ESTABLISH PROCEDURES FOR COLLECTING AND MANAGING THE ASSETS OF THE FUND; (B) ESTABLISH REGULAR PLACES AND TIMES FOR MEETINGS OF THE FUND'S BOARD OF DIRECTORS; (C) ESTABLISH THE PROCEDURE BY WHICH THE FUND SHALL DETERMINE WHETHER TO PROVIDE THE BENEFITS DUE PURSUANT TO THIS ARTICLE BY SELF-INSURING OR BY PURCHASING INSURANCE; (D) ESTABLISH ACCOUNTING AND RECORD-KEEPING PROCEDURES FOR ALL FINAN- CIAL TRANSACTIONS OF THE FUND, ITS AGENTS, AND THE BOARD OF DIRECTORS; (E) ESTABLISH A PROCEDURE FOR DETERMINING AND COLLECTING THE APPROPRI- ATE AMOUNT OF SURCHARGES AND ASSESSMENTS UNDER THIS ARTICLE; (F) SET FORTH THE PROCEDURES BY WHICH THE FUND MAY EXERCISE THE AUDIT RIGHTS GRANTED TO IT UNDER THIS ARTICLE; (G) ESTABLISH PROCEDURES TO ENSURE PROMPT AND ACCURATE NOTIFICATION TO THE FUND BY ITS MEMBERS OF ALL ACCIDENTS AND INJURIES TO TRANSPORTATION NETWORK COMPANY DRIVERS, AND PROVIDE FOR FULL REIMBURSEMENT OF THE FUND BY ANY TRANSPORTATION NETWORK COMPANY WHOSE FAILURE TO PROVIDE SUCH NOTIFICATION RESULTS IN THE IMPOSITION OF A PENALTY ON THE FUND BY THE BOARD; AND (H) CONTAIN SUCH ADDITIONAL PROVISIONS AS THE BOARD OF THE FUND MAY DEEM NECESSARY OR PROPER FOR THE EXECUTION OF THE POWERS AND DUTIES OF THE FUND. § 160-FFFF. MEMBERSHIP. 1. THE MEMBERSHIP OF THE FUND SHALL BE COMPOSED OF ALL TRANSPORTATION NETWORK COMPANIES. EACH TRANSPORTATION NETWORK COMPANY SHALL BE REQUIRED, AS A CONDITION OF DOING BUSINESS WITHIN THIS STATE, TO PAY THE DEPARTMENT A TEN THOUSAND DOLLAR ANNUAL FEE FOR THE PURPOSE OF REGISTERING AS A MEMBER OF THE FUND AND RECEIVING A CERTIFICATE OF REGISTRATION. SUCH SUMS SHALL BE USED BY THE DEPART- MENT FOR THE ADMINISTRATION OF THIS ARTICLE. THE INITIAL REGISTRATION FEE SHALL BE DUE NO LATER THAN NINETY DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE. THE DEPARTMENT SHALL HAVE THE POWER TO ASSESS AN ADDI- TIONAL FEE AGAINST EACH REGISTRANT IN THE AMOUNT NECESSARY TO PROVIDE IT WITH SUFFICIENT FUNDS TO COVER ITS EXPENSES IN PERFORMING ITS DUTIES PURSUANT TO THIS ARTICLE. THE DEPARTMENT SHALL PROVIDE THE FUND WITH AN UPDATED LIST OF REGISTRANTS ON A MONTHLY BASIS. S. 2008--A 40 A. 3008--A 2. ALL TRANSPORTATION NETWORK COMPANIES SHALL BE REQUIRED, AS A CONDI- TION OF OBTAINING OR RETAINING THEIR LICENSE FROM THE DEPARTMENT OF MOTOR VEHICLES PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAF- FIC LAW, TO: (A) BE MEMBERS OF THE FUND; (B) BE REGISTERED WITH THE DEPARTMENT AS MEMBERS OF THE FUND; AND (C) SUBMIT TO THE DEPARTMENT OF MOTOR VEHICLES A COPY OF ITS CERTIF- ICATE OF REGISTRATION AS PROOF OF SUCH MEMBERSHIP AND REGISTRATION. 3. WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE BOARD OF THE FUND SHALL, ON THE BASIS OF INFORMATION FROM TRADE PAPERS AND OTHER SOURCES, IDENTIFY THE TRANSPORTATION NETWORK COMPANIES SUBJECT TO THIS ARTICLE AND, ON A REGULAR AND ONGOING BASIS, CONFIRM THAT ALL SUCH ENTITIES HAVE REGISTERED IN ACCORDANCE WITH SUBDIVISION ONE OF THIS SECTION. 4. THE FUND SHALL, WITHIN SEVENTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, PROVIDE TO ITS MEMBERS A COPY OF THE PROPOSED PLAN OF OPERATION FILED WITH THE DEPARTMENT AND SHALL INFORM ITS MEMBERS OF THEIR RIGHTS AND DUTIES PURSUANT TO THIS ARTICLE. § 160-GGGG. SECURING OF COMPENSATION. 1. WITHIN TWO HUNDRED TEN DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE FUND SHALL SECURE THE PAYMENT OF WORKERS' COMPENSATION TO ALL: TRANSPORTATION NETWORK COMPANY DRIVERS ENTITLED THERETO PURSUANT TO THIS CHAPTER BY EITHER: (A) SELF-INSURING IN ACCORDANCE WITH SUBDIVISION THREE OF SECTION FIFTY OF THE WORKERS' COMPENSATION LAW AND THE RULES PROMULGATED BY THE BOARD PURSUANT TO SUCH SECTION; OR (B) PURCHASING WORKERS' COMPENSATION INSURANCE COVERING, ON A BLANKET BASIS, ALL DRIVERS WHO ARE THE FUND'S EMPLOYEES PURSUANT TO SECTION TWO OF THE WORKERS' COMPENSATION LAW. 2. IF THE FUND INITIALLY SEEKS TO APPLY TO THE BOARD FOR AUTHORIZATION TO SELF-INSURE PURSUANT TO SUBDIVISION THREE OF SECTION FIFTY OF THE WORKERS' COMPENSATION LAW, IT SHALL SUBMIT ITS APPLICATION AND ACCOMPA- NYING PROOF TO THE BOARD WITHIN ONE HUNDRED FIFTY DAYS OF THE EFFECTIVE DATE OF THIS ARTICLE. THE BOARD SHALL NOTIFY THE FUND AND THE SECRETARY IN WRITING OF ANY CHANGE IN THE FUND'S STATUS AS A SELF-INSURER OR OF ANY ADDITIONAL REQUIREMENTS THAT THE BOARD MAY DEEM NECESSARY FOR CONTINUATION OF SUCH STATUS. 3. IF THE FUND CHOOSES TO SECURE THE PAYMENT OF WORKERS' COMPENSATION PURSUANT TO THE WORKERS' COMPENSATION LAW BY PURCHASING AN INSURANCE POLICY FROM THE STATE INSURANCE FUND OR A LICENSED INSURER, IT SHALL FILE WITH THE DEPARTMENT NO LATER THAN THIRTY DAYS AFTER THE COMMENCE- MENT OF A NEW POLICY YEAR A COPY OF THE POLICY IT HAS PURCHASED. IN SUCH CASE, THE DEPARTMENT SHALL BE TREATED BY THE INSURER AS A CERTIFICATE HOLDER FOR PURPOSES OF RECEIVING NOTICE OF CANCELLATION OF THE POLICY. 4. NO PROVISION OF THIS ARTICLE SHALL BE CONSTRUED TO ALTER OR AFFECT THE LIABILITY UNDER THE WORKERS' COMPENSATION LAW OF ANY TRANSPORTATION NETWORK COMPANY WITH RESPECT TO TRANSPORTATION NETWORK COMPANY DRIVERS PRIOR TO THE FUND LIABILITY DATE. § 160-HHHH. ASSESSMENT OF FUND MEMBERS. 1. TO PAY: (A) THE COSTS OF THE INSURANCE PURCHASED PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE; OR (B) THE BENEFITS DUE UNDER THE WORKERS' COMPENSATION LAW IN THE EVENT THE FUND SELF-INSURES PURSUANT TO SECTION ONE HUNDRED SIXTY-GGGG OF THIS ARTICLE; AND TO PAY (C) ITS EXPENSES IN CARRYING OUT ITS POWERS AND DUTIES UNDER THIS ARTICLE; AND S. 2008--A 41 A. 3008--A (D) ITS LIABILITIES, IF ANY, PURSUANT TO SECTION FOURTEEN-A OF THE WORKERS' COMPENSATION LAW; THE FUND SHALL ASCERTAIN BY REASONABLE ESTI- MATE THE TOTAL FUNDING NECESSARY TO CARRY ON ITS OPERATIONS. 2. BASED UPON ITS ESTIMATION OF OPERATING COSTS, THE FUND SHALL ESTAB- LISH A PROPOSED UNIFORM PERCENTAGE SURCHARGE TO BE ADDED TO: (A) THE INVOICES OR BILLINGS FOR COVERED SERVICES SENT TO TRANSPORTA- TION NETWORK COMPANY PASSENGERS BY A MEMBER OR ITS AGENT; AND (B) THE CREDIT PAYMENTS FOR COVERED SERVICES RECEIVED BY A MEMBER OR ITS AGENT. THE PROPOSED SURCHARGE SHALL BECOME EFFECTIVE THIRTY DAYS AFTER BEING FILED WITH THE DEPARTMENT. NOTWITHSTANDING THE FOREGOING, BEGINNING ON THE FIRST DAY OF THE FIRST CALENDAR MONTH THAT SHALL COMMENCE AT LEAST SEVENTY-FIVE DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, AND UNTIL THE FUND SHALL HAVE FILED WITH THE DEPARTMENT A DIFFERENT SURCHARGE AMOUNT, A TWO PERCENT SURCHARGE SHALL BE ADDED TO EVERY INVOICE OR BILLING FOR COVERED SERVICES SENT BY A MEMBER OR ITS AGENT TO, AND EVERY CREDIT PAYMENT FOR COVERED SERVICES RECEIVED BY A MEMBER OR ITS AGENT FROM, TRANSPORTATION NETWORK COMPANY PASSENGERS. EACH MEMBER OF THE FUND SHALL BE LIABLE FOR PAYMENT TO THE FUND OF AN AMOUNT EQUAL TO THE PRODUCT OF: (A) THE PERCENTAGES SURCHARGE DUE PURSUANT TO THIS ARTICLE, DIVIDED BY ONE HUNDRED; AND (B) ALL PAYMENTS RECEIVED BY THE MEMBER OR ITS AGENT FOR COVERED SERVICES PREARRANGED THROUGH THE MEMBER'S DIGITAL NETWORK, AS PROVIDED IN THIS SUBDIVISION, REGARDLESS OF WHETHER THE SURCHARGE WAS BILLED OR CHARGED. 3. THE DEPARTMENT OF MOTOR VEHICLES OR THE DEPARTMENT SHALL NOT ISSUE, CONTINUE OR RENEW ANY LICENSE OR REGISTRATION CERTIFICATE FOR THE OPERA- TION OF ANY TRANSPORTATION NETWORK COMPANY UNLESS SUCH TRANSPORTATION NETWORK COMPANY, AS A CONDITION OF MAINTAINING ITS LICENSE AND/OR REGIS- TRATION CERTIFICATE, ADDS THE SURCHARGE REQUIRED BY THIS SECTION TO EVERY INVOICE AND BILLING FOR COVERED SERVICES SENT TO, AND EVERY CREDIT PAYMENT FOR COVERED SERVICES RECEIVED FROM, ITS TRANSPORTATION NETWORK COMPANY PASSENGERS AND PAYS TO THE FUND NO LATER THAN THE FIFTEENTH DAY OF EACH MONTH THE TOTAL SURCHARGES DUE PURSUANT TO THIS ARTICLE. 4. EACH TRANSPORTATION NETWORK COMPANY SHALL SUBMIT TO THE FUND WITH ITS MONTHLY PAYMENT A DETAILED ACCOUNTING OF THE CHARGE AND SURCHARGE AMOUNTS CHARGED TO AND RECEIVED FROM TRANSPORTATION NETWORK COMPANY PASSENGERS FOR COVERED SERVICES DURING THE PREVIOUS MONTH. THE FIRST SUCH PAYMENT AND ACCOUNTING SHALL BE DUE ON THE FIFTEENTH DAY OF THE MONTH FOLLOWING THE IMPOSITION OF THE SURCHARGE PURSUANT TO SUBDIVISION TWO OF THIS SECTION. 5. SHOULD THE FUND DETERMINE THAT THE SURCHARGE AMOUNTS THAT HAVE BEEN PAID TO IT ARE INADEQUATE TO MEET ITS OBLIGATIONS UNDER THIS ARTICLE, IT SHALL DETERMINE THE SURCHARGE RATE REQUIRED TO ELIMINATE SUCH DEFICIENCY AND SHALL FILE SUCH REVISED SURCHARGE RATE WITH THE DEPARTMENT IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION. COMMENCING THIRTY DAYS AFTER SUCH FILING, THE MEMBERS OF THE FUND SHALL CHARGE THE REVISED SURCHARGE RATE AND SHALL PAY TO THE FUND THE TOTAL AMOUNT OF SURCHARGES IN ACCORDANCE WITH THIS ARTICLE. 6. FOR THE PURPOSES OF CONDUCTING PAYROLL AUDITS, AN INSURER PROVIDING COVERAGE TO THE FUND PURSUANT TO THIS ARTICLE MAY TREAT THE MEMBERS OF THE FUND AS POLICYHOLDERS. MEMBERS OF THE FUND SHALL BE REQUIRED TO DO ALL THINGS REQUIRED OF EMPLOYERS PURSUANT TO SECTION ONE HUNDRED THIR- TY-ONE OF THE WORKERS' COMPENSATION LAW, AND SHALL BE REQUIRED TO PROVIDE THE BOARD ACCESS TO ANY AND ALL RECORDS AND INFORMATION AS OTHERWISE REQUIRED BY THE WORKERS' COMPENSATION LAW AND THE REGULATIONS S. 2008--A 42 A. 3008--A PROMULGATED THEREUNDER, AND SHALL BE LIABLE AS PROVIDED IN THE WORKERS' COMPENSATION LAW FOR ANY FAILURE SO TO DO. § 160-IIII. CERTIFIED FINANCIAL STATEMENTS. NO LATER THAN MAY FIRST OF EACH YEAR, THE FUND SHALL SUBMIT TO THE GOVERNOR AND LEGISLATURE CERTI- FIED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES BY A CERTIFIED PUBLIC ACCOUNTANT. THE MEMBERS OF THE FUND SHALL BE REQUIRED ON AND AFTER JANUARY FIRST OF EACH YEAR TO AFFORD THE CERTIFIED PUBLIC ACCOUNTANT CONVENIENT ACCESS AT ALL REASON- ABLE HOURS TO ALL BOOKS, RECORDS, AND OTHER DOCUMENTS, INCLUDING BUT NOT LIMITED TO INVOICES AND VOUCHERS, NECESSARY OR USEFUL IN THE PREPARATION OF SUCH STATEMENTS AND IN THE VERIFICATION OF THE MONTHLY STATEMENTS SUBMITTED TO THE FUND. § 160-JJJJ. EXEMPTION FROM TAXES. THE FUND SHALL BE EXEMPT FROM PAYMENT OF ALL FEES AND TAXES LEVIED BY THIS STATE OR ANY OF ITS SUBDI- VISIONS, EXCEPT TAXES LEVIED ON REAL PROPERTY. § 160-KKKK. LIABILITY INSURANCE. THE FUND SHALL PURCHASE SUCH INSUR- ANCE AS IS NECESSARY TO PROTECT THE FUND AND ANY DIRECTOR, OFFICER, AGENT, OR OTHER REPRESENTATIVE FROM LIABILITY FOR THEIR ADMINISTRATION OF THE FUND, AND SHALL, TO THE EXTENT PERMITTED BY LAW, INDEMNIFY SUCH DIRECTORS, OFFICERS, AGENTS, OR OTHER REPRESENTATIVES AND HOLD THEM HARMLESS FROM LIABILITY FOR THEIR ADMINISTRATION OF THE FUND. § 160-LLLL. REGULATIONS. THE DEPARTMENT SHALL ADOPT REGULATIONS IMPLE- MENTING THE PROVISIONS OF THIS ARTICLE, INCLUDING THE CONDUCT AND NOTICE OF HEARINGS HELD PURSUANT TO SECTION ONE HUNDRED SIXTY-MMMM OF THIS ARTICLE. § 160-MMMM. VIOLATIONS. 1. IF THE SECRETARY BELIEVES A VIOLATION OF THIS ARTICLE BY A FUND MEMBER MAY HAVE OCCURRED, UPON NOTICE TO THE FUND MEMBER, A HEARING SHALL BE HELD BY THE SECRETARY TO DETERMINE WHETHER SUCH VIOLATION OCCURRED. 2. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, A FUND MEMBER THAT IS FOUND, AFTER A HEARING HELD PURSUANT TO SUBDIVISION ONE OF THIS SECTION, TO HAVE VIOLATED A PROVISION OF THIS ARTICLE, OR A RULE PROMULGATED BY THE DEPARTMENT PURSUANT TO THIS ARTICLE, SHALL BE LIABLE FOR A FINE IN AN AMOUNT NOT TO EXCEED TEN THOUSAND DOLLARS PER VIOLATION. 3. WITHIN TWENTY DAYS AFTER ISSUANCE OF A DETERMINATION ADVERSE TO A TRANSPORTATION NETWORK COMPANY FOLLOWING A HEARING HELD PURSUANT TO SUBDIVISION ONE OF THIS SECTION, AN APPEAL MAY BE TAKEN THEREFROM TO THE APPELLATE DIVISION OF THE SUPREME COURT, THIRD DEPARTMENT, BY THE AGGRIEVED TRANSPORTATION NETWORK COMPANY. § 12. Subdivision 1 of section 171-a of the tax law, as amended by chapter 90 of the laws of 2014, 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-six, [twenty-six-B,] twen- ty-eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, TWENTY-NINE-B (EXCEPT AS OTHERWISE PROVIDED IN SECTION TWELVE HUNDRED NINETY-EIGHT THEREOF), 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, S. 2008--A 43 A. 3008--A banking houses or trust companies as may be designated by the comp- troller, to the credit of the comptroller. Such an account may be estab- lished in one or more of such depositories. Such deposits shall be kept separate and apart from all other money in the possession of the comp- troller. 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 comp- troller'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 taxpayers 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 pursu- ant to subdivision five of section one hundred seventy-one-d and subdi- vision six of section one hundred seventy-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, thirty, 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 cred- it to the special offset fiduciary account, pursuant to section ninety- one-c of the state finance law, any such amount creditable as a liabil- ity 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 commissioner as the amount to be credited against city of New York tax warrant judgment debt pursuant to section one hundred seventy-one-l of this article, (v) and except further that the comptroller shall pay to a non-obligated spouse that amount of overpayment of tax imposed by article twenty-two of this chap- ter and the interest on such amount which has been credited pursuant to S. 2008--A 44 A. 3008--A section one hundred seventy-one-c, one hundred seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- ty-one-l of this article and which is certified to the comptroller by the commissioner as the amount due such non-obligated spouse pursuant to paragraph six of subsection (b) of section six hundred fifty-one of this chapter; and (vi) the comptroller shall deduct a like amount which the comptroller shall pay into the treasury to the credit of the general fund from amounts subsequently payable to the department of social services, the state university of New York, the city university of New York, or the higher education services corporation, or the revenue arrearage account or special offset fiduciary account pursuant to section ninety-one-a or ninety-one-c of the state finance law, as the case may be, whichever had been credited the amount originally withheld from such overpayment, and (vii) with respect to amounts originally withheld from such overpayment pursuant to section one hundred seventy- one-l of this article and paid to the city of New York, the comptroller shall collect a like amount from the city of New York. § 13. Subdivision 1 of section 171-a of the tax law, as amended by section 54 of part A of chapter 59 of the laws of 2014, 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-six, [twenty-six-B,] twenty-eight (except as otherwise provided in section eleven hundred two or eleven hundred three thereof), twenty-eight-A, TWENTY-NINE-B (EXCEPT AS OTHER- WISE PROVIDED IN SECTION TWELVE HUNDRED NINETY-EIGHT THEREOF), 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 S. 2008--A 45 A. 3008--A 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 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. § 14. Paragraph 34 of subdivision (b) of section 1101 of the tax law, as amended by section 1 of part WW of chapter 57 of the laws of 2010, is amended to read as follows: S. 2008--A 46 A. 3008--A (34) Transportation service. The service of transporting, carrying or conveying a person or persons by livery service; whether to a single destination or to multiple destinations; and whether the compensation paid by or on behalf of the passenger is based on mileage, trip, time consumed or any other basis. A service that begins and ends in this state is deemed intra-state even if it passes outside this state during a portion of the trip. However, transportation service does not include transportation of persons in connection with funerals. Transportation service includes transporting, carrying, or conveying property of the person being transported, whether owned by or in the care of such person. NOTWITHSTANDING THE FOREGOING, TRANSPORTATION SERVICE SHALL NOT INCLUDE A TNC PREARRANGED TRIP, AS THAT TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, THAT IS SUBJECT TO TAX UNDER ARTICLE TWENTY-NINE-B OF THIS CHAPTER. In addition to what is included in the definition of "receipt" in paragraph three of this subdivision, receipts from the sale of transportation service subject to tax include any handling, carrying, baggage, booking service, adminis- trative, mark-up, additional, or other charge, of any nature, made in conjunction with the transportation service. Livery service means service provided by limousine, black car or other motor vehicle, with a driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of one million or more in this state, an affiliated livery vehicle, and excluding any scheduled public service. Limousine means a vehicle with a seating capacity of up to fourteen persons, excluding the driver. Black car means a for-hire vehicle dispatched from a central facility. "Affil- iated livery vehicle" means a for-hire motor vehicle with a seating capacity of up to six persons, including the driver, other than a black car or luxury limousine, that is authorized and licensed by the taxi and limousine commission of a city of one million or more to be dispatched by a base station located in such a city and regulated by such taxi and limousine commission; and the charges for service provided by an affil- iated livery vehicle are on the basis of flat rate, time, mileage, or zones and not on a garage to garage basis. § 15. The tax law is amended by adding a new article 29-B to read as follows: ARTICLE 29-B STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY PREARRANGED TRIPS SECTION 1291. DEFINITIONS. 1292. IMPOSITION. 1293. PRESUMPTION. 1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE. 1295. RECORDS TO BE KEPT. 1296. SECRECY OF RETURNS AND REPORTS. 1297. PRACTICE AND PROCEDURE. 1298. DEPOSIT AND DISPOSITION OF REVENUE. § 1291. DEFINITIONS. (A) "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE, RECEIVER, TRUSTEE, ASSIGNEE, REFEREE OR ANY OTHER PERSON ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A COURT OR OTHERWISE, ANY COMBINATION OF INDIVIDUALS AND ANY OTHER FORM OF UNINCORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR MORE PERSONS. (B) "CITY" MEANS A CITY OF A MILLION OR MORE LOCATED IN THE METROPOL- ITAN COMMUTER TRANSPORTATION DISTRICT ESTABLISHED BY SECTION TWELVE HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW. S. 2008--A 47 A. 3008--A (C) "TRANSPORTATION NETWORK COMPANY" OR "TNC" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (D) "TNC PREARRANGED TRIP" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (E) "TNC DRIVER" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (F) "TNC VEHICLE" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW. (G) "GROSS TRIP FARE" MEANS THE SUM OF THE BASE FARE CHARGE, DISTANCE CHARGE AND TIME CHARGE FOR A COMPLETE TNC PREARRANGED TRIP AT THE RATE PUBLISHED BY THE TNC BY OR THROUGH WHICH SUCH TRIP IS ARRANGED. § 1292. IMPOSITION. THERE IS HEREBY IMPOSED ON EVERY TNC A STATE ASSESSMENT FEE OF 5.5% OF THE GROSS TRIP FARE OF EVERY TNC PREARRANGED TRIP PROVIDED BY SUCH TNC THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE THE CITY AND TERMINATES ANYWHERE IN THIS STATE. § 1293. PRESUMPTION. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO PREVENT EVASION OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, IT SHALL BE PRESUMED THAT EVERY TNC PREARRANGED TRIP THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE THE CITY IS SUBJECT TO THE STATE ASSESSMENT FEE. THIS PRESUMPTION SHALL PREVAIL UNTIL THE CONTRARY IS PROVEN BY THE PERSON LIABLE FOR THE FEE. § 1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE. (A) EVERY PERSON LIABLE FOR THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE SHALL FILE A RETURN ON A CALENDAR-QUARTERLY BASIS WITH THE COMMISSIONER. EACH RETURN SHALL SHOW THE NUMBER OF TNC PREARRANGED TRIPS IN THE QUARTER FOR WHICH THE RETURN IS FILED, TOGETHER WITH SUCH OTHER INFORMATION AS THE COMMIS- SIONER MAY REQUIRE. THE RETURNS REQUIRED BY THIS SECTION SHALL BE FILED WITHIN THIRTY DAYS AFTER THE END OF THE QUARTERLY PERIOD COVERED THERE- BY. IF THE COMMISSIONER DEEMS IT NECESSARY IN ORDER TO ENSURE THE PAYMENT OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, THE COMMIS- SIONER MAY REQUIRE RETURNS TO BE MADE FOR SHORTER PERIODS THAN PRESCRIBED BY THE FOREGOING PROVISIONS OF THIS SECTION, AND UPON SUCH DATES AS THE COMMISSIONER MAY SPECIFY. THE FORM OF RETURNS SHALL BE PRESCRIBED BY THE COMMISSIONER AND SHALL CONTAIN SUCH INFORMATION AS THE COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINISTRATION OF THIS ARTICLE. THE COMMISSIONER MAY REQUIRE AMENDED RETURNS TO BE FILED WITHIN THIRTY DAYS AFTER NOTICE AND TO CONTAIN THE INFORMATION SPECIFIED IN THE NOTICE. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS BE FILED ELECTRON- ICALLY. (B) EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS ARTICLE SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL OF ALL STATE ASSESSMENT FEES ON THE CORRECT NUMBER OF TRIPS SUBJECT TO SUCH FEE UNDER THIS ARTICLE. THE AMOUNT SO PAYABLE TO THE COMMISSIONER FOR THE PERIOD FOR WHICH A RETURN IS REQUIRED TO BE FILED SHALL BE DUE AND PAYABLE TO THE COMMISSIONER ON THE DATE SPECIFIED FOR THE FILING OF THE RETURN FOR SUCH PERIOD, WITHOUT REGARD TO WHETHER A RETURN IS FILED OR WHETHER THE RETURN THAT IS FILED CORRECTLY SHOWS THE CORRECT NUMBER OF TRIPS OR THE AMOUNT OF FEES DUE THEREON. THE COMMISSIONER MAY REQUIRE THAT THE FEE BE PAID ELECTRONICALLY. § 1295. RECORDS TO BE KEPT. EVERY PERSON LIABLE FOR THE STATE ASSESS- MENT FEE IMPOSED BY THIS ARTICLE SHALL KEEP: (A) RECORDS OF EVERY TNC PREARRANGED TRIP SUBJECT TO THE STATE ASSESS- MENT FEE UNDER THIS ARTICLE, AND OF ALL AMOUNTS PAID, CHARGED OR DUE THEREON, IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE; S. 2008--A 48 A. 3008--A (B) TRUE AND COMPLETE COPIES OF ANY RECORDS REQUIRED TO BE KEPT BY A STATE AGENCY THAT IS AUTHORIZED TO PERMIT OR REGULATE A TNC; AND (C) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE. § 1296. SECRECY OF RETURNS AND REPORTS. (A) EXCEPT IN ACCORDANCE WITH PROPER JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART- MENT, ANY PERSON ENGAGED OR RETAINED BY THE 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 WITH THE COMMISSIONER PURSUANT TO THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS SET FORTH OR DISCLOSED IN ANY SUCH RETURN OR REPORT. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS AND 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 COMMISSIONER IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS CHAPTER OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A STATE ASSESSMENT FEE DUE UNDER THIS ARTICLE TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY OR A CLAIMANT, OR ON BEHALF OF ANY PARTY TO ANY ACTION, PROCEEDING OR HEARING UNDER THE PROVISIONS OF THIS ARTICLE WHEN THE RETURNS, REPORTS OR FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION, PROCEEDING OR HEARING, IN ANY OF WHICH EVENTS THE COURT, OR IN THE CASE OF A HEARING, THE DIVISION OF TAX APPEALS MAY REQUIRE THE PRODUCTION OF, AND MAY ADMIT INTO EVIDENCE, SO MUCH OF SAID RETURNS, REPORTS OR OF THE FACTS SHOWN THEREBY, AS ARE PERTINENT TO THE ACTION, PROCEEDING OR HEARING AND NO MORE. THE COMMISSIONER OR THE DIVISION OF TAX APPEALS MAY, NEVERTHELESS, PUBLISH A COPY OR A SUMMARY OF ANY DECI- SION RENDERED AFTER A HEARING REQUIRED BY THIS ARTICLE. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY TO A PERSON WHO HAS FILED A RETURN OR REPORT OR TO SUCH PERSON'S DULY AUTHORIZED REPRESEN- TATIVE OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED IN CONNECTION WITH SUCH PERSON'S STATE ASSESSMENT FEE. NOR SHALL ANYTHING IN THIS SECTION BE CONSTRUED TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLAS- SIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THEREOF, OR THE INSPECTION BY THE ATTORNEY GENERAL OR OTHER LEGAL REPRESENTATIVES OF THE STATE OF THE RETURN OR REPORT OF ANY PERSON REQUIRED TO PAY THE STATE ASSESSMENT FEE WHO SHALL BRING ACTION TO REVIEW THE STATE ASSESSMENT FEE BASED THEREON, OR AGAINST WHOM AN ACTION OR PROCEEDING UNDER THIS CHAPTER HAS BEEN RECOMMENDED BY THE COMMISSIONER OR THE ATTORNEY GENERAL OR HAS BEEN INSTITUTED, OR THE INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPART- MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY STATE ASSESSMENT FEE PAID BY A PERSON REQUIRED TO PAY THE STATE ASSESS- MENT FEE UNDER THIS ARTICLE. PROVIDED, FURTHER, NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE COMMISSIONER DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDEN- TIFYING INFORMATION OF THOSE PERSONS REQUIRED TO PAY STATE ASSESSMENT FEE UNDER THIS ARTICLE. (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR ALL PERSONS LIABLE FOR ANY STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, TO MAKE PAYMENT TO BANKS, BANKING HOUSES OR TRUST COMPANIES DESIGNATED BY THE COMMISSIONER AND TO FILE RETURNS WITH SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES AS AGENTS OF THE COMMISSIONER, IN LIEU OF PAYING ANY SUCH STATE ASSESSMENT FEE DIRECTLY TO THE COMMISSIONER. HOWEVER, THE S. 2008--A 49 A. 3008--A COMMISSIONER SHALL DESIGNATE ONLY SUCH BANKS, BANKING HOUSES OR TRUST COMPANIES AS ARE ALREADY DESIGNATED BY THE COMPTROLLER AS DEPOSITORIES PURSUANT TO SECTION TWELVE HUNDRED EIGHTY-EIGHT OF THIS CHAPTER. (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION, THE COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE UNITED STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF EITHER SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION SHALL BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS OF THE UNITED STATES GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMISSIONER OR OFFICER OF THIS STATE CHARGED WITH THE ADMINISTRATION OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS TO BE USED FOR PURPOSES OF TAX ADMINISTRATION ONLY; AND PROVIDED FURTHER THE COMMISSIONER MAY FURNISH TO THE COMMISSIONER OF INTERNAL REVENUE OR SUCH COMMISSIONER'S AUTHORIZED REPRESENTATIVE SUCH RETURNS FILED UNDER THIS ARTICLE AND OTHER TAX INFORMATION, AS SUCH COMMISSIONER MAY CONSID- ER PROPER, FOR USE IN COURT ACTIONS OR PROCEEDINGS UNDER THE INTERNAL REVENUE CODE, WHETHER CIVIL OR CRIMINAL, WHERE A WRITTEN REQUEST THERE- FOR HAS BEEN MADE TO THE COMMISSIONER BY THE SECRETARY OF THE TREASURY OF THE UNITED STATES OR SUCH SECRETARY'S DELEGATE, PROVIDED THE LAWS OF THE UNITED STATES GRANT SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF THE TREASURY OF THE UNITED STATES OR HIS OR HER DELEGATE. WHERE THE COMMISSIONER HAS SO AUTHORIZED USE OF RETURNS AND OTHER INFORMATION IN SUCH ACTIONS OR PROCEEDINGS, OFFICERS AND EMPLOYEES OF THE DEPARTMENT MAY TESTIFY IN SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR OTHER INFORMATION. (D) RETURNS AND REPORTS FILED UNDER THIS ARTICLE SHALL BE PRESERVED FOR THREE YEARS AND THEREAFTER UNTIL THE COMMISSIONER ORDERS THEM TO BE DESTROYED. (E) (1) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE FOR A PERIOD OF FIVE YEARS THEREAFTER. (2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER. § 1297. PRACTICE AND PROCEDURE. THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE ADMINISTRATION OF AND PROCEDURE WITH RESPECT TO THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTI- CLE 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 STATE ASSESSMENT FEE UNDER THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE. § 1298. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, FEES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTI- CLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER. FROM SUCH TAXES, INTEREST AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE, 27.27% SHALL BE DEPOSITED TO THE CREDIT OF THE LOCAL TRAN- SIT ASSISTANCE FUND ESTABLISHED IN SECTION EIGHTY-NINE-I OF THE STATE FINANCE LAW FOR THE SUPPORT OF LOCAL TRANSIT SYSTEMS, OPERATIONS OR S. 2008--A 50 A. 3008--A PROJECTS OTHER THAN THE METROPOLITAN TRANSPORTATION AUTHORITY OR ANY SUBSIDIARY OR AFFILIATE OF THE METROPOLITAN TRANSPORTATION AUTHORITY. § 16. The tax law is amended by adding a new section 1822 to read as follows: § 1822. VIOLATION OF THE STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY PREARRANGED TRIPS. ANY WILLFUL ACT OR OMISSION BY ANY PERSON THAT CONSTITUTES A VIOLATION OF ANY PROVISION OF ARTICLE TWENTY- NINE-B OF THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR. § 17. Section 1825 of the tax law, as amended by section 89 of part A of chapter 59 of the laws of 2014, 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, subdivision one or two of section five hundred fourteen, subsection (e) of section six hundred ninety-seven, subsection (a) of section nine hundred ninety-four, subdivision (a) of section eleven hundred forty-six, section twelve hundred eighty-seven, SECTION TWELVE HUNDRED NINETY-SIX, subdivision (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. § 18. 1. For purposes of this section, transportation network company shall mean a transportation network company as defined by article forty-four-B of the vehicle and traffic law. 2. There is hereby established the New York State Transportation Network Company Accessibility Task Force to analyze and advise on how to maximize effective and integrated transportation services for persons with disabilities in the transportation network company market. The New York State Transportation Network Company Accessibility Task Force shall consist of eleven members. Two members of the New York State Transporta- tion Network Company Accessibility Task Force shall be appointed by the speaker of the assembly. Two members of the New York State Transporta- tion Network Company Accessibility Task Force shall be appointed by the temporary president of the senate. Seven members of the New York State Transportation Network Company Accessibility Task Force shall be appointed by the governor and shall include, but not be limited to, two representatives of groups who serve persons with disabilities and two representatives from a transportation network company. The governor shall designate two chairpersons to the New York State Transportation Network Company Accessibility Task Force. 3. The New York State Transportation Network Company Accessibility Task Force shall study the demand responsive transportation marketplace and shall, in addition to any responsibilities assigned by the governor: (a) conduct a needs assessment concerning the demand for demand respon- sive accessible transportation; (b) conduct a resource assessment concerning the availability of accessible demand responsive transporta- tion services for persons with disabilities; (c) identify opportunities for, and barriers to, increasing accessible demand responsive transpor- tation service for persons with mobility disabilities; (d) propose stra- tegies for increasing accessible demand responsive transportation service for persons with disabilities; and (e) any other issues deter- mined important to the task force in establishing a recommendation pursuant to subdivision five of this section. S. 2008--A 51 A. 3008--A 4. The New York State Transportation Network Company Accessibility Task Force shall hold public hearings and provide an opportunity for public comment on the activities described in subdivision two of this section. 5. The New York State Transportation Network Company Accessibility Task Force shall complete a report addressing the activities described in subdivision two of this section and make a recommendation, supported by such activities, recommending the amount of accessibility necessary for adequate transportation for disabled passengers in order to utilize such services and present such findings at a public meeting where its members shall accept such report, pursuant to majority vote of the task force, and present such report to the governor, the speaker of the assembly and the temporary president of the senate, and make such report publicly available for review. 6. Upon making the report described in subdivision five of this section, the New York State Transportation Network Company Accessibility Task Force shall be deemed dissolved. § 19. The state finance law is amended by adding a new section 89-i to read as follows: § 89-I. LOCAL TRANSIT ASSISTANCE FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "LOCAL TRANSIT ASSISTANCE FUND". MONEYS IN THE LOCAL TRANSIT ASSISTANCE FUND SHALL BE KEPT SEPA- RATELY FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE JOINT OR SOLE CUSTODY OF THE STATE COMPTROLLER OR THE COMMISSIONER OF TAXATION AND FINANCE. 2. THE COMPTROLLER SHALL ESTABLISH THE FOLLOWING SEPARATE AND DISTINCT ACCOUNT WITHIN THE LOCAL TRANSIT ASSISTANCE FUND: NON-MTA TRANSIT ASSISTANCE ACCOUNT. 3. THE LOCAL TRANSIT ASSISTANCE FUND SHALL CONSIST OF ALL MONIES COLLECTED THEREFORE OR CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND, ACCOUNT, OR SOURCE, INCLUDING A PORTION OF THE REVENUES DERIVED FROM ARTICLE TWENTY-NINE-B OF THE TAX LAW PURSUANT TO SECTION TWELVE HUNDRED NINETY-EIGHT OF THE TAX LAW. ANY INTEREST RECEIVED BY THE COMP- TROLLER ON MONIES ON DEPOSIT IN THE LOCAL TRANSIT ASSISTANCE FUND SHALL BE RETAINED IN AND BECOME A PART OF SUCH FUND. 4. MONIES IN THE LOCAL TRANSIT ASSISTANCE FUND SHALL, FOLLOWING APPRO- PRIATION BY THE LEGISLATURE, BE UTILIZED FOR THE SUPPORT OF LOCAL TRANS- IT SYSTEMS, OPERATIONS OR PROJECTS, AND SHALL NOT BE APPROPRIATED TO THE METROPOLITAN TRANSPORTATION AUTHORITY, ITS AFFILIATES OR ITS SUBSID- IARIES. IN THE FIRST YEAR THAT MONIES ARE APPROPRIATED FROM THIS FUND, AND IN ANY SUBSEQUENT YEARS AS MAY BE REQUIRED BY THE DIRECTOR OF THE BUDGET, SUCH MONIES SHALL BE DISBURSED ACCORDING TO A PLAN DEVELOPED DURING THE PRIOR FISCAL YEAR BY THE COMMISSIONER OF TRANSPORTATION AND APPROVED BY THE DIRECTOR OF THE BUDGET. THE FIRST SUCH PLAN SHALL BE SUBMITTED BY THE COMMISSIONER BY MARCH THIRTY-FIRST, TWO THOUSAND EIGH- TEEN. 5. ALL PAYMENTS OF MONEY FROM THE LOCAL TRANSIT ASSISTANCE FUND SHALL BE MADE ON THE AUDIT AND WARRANT OF THE COMPTROLLER. § 20. Severability clause. If any provision of this act or the appli- cation thereof is held invalid, such invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable. § 21. Each agency that is designated to perform any function or duty pursuant to this act shall be authorized to establish rules and regu- S. 2008--A 52 A. 3008--A lations for the administration and execution of such authority in a manner consistent with the provisions of this act and for the protection of the public, health, safety and welfare of persons within this state. § 22. This act shall take effect on the ninetieth day after it shall have become a law; provided that the amendments to subdivision 1 of section 171-a of the tax law made by section twelve of this act shall not affect the expiration of such subdivision and shall expire there- with, when upon such date the provisions of section thirteen of this act shall take effect. PART H Section 1. Section 491 of the vehicle and traffic law is amended by adding a new subdivision 3 to read as follows: 3. WAIVER OF FEE. THE COMMISSIONER MAY WAIVE THE PAYMENT OF FEES REQUIRED BY SUBDIVISION TWO OF THIS SECTION IF THE APPLICANT IS A VICTIM OF A CRIME AND THE IDENTIFICATION CARD APPLIED FOR IS A REPLACEMENT FOR ONE THAT WAS LOST OR DESTROYED AS A RESULT OF THE CRIME. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART I Section 1. Paragraph (i) of subdivision 2 of section 503 of the vehi- cle and traffic law, as amended by chapter 55 of the laws of 1992, is amended to read as follows: (i) A non-resident whose driving privileges have been revoked pursuant to sections five hundred ten, eleven hundred ninety-three and eleven hundred ninety-four of this chapter shall, upon application for rein- statement of such driving privileges, pay to the commissioner of motor vehicles a fee of [twenty-five] ONE HUNDRED dollars. WHEN THE BASIS FOR THE REVOCATION IS A FINDING OF DRIVING AFTER HAVING CONSUMED ALCOHOL PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED NINETY-TWO-A OF THIS CHAPTER, THE FEE TO BE PAID TO THE COMMISSIONER SHALL BE ONE HUNDRED DOLLARS. Such fee is not refundable and shall not be returned to the applicant regardless of the action the commissioner may take on such person's application for reinstatement of such driving privileges. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART J Section 1. Paragraphs 1 and 3 of subdivision (a) of section 2125 of the vehicle and traffic law, as amended by section 1-b of part A of chapter 63 of the laws of 2005, are amended to read as follows: (1) for filing an application for a certificate of title, [fifty] SEVENTY-FIVE dollars except where the application relates to a mobile home or a manufactured home as defined in section one hundred twenty- two-c of this chapter, in which case the fee shall be one hundred twen- ty-five dollars; (3) for a duplicate certificate of title, [twenty] FORTY dollars. § 2. Section 2125 of the vehicle and traffic law is amended by adding a new subdivision (h) to read as follows: (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE INCREASE OF TWEN- TY-FIVE DOLLARS FOR THE FEE ASSESSED FOR FILING AN APPLICATION FOR A CERTIFICATE OF TITLE AND THE INCREASE OF TWENTY DOLLARS FOR THE FEE S. 2008--A 53 A. 3008--A ASSESSED FOR FILING AN APPLICATION FOR DUPLICATE TITLE, COLLECTED PURSU- ANT TO PARAGRAPHS ONE AND THREE OF SUBDIVISION (A) OF THIS SECTION, SHALL BE DEPOSITED TO THE CREDIT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND, ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately; provided that the amend- ments to paragraph 1 of subdivision (a) of section 2125 of the vehicle and traffic law made by section one of this act shall not affect the expiration and reversion of such paragraph and shall be deemed to expire therewith. PART K Section 1. Subdivision 2 of section 491 of the vehicle and traffic law is amended by adding a new paragraph (f) to read as follows: (F) IN ADDITION TO ANY OTHER FEE PRESCRIBED IN THIS SECTION, AN ADDI- TIONAL FEE OF FIVE DOLLARS SHALL BE CHARGED FOR ANY NON-DRIVER IDENTIFI- CATION CARD OR RENEWAL OR AMENDMENT OF SUCH CARD THAT IS ISSUED PURSUANT TO AND BEARS A MARKING REFLECTING COMPLIANCE WITH THE REAL ID ACT OF 2005, PUBLIC LAW 109-13, AND REGULATIONS PROMULGATED THEREUNDER AT 6 CFR 37 ET SEQ. THE FEE COLLECTED PURSUANT TO THIS PARAGRAPH SHALL BE PAID TO THE COMMISSIONER AND SHALL BE DEPOSITED INTO THE DEDICATED HIGHWAY BRIDGE AND TRUST FUND PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 2. Subdivision 2 of section 503 of the vehicle and traffic law is amended by adding a new paragraph (f-2) to read as follows: (F-2) IN ADDITION TO ANY OTHER FEE PRESCRIBED IN THIS SECTION, AN ADDITIONAL FEE OF FIVE DOLLARS SHALL BE CHARGED FOR ANY LICENSE, RENEWAL OR AMENDMENT OF SUCH LICENSE THAT IS ISSUED PURSUANT TO AND BEARS A MARKING REFLECTING COMPLIANCE WITH THE REAL ID ACT OF 2005, PUBLIC LAW 109-13, AND REGULATIONS PROMULGATED THEREUNDER AT 6 CFR 37 ET SEQ. THE FEE COLLECTED PURSUANT TO THIS PARAGRAPH SHALL BE PAID TO THE COMMIS- SIONER AND SHALL BE DEPOSITED INTO THE DEDICATED HIGHWAY BRIDGE AND TRUST FUND PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately. PART L Section 1. Section 114-a of the vehicle and traffic law, as added by chapter 163 of the laws of 1973, is amended to read as follows: § 114-a. Drug. The term "drug" when used in this chapter, means and includes any substance listed in section thirty-three hundred six of the public health law AND ANY SUBSTANCE OR COMBINATION OF SUBSTANCES THAT IMPAIR, TO ANY EXTENT, THE PHYSICAL AND MENTAL ABILITIES WHICH A DRIVER IS EXPECTED TO POSSESS IN ORDER TO OPERATE A VEHICLE AS A REASONABLE AND PRUDENT DRIVER. § 2. Subparagraph (i) of paragraph (a) of subdivision 4 of section 502 of the vehicle and traffic law, as amended by chapter 97 of the laws of 2016, is amended to read as follows: (i) Upon submission of an application for a driver's license, the applicant shall be required to take and pass a test, or submit evidence of passage of a test, with respect to the laws relating to traffic, the laws relating to driving while ability is impaired and while intoxicat- ed, under the overpowering influence of "Road Rage", or "Work Zone Safe- ty" awareness as defined by the commissioner, the law relating to exer- cising due care to avoid colliding with a parked, stopped or standing S. 2008--A 54 A. 3008--A authorized emergency vehicle or hazard vehicle pursuant to section elev- en hundred forty-four-a of this chapter, the ability to read and compre- hend traffic signs and symbols, BICYCLE AND PEDESTRIAN SAFETY and such other matters as the commissioner may prescribe, and to satisfactorily complete a course prescribed by the commissioner of not less than four hours and not more than five hours, consisting of classroom driver training and highway safety instruction or the equivalent thereof. Such test shall include at least seven written questions concerning the effects of consumption of alcohol or drugs on the ability of a person to operate a motor vehicle and the legal and financial consequences result- ing from violations of section eleven hundred ninety-two of this chap- ter, prohibiting the operation of a motor vehicle while under the influ- ence of alcohol or drugs. Such test shall include one or more written questions concerning the devastating effects of "Road Rage" on the abil- ity of a person to operate a motor vehicle and the legal and financial consequences resulting from assaulting, threatening or interfering with the lawful conduct of another person legally using the roadway. Such test shall include one or more questions concerning the potential dangers to persons and equipment resulting from the unsafe operation of a motor vehicle in a work zone. Such test may include one or more ques- tions concerning the law for exercising due care to avoid colliding with a parked, stopped or standing vehicle pursuant to section eleven hundred forty-four-a of this chapter. SUCH TEST MAY INCLUDE ONE OR MORE QUES- TIONS CONCERNING BICYCLE AND PEDESTRIAN SAFETY. Such test shall be administered by the commissioner. The commissioner shall cause the applicant to take a vision test and a test for color blindness. Upon passage of the vision test, the application may be accepted and the application fee shall be payable. § 3. Subparagraph (v) of paragraph (b) of subdivision 2 of section 510 of the vehicle and traffic law, as amended by chapter 3 of the laws of 1995, is amended to read as follows: (v) For a period of six months where the holder is convicted of, or receives a youthful offender or other juvenile adjudication in connection with, any misdemeanor or felony defined in article two hundred twenty or two hundred twenty-one of the penal law, any violation of the federal controlled substances act, [any crime in violation of subdivision four of section eleven hundred ninety-two of this chapter] or any out-of-state or federal misdemeanor or felony drug-related offense; provided, however, that any time actually served in custody pursuant to a sentence or disposition imposed as a result of such conviction or youthful offender or other juvenile adjudication shall be credited against the period of such suspension and, provided further, that the court shall determine that such suspension need not be imposed where there are compelling circumstances warranting an exception. § 4. Paragraphs i and j of subdivision 6 of section 510 of the vehicle and traffic law, as added by chapter 533 of the laws of 1993, are amended to read as follows: i. Where suspension of a driver's license is mandatory hereunder based upon a conviction of, or youthful offender or other juvenile adjudi- cation in connection with, any misdemeanor or felony as defined in arti- cle two hundred twenty or two hundred twenty-one of the penal law, any violation of the federal controlled substances act, [any crime in violation of subdivision four of section eleven hundred ninety-two of this chapter] or any out-of-state or federal misdemeanor or felony drug- related offense, the commissioner may issue a restricted use license pursuant to section five hundred thirty of this chapter. S. 2008--A 55 A. 3008--A j. Where suspension of a driver's license is mandatory hereunder based upon a conviction of, or youthful offender or other juvenile adjudi- cation in connection with, any misdemeanor or felony as defined in arti- cle two hundred twenty or two hundred twenty-one of the penal law, any violation of the federal controlled substances act, [any crime in violation of subdivision four of section eleven hundred ninety-two of this chapter] or any out-of-state or federal misdemeanor or felony drug- related offense and the individual does not have a driver's license or the individual's driver's license was suspended at the time of conviction or youthful offender or other juvenile adjudication, the commissioner shall not issue a new license nor restore the former license for a period of six months after such individual would otherwise have become eligible to obtain a new license or to have the former license restored; provided, however, that during such delay period the commissioner may issue a restricted use license pursuant to section five hundred thirty of this [chapter] TITLE to such previously suspended licensee. § 5. Paragraph (b) of subdivision 2 of section 1193 of the vehicle and traffic law is amended by adding a new subparagraph 13 to read as follows: (13) WHERE REVOCATION OF A DRIVER'S LICENSE IS MANDATORY HEREUNDER BASED UPON A CONVICTION OF, OR YOUTHFUL OFFENDER OF OTHER JUVENILE ADJU- DICATION IN CONNECTION WITH ANY CRIME IN VIOLATION OF SUBDIVISION FOUR OF SECTION ELEVEN HUNDRED NINETY-TWO OF THIS ARTICLE AND THE INDIVIDUAL DOES NOT HAVE A DRIVER'S LICENSE OR THE INDIVIDUAL'S DRIVER'S LICENSE WAS SUSPENDED OR REVOKED AT THE TIME OF CONVICTION OR YOUTHFUL OFFENDER OR OTHER JUVENILE ADJUDICATION, THE COMMISSIONER SHALL NOT ISSUE A NEW LICENSE NOR RESTORE THE FORMER LICENSE FOR A PERIOD OF SIX MONTHS AFTER SUCH INDIVIDUAL WOULD OTHERWISE HAVE BECOME ELIGIBLE TO OBTAIN A NEW LICENSE OR TO HAVE THE FORMER LICENSE RESTORED; PROVIDED, HOWEVER, THAT DURING SUCH PERIOD THE COMMISSIONER MAY ISSUE A CONDITIONAL LICENSE PURSUANT TO SECTION ELEVEN HUNDRED NINETY-SIX OF THIS ARTICLE TO SUCH PREVIOUSLY REVOKED LICENSEE. § 6. Clauses a and b of subparagraph 1 of paragraph (d) of subdivision 2 of section 1194 of the vehicle and traffic law, as amended by chapter 732 of the laws of 2006, are amended to read as follows: a. Any license which has been revoked pursuant to paragraph (c) of this subdivision shall not be restored for at least [one year] EIGHTEEN MONTHS after such revocation, nor thereafter, except in the discretion of the commissioner. However, no such license shall be restored for at least [eighteen] TWENTY-FOUR months after such revocation, nor thereaft- er except in the discretion of the commissioner, in any case where the person has had a prior revocation resulting from refusal to submit to a chemical test, or has been convicted of or found to be in violation of any subdivision of section eleven hundred ninety-two or section eleven hundred ninety-two-a of this article not arising out of the same inci- dent, within the five years immediately preceding the date of such revo- cation; provided, however, a prior finding that a person under the age of twenty-one has refused to submit to a chemical test pursuant to subdivision three of section eleven hundred ninety-four-a of this arti- cle shall have the same effect as a prior finding of a refusal pursuant to this subdivision solely for the purpose of determining the length of any license suspension or revocation required to be imposed under any provision of this article, provided that the subsequent offense or refusal is committed or occurred prior to the expiration of the S. 2008--A 56 A. 3008--A retention period for such prior refusal as set forth in paragraph (k) of subdivision one of section two hundred one of this chapter. b. Any license which has been revoked pursuant to paragraph (c) of this subdivision or pursuant to subdivision three of section eleven hundred ninety-four-a of this article, where the holder was under the age of twenty-one years at the time of such refusal, shall not be restored for at least [one year] EIGHTEEN MONTHS, nor thereafter, except in the discretion of the commissioner. Where such person under the age of twenty-one years has a prior finding, conviction or youthful offender adjudication resulting from a violation of section eleven hundred nine- ty-two or section eleven hundred ninety-two-a of this article, not aris- ing from the same incident, such license shall not be restored for at least [one year] TWENTY-FOUR MONTHS or until such person reaches the age of twenty-one years, whichever is the greater period of time, nor there- after, except in the discretion of the commissioner. § 7. Paragraphs (a) and (b) of subdivision 2 of section 1225-c of the vehicle and traffic law, as amended by section 4 of part C of chapter 58 of the laws of 2013, are amended to read as follows: (a) Except as otherwise provided in this section, no person shall operate a motor vehicle upon a public highway while using a mobile tele- phone to engage in a call while such vehicle is in motion; provided, however, that no person shall operate a commercial motor vehicle while using a mobile telephone to engage in a call on a public highway [including while temporarily stationary because of traffic, a traffic control device, or other momentary delays]. Provided further, however, that a person shall not be deemed to be operating a [commercial] motor vehicle while using a mobile telephone to engage in a call on a public highway when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer. (b) An operator of any motor vehicle UPON A PUBLIC HIGHWAY who holds a mobile telephone to, or in the immediate proximity of, his or her ear [while such vehicle is in motion] is presumed to be engaging in a call within the meaning of this section[; provided, however, that an operator of a commercial motor vehicle who holds a mobile telephone to, or in the immediate proximity of, his or her ear while such vehicle is temporarily stationary because of traffic, a traffic control device, or other momen- tary delays is also presumed to be engaging in a call within the meaning of this section except that a person operating a commercial motor vehi- cle while using a mobile telephone to engage in a call when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer shall not be presumed to be engaging in a call within the meaning of this section]. The presumption established by this subdivision is rebuttable by evidence tending to show that the operator was not engaged in a call. § 8. Subdivision 3 of section 1225-c of the vehicle and traffic law, as added by chapter 69 of the laws of 2001, is amended and a new subdi- vision 2-a is added to read as follows: 2-A. NO PERSON UNDER EIGHTEEN YEARS OF AGE SHALL OPERATE A MOTOR VEHI- CLE UPON A PUBLIC HIGHWAY WHILE ENGAGING IN A CALL WITH A HAND HELD OR HANDS FREE MOBILE TELEPHONE. FOR THE PURPOSES OF THIS SUBDIVISION, ENGAGING IN A CALL SHALL INCLUDE MAKING OR RECEIVING A CALL WITH A HAND HELD OR HANDS FREE MOBILE TELEPHONE. S. 2008--A 57 A. 3008--A 3. [Subdivision] SUBDIVISIONS two AND TWO-A of this section shall not apply to (a) the use of a mobile telephone for the sole purpose of communicating with any of the following regarding an emergency situ- ation: an emergency response operator; a hospital, physician's office or health clinic; an ambulance company or corps; a fire department, district or company; or a police department, (b) any of the following persons while in the performance of their official duties: a police officer or peace officer; a member of a fire department, district or company; or the operator of an authorized emergency vehicle as defined in section one hundred one of this chapter, or (c) the use of a hands- free mobile telephone EXCEPT AS APPLIED TO PERSONS UNDER THE AGE OF EIGHTEEN YEARS. § 9. Subdivisions 1 and 4 of section 1225-d of the vehicle and traffic law, subdivision 1 as amended by section 6 and subdivision 4 as amended by section 10 of part C of chapter 58 of the laws of 2013, are amended to read as follows: 1. Except as otherwise provided in this section, no person shall oper- ate a motor vehicle while using any portable electronic device [while such vehicle is in motion; provided, however, that no person shall oper- ate a commercial motor vehicle while using any portable electronic device on a public highway including while temporarily stationary because of traffic, a traffic control device, or other momentary delays]. Provided further, however, that a person shall not be deemed to be operating a [commercial] motor vehicle while using a portable elec- tronic device on a public highway when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer. 4. A person who [holds] USES a portable electronic device in a conspicuous manner while operating a motor vehicle or while operating a [commercial] motor vehicle on a public highway [including while tempo- rarily stationary because of traffic, a traffic control device, or other momentary delays] but not including when such [commercial] motor vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police officer is presumed to be using such device[, except that a person operating a commercial motor vehicle while using a portable electronic device when such vehicle is stopped at the side of, or off, a public highway in a location where such vehicle is not otherwise prohibited from stopping by law, rule, regulation or any lawful order or direction of a police offi- cer shall not be presumed to be using such device]. The presumption established by this subdivision is rebuttable by evidence tending to show that the operator was not using the device within the meaning of this section. § 10. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of the vehicle and traffic law, as amended by section 8 of part C of chapter 58 of the laws of 2013, are amended to read as follows: (a) "Portable electronic device" shall mean any hand-held mobile tele- phone, as defined by subdivision one of section twelve hundred twenty- five-c of this article, personal digital assistant (PDA), handheld device with mobile data access, laptop computer, pager, broadband personal communication device, two-way messaging device, electronic game, or portable computing device, or any other [electronic] PERSONAL WIRELESS COMMUNICATIONS device when used to input, write, send, receive, or read text OR IMAGES for present or future communication INCLUDING S. 2008--A 58 A. 3008--A DOING SO FOR THE PURPOSE OF SMS TEXTING, EMAILING, INSTANT MESSAGING OR ENGAGING IN ANY OTHER FORM OF ELECTRONIC DATA RETRIEVAL OR ELECTRONIC DATA COMMUNICATION. (b) "Using" shall mean holding OR MAKING CONTACT WITH a portable elec- tronic device [while] FOR THE PURPOSE OF viewing, taking or transmitting images, playing games, or, for the purpose of present or future communi- cation: performing a command or request to access a world wide web page, composing, sending, reading, viewing, accessing, browsing, transmitting, saving or retrieving e-mail, text messages, instant messages, or other electronic data. § 11. Subdivision 2 of section 1225-d of the vehicle and traffic law, is amended by adding a new paragraph (e) to read as follows: (E) "PERSONAL WIRELESS COMMUNICATIONS DEVICE" SHALL: (I) MEAN A DEVICE THROUGH WHICH PERSONAL WIRELESS SERVICES (AS DEFINED IN SECTION 332(C)(7)(C)(I) OF THE COMMUNICATIONS ACT OF 1934 (47 U.S.C. 332 (C)(7)(C)(I)), ARE TRANSMITTED; AND (II) DOES NOT INCLUDE A GLOBAL NAVIGATION SATELLITE SYSTEM RECEIVER USED FOR POSITIONING, EMERGENCY NOTIFICATION, OR NAVIGATION PURPOSES. § 12. Subdivision 3 of section 1229-c of the vehicle and traffic law, as added by chapter 365 of the laws of 1984, is amended to read as follows: 3. No person shall operate a motor vehicle unless such person is restrained by a safety belt approved by the commissioner. No person sixteen years of age or over shall be a passenger in [the front seat of] a motor vehicle unless such person is restrained by a safety belt approved by the commissioner. § 13. This act shall take effect on the first of October next succeed- ing the date on which it shall have become a law. PART M Section 1. Subdivision 3 of section 16-m of section 1 of chapter 174 of the laws of 1968 constituting the New York state urban development corporation act, as amended by section 1 of part F of chapter 58 of the laws of 2016, is amended to read as follows: 3. The provisions of this section shall expire, notwithstanding any inconsistent provision of subdivision 4 of section 469 of chapter 309 of the laws of 1996 or of any other law, on July 1, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2017. PART N Section 1. Section 2 of chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, as amended by section 1 of part G of chapter 58 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect immediately provided, however, that section one of this act shall expire on July 1, [2017] 2018, at which time the provisions of subdivision 26 of section 5 of the New York state urban development corporation act shall be deemed repealed; provided, however, that neither the expiration nor the repeal of such subdivision as provided for herein shall be deemed to affect or impair in any manner any loan made pursuant to the authority of such subdivision prior to such expiration and repeal. S. 2008--A 59 A. 3008--A § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART O Section 1. The opening paragraph of subdivision (h) of section 121 of chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, as amended by section 2 of part Q of chapter 58 of the laws of 2015, is amended to read as follows: The provisions of [section] SECTIONS sixty-two through sixty-six of this act shall expire on December thirty-first, two thousand [seventeen] EIGHTEEN, except that: § 2. This act shall take effect immediately. PART P Section 1. Subdivision (a) of section 2 of part F of chapter 60 of the laws of 2015 constituting the infrastructure investment act, is amended to read as follows: (a) "authorized [state] entity" shall mean the New York state thruway authority, [the department of transportation, the office of parks, recreation and historic preservation, the department of environmental conservation and] the New York state bridge authority, ANY AUTHORITY AS SUCH TERM IS DEFINED IN SECTION 2 OF THE PUBLIC AUTHORITIES LAW, EVERY STATE AGENCY, AS SUCH TERM IS DEFINED IN SECTION 160 OF THE STATE FINANCE LAW AND INCLUDING THE STATE UNIVERSITY OF NEW YORK AND THE CITY UNIVERSITY OF NEW YORK, AND ANY AND ALL AFFILIATES OR SUBSIDIARIES OF SUCH ENTITIES, AND COUNTIES AS SUCH TERM IS DEFINED IN SECTION 3 OF THE COUNTY LAW, EXCLUDING BRONX, KINGS, NEW YORK, QUEENS, AND RICHMOND COUN- TIES. § 2. Section 2 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended by adding a new subdi- vision (b-1) to read as follows: (B-1) "CAPITAL ASSETS" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED BY SUBDIVISION 6-B OF SECTION 2 OF THE STATE FINANCE LAW. § 3. Section 3 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 3. Notwithstanding the provisions of section 38 of the highway law, section 136-a of the state finance law, [section] SECTIONS 359, 1678, 1680, 1680-A AND 2879-A of the public authorities law, [section] SECTIONS 407-A, 6281 AND 7210 of the education law, SECTIONS 8 AND 9 OF THE PUBLIC BUILDINGS LAW, SECTION 11 OF CHAPTER 795 OF THE LAWS OF 1967, SECTIONS 8 AND 9 OF SECTION 1 OF CHAPTER 359 OF THE LAWS OF 1968 AS AMENDED, SECTION 29 OF CHAPTER 337 OF THE LAWS OF 1972, SECTION 21 OF CHAPTER 464 OF THE LAWS OF 1972, SECTION 103 OF THE GENERAL MUNICIPAL LAW, and the provisions of any other law to the contrary, and in conformity with the requirements of this act, an authorized [state] entity may utilize the alternative delivery method referred to as design-build contracts, in consultation with relevant local labor organ- izations and construction industry, for capital projects related to [the state's physical infrastructure, including, but not limited to, the state's highways, bridges, dams, flood control projects, canals, and parks, including, but not limited to, to repair damage caused by natural disaster, to correct health and safety defects, to comply with federal and state laws, standards, and regulations, to extend the useful life of S. 2008--A 60 A. 3008--A or replace the state's highways, bridges, dams, flood control projects, canals, and parks or to improve or add to the state's highways, bridges, dams, flood control projects, canals, and parks] PUBLICLY OWNED CAPITAL ASSETS; provided that [for the contracts executed by the department of transportation, the office of parks, recreation and historic preserva- tion, or the department of environmental conservation,] the total cost of each such project shall not be less than one million two hundred thousand dollars ($1,200,000). § 4. Section 4 of part F of chapter 60 of he laws of 2015 constituting the infrastructure investment act, is amended to read as follows: § 4. An entity selected by an authorized [state] entity to enter into a design-build contract shall be selected through a two-step method, as follows: (a) Step one. Generation of a list of entities that have demonstrated the general capability to perform the design-build contract. Such list shall consist of a specified number of entities, as determined by an authorized [state] entity, and shall be generated based upon the author- ized [state] entity's review of responses to a publicly advertised request for qualifications. The authorized [state] entity's request for qualifications shall include a general description of the project, the maximum number of entities to be included on the list, and the selection criteria to be used in generating the list. Such selection criteria shall include the qualifications and experience of the design and construction team, organization, demonstrated responsibility, ability of the team or of a member or members of the team to comply with applicable requirements, including the provisions of articles 145, 147 and 148 of the education law, past record of compliance with the labor law, and such other qualifications the authorized [state] entity deems appropri- ate which may include but are not limited to project understanding, financial capability and record of past performance. The authorized [state] entity shall evaluate and rate all entities responding to the request for qualifications. Based upon such ratings, the authorized [state] entity shall list the entities that shall receive a request for proposals in accordance with subdivision (b) of this section. To the extent consistent with applicable federal law, the authorized [state] entity shall consider, when awarding any contract pursuant to this section, the participation of: (i) firms certified pursuant to article 15-A of the executive law as minority or women-owned businesses and the ability of other businesses under consideration to work with minority and women-owned businesses so as to promote and assist participation by such businesses; [and] (ii) small business concerns identified pursuant to subdivision (b) of section 139-g of the state finance law. (b) Step two. Selection of the proposal which is the best value to the [state] AUTHORIZED ENTITY. The authorized [state] entity shall issue a request for proposals to the entities listed pursuant to subdivision (a) of this section. If such an entity consists of a team of separate enti- ties, the entities that comprise such a team must remain unchanged from the entity as listed pursuant to subdivision (a) of this section unless otherwise approved by the authorized [state] entity. The request for proposals shall set forth the project's scope of work, and other requirements, as determined by the authorized [state] entity. The request for proposals shall specify the criteria to be used to evaluate the responses and the relative weight of each such criteria. Such criteria shall include the proposal's cost, the quality of the proposal's solution, the qualifications and experience of the design- build entity, and other factors deemed pertinent by the authorized S. 2008--A 61 A. 3008--A [state] entity, which may include, but shall not be limited to, the proposal's project implementation, ability to complete the work in a timely and satisfactory manner, maintenance costs of the completed project, maintenance of traffic approach, and community impact. Any contract awarded pursuant to this act shall be awarded to a responsive and responsible entity that submits the proposal, which, in consider- ation of these and other specified criteria deemed pertinent to the project, offers the best value to the [state] AUTHORIZED ENTITY, as determined by the authorized [state] entity. Nothing herein shall be construed to prohibit the authorized entity from negotiating final contract terms and conditions including cost. § 5. Section 6 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 6. Construction for each capital project undertaken by the author- ized [state] entity pursuant to this act shall be deemed a "public work" to be performed in accordance with the provisions of article 8 of the labor law, as well as subject to sections 200, 240, 241 and 242 of the labor law and enforcement of prevailing wage requirements by the New York state department of labor. § 6. Section 7 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 7. If otherwise applicable, capital projects undertaken by the authorized [state] entity pursuant to this act shall be subject to section 135 of the state finance law, SECTION 101 OF THE GENERAL MUNICI- PAL LAW, and section 222 of the labor law; PROVIDED, HOWEVER, THAT AN AUTHORIZED ENTITY MAY FULFILL ITS OBLIGATIONS UNDER SECTION 135 OF THE STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW BY REQUIR- ING THE CONTRACTOR TO PREPARE SEPARATE SPECIFICATIONS IN ACCORDANCE WITH SECTION 135 OF THE STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW, AS THE CASE MAY BE. § 7. Section 8 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 8. Each contract entered into by the authorized [state] entity pursuant to this section shall comply with the objectives and goals of minority and women-owned business enterprises pursuant to article 15-A of the executive law or, for projects receiving federal aid, shall comply with applicable federal requirements for disadvantaged business enterprises. § 8. Section 9 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 9. Capital projects undertaken by the authorized [state] entity pursuant to this act shall be subject to the requirements of article 8 of the environmental conservation law, and, where applicable, the requirements of the national environmental policy act. § 9. Section 10 of part F of chapter 60 of the laws of 2015 constitut- ing the infrastructure investment act, is amended to read as follows: § 10. If otherwise applicable, capital projects undertaken by the authorized [state] entity pursuant to this act shall be governed by sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph g of subdivision 9 of section 163 of the state finance law. § 10. Section 12 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 12. Nothing contained in this act shall limit the right or obli- gation of the authorized [state] entity to comply with the provisions of any existing contract, including any existing contract with or for the S. 2008--A 62 A. 3008--A benefit of the holders of the obligations of the authorized [state] entity, or to award contracts as otherwise provided by law. § 11. Section 13 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 13. Alternative construction awarding processes. (a) Notwithstand- ing the provisions of any other law to the contrary, the authorized [state] entity may award a construction contract: 1. To the contractor offering the best value; or 2. Utilizing a cost-plus not to exceed guaranteed maximum price form of contract in which the authorized [state] entity shall be entitled to monitor and audit all project costs. In establishing the schedule and process for determining a guaranteed maximum price, the contract between the authorized [state] entity and the contractor shall: (i) describe the scope of the work and the cost of performing such work; (ii) include a detailed line item cost breakdown; (iii) include a list of all drawings, specifications and other infor- mation on which the guaranteed maximum price is based; (iv) include the dates for substantial and final completion on which the guaranteed maximum price is based; and (v) include a schedule of unit prices; or 3. Utilizing a lump sum contract in which the contractor agrees to accept a set dollar amount for a contract which comprises a single bid without providing a cost breakdown for all costs such as for equipment, labor, materials, as well as such contractor's profit for completing all items of work comprising the project. (b) Capital projects undertaken by an authorized [state] entity may include an incentive clause in the contract for various performance objectives, but the incentive clause shall not include an incentive that exceeds the quantifiable value of the benefit received by the [state] AUTHORIZED ENTITY. The authorized [state] entity shall establish such performance and payment bonds as it deems necessary. § 12. Section 14 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 14. Prequalified contractors. (a) Notwithstanding any other provision of law, the authorized [state] entity may maintain a list of prequalified contractors who are eligible to submit a proposal pursuant to this act and entry into such list shall be continuously available. Prospective contractors may be prequalified as contractors to provide particular types of construction, in accordance with general criteria established by the authorized [state] entity which may include, but shall not be limited to, the experience, past performance, ability to undertake the type and complexity of work, financial capability, respon- sibility, compliance with equal employment opportunity requirements and anti-discrimination laws, and reliability. Such prequalification may be by categories designed by size and other factors. (b) A contractor who is denied prequalification or whose prequalifica- tion is revoked or suspended by the authorized [state] entity may appeal such decision to the authorized [state] entity. If such a suspension extends for more than three months, it shall be deemed a revocation of the prequalification. The authorized [state] entity may proceed with the contract award during any appeal. § 13. Part F of chapter 60 of the laws of 2015 constituting the infrastructure investment act, is amended by adding a new section 15-a to read as follows: S. 2008--A 63 A. 3008--A § 15-A. ANY CONTRACT AWARDED PURSUANT TO THIS ACT SHALL BE DEEMED TO BE AWARDED PURSUANT TO A COMPETITIVE PROCUREMENT FOR PURPOSES OF SECTION 2879-A OF THE PUBLIC AUTHORITIES LAW. § 14. Section 17 of part F of chapter 60 of the laws of 2015 consti- tuting the infrastructure investment act, is amended to read as follows: § 17. This act shall take effect immediately [and shall expire and be deemed repealed 2 years after such date, provided that, projects with requests for qualifications issued prior to such repeal shall be permit- ted to continue under this act notwithstanding such repeal]. § 15. This act shall take effect immediately; provided, however that the amendments to the infrastructure investment act made by sections one through thirteen of this act shall not affect the repeal of such act and shall be deemed repealed therewith. PART Q Section 1. Section 2 of chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, as amended by section 1 of part M of chapter 58 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect immediately, provided however, that section one of this act shall be deemed to have been in full force and effect on and after April 1, 2003 and shall expire March 31, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after March 31, 2017. PART R Section 1. Paragraph (d) of section 304 of the business corporation law is amended to read as follows: (d) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC CORPORATION OR FOREIGN CORPORATION FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH CORPORATION AS REQUIRED BY THIS ARTICLE. Any designated [post-office] POST OFFICE address to which the secretary of state OR A PERSON shall mail a copy of ANY process served upon [him] THE SECRETARY OF STATE as agent of a domestic corporation or a foreign corporation, shall continue until the filing of a certificate under this chapter directing the mail- ing to a different [post-office] POST OFFICE address. § 2. Paragraph (a) of section 305 of the business corporation law, as amended by chapter 131 of the laws of 1985, is amended to read as follows: (a) In addition to such designation of the secretary of state, every domestic corporation or authorized foreign corporation may designate a registered agent in this state upon whom process against such corpo- ration may be served. The agent shall be a natural person who is a resi- dent of or has a business address in this state [or], a domestic corpo- ration or foreign corporation of any type or kind formed[,] or authorized to do business in this state, under this chapter or under any other statute of this state, OR DOMESTIC LIMITED LIABILITY COMPANY OR FOREIGN LIMITED LIABILITY COMPANY FORMED OR AUTHORIZED TO DO BUSINESS IN THIS STATE. S. 2008--A 64 A. 3008--A § 3. Subparagraph 1 of paragraph (b) of section 306 of the business corporation law, as amended by chapter 419 of the laws of 1990, is amended to read as follows: (1) Service of process on the secretary of state as agent of a domes- tic or authorized foreign corporation, OR OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROCESS PURSU- ANT TO ARTICLE NINE OF THIS CHAPTER, shall be made by [personally deliv- ering to and leaving with the secretary of state or a deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, dupli- cate copies of such process together with the statutory fee, which fee shall be a taxable disbursement] MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. IF A DOMESTIC OR AUTHORIZED FOREIGN CORPORATION HAS NO SUCH ADDRESS ON FILE IN THE DEPARTMENT OF STATE, THE PROCESS AND NOTICE OF SERVICE THEREOF SHALL BE MAILED, IN THE CASE OF A DOMESTIC CORPORATION, IN CARE OF ANY DIRECTOR NAMED IN ITS CERTIFICATE OF INCORPORATION AT THE DIRECTOR'S ADDRESS STATED THEREIN OR, IN THE CASE OF AN AUTHORIZED FOREIGN CORPORATION, TO SUCH CORPORATION AT THE ADDRESS OF ITS OFFICE WITHIN THIS STATE ON FILE IN THE DEPARTMENT. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLI- CATE COPY OF SUCH PROCESS AND PROOF OF MAILING TOGETHER WITH THE STATU- TORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT SHALL BE PERSONALLY DELIVERED TO AND LEFT WITH THE SECRETARY OF STATE OR A DEPUTY, OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, AT THE OFFICE OF THE DEPARTMENT OF STATE IN THE CITY OF ALBANY. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such corporation OR OTHER BUSINESS ENTITY shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such corporation, at the post office address, on file in the department of state, specified for the purpose. If a domes- tic or authorized foreign corporation has no such address on file in the department of state, the secretary of state shall so mail such copy, in the case of a domestic corporation, in care of any director named in its certificate of incorporation at the director's address stated therein or, in the case of an authorized foreign corporation, to such corpo- ration at the address of its office within this state on file in the department.] § 4. Subparagraphs 2 and 3 of paragraph (a) of section 306-A of the business corporation law, as added by chapter 469 of the laws of 1997, are amended to read as follows: (2) That the address of the party has been designated by the corpo- ration as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secretary of state as agent for such corporation, SPECIFYING SUCH ADDRESS, and that such party wishes to resign. (3) That sixty days prior to the filing of the certificate of resigna- tion OR RECEIPT OF PROCESS with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the designating corporation, if other than the party filing the certif- icate of resignation[,] for receipt of process, or if the [resigning] DESIGNATING corporation has no registered agent, then to the last address of the designating corporation known to the party, specifying S. 2008--A 65 A. 3008--A the address to which the copy was sent. If there is no registered agent and no known address of the designating corporation, the party shall attach an affidavit to the certificate stating that a diligent but unsuccessful search was made by the party to locate the corporation, specifying what efforts were made. § 5. Subparagraph 7 of paragraph (a) of section 402 of the business corporation law is amended to read as follows: (7) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 6. Subparagraph (c) of paragraph 1 of section 408 of the business corporation law, as amended by section 3 of part S of chapter 59 of the laws of 2015, is amended to read as follows: (c) The post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE. Such address shall supersede any previous address on file with the department of state for this purpose. § 7. Subparagraph 4 of paragraph (b) of section 801 of the business corporation law is amended to read as follows: (4) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 8. Subparagraph 2 of paragraph (b) of section 803 of the business corporation law, as amended by chapter 803 of the laws of 1965, is amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 9. Paragraph (b) of section 805-A of the business corporation law, as added by chapter 725 of the laws of 1964, is amended to read as follows: (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a corporation served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such corporation, may be signed[, verified] and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subparagraphs [(a)] (1), (2) and (3) OF PARA- GRAPH (A) of this section; that a notice of the proposed change was mailed to the corporation by the party signing the certificate not less than thirty days prior to the date of delivery to the department and that such corporation has not objected thereto; and that the party sign- ing the certificate is the agent of such corporation to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed[, verified] and delivered under this para- graph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certificate is filed. S. 2008--A 66 A. 3008--A § 10. Subparagraph 8 of paragraph (a) of section 904-a of the business corporation law, as amended by chapter 177 of the laws of 2008, is amended to read as follows: (8) If the surviving or resulting entity is a foreign corporation or other business entity, a designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in paragraph (b) of section three hundred six of this chapter, in any action or special proceeding, and a post office address, within or with- out this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed; § 11. Clause (G) of subparagraph 2 of paragraph (e) of section 907 of the business corporation law, as amended by chapter 494 of the laws of 1997, is amended to read as follows: (G) A designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding, and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed. § 12. Subparagraph 6 of paragraph (a) of section 1304 of the business corporation law, as amended by chapter 684 of the laws of 1963 and as renumbered by chapter 590 of the laws of 1982, is amended to read as follows: (6) A designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 13. Subparagraph 7 of paragraph (a) of section 1308 of the business corporation law, as amended by chapter 725 of the laws of 1964 and as renumbered by chapter 186 of the laws of 1983, is amended to read as follows: (7) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 14. Subparagraph 2 of paragraph (a) and paragraph (c) of section 1309-A of the business corporation law, subparagraph 2 of paragraph (a) as added by chapter 725 of the laws of 1964 and paragraph (c) as amended by chapter 172 of the laws of 1999, are amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. (c) A certificate of change of application for authority which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against an authorized foreign corpo- ration served upon [him or which] THE SECRETARY OF STATE AND/OR changes the address of its registered agent, provided such address is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such authorized foreign corporation, may be signed and delivered to the department of state by such agent. The certificate of change of application for authority shall S. 2008--A 67 A. 3008--A set forth the statements required under subparagraphs (1), (2), (3) and (4) of paragraph (b) of this section; that a notice of the proposed change was mailed by the party signing the certificate to the authorized foreign corporation not less than thirty days prior to the date of delivery to the department and that such corporation has not objected thereto; and that the party signing the certificate is the agent of such foreign corporation to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this paragraph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certif- icate is filed. § 15. Subparagraphs 1 and 6 of paragraph (a) of section 1310 of the business corporation law, subparagraph 1 as amended by chapter 590 of the laws of 1982, are amended to read as follows: (1) The name of the foreign corporation as it appears on the index of names of existing domestic and authorized foreign corporations of any type or kind in the department of state, division of corporations [or,] AND the fictitious name, IF ANY, the corporation has agreed to use in this state pursuant to paragraph (d) of section 1301 of this [chapter] ARTICLE. (6) A post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 16. Subparagraph 4 of paragraph (d) of section 1310 of the business corporation law is amended to read as follows: (4) The changed post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 17. Section 1311 of the business corporation law, as amended by chapter 375 of the laws of 1998, is amended to read as follows: § 1311. Termination of existence. When an authorized foreign corporation is dissolved or its authority or existence is otherwise terminated or cancelled in the jurisdiction of its incorporation or when such foreign corporation is merged into or consolidated with another foreign corporation, a certificate of the secretary of state, or official performing the equivalent function as to corporate records, of the jurisdiction of incorporation of such foreign corporation attesting to the occurrence of any such event or a certified copy of an order or decree of a court of such jurisdiction directing the dissolution of such foreign corporation, the termination of its exist- ence or the cancellation of its authority shall be delivered to the department of state. The filing of the certificate, order or decree shall have the same effect as the filing of a certificate of surrender of authority under section 1310 (Surrender of authority). The secretary of state shall continue as agent of the foreign corporation upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding based upon any liability or obligation incurred by the foreign corporation within this state prior to the filing of such certificate, order or decree and [he] THE PERSON SERVING SUCH PROCESS shall [promptly cause a copy of any such] SEND THE process [to be mailed] by [registered] CERTIFIED mail, return receipt requested, to such foreign corporation at the post office address on file in his office specified for such purpose AND SHALL PROVIDE THE SECRETARY OF STATE WITH PROOF OF SUCH MAILING IN THE MANNER SET FORTH IN PARAGRAPH S. 2008--A 68 A. 3008--A (B) OF SECTION 306 (SERVICE OF PROCESS). The post office address may be changed by signing and delivering to the department of state a certif- icate of change setting forth the statements required under section 1309-A (Certificate of change; contents) to effect a change in the post office address under subparagraph SEVEN OF PARAGRAPH (a) [(4)] of section 1308 (Amendments or changes). § 18. Subparagraph 6 of paragraph (a) of section 1530 of the business corporation law, as added by chapter 505 of the laws of 1983, is amended to read as follows: (6) A designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 19. Subdivision 10 of section 11 of the cooperative corporations law, as added by chapter 97 of the laws of 1969, is amended to read as follows: 10. A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 20. Subdivision 10 of section 96 of the executive law, as amended by chapter 39 of the laws of 1987, is amended to read as follows: 10. For service of process on the secretary of state, acting as agent for a third party pursuant to law, except as otherwise specifically provided by law, forty dollars. No fee shall be collected for process served on behalf of [a] ANY STATE OFFICIAL, DEPARTMENT, BOARD, AGENCY, AUTHORITY, county, city, town or village or other political subdivision of the state. The fees paid the secretary of state shall be a taxable disbursement. § 21. The opening paragraph of subdivision 2 and subdivision 3 of section 18 of the general associations law, as amended by chapter 13 of the laws of 1938, are amended and two new subdivisions 5 and 6 are added to read as follows: Every association doing business within this state shall file in the department of state a certificate in its associate name, signed [and acknowledged] by its president, or a vice-president, or secretary, or treasurer, or managing director, or trustee, designating the secretary of state as an agent upon whom process in any action or proceeding against the association may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any process against the association which may be served upon [him] THE SECRETARY OF STATE pursuant to law. Annexed to the certif- icate of designation shall be a statement, executed in the same manner as the certificate is required to be executed under this section, which shall set forth: 3. Any association, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process SERVED ON THE SECRETARY OF STATE, by filing a statement to that effect, executed[,] AND signed [and acknowledged] in like manner as a certificate of designation as herein provided. 5. ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT IN ANY ACTION OR PROCEEDING AGAINST THE ASSOCIATION FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH S. 2008--A 69 A. 3008--A ASSOCIATION AS REQUIRED BY THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAIL- ING TO A DIFFERENT POST OFFICE ADDRESS. 6. "PROCESS" MEANS JUDICIAL PROCESS AND ALL ORDERS, DEMANDS, NOTICES OR OTHER PAPERS REQUIRED OR PERMITTED BY LAW TO BE PERSONALLY SERVED ON AN ASSOCIATION, FOR THE PURPOSE OF ACQUIRING JURISDICTION OF SUCH ASSO- CIATION IN ANY ACTION OR PROCEEDING, CIVIL OR CRIMINAL, WHETHER JUDI- CIAL, ADMINISTRATIVE, ARBITRATIVE OR OTHERWISE, IN THIS STATE OR IN THE FEDERAL COURTS SITTING IN OR FOR THIS STATE. § 22. Section 19 of the general associations law, as amended by chap- ter 166 of the laws of 1991, is amended to read as follows: § 19. Service of process. 1. Service of process against an associ- ation upon the secretary of state shall be made by MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE personally [delivering] DELIVERED to and [leaving] LEFT with [him] THE SECRETARY OF STATE or a deputy [secretary of state or an associate attorney, senior attorney or attorney in the corporation division of the department of state], SO DESIGNATED [duplicate copies of such process at the office of the department of state in the city of Albany]. At the time of such service the plaintiff shall pay a fee of forty dollars to the secretary of state which shall be a taxable disbursement. [If the cost of registered mail for transmitting a copy of the process shall exceed two dollars, an additional fee equal to such excess shall be paid at the time of the service of such process. The secretary of state shall forthwith send by registered mail one of such copies to the association at the address fixed for that purpose, as herein provided.] 2. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. SERVICE OF PROCESS ON SUCH ASSOCIATION SHALL BE COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED. If the action or proceeding is instituted in a court of limited jurisdiction, service of process may be made in the manner provided in this section if the cause of action arose within the territorial jurisdiction of the court and the office of the defendant, as set forth in its statement filed pursuant to section eigh- teen of this [chapter] ARTICLE, is within such territorial jurisdiction. § 23. Subdivision 2 of section 352-b of the general business law, as amended by chapter 252 of the laws of 1983, is amended to read as follows: 2. Service of such process upon the secretary of state shall be made by personally delivering to and leaving with him [or], a deputy secre- tary of state, OR WITH A PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, a copy thereof at the office of the department of state in the city of Albany, and such service shall be sufficient service provided that notice of such service and a copy of such process are forthwith sent by the attorney general to such person, partnership, corporation, company, trust or association, by registered or certified mail with return receipt requested, at his or its office as set forth in the "broker-dealer's statement", "salesman's statement" or "investment advisor's statement" filed in the department of law pursuant to section three hundred fifty-nine-e or section three hundred fifty-nine-eee of this article, or in default of the filing of such statement, at the last address known to the attorney general. Service of such process shall be complete on receipt by the attorney general of a return receipt purport- S. 2008--A 70 A. 3008--A ing to be signed by the addressee or a person qualified to receive his or its registered or certified mail, in accordance with the rules and customs of the post office department, or, if acceptance was refused by the addressee or his or its agent, on return to the attorney general of the original envelope bearing a notation by the postal authorities that receipt thereof was refused. § 24. Section 686 of the general business law, as added by chapter 730 of the laws of 1980, is amended to read as follows: § 686. Designation of secretary of state as agent for service of proc- ess; service of process. Any person who shall offer to sell or sell a franchise in this state as a franchisor, subfranchisor or franchise sales agent shall be deemed to have irrevocably appointed the secretary of state as his or its agent upon whom may be served any summons, complaint, subpoena, subpoena duces tecum, notice, order or other proc- ess directed to such person, or any partner, principal, officer, sales- man or director thereof, or his or its successor, administrator or exec- utor, in any action, investigation, or proceeding which arises under this article or a rule hereunder, with the same force and validity as if served personally on such person. Service of such process upon the secretary of state shall be made by personally delivering to and leaving with [him] THE SECRETARY OF STATE or a deputy [secretary of state], OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, a copy thereof at the office of the department of state, and such service shall be sufficient provided that notice of such service and a copy of such process are sent forthwith by the department to such person, by registered or certified mail with return receipt requested, at his address as set forth in the application for registration of his offering prospectus or in the registered offering prospectus itself filed with the department of law pursuant to this article, or in default of the filing of such application or prospectus, at the last address known to the department. Service of such process shall be complete upon receipt by the department of a return receipt purporting to be signed by the addressee or a person qualified to receive his or its registered or certified mail, in accordance with the rules and customs of the post office department, or, if acceptance was refused or unclaimed by the addressee or his or its agent, or if the addressee moved without leaving a forwarding address, upon return to the department of the original envelope bearing a notation by the postal authorities that receipt ther- eof was refused or that such mail was otherwise undeliverable. § 25. Paragraph 4 of subdivision (e) of section 203 of the limited liability company law, as added by chapter 470 of the laws of 1997, is amended to read as follows: (4) a designation of the secretary of state as agent of the limited liability company upon whom process against it may be served and the post office address, within or without this state, to which [the secre- tary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him or her] THE SECRETARY OF STATE; § 26. Paragraph 4 of subdivision (a) of section 206 of the limited liability company law, as amended by chapter 44 of the laws of 2006, is amended to read as follows: (4) a statement that the secretary of state has been designated as agent of the limited liability company upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; S. 2008--A 71 A. 3008--A § 27. Paragraph 6 of subdivision (d) of section 211 of the limited liability company law is amended to read as follows: (6) a change in the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him or her] THE SECRETARY OF STATE if such change is made other than pursuant to section three hundred one of this chapter; § 28. Section 211-A of the limited liability company law, as added by chapter 448 of the laws of 1998, is amended to read as follows: § 211-A. Certificate of change. (a) A limited liability company may amend its articles of organization from time to time to (i) specify or change the location of the limited liability company's office; (ii) specify or change the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him] THE SECRETARY OF STATE; and (iii) make, revoke or change the designation of a registered agent, or specify or change the address of the registered agent. Any one or more such changes may be accomplished by filing a certificate of change which shall be entitled "Certificate of Change of ....... (name of limited liability company) under section 211-A of the Limited Liability Company Law" and shall be signed and delivered to the department of state. It shall set forth: (1) the name of the limited liability company, and if it has been changed, the name under which it was formed; (2) the date the articles of organization were filed by the department of state; and (3) each change effected thereby. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a limited liability company served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such limited liability company may be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the domestic limited liability company by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such domestic limited liability company has not objected thereto; and that the party signing the certificate is the agent of such limited liability company to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivision shall not be deemed to effect a change of location of the office of the limited liability company in whose behalf such certificate is filed. § 29. Paragraph 2 of subdivision (b) of section 213 of the limited liability company law is amended to read as follows: (2) to change the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him or her] THE SECRETARY OF STATE; and § 30. Subdivisions (c) and (e) of section 301 of the limited liability company law, subdivision (e) as amended by section 5 of part S of chap- ter 59 of the laws of 2015, are amended to read as follows: S. 2008--A 72 A. 3008--A (c) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC LIMITED LIABILITY COMPANY OR FOREIGN LIMIT- ED LIABILITY COMPANY FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH LIMITED LIABILITY COMPANY AS REQUIRED BY THIS ARTICLE. Any designated post office address to which the secretary of state OR A PERSON shall mail a copy of process served upon [him or her] THE SECRETARY OF STATE as agent of a domestic limited liability company or a foreign limited liability company shall continue until the filing of a certificate under this chapter directing the mailing to a different post office address. [(e)] (D) (1) Except as otherwise provided in this subdivision, every limited liability company to which this chapter applies, shall biennial- ly in the calendar month during which its articles of organization or application for authority were filed, or effective date thereof if stat- ed, file on forms prescribed by the secretary of state, a statement setting forth the post office address within or without this state to which [the secretary of state] A PERSON shall mail a copy of any process accepted against it served upon [him or her] THE SECRETARY OF STATE. Such address shall supersede any previous address on file with the department of state for this purpose. (2) The commissioner of taxation and finance and the secretary of state may agree to allow limited liability companies to include the statement specified in paragraph one of this subdivision on tax reports filed with the department of taxation and finance in lieu of biennial statements and in a manner prescribed by the commissioner of taxation and finance. If this agreement is made, starting with taxable years beginning on or after January first, two thousand sixteen, each limited liability company required to file the statement specified in paragraph one of this subdivision that is subject to the filing fee imposed by paragraph three of subsection (c) of section six hundred fifty-eight of the tax law shall provide such statement annually on its filing fee payment form filed with the department of taxation and finance in lieu of filing a statement under this section with the department of state. However, each limited liability company required to file a statement under this section must continue to file the biennial statement required by this section with the department of state until the limited liability company in fact has filed a filing fee payment form with the department of taxation and finance that includes all required information. After that time, the limited liability company shall continue to provide annu- ally the statement specified in paragraph one of this subdivision on its filing fee payment form in lieu of the biennial statement required by this subdivision. (3) If the agreement described in paragraph two of this subdivision is made, the department of taxation and finance shall deliver to the department of state the statement specified in paragraph one of this subdivision contained on filing fee payment forms. The department of taxation and finance must, to the extent feasible, also include the current name of the limited liability company, department of state iden- tification number for such limited liability company, the name, signa- ture and capacity of the signer of the statement, name and street address of the filer of the statement, and the email address, if any, of the filer of the statement. § 31. Paragraphs 2 and 3 of subdivision (a), subparagraph (ii) of paragraph 2 and subparagraph (ii) of paragraph 3 of subdivision (e) of S. 2008--A 73 A. 3008--A section 301-A of the limited liability company law, as added by chapter 448 of the laws of 1998, are amended to read as follows: (2) that the address of the party has been designated by the limited liability company as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secretary of state as agent for such limited liability company, SUCH ADDRESS and that such party wishes to resign. (3) that sixty days prior to the filing of the certificate of resigna- tion OR RECEIPT OF PROCESS with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the designated limited liability company, if other than the party filing the certificate of resignation[,] for receipt of process, or if the [resigning] DESIGNATING limited liability company has no registered agent, then to the last address of the designated limited liability company known to the party, specifying the address to which the copy was sent. If there is no registered agent and no known address of the desig- nating limited liability company, the party shall attach an affidavit to the certificate stating that a diligent but unsuccessful search was made by the party to locate the limited liability company, specifying what efforts were made. (ii) sent by or on behalf of the plaintiff to such limited LIABILITY company by registered or certified mail with return receipt requested to the last address of such limited liability company known to the plain- tiff. (ii) Where service of a copy of process was effected by mailing in accordance with this section, proof of service shall be by affidavit of compliance with this section filed, together with the process, within thirty days after receipt of the return receipt signed by the limited liability company or other official proof of delivery or of the original envelope mailed. If a copy of the process is mailed in accordance with this section, there shall be filed with the affidavit of compliance either the return receipt signed by such limited LIABILITY company or other official proof of delivery, if acceptance was refused by it, the original envelope with a notation by the postal authorities that accept- ance was refused. If acceptance was refused a copy of the notice and process together with notice of the mailing by registered or certified mail and refusal to accept shall be promptly sent to such limited liability company at the same address by ordinary mail and the affidavit of compliance shall so state. Service of process shall be complete ten days after such papers are filed with the clerk of the court. The refusal to accept delivery of the registered or certified mail or to sign the return receipt shall not affect the validity of the service and such limited liability company refusing to accept such registered or certified mail shall be charged with knowledge of the contents thereof. § 32. Subdivision (a) of section 303 of the limited liability company law, as relettered by chapter 341 of the laws of 1999, is amended to read as follows: (a) Service of process on the secretary of state as agent of a domes- tic limited liability company [or], authorized foreign limited liability company, OR OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROCESS PURSUANT TO ARTICLE TEN OF THIS CHAPTER, SHALL BE MADE BY MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH LIMITED LIABILITY COMPANY OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE S. 2008--A 74 A. 3008--A SAME DAY AS SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING shall be [made by] personally [delivering] DELIVERED to and [leaving] LEFT with the secretary of state or his or her deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [duplicate copies of such process] together with the statutory fee, which fee shall be a taxable disbursement. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such limited liability company OR OTHER BUSINESS ENTITY shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such limited liability company at the post office address on file in the department of state specified for that purpose.] § 33. Section 305 of the limited liability company law is amended to read as follows: § 305. Records of process served on the secretary of state. The [secretary of state] DEPARTMENT OF STATE shall keep a record of each process served upon the secretary of state under this chapter, including the date of such service [and the action of the secretary of state with reference thereto]. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF THE PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY THE DEPART- MENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. § 34. Paragraph 4 of subdivision (a) of section 802 of the limited liability company law, as amended by chapter 470 of the laws of 1997, is amended to read as follows: (4) a designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 35. Section 804-A of the limited liability company law, as added by chapter 448 of the laws of 1998, is amended to read as follows: § 804-A. Certificate of change. (a) A foreign limited liability compa- ny may amend its application for authority from time to time to (i) specify or change the location of the limited liability company's office; (ii) specify or change the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited liability company served upon [him] THE SECRETARY OF STATE; and (iii) to make, revoke or change the designation of a registered agent, or to specify or change the address of a registered agent. Any one or more such changes may be accomplished by filing a certificate of change which shall be entitled "Certificate of Change of ........ (name of limited liability company) under section 804-A of the Limited Liabil- ity Company Law" and shall be signed and delivered to the department of state. It shall set forth: (1) the name of the foreign limited liability company and, if applica- ble, the fictitious name the limited liability company has agreed to use in this state pursuant to section eight hundred two of this article; (2) the date its application for authority was filed by the department of state; and (3) each change effected thereby[,]. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any S. 2008--A 75 A. 3008--A process against a foreign limited liability company served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partner- ship [or], corporation OR OTHER LIMITED LIABILITY COMPANY whose address, as agent, is the address to be changed or who has been designated as registered agent for such limited liability company may be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the foreign limited liability company by the party signing the certificate not less than thirty days prior to the date of delivery to the depart- ment of state and that such foreign limited liability company has not objected thereto; and that the party signing the certificate is the agent of such foreign limited liability company to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivision shall not be deemed to effect a change of location of the office of the foreign limited liability company in whose behalf such certificate is filed. § 36. Paragraph 6 of subdivision (b) of section 806 of the limited liability company law is amended to read as follows: (6) a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE. § 37. Paragraph 11 of subdivision (a) of section 1003 of the limited liability company law, as amended by chapter 374 of the laws of 1998, is amended to read as follows: (11) a designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in article three of this chapter in any action or special proceeding, and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process served upon [him or her] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed; § 38. Clause (iv) of subparagraph (A) of paragraph 2 of subdivision (c) of section 1203 of the limited liability company law, as amended by chapter 44 of the laws of 2006, is amended to read as follows: (iv) a statement that the secretary of state has been designated as agent of the professional service limited liability company upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 39. Paragraph 6 of subdivision (a) and subparagraph 5 of paragraph (i) of subdivision (d) of section 1306 of the limited liability company law, subparagraph 5 of paragraph (i) of subdivision (d) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (6) a designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; and (5) a statement that the secretary of state has been designated as agent of the foreign professional service limited liability company upon S. 2008--A 76 A. 3008--A whom process against it may be served and the post office address, with- in or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 40. Paragraph (d) of section 304 of the not-for-profit corporation law, as amended by chapter 358 of the laws of 2015, is amended to read as follows: (d) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC NOT-FOR-PROFIT CORPORATION OR FOREIGN NOT- FOR-PROFIT CORPORATION FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH CORPORATION AS REQUIRED BY THIS ARTICLE. Any designated [post-office] POST OFFICE address to which the secretary of state OR A PERSON shall mail a copy of process served upon [him or her] THE SECRETARY OF STATE as agent of a domestic corporation formed under article four of this chapter or foreign corporation, shall contin- ue until the filing of a certificate under this chapter directing the mailing to a different [post-office] POST OFFICE address. § 41. Paragraph (a) of section 305 of the not-for-profit corporation law, as amended by chapter 549 of the laws of 2013, is amended to read as follows: (a) Every domestic corporation or authorized foreign corporation may designate a registered agent in this state upon whom process against such corporation may be served. The agent shall be a natural person who is a resident of or has a business address in this state or a domestic corporation or foreign corporation of any kind formed[,] or authorized to do business in this state, under this chapter or under any other statute of this state, OR A DOMESTIC LIMITED LIABILITY COMPANY OR A FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE. § 42. Paragraph (b) of section 306 of the not-for-profit corporation law, as amended by chapter 23 of the laws of 2014, is amended to read as follows: (b) Service of process on the secretary of state as agent of a domes- tic corporation formed under article four of this chapter or an author- ized foreign corporation shall be made by MAILING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH CORPORATION OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE personally [delivering] DELIVERED to and [leaving] LEFT with the secretary of state or his or her deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [dupli- cate copies of such process] together with the statutory fee, which fee shall be a taxable disbursement. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such corporation OR OTHER BUSINESS ENTITY shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such corporation, at the post office address, on file in the department of state, speci- fied for the purpose.] If a domestic corporation formed under article four of this chapter or an authorized foreign corporation has no such address on file in the department of state, the [secretary of state shall so mail such] DUPLICATE copy OF THE PROCESS SHALL BE MAILED to S. 2008--A 77 A. 3008--A such corporation at the address of its office within this state on file in the department. § 43. Subparagraph 6 of paragraph (a) of section 402 of the not-for- profit corporation law, as added by chapter 564 of the laws of 1981 and as renumbered by chapter 132 of the laws of 1985, is amended to read as follows: (6) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 44. Subparagraph 7 of paragraph (b) of section 801 of the not-for- profit corporation law, as amended by chapter 438 of the laws of 1984, is amended to read as follows: (7) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 45. Subparagraph 2 of paragraph (c) of section 802 of the not-for- profit corporation law, as amended by chapter 186 of the laws of 1983, is amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against the corporation served upon [him] THE SECRETARY OF STATE. § 46. Subparagraph 6 of paragraph (a) of section 803 of the not-for- profit corporation law, as amended by chapter 23 of the laws of 2014, is amended to read as follows: (6) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon the secretary OF STATE. § 47. Paragraph (b) of section 803-A of the not-for-profit corporation law, as amended by chapter 172 of the laws of 1999, is amended to read as follows: (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the corporation served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such corporation, may be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subparagraphs (1), (2) and (3) of paragraph (a) of this section; that a notice of the proposed change was mailed to the corpo- ration by the party signing the certificate not less than thirty days prior to the date of delivery to the department and that such corpo- ration has not objected thereto; and that the party signing the certif- icate is the agent of such corporation to whose address [the secretary of state] A PERSON is required to mail copies of any process against the corporation served upon [him] THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this paragraph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certificate is filed. S. 2008--A 78 A. 3008--A § 48. Clause (E) of subparagraph 2 of paragraph (d) of section 906 of the not-for-profit corporation law, as amended by chapter 1058 of the laws of 1971, is amended to read as follows: (E) A designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding described in [subparagraph] CLAUSE (D) OF THIS SUBPARAGRAPH and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of the process in such action or special proceeding SERVED UPON THE SECRETARY OF STATE. § 49. Clause (F) of subparagraph 2 of paragraph (d) of section 908 of the not-for-profit corporation law is amended to read as follows: (F) A designation of the secretary of state as his agent upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding described in [subparagraph] CLAUSE (D) OF THIS SUBPARAGRAPH and a post office address, within or without the state, to which [the secretary of state] A PERSON shall mail a copy of the process in such action or special proceeding SERVED UPON BY THE SECRETARY OF STATE. § 50. Subparagraph 6 of paragraph (a) of section 1304 of the not-for- profit corporation law, as renumbered by chapter 590 of the laws of 1982, is amended to read as follows: (6) A designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 51. Subparagraph 7 of paragraph (a) of section 1308 of the not-for- profit corporation law, as renumbered by chapter 186 of the laws of 1983, is amended to read as follows: (7) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 52. Subparagraph 2 of paragraph (a) and paragraph (c) of section 1310 of the not-for-profit corporation law, paragraph (c) as amended by chapter 172 of the laws of 1999, are amended to read as follows: (2) To specify or change the post office address to which [the secre- tary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. (c) A certificate of change of application for authority which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against an authorized foreign corpo- ration served upon [him or] THE SECRETARY OF STATE AND/OR which changes the address of its registered agent, provided such address is the address of a person, partnership, LIMITED LIABILITY COMPANY or other corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such authorized foreign corporation, may be signed and delivered to the department of state by such agent. The certificate of change of application for authority shall set forth the statements required under subparagraphs (1), (2), (3) and (4) of paragraph (b) of this section; that a notice of the proposed change was mailed by the party signing the certificate to the authorized foreign corporation not less than thirty days prior to the date of delivery to the department and that such corporation has not objected thereto; and that the party signing the certificate is the agent of such foreign corporation to whose address [the secretary of state] A PERSON S. 2008--A 79 A. 3008--A is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this paragraph shall not be deemed to effect a change of location of the office of the corporation in whose behalf such certif- icate is filed. § 53. Subparagraph 6 of paragraph (a) and subparagraph 4 of paragraph (d) of section 1311 of the not-for-profit corporation law are amended to read as follows: (6) A post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. (4) The changed post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 54. Section 1312 of the not-for-profit corporation law, as amended by chapter 375 of the laws of 1998, is amended to read as follows: § 1312. Termination of existence. When an authorized foreign corporation is dissolved or its authority or existence is otherwise terminated or cancelled in the jurisdiction of its incorporation or when such foreign corporation is merged into or consolidated with another foreign corporation, a certificate of the secretary of state, or official performing the equivalent function as to corporate records, of the jurisdiction of incorporation of such foreign corporation attesting to the occurrence of any such event or a certified copy of an order or decree of a court of such jurisdiction directing the dissolution of such foreign corporation, the termination of its exist- ence or the cancellation of its authority shall be delivered to the department of state. The filing of the certificate, order or decree shall have the same effect as the filing of a certificate of surrender of authority under section 1311 (Surrender of authority). The secretary of state shall continue as agent of the foreign corporation upon whom process against it may be served in the manner set forth in paragraph (b) of section 306 (Service of process), in any action or special proceeding based upon any liability or obligation incurred by the foreign corporation within this state prior to the filing of such certificate, order or decree and [he] THE PERSON SERVING SUCH PROCESS shall promptly cause a copy of any such process to be mailed by [regis- tered] CERTIFIED mail, return receipt requested, to such foreign corpo- ration at the post office address on file in his office specified for such purpose. The post office address may be changed by signing and delivering to the department of state a certificate of change setting forth the statements required under section 1310 (Certificate of change, contents) to effect a change in the post office address under subpara- graph [(a) (4)] (7) OF PARAGRAPH (A) of section 1308 (Amendments or changes). § 55. Subdivision (c) of section 121-104 of the partnership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (c) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A DOMESTIC LIMITED PARTNERSHIP OR FOREIGN LIMITED PARTNERSHIP FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROC- ESS AGAINST SUCH LIMITED PARTNERSHIP AS REQUIRED BY THIS ARTICLE. Any designated post office address to which the secretary of state OR A PERSON shall mail a copy of process served upon [him] THE SECRETARY OF STATE as agent of a domestic limited partnership or foreign limited S. 2008--A 80 A. 3008--A partnership shall continue until the filing of a certificate under this article directing the mailing to a different post office address. § 56. Paragraphs 1, 2 and 3 of subdivision (a) of section 121-104-A of the partnership law, as added by chapter 448 of the laws of 1998, are amended to read as follows: (1) the name of the limited partnership and the date that its [arti- cles of organization] CERTIFICATE OF LIMITED PARTNERSHIP or application for authority was filed by the department of state. (2) that the address of the party has been designated by the limited partnership as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secretary of state as agent for such limited partnership, and that such party wishes to resign. (3) that sixty days prior to the filing of the certificate of resigna- tion FOR RECEIPT OF PROCESS with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the [designated] DESIGNATING limited partnership, if other than the party filing the certificate of resignation[,] for receipt of process, or if the [resigning] DESIGNATING limited partnership has no registered agent, then to the last address of the [designated] DESIGNATING limited partnership, known to the party, specifying the address to which the copy was sent. If there is no registered agent and no known address of the designating limited partnership the party shall attach an affidavit to the certificate stating that a diligent but unsuccessful search was made by the party to locate the limited partnership, specifying what efforts were made. § 57. Subdivision (a) of section 121-105 of the partnership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (a) In addition to the designation of the secretary of state, each limited partnership or authorized foreign limited partnership may desig- nate a registered agent upon whom process against the limited partner- ship may be served. The agent must be (i) a natural person who is a resident of this state or has a business address in this state, [or] (ii) a domestic corporation or a foreign corporation authorized to do business in this state, OR A DOMESTIC LIMITED LIABILITY COMPANY OR A FOREIGN LIMITED LIABILITY COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE. § 58. Subdivisions (a) and (c) of section 121-109 of the partnership law, as added by chapter 950 of the laws of 1990 and as relettered by chapter 341 of the laws of 1999, are amended to read as follows: (a) Service of process on the secretary of state as agent of a domes- tic or authorized foreign limited partnership, OR OTHER BUSINESS ENTITY THAT HAS DESIGNATED THE SECRETARY OF STATE AS AGENT FOR SERVICE OF PROC- ESS PURSUANT TO THIS CHAPTER, shall be made [as follows: (1) By] BY MAILING THE PROCESS AND NOTICE OF SERVICE OF PROCESS PURSU- ANT TO THIS SECTION BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH DOMESTIC OR AUTHORIZED FOREIGN LIMITED PARTNERSHIP OR OTHER BUSINESS ENTITY, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THAT PURPOSE. ON THE SAME DAY AS THE PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE personally [delivering] DELIVERED to and [leaving] LEFT with [him or his] THE SECRETARY OF STATE OR A deputy, or with any person authorized by the secretary of state to receive such service, at the office of the depart- ment of state in the city of Albany, [duplicate copies of such process] together with the statutory fee, which fee shall be a taxable disburse- S. 2008--A 81 A. 3008--A ment. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. SERVICE OF PROCESS ON SUCH LIMITED PARTNERSHIP OR OTHER BUSI- NESS ENTITY SHALL BE COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED. [(2) The service on the limited partnership is complete when the secretary of state is so served. (3) The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, addressed to the limited part- nership at the post office address, on file in the department of state, specified for that purpose.] (c) The [secretary of state] DEPARTMENT OF STATE shall keep a record of all process served upon [him] IT under this section and shall record therein the date of such service [and his action with reference there- to]. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF THE PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY HIM AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. § 59. Paragraph 3 of subdivision (a) and subparagraph 4 of paragraph (i) of subdivision (c) of section 121-201 of the partnership law, para- graph 3 of subdivision (a) as amended by chapter 264 of the laws of 1991, and subparagraph 4 of paragraph (i) of subdivision (c) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (3) a designation of the secretary of state as agent of the limited partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE; (4) a statement that the secretary of state has been designated as agent of the limited partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 60. Paragraph 4 of subdivision (b) of section 121-202 of the part- nership law, as amended by chapter 576 of the laws of 1994, is amended to read as follows: (4) a change in the name of the limited partnership, or a change in the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against the limited partnership served on [him] THE SECRETARY OF STATE, or a change in the name or address of the registered agent, if such change is made other than pursuant to section 121-104 or 121-105 of this article. § 61. Section 121-202-A of the partnership law, as added by chapter 448 of the laws of 1998, paragraph 2 of subdivision (a) as amended by chapter 172 of the laws of 1999, is amended to read as follows: § 121-202-A. Certificate of change. (a) A certificate of limited part- nership may be changed by filing with the department of state a certif- icate of change entitled "Certificate of Change of ..... (name of limit- ed partnership) under Section 121-202-A of the Revised Limited Partnership Act" and shall be signed and delivered to the department of state. A certificate of change may (i) specify or change the location of the limited partnership's office; (ii) specify or change the post office address to which [the secretary of state] A PERSON shall mail a copy of process against the limited partnership served upon [him] THE SECRETARY OF STATE; and (iii) make, revoke or change the designation of a regis- S. 2008--A 82 A. 3008--A tered agent, or to specify or change the address of its registered agent. It shall set forth: (1) the name of the limited partnership, and if it has been changed, the name under which it was formed; (2) the date its certificate of limited partnership was filed by the department of state; and (3) each change effected thereby. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a limited partnership served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY CORPORATION or corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such limited partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the domestic limited partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such domestic limited partnership has not objected thereto; and that the party signing the certificate is the agent of such limited partnership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivi- sion shall not be deemed to effect a change of location of the office of the limited partnership in whose behalf such certificate is filed. § 62. Paragraph 4 of subdivision (a) and subparagraph 5 of paragraph (i) of subdivision (d) of section 121-902 of the partnership law, para- graph 4 of subdivision (a) as amended by chapter 172 of the laws of 1999 and subparagraph 5 of paragraph (i) of subdivision (d) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (4) a designation of the secretary of state as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE; (5) a statement that the secretary of state has been designated as its agent upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 63. Section 121-903-A of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows: § 121-903-A. Certificate of change. (a) A foreign limited partnership may change its application for authority by filing with the department of state a certificate of change entitled "Certificate of Change of ........ (name of limited partnership) under Section 121-903-A of the Revised Limited Partnership Act" and shall be signed and delivered to the department of state. A certificate of change may (i) change the location of the limited partnership's office; (ii) change the post office address to which [the secretary of state] A PERSON shall mail a copy of process against the limited partnership served upon [him] THE SECRETARY OF STATE; and (iii) make, revoke or change the designation of a registered agent, or to specify or change the address of its regis- tered agent. It shall set forth: S. 2008--A 83 A. 3008--A (1) the name of the foreign limited partnership and, if applicable, the fictitious name the foreign limited partnership has agreed to use in this state pursuant to section 121-902 of this article; (2) the date its application for authority was filed by the department of state; and (3) each change effected thereby. (b) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a foreign limited partnership served upon [him or] THE SECRETARY OF STATE AND/OR the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the address to be changed or who has been designated as registered agent for such foreign limited partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth the statements required under subdivision (a) of this section; that a notice of the proposed change was mailed to the foreign limited partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such foreign limited partnership has not objected thereto; and that the party signing the certificate is the agent of such foreign limited part- nership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the regis- tered agent, if such be the case. A certificate signed and delivered under this subdivision shall not be deemed to effect a change of location of the office of the limited partnership in whose behalf such certificate is filed. § 64. Paragraph 6 of subdivision (b) of section 121-905 of the part- nership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (6) a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. § 65. Paragraph 7 of subdivision (a) of section 121-1103 of the part- nership law, as added by chapter 950 of the laws of 1990, is amended to read as follows: (7) A designation of the secretary of state as its agent upon whom process against it may be served in the manner set forth in section 121-109 of this article in any action or special proceeding, and a post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process served upon [him] THE SECRETARY OF STATE. Such post office address shall supersede any prior address designated as the address to which process shall be mailed. § 66. Subparagraphs 2 and 4 of paragraph (I) and clause 4 of subpara- graph (A) of paragraph (II) of subdivision (a) of section 121-1500 of the partnership law, subparagraph 2 of paragraph (I) as added by chapter 576 of the laws of 1994, subparagraph 4 of paragraph (I) as amended by chapter 643 of the laws of 1995 and such paragraph as redesignated by chapter 767 of the laws of 2005 and clause 4 of subparagraph (A) of paragraph (II) as amended by chapter 44 of the laws of 2006, are amended to read as follows: (2) the address, WITHIN THIS STATE, of the principal office of the partnership without limited partners; (4) a designation of the secretary of state as agent of the partner- ship without limited partners upon whom process against it may be served and the post office address, within or without this state, to which the S. 2008--A 84 A. 3008--A [secretary of state] A PERSON shall mail a copy of any process against it or served [upon it] ON THE SECRETARY OF STATE; (4) a statement that the secretary of state has been designated as agent of the registered limited liability partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; § 67. Paragraphs (ii) and (iii) of subdivision (g) of section 121-1500 of the partnership law, as amended by section 8 of part S of chapter 59 of the laws of 2015, are amended to read as follows: (ii) the address, WITHIN THIS STATE, of the principal office of the registered limited liability partnership, (iii) the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process accepted against it served upon [him or her] THE SECRETARY OF STATE, which address shall supersede any previous address on file with the department of state for this purpose, and § 68. Subdivision (j-1) of section 121-1500 of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows: (j-1) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a registered limited liability partnership served upon [him] THE SECRETARY OF STATE AND/or the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corporation whose address, as agent, is the address to be changed or who has been designated as regis- tered agent for such registered limited liability partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth: (i) the name of the registered limited liability partnership and, if it has been changed, the name under which it was originally filed with the department of state; (ii) the date of filing of its initial registration or notice statement; (iii) each change effected thereby; (iv) that a notice of the proposed change was mailed to the limited liability partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such limited liability partnership has not objected thereto; and (v) that the party signing the certificate is the agent of such limited liability partnership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivi- sion shall not be deemed to effect a change of location of the office of the limited liability partnership in whose behalf such certificate is filed. The certificate of change shall be accompanied by a fee of five dollars. § 69. Subdivision (a) of section 121-1502 of the partnership law, as amended by chapter 643 of the laws of 1995, paragraph (v) as amended by chapter 470 of the laws of 1997, is amended to read as follows: (a) In order for a foreign limited liability partnership to carry on or conduct or transact business or activities as a New York registered foreign limited liability partnership in this state, such foreign limit- ed liability partnership shall file with the department of state a notice which shall set forth: (i) the name under which the foreign limited liability partnership intends to carry on or conduct or transact business or activities in this state; (ii) the date on which and the jurisdiction in which it registered as a limited liability partnership; S. 2008--A 85 A. 3008--A (iii) the address, WITHIN THIS STATE, of the principal office of the foreign limited liability partnership; (iv) the profession or professions to be practiced by such foreign limited liability partner- ship and a statement that it is a foreign limited liability partnership eligible to file a notice under this chapter; (v) a designation of the secretary of state as agent of the foreign limited liability partnership upon whom process against it may be served and the post office address within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it [or] served upon [it] THE SECRETARY OF STATE; (vi) if the foreign limited liability partnership is to have a registered agent, its name and address in this state and a statement that the registered agent is to be the agent of the foreign limited liability partnership upon whom process against it may be served; (vii) a statement that its registration as a limited liability partnership is effective in the jurisdiction in which it registered as a limited liability partnership at the time of the filing of such notice; (viii) a statement that the foreign limited liability partnership is filing a notice in order to obtain status as a New York registered foreign limited liability partnership; (ix) if the registration of the foreign limited liability partnership is to be effective on a date later than the time of filing, the date, not to exceed sixty days from the date of filing, of such proposed effectiveness; and (x) any other matters the foreign limited liability partnership determines to include in the notice. Such notice shall be accompanied by either (1) a copy of the last registration or renewal registration (or similar filing), if any, filed by the foreign limited liability partnership with the juris- diction where it registered as a limited liability partnership or (2) a certificate, issued by the jurisdiction where it registered as a limited liability partnership, substantially to the effect that such foreign limited liability partnership has filed a registration as a limited liability partnership which is effective on the date of the certificate (if such registration, renewal registration or certificate is in a foreign language, a translation thereof under oath of the translator shall be attached thereto). Such notice shall also be accompanied by a fee of two hundred fifty dollars. § 70. Subparagraphs (ii) and (iii) of paragraph (I) of subdivision (f) of section 121-1502 of the partnership law, as amended by section 9 of part S of chapter 59 of the laws of 2015, are amended to read as follows: (ii) the address, WITHIN THIS STATE, of the principal office of the New York registered foreign limited liability partnership, (iii) the post office address, within or without this state, to which [the secre- tary of state] A PERSON shall mail a copy of any process accepted against it served upon [him or her] THE SECRETARY OF STATE, which address shall supersede any previous address on file with the department of state for this purpose, and § 71. Clause 5 of subparagraph (A) of paragraph (II) of subdivision (f) of section 121-1502 of the partnership law, as amended by chapter 44 of the laws of 2006, is amended to read as follows: (5) a statement that the secretary of state has been designated as agent of the foreign limited liability partnership upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him or her] THE SECRETARY OF STATE; S. 2008--A 86 A. 3008--A § 72. Subdivision (i-1) of section 121-1502 of the partnership law, as added by chapter 448 of the laws of 1998, is amended to read as follows: (i-1) A certificate of change which changes only the post office address to which [the secretary of state] A PERSON shall mail a copy of any process against a New York registered foreign limited liability partnership served upon [him] THE SECRETARY OF STATE AND/or the address of the registered agent, provided such address being changed is the address of a person, partnership, LIMITED LIABILITY COMPANY or corpo- ration whose address, as agent, is the address to be changed or who has been designated as registered agent of such registered foreign limited liability partnership shall be signed and delivered to the department of state by such agent. The certificate of change shall set forth: (i) the name of the New York registered foreign limited liability partnership; (ii) the date of filing of its initial registration or notice statement; (iii) each change effected thereby; (iv) that a notice of the proposed change was mailed to the limited liability partnership by the party signing the certificate not less than thirty days prior to the date of delivery to the department of state and that such limited liability partnership has not objected thereto; and (v) that the party signing the certificate is the agent of such limited liability partnership to whose address [the secretary of state] A PERSON is required to mail copies of process SERVED ON THE SECRETARY OF STATE or the registered agent, if such be the case. A certificate signed and delivered under this subdivi- sion shall not be deemed to effect a change of location of the office of the limited liability partnership in whose behalf such certificate is filed. The certificate of change shall be accompanied by a fee of five dollars. § 73. Subdivision (a) of section 121-1505 of the partnership law, as added by chapter 470 of the laws of 1997, is amended and two new subdi- visions (d) and (e) are added to read as follows: (a) Service of process on the secretary of state as agent of a regis- tered limited liability partnership OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP under this article shall be made by MAIL- ING THE PROCESS AND NOTICE OF SERVICE THEREOF BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH REGISTERED LIMITED LIABILITY PARTNERSHIP OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP, AT THE POST OFFICE ADDRESS ON FILE IN THE DEPARTMENT OF STATE SPECIFIED FOR SUCH PURPOSE. ON THE SAME DATE THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING TOGETHER WITH THE STATUTORY FEE, WHICH FEE SHALL BE A TAXABLE DISBURSEMENT SHALL BE personally [deliver- ing] DELIVERED to and [leaving] LEFT with the secretary of state or a deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [duplicate copies of such process] together with the statutory fee, which fee shall be a taxable disbursement. PROOF OF MAIL- ING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Service of process on such registered limited liability partnership OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP shall be complete when the secretary of state is so served. [The secretary of state shall promptly send one of such copies by certified mail, return receipt requested, to such registered limited liability partnership, at the post office address on file in the department of state specified for such purpose.] (D) THE DEPARTMENT OF STATE SHALL KEEP A RECORD OF EACH PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER, INCLUDING THE DATE OF SUCH SERVICE. IT SHALL, UPON REQUEST MADE WITHIN TEN YEARS OF SUCH S. 2008--A 87 A. 3008--A SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF THE PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATUTORY FEE. PROCESS SERVED UPON THE SECRETARY OF STATE UNDER THIS CHAPTER SHALL BE DESTROYED BY THE DEPART- MENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. (E) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF A REGISTERED LIMITED LIABILITY PARTNERSHIP OR NEW YORK REGISTERED FOREIGN LIMITED LIABILITY PARTNERSHIP FOR THE PURPOSE OF MAILING PROCESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH LIMITED LIABIL- ITY COMPANY AS REQUIRED BY THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAIL- ING TO A DIFFERENT POST OFFICE ADDRESS. § 74. Subdivision (b) of section 121-1506 of the partnership law, as added by chapter 448 of the laws of 1998, paragraph 4 as amended by chapter 172 of the laws of 1999, is amended to read as follows: (b) The party (or the party's legal representative) whose post OFFICE address has been supplied by a limited liability partnership as its address for process may resign. A certificate entitled "Certificate of Resignation for Receipt of Process under Section 121-1506(b) of the Partnership Law" shall be signed by such party and delivered to the department of state. It shall set forth: (1) The name of the limited liability partnership and the date that its certificate of registration was filed by the department of state. (2) That the address of the party has been designated by the limited liability partnership as the post office address to which [the secretary of state] A PERSON shall mail a copy of any process served on the secre- tary of state as agent for such limited liability partnership and that such party wishes to resign. (3) That sixty days prior to the filing of the certificate of resigna- tion with the department of state the party has sent a copy of the certificate of resignation for receipt of process by registered or certified mail to the address of the registered agent of the [desig- nated] DESIGNATING limited liability partnership, if other than the party filing the certificate of resignation, for receipt of process, or if the [resigning] DESIGNATING limited liability partnership has no registered agent, then to the last address of the [designated] DESIGNAT- ING limited liability partnership, known to the party, specifying the address to which the copy was sent. If there is no registered agent and no known address of the designating limited liability partnership the party shall attach an affidavit to the certificate stating that a dili- gent but unsuccessful search was made by the party to locate the limited liability partnership, specifying what efforts were made. (4) That the [designated] DESIGNATING limited liability partnership is required to deliver to the department of state a certificate of amend- ment providing for the designation by the limited liability partnership of a new address and that upon its failure to file such certificate, its authority to do business in this state shall be suspended. § 75. Paragraph 16 of subdivision 1 of section 103 of the private housing finance law, as added by chapter 22 of the laws of 1970, is amended to read as follows: (16) A designation of the secretary of state as agent of the corpo- ration upon whom process against it may be served and the post office address, within or without this state, to which [the secretary of state] A PERSON shall mail a copy of any process against it served upon [him] THE SECRETARY OF STATE. S. 2008--A 88 A. 3008--A § 76. Subdivision 7 of section 339-n of the real property law is REPEALED and subdivisions 8 and 9 are renumbered subdivisions 7 and 8. § 76-a. Subdivision 15 of section 20.03 of the arts and cultural affairs law, as added by chapter 656 of the laws of 1991, is amended to read as follows: 15. "Non-institutional portion" shall mean the part or portion of a combined-use facility other than the institutional portion. If the non- institutional portion, or any part thereof, consists of a condominium, the consent of the trust which has developed or approved the developer of such condominium shall be required prior to any amendment of the declaration of such condominium pursuant to subdivision [nine] EIGHT of section three hundred thirty-nine-n of the real property law and prior to any amendment of the by-laws of such condominium pursuant to para- graph (j) of subdivision one of section three hundred thirty-nine-v of the real property law, and whether or not such trust is a unit owner of such condominium, it may exercise the rights of the board of managers and an aggrieved unit owner under section three hundred thirty-nine-j of the real property law in the case of a failure of any unit owner of such condominium to comply with the by-laws of such condominium and with the rules, regulations, and decisions adopted pursuant thereto. § 77. Subdivision 2 of section 339-s of the real property law, as added by chapter 346 of the laws of 1997, is amended to read as follows: 2. [Each such declaration, and any amendment or amendments thereof shall be filed with the department of state] (A) THE BOARD OF MANAGERS FOR EACH CONDOMINIUM SUBJECT TO THIS ARTICLE SHALL FILE WITH THE SECRE- TARY OF STATE A CERTIFICATE, IN WRITING, SIGNED, DESIGNATING THE SECRE- TARY OF STATE AS AGENT OF THE BOARD OF MANAGERS UPON WHOM PROCESS AGAINST IT MAY BE SERVED AND THE POST OFFICE ADDRESS TO WHICH A PERSON SHALL MAIL A COPY OF SUCH PROCESS. THE CERTIFICATE SHALL BE ACCOMPANIED BY A FEE OF SIXTY DOLLARS. (B) ANY BOARD OF MANAGERS MAY CHANGE THE ADDRESS TO WHICH A PERSON SHALL MAIL A COPY OF PROCESS SERVED UPON THE SECRETARY OF STATE, BY FILING A SIGNED CERTIFICATE OF AMENDMENT WITH THE DEPARTMENT OF STATE. SUCH CERTIFICATE SHALL BE ACCOMPANIED BY A FEE OF SIXTY DOLLARS. (C) SERVICE OF PROCESS ON THE SECRETARY OF STATE AS AGENT OF A BOARD OF MANAGERS SHALL BE MADE BY MAILING THE PROCESS AND NOTICE OF SERVICE OF PROCESS PURSUANT TO THIS SECTION BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO SUCH BOARD OF MANAGERS, AT THE POST OFFICE ADDRESS, ON FILE IN THE DEPARTMENT OF STATE, SPECIFIED FOR THIS PURPOSE. ON THE SAME DAY THAT SUCH PROCESS IS MAILED, A DUPLICATE COPY OF SUCH PROCESS AND PROOF OF MAILING SHALL BE PERSONALLY DELIVERED TO AND LEFT WITH THE SECRETARY OF STATE OR A DEPUTY, OR WITH ANY PERSON AUTHORIZED BY THE SECRETARY OF STATE TO RECEIVE SUCH SERVICE, AT THE OFFICE OF THE DEPART- MENT OF STATE IN THE CITY OF ALBANY, A DUPLICATE COPY OF SUCH PROCESS WITH PROOF OF MAILING TOGETHER WITH THE STATUTORY FEE, WHICH SHALL BE A TAXABLE DISBURSEMENT. PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLI- ANCE WITH THIS SECTION. SERVICE OF PROCESS ON A BOARD OF MANAGERS SHALL BE COMPLETE WHEN THE SECRETARY OF STATE IS SO SERVED. (D) AS USED IN THIS ARTICLE, "PROCESS" SHALL MEAN JUDICIAL PROCESS AND ALL ORDERS, DEMANDS, NOTICES OR OTHER PAPERS REQUIRED OR PERMITTED BY LAW TO BE PERSONALLY SERVED ON A BOARD OF MANAGERS, FOR THE PURPOSE OF ACQUIRING JURISDICTION OF SUCH BOARD OF MANAGERS IN ANY ACTION OR PROCEEDING, CIVIL OR CRIMINAL, WHETHER JUDICIAL, ADMINISTRATIVE, ARBI- TRATIVE OR OTHERWISE, IN THIS STATE OR IN THE FEDERAL COURTS SITTING IN OR FOR THIS STATE. S. 2008--A 89 A. 3008--A (E) NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. (F) THE DEPARTMENT OF STATE SHALL KEEP A RECORD OF EACH PROCESS SERVED UNDER THIS SECTION, INCLUDING THE DATE OF SERVICE. IT SHALL, UPON REQUEST, MADE WITHIN TEN YEARS OF SUCH SERVICE, ISSUE A CERTIFICATE UNDER ITS SEAL CERTIFYING AS TO THE RECEIPT OF PROCESS BY AN AUTHORIZED PERSON, THE DATE AND PLACE OF SUCH SERVICE AND THE RECEIPT OF THE STATU- TORY FEE. PROCESS SERVED ON THE SECRETARY OF STATE UNDER THIS SECTION SHALL BE DESTROYED BY THE DEPARTMENT OF STATE AFTER A PERIOD OF TEN YEARS FROM SUCH SERVICE. (G) ANY DESIGNATED POST OFFICE ADDRESS MAINTAINED BY THE SECRETARY OF STATE AS AGENT OF THE BOARD OF MANAGERS FOR THE PURPOSE OF MAILING PROC- ESS SHALL BE THE POST OFFICE ADDRESS, WITHIN OR WITHOUT THE STATE, TO WHICH A PERSON SHALL MAIL PROCESS AGAINST SUCH BOARD AS REQUIRED BY THIS ARTICLE. SUCH ADDRESS SHALL CONTINUE UNTIL THE FILING OF A CERTIFICATE UNDER THIS CHAPTER DIRECTING THE MAILING TO A DIFFERENT POST OFFICE ADDRESS. § 78. Subdivisions 3 and 4 of section 442-g of the real property law, as amended by chapter 482 of the laws of 1963, are amended to read as follows: 3. Service of such process upon the secretary of state shall be made by personally delivering to and leaving with [him or his] THE SECRETARY OF STATE OR A deputy, or with any person authorized by the secretary of state to receive such service, at the office of the department of state in the city of Albany, [duplicate copies] A COPY of such process AND PROOF OF MAILING together with a fee of five dollars if the action is solely for the recovery of a sum of money not in excess of two hundred dollars and the process is so endorsed, and a fee of ten dollars in any other action or proceeding, which fee shall be a taxable disbursement. If such process is served upon behalf of a county, city, town or village, or other political subdivision of the state, the fee to be paid to the secretary of state shall be five dollars, irrespective of the amount involved or the nature of the action on account of which such service of process is made. [If the cost of registered mail for trans- mitting a copy of the process shall exceed two dollars, an additional fee equal to such excess shall be paid at the time of the service of such process.] PROOF OF MAILING SHALL BE BY AFFIDAVIT OF COMPLIANCE WITH THIS SECTION. Proof of service shall be by affidavit of compliance with this subdivision filed by or on behalf of the plaintiff together with the process, within ten days after such service, with the clerk of the court in which the action or special proceeding is pending. Service made as provided in this section shall be complete ten days after such papers are filed with the clerk of the court and shall have the same force and validity as if served on him personally within the state and within the territorial jurisdiction of the court from which the process issues. 4. The [secretary of state] PERSON SERVING SUCH PROCESS shall [prompt- ly] send [one of] such [copies] PROCESS by [registered] CERTIFIED mail, return receipt requested, to the nonresident broker or nonresident salesman at the post office address of his main office as set forth in the last application filed by him. § 79. Subdivision 2 of section 203 of the tax law, as amended by chap- ter 100 of the laws of 1964, is amended to read as follows: 2. Every foreign corporation (other than a moneyed corporation) subject to the provisions of this article, except a corporation having a certificate of authority [under section two hundred twelve of the gener- S. 2008--A 90 A. 3008--A al corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, shall file in the department of state a certificate of designation in its corporate name, signed and acknowledged by its president or a vice-pre- sident or its secretary or treasurer, under its corporate seal, desig- nating the secretary of state as its agent upon whom process in any action provided for by this article may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any such process against the corporation which may be served upon [him] THE SECRETARY OF STATE. In case any such corpo- ration shall have failed to file such certificate of designation, it shall be deemed to have designated the secretary of state as its agent upon whom such process against it may be served; and until a certificate of designation shall have been filed the corporation shall be deemed to have directed [the secretary of state] A PERSON SERVING PROCESS to mail copies of process served upon [him] THE SECRETARY OF STATE to the corpo- ration at its last known office address within or without the state. When a certificate of designation has been filed by such corporation [the secretary of state] A PERSON SERVING PROCESS shall mail copies of process thereafter served upon [him] THE SECRETARY OF STATE to the address set forth in such certificate. Any such corporation, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process, by filing a certificate to that effect executed, signed and acknowledged in like manner as a certificate of designation as herein provided. Service of process upon any such corporation or upon any corporation having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, in any action commenced at any time pursuant to the provisions of this article, may be made by either (1) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service [duplicate copies] A COPY thereof at the office of the department of state in the city of Albany, in which event [the secretary of state] A PERSON SERVING SUCH PROCESS shall forthwith send by [registered] CERTIFIED mail, return receipt requested, [one of such copies] A DUPLICATE COPY to the corporation at the address designated by it or at its last known office address within or without the state, or (2) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service, a copy thereof at the office of the department of state in the city of Albany and by delivering a copy thereof to, and leaving such copy with, the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer, or cashier of such corporation, or the officer performing corresponding functions under another name, or a director or managing agent of such corporation, personally without the state. Proof of such personal service without the state shall be filed with the clerk of the court in which the action is pending within thirty days after such service, and such service shall be complete ten days after proof thereof is filed. § 80. Section 216 of the tax law, as added by chapter 415 of the laws of 1944, the opening paragraph as amended by chapter 100 of the laws of 1964 and redesignated by chapter 613 of the laws of 1976, is amended to read as follows: S. 2008--A 91 A. 3008--A § 216. Collection of taxes. Every foreign corporation (other than a moneyed corporation) subject to the provisions of this article, except a corporation having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do busi- ness by virtue of section thirteen hundred five of the business corpo- ration law, shall file in the department of state a certificate of designation in its corporate name, signed and acknowledged by its presi- dent or a vice-president or its secretary or treasurer, under its corpo- rate seal, designating the secretary of state as its agent upon whom process in any action provided for by this article may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any such process against the corpo- ration which may be served upon him. In case any such corporation shall have failed to file such certificate of designation, it shall be deemed to have designated the secretary of state as its agent upon whom such process against it may be served; and until a certificate of designation shall have been filed the corporation shall be deemed to have directed [the secretary of state] A PERSON to mail [copies] A COPY of process served upon [him] THE SECRETARY OF STATE to the corporation at its last known office address within or without the state. When a certificate of designation has been filed by such corporation [the secretary of state] A PERSON SERVING SUCH PROCESS shall mail [copies] A COPY of process thereafter served upon [him] A PERSON SERVING SUCH PROCESS to the address set forth in such certificate. Any such corporation, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process, by filing a certificate to that effect executed, signed and acknowledged in like manner as a certificate of designation as herein provided. Service of process upon any such corporation or upon any corporation having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, in any action commenced at any time pursuant to the provisions of this article, may be made by either (1) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service [duplicate copies] A COPY thereof at the office of the department of state in the city of Albany, in which event [the secretary of state] A PERSON SERVING SUCH PROCESS shall forthwith send by [registered] CERTIFIED mail, return receipt requested, [one of such copies] A DUPLICATE COPY to the corporation at the address designated by it or at its last known office address within or without the state, or (2) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service, a copy thereof at the office of the department of state in the city of Albany and by delivering a copy thereof to, and leaving such copy with, the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer, or cashier of such corporation, or the officer performing corresponding functions under another name, or a director or managing agent of such corporation, personally without the state. Proof of such personal service without the state shall be filed with the clerk of the court in which the action is pending within thirty days after such service, and such service shall be complete ten days after proof thereof is filed. § 81. Subdivisions (a) and (b) of section 310 of the tax law, as added by chapter 400 of the laws of 1983, are amended to read as follows: S. 2008--A 92 A. 3008--A (a) Designation for service of process.--Every petroleum business which is a corporation, except such a petroleum business having a certificate of authority [under section two hundred twelve of the gener- al corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law, shall file in the department of state a certificate of designation in its corporate name, signed and acknowledged by its president or vice-presi- dent or its secretary or treasurer, under its corporate seal, designat- ing the secretary of state as its agent upon whom process in any action provided for by this article may be served within this state, and setting forth an address to which [the secretary of state] A PERSON shall mail a copy of any such process against such petroleum business which may be served upon [him] THE SECRETARY OF STATE. In case any such petroleum business shall have failed to file such certificate of desig- nation, it shall be deemed to have designated the secretary of state as its agent upon whom such process against it may be served; and until a certificate of designation shall have been filed such a petroleum busi- ness shall be deemed to have directed [the secretary of state] A PERSON to mail copies of process served upon [him] THE SECRETARY OF STATE to such petroleum business at its last known office address within or with- out the state. When a certificate of designation has been filed by such a petroleum business [the secretary of state] A PERSON SERVING PROCESS shall mail copies of process thereafter served upon [him] THE SECRETARY OF STATE to the address set forth in such certificate. Any such petrole- um business, from time to time, may change the address to which [the secretary of state] A PERSON is directed to mail copies of process, by filing a certificate to that effect executed, signed and acknowledged in like manner as a certificate of designation as herein provided. (b) Service of process.--Service of process upon any petroleum busi- ness which is a corporation (including any such petroleum business having a certificate of authority [under section two hundred twelve of the general corporation law] or having authority to do business by virtue of section thirteen hundred five of the business corporation law), in any action commenced at any time pursuant to the provisions of this article, may be made by either (1) personally delivering to and leaving with the secretary of state, a deputy secretary of state or with any person authorized by the secretary of state to receive such service [duplicate copies] A COPY thereof at the office of the department of state in the city of Albany, in which event [the secretary of state] A PERSON SERVING PROCESS shall forthwith send by [registered] CERTIFIED mail, return receipt requested, [one of such copies] A DUPLICATE COPY to such petroleum business at the address designated by it or at its last known office address within or without the state, or (2) personally delivering to and leaving with the secretary of state, a deputy secre- tary of state or with any person authorized by the secretary of state to receive such service, a copy thereof at the office of the department of state in the city of Albany and by delivering a copy thereof to, and leaving such copy with, the president, vice-president, secretary, assistant secretary, treasurer, assistant treasurer, or cashier of such petroleum business, or the officer performing corresponding functions under another name, or a director or managing agent of such petroleum business, personally without the state. Proof of such personal service without the state shall be filed with the clerk of the court in which the action is pending within thirty days after such service, and such service shall be complete ten days after proof thereof is filed. S. 2008--A 93 A. 3008--A § 82. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART S Section 1. Subdivision 6 of section 441-a of the real property law, as amended by chapter 183 of the laws of 2006, is amended to read as follows: 6. Pocket card. The department shall prepare, issue and deliver, with the assistance of the department of motor vehicles, [to each licensee] UPON PAYMENT OF A FEE OF FIVE DOLLARS BY A LICENSEE, a pocket card in such form and manner as the department shall prescribe, but which shall contain the photo, name and business address of the licensee, and, in the case of a real estate salesman, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesman, as may be. Such cards must be shown on demand. In the case of loss, destruction or damage, the secretary of state may, upon submission of satisfactory proof, issue a duplicate pocket card upon payment of a fee of ten dollars. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 2 of section 54-1101 of the environmental conservation law, as amended by section 4 of part U of chapter 58 of the laws of 2016, is amended to read as follows: 2. State assistance payments and/or technical assistance, as defined in section nine hundred seventeen of the executive law, shall not exceed [fifty] SEVENTY-FIVE percent of the cost of the program. For the purpose of determining the amount of state assistance payments, costs shall not be more than the amount set forth in the application for state assist- ance payments approved by the secretary. The state assistance payments shall be paid on audit and warrant of the state comptroller on a certif- icate of availability of the director of the budget. § 2. The opening paragraph and paragraph a of subdivision 1 of section 918 of the executive law, as added by chapter 840 of the laws of 1981, are amended to read as follows: The secretary may enter into a contract or contracts for grants OR PAYMENTS to be made, within the limits of any appropriations therefor, for the following: a. To any local governments, or to two or more local governments, for projects approved by the secretary which lead to preparation of a water- front revitalization program; provided, however, that such grants OR PAYMENTS shall not exceed [fifty] SEVENTY-FIVE percent of the approved cost of such projects; § 3. This act shall take effect immediately. PART U Section 1. Paragraph (e) of subdivision 1 of section 169 of the execu- tive law, as amended by section 9 of part A of chapter 60 of the laws of 2012, is amended to read as follows: (e) [chairman of state athletic commission,] director of the office of victim services, chairman of human rights appeal board, chairman of the industrial board of appeals, chairman of the state commission of S. 2008--A 94 A. 3008--A correction, members of the board of parole, member-chairman of unemploy- ment insurance appeal board, director of veterans' affairs, and vice- chairman of the workers' compensation board; § 2. This act shall take effect immediately. PART V Section 1. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of agriculture and markets from the special revenue funds-other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the department of agriculture and markets' participation in general ratemaking proceedings pursuant to section 65 of the public service law or certif- ication proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the department of agriculture and markets shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 2. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of state from the special revenue funds- other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the activities of the department of state's utility intervention unit pursuant to subdivision 4 of section 94-a of the executive law, including, but not limited to participation in general ratemaking proceedings pursuant to section 65 of the public service law or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the secretary of state shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 3. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the office of parks, recreation and historic preservation from the special revenue funds-other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the office of parks, recreation and historic preservation's participation in general ratemaking proceedings pursuant to section 65 of the public service law or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the office of parks, recreation and historic preservation shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 S. 2008--A 95 A. 3008--A fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 4. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of environmental conservation from the special revenue funds-other/state operations, environmental conservation special revenue fund-301, utility environmental regulation account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the department of environmental conservation's participation in state energy policy proceedings, or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the department of environmental conservation shall submit an account- ing of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 5. Notwithstanding any other law, rule or regulation to the contra- ry, expenses of the department of health public service education program incurred pursuant to appropriations from the cable television account of the state miscellaneous special revenue funds shall be deemed expenses of the department of public service. No later than August 15, 2018, the commissioner of the department of health shall submit an accounting of expenses in the 2017 -- 2018 fiscal year to the chair of the public service commission for the chair's review pursuant to the provisions of section 217 of the public service law. § 6. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART W Section 1. Section 2 of part BB of chapter 58 of the laws of 2012, amending the public authorities law relating to authorizing the dormito- ry authority to enter into certain design and construction management agreements, as amended by section 1 of part S of chapter 58 of the laws of 2015, is amended to read as follows: § 2. This act shall take effect immediately [and shall expire and be deemed repealed April 1, 2017]. § 2. This act shall take effect immediately. PART X Section 1. Legislative findings. In order to increase the authority of the superintendent of financial services to respond to the harm posed by impaired insurers in this state, the legislature finds that it is in the best interest of the people of this state to enact an administrative supervision statute. The superintendent of financial services has the right and responsibility to enforce the insurance law and the authority to seek redress against any person responsible for the impairment or insolvency of the insurer, and nothing in this act is intended to restrict or limit such right, responsibility, or authority. § 2. The insurance law is amended by adding a new section 1123 to read as follows: S. 2008--A 96 A. 3008--A § 1123. ADMINISTRATIVE SUPERVISION. (A) FOR THE PURPOSES OF THIS SUBSECTION, "INSURER" SHALL HAVE THE MEANING SET FORTH IN PARAGRAPH ONE OF SUBSECTION (B) OF SECTION SEVEN THOUSAND FOUR HUNDRED ONE OF THIS CHAPTER, AND SHALL INCLUDE A LICENSED UNITED STATES BRANCH OF AN ALIEN INSURER ENTERED THROUGH THIS STATE. (B)(1) THE SUPERINTENDENT MAY ISSUE AN ORDER PLACING A DOMESTIC INSUR- ER UNDER ADMINISTRATIVE SUPERVISION IF THE SUPERINTENDENT DETERMINES THAT ONE OR MORE OF THE CONDITIONS SET FORTH IN SECTION SEVEN THOUSAND FOUR HUNDRED TWO OF THIS CHAPTER EXISTS. UPON SUCH A DETERMINATION, THE SUPERINTENDENT SHALL FURNISH THE INSURER WITH A WRITTEN LIST OF REQUIRE- MENTS TO ABATE THE CONDITION OR CONDITIONS WITHIN THE TIME SPECIFIED IN THE ORDER, WHICH SHALL NOT EXCEED ONE HUNDRED EIGHTY DAYS. THE DOMESTIC INSURER MAY CHALLENGE THE ORDER BY REQUESTING AN ADMINISTRATIVE HEARING PURSUANT TO THE ADJUDICATORY PROCEEDING RULES IN ARTICLE THREE OF THE STATE ADMINISTRATIVE PROCEDURE ACT AND REGULATIONS PROMULGATED BY THE SUPERINTENDENT BUT THE ORDER SHALL REMAIN IN FULL FORCE AND EFFECT DURING THE COURSE OF THE ADJUDICATORY PROCEEDING. UPON ISSUANCE OF THE ORDER, THE SUPERINTENDENT SHALL ADVISE SUCH DOMESTIC INSURER OF ITS RIGHT TO REQUEST A HEARING CHALLENGING THE ORDER PURSUANT TO THE ADJUDI- CATORY PROCEEDING RULES IN ARTICLE THREE OF THE STATE ADMINISTRATIVE PROCEDURE ACT AND REGULATIONS PROMULGATED BY THE SUPERINTENDENT. (2) IF, AT THE END OF THE PERIOD SPECIFIED IN THE ORDER, THE SUPER- INTENDENT DETERMINES THAT THE CONDITION OR CONDITIONS THAT GAVE RISE TO THE ORDER STILL EXISTS OR EXIST, THEN ADMINISTRATIVE SUPERVISION SHALL CONTINUE. THE INSURER MAY REQUEST A HEARING TO CHALLENGE THE SUPERINTEN- DENT'S DETERMINATION TO CONTINUE ADMINISTRATIVE SUPERVISION. (3) IF THE SUPERINTENDENT DETERMINES THAT THE CONDITION OR CONDITIONS THAT GAVE RISE TO ADMINISTRATIVE SUPERVISION NO LONGER EXISTS OR EXIST, THEN THE SUPERINTENDENT SHALL RELEASE THE INSURER FROM SUPERVISION. (C) DURING THE PERIOD OF SUPERVISION, THE SUPERINTENDENT MAY PROHIBIT THE INSURER FROM ENGAGING IN ANY OF THE FOLLOWING ACTIVITIES WITHOUT THE SUPERINTENDENT'S PRIOR APPROVAL: (1) DISPOSING OF, CONVEYING, OR ENCUMBERING ANY OF ITS ASSETS OR ITS BUSINESS IN FORCE; (2) WITHDRAWING ANY FUNDS FROM ITS BANK ACCOUNTS; (3) LENDING ANY OF ITS FUNDS; (4) INVESTING ANY OF ITS FUNDS; (5) PAYING ANY CLAIMS; (6) TRANSFERRING ANY OF ITS PROPERTY; (7) INCURRING ANY DEBT, OBLIGATION, OR LIABILITY; (8) MERGING OR CONSOLIDATING WITH ANOTHER COMPANY; (9) APPROVING NEW PREMIUMS OR RENEWING ANY POLICIES; (10) ENTERING INTO ANY NEW REINSURANCE CONTRACT OR TREATY; (11) TERMINATING, SURRENDERING, FORFEITING, CONVERTING, OR LAPSING ANY INSURANCE POLICY, CERTIFICATE, OR CONTRACT, EXCEPT FOR NONPAYMENT OF PREMIUMS DUE; (12) RELEASING, PAYING, OR REFUNDING PREMIUM DEPOSITS, ACCRUED CASH OR LOAN VALUES, UNEARNED PREMIUMS, OR OTHER RESERVES ON ANY INSURANCE POLI- CY, CERTIFICATE, OR CONTRACT; (13) MAKING ANY MATERIAL CHANGE IN MANAGEMENT; (14) INCREASING SALARIES AND BENEFITS OF OFFICERS OR DIRECTORS OR THE PAYMENT OF BONUSES, DIVIDENDS, OR OTHER PAYMENTS; OR (15) SUCH OTHER ACTIVITIES THAT THE SUPERINTENDENT DETERMINES ARE NECESSARY TO PROTECT POLICYHOLDERS OR THE PEOPLE OF THIS STATE. S. 2008--A 97 A. 3008--A (D) THE SUPERINTENDENT MAY APPOINT AS ADMINISTRATIVE SUPERVISOR, AT THE INSURER'S EXPENSE, ONE OR MORE PERSONS NOT EMPLOYED BY ANY INSURER OR INTERESTED IN SUCH INSURER, EXCEPT AS A POLICYHOLDER. (E)(1) THE EXPENSES OF ADMINISTRATIVE SUPERVISION PURSUANT TO THIS SUBSECTION SHALL BE BORNE AND PAID BY THE INSURER SO SUPERVISED. (2) IN THE EVENT THAT AN INSURER BECOMES SUBJECT TO A PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER WITHIN ONE YEAR OF THE SUPERINTEN- DENT RELEASING THE INSURER FROM ADMINISTRATIVE SUPERVISION, ALL ACCRUED AND OUTSTANDING EXPENSES INCURRED IN CONNECTION WITH ADMINISTRATIVE SUPERVISION SHALL BE TREATED AS ACTUAL AND NECESSARY COSTS AND EXPENSES OF THE ADMINISTRATION OF SUCH PROCEEDING UNDER ARTICLE SEVENTY-FOUR OF THIS CHAPTER. (F) ALL MATTERS PERTAINING TO A PROCEEDING OR DETERMINATION PURSUANT TO THIS SUBSECTION SHALL BE CONFIDENTIAL AND NOT SUBJECT TO SUBPOENA OR PUBLIC INSPECTION UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW OR ANY OTHER STATUTE, EXCEPT TO THE EXTENT THAT THE SUPERINTENDENT FINDS RELEASE OF INFORMATION NECESSARY TO PROTECT THE PUBLIC. (G) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED AS PRECLUDING THE SUPERINTENDENT FROM INITIATING JUDICIAL PROCEEDINGS TO PLACE AN INSURER IN REHABILITATION, LIQUIDATION, CONSERVATION, OR DISSOLUTION PROCEEDINGS. § 3. Subsection (a) of section 1309 of the insurance law is amended to read as follows: (a) Whenever the superintendent finds from a financial statement or report on examination that an authorized insurer is unable to pay its outstanding lawful obligations as they mature in the regular course of business, as shown by an excess of required reserves and other liabil- ities over admitted assets, or by its not having sufficient assets to reinsure all outstanding risks with other solvent authorized assuming insurers after paying all accrued claims owed, such insurer shall be deemed insolvent and the superintendent may proceed against it pursuant to the provisions of article seventy-four of this chapter OR MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 4. Subsection (a) of section 1310 of the insurance law is amended to read as follows: (a) Whenever the superintendent finds from a financial statement, or a report on examination, of any domestic stock insurer that [(i)] (1) the admitted assets are less than the aggregate amount of its liabilities and outstanding capital stock or [(ii)] (2) the admitted assets of any such insurer [which] THAT is required to maintain a minimum surplus to policyholders are less than the aggregate amount of its liabilities and the amount of its minimum surplus to policyholders, [he] THE SUPERINTEN- DENT shall determine the amount of the impairment and order the insurer to eliminate the impairment within such period as [he] THE SUPERINTEN- DENT designates, not more than ninety days from the service of the order. [He] THE SUPERINTENDENT may also order the insurer not to issue any new policies while the impairment exists. If the impairment as determined by the provisions of [item (i) hereof] PARAGRAPH ONE OF THIS SUBSECTION equals or exceeds twenty-five percent of the insurer's outstanding capital stock, or as determined by the provisions of [item (i) or (ii) hereof] PARAGRAPH ONE OR TWO OF THIS SUBSECTION is such that the insurer does not have the minimum capital or minimum surplus to policyholders required by this chapter, and if at the expiration of such designated period, such insurer has not satisfied the superintendent that such impairment has been eliminated, the superintendent may proceed S. 2008--A 98 A. 3008--A against the insurer pursuant to the provisions of article seventy-four of this chapter on the ground that its condition is such that its further transaction of business will be hazardous to its policyholders or its creditors or the public OR THE SUPERINTENDENT MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SECTION ONE THOU- SAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 5. Subsection (c) of section 1311 of the insurance law is amended to read as follows: (c) If the impairment so determined is such that such insurer does not have the minimum surplus required for item (iii) of subsection (a) [hereof] OF THIS SECTION, and if when such designated period expires the insurer has not satisfied the superintendent that such impairment has been eliminated, the superintendent may proceed against such insurer pursuant to the provisions of article seventy-four of this chapter on the ground that its further transaction of business will be hazardous to its policyholders, its creditors or the public OR THE SUPERINTENDENT MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 6. Paragraph 2 of subsection (c) of section 1312 of the insurance law is amended to read as follows: (2) If at the expiration of such designated period such insurer has not satisfied the superintendent that such impairment has been elimi- nated, the superintendent may proceed against such insurer pursuant to the provisions of article seventy-four of this chapter as an insurer whose condition is such that its further transaction of business in the United States will be hazardous to its policyholders, its creditors or the public in the United States OR THE SUPERINTENDENT MAY PLACE THE INSURER UNDER ADMINISTRATIVE SUPERVISION PURSUANT TO SUBSECTION (B) OF SECTION ONE THOUSAND ONE HUNDRED TWENTY-THREE OF THIS CHAPTER. § 7. This act shall take effect immediately. PART Y Section 1. Subsections (c) and (d) of section 109 of the insurance law, paragraph 1 of subsection (c) as amended by section 55 of part A of chapter 62 of the laws of 2011, is amended and a new subsection (e) is added to read as follows: (c) (1) If the superintendent finds after notice and hearing that any [authorized] insurer, representative of the insurer, [licensed] insur- ance agent, [licensed] insurance broker, [licensed] adjuster, or any other person or entity [licensed, certified, registered, or authorized pursuant] SUBJECT to this chapter, has wilfully violated the provisions of this chapter or any regulation promulgated thereunder, then the superintendent may order the person or entity to pay to the people of this state a penalty in a sum not exceeding [one] THE GREATER OF (A) TEN thousand dollars for each offense; (B) A MULTIPLE OF TWO TIMES THE AGGREGATE DAMAGES ATTRIBUTABLE TO THE VIOLATION; OR (C) A MULTIPLE OF TWO TIMES THE AGGREGATE ECONOMIC GAIN ATTRIBUTABLE TO THE VIOLATION. THE SUPERINTENDENT MAY PROMULGATE REGULATIONS IMPLEMENTING THE TERMS OF THIS SUBSECTION. (2) Failure to pay such penalty within thirty days after the order, unless it is suspended by an order of a court of competent jurisdiction, shall constitute a further violation of the provisions of this chapter. (3) No penalty shall be imposed pursuant to this subsection if a mone- tary penalty is otherwise provided in this chapter. S. 2008--A 99 A. 3008--A (d) (1) The superintendent may maintain a civil action in the name of the people of the state to recover a judgment for a money penalty imposed by law OR TO ENFORCE ANY ORDER ISSUED BY THE SUPERINTENDENT for the violation of any provision of this chapter. (2) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SUPERINTENDENT MAY, IN HIS OR HER SOLE DISCRETION, EITHER (A) PROSECUTE ANY SUCH ACTION AND RETAIN CHARGE AND CONTROL OF THE ACTION; OR (B) REFER SUCH ACTION TO THE DEPARTMENT OF LAW FOR PROSECUTION. (E) ANY PERSON OR ENTITY THAT IS REQUIRED BY THIS CHAPTER TO BE LICENSED, CERTIFIED, REGISTERED, OR AUTHORIZED SHALL BE SUBJECT TO THE LAWS OF THIS CHAPTER AND THE PENALTIES CONTAINED HEREIN AS IF THE PERSON OR ENTITY WAS SO LICENSED, CERTIFIED, REGISTERED, OR AUTHORIZED, EVEN IF THE PERSON OR ENTITY DOES NOT POSSESS THE REQUIRED LICENSE, CERTIF- ICATION, REGISTRATION, OR AUTHORIZATION. § 2. Section 44 of the banking law is amended by adding two new subdi- visions 10 and 11 to read as follows: 10. THE SUPERINTENDENT MAY MAINTAIN A CIVIL ACTION IN THE NAME OF THE PEOPLE OF THE STATE TO RECOVER A JUDGEMENT FOR A MONEY PENALTY IMPOSED BY LAW OR TO ENFORCE ANY ORDER ISSUED BY THE SUPERINTENDENT FOR THE VIOLATION OF ANY PROVISION OF THIS CHAPTER. NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, EITHER (A) PROSECUTE ANY SUCH ACTION AND RETAIN CHARGE AND CONTROL OF THE ACTION; OR (B) REFER SUCH ACTION TO THE DEPARTMENT OF LAW FOR PROSE- CUTION. 11. ANY PERSON OR ENTITY WHO ENGAGES IN ACTIVITY THAT IS REGULATED IN THIS CHAPTER WITHOUT BEING LICENSED, CERTIFIED, REGISTERED, AUTHORIZED, CHARTERED, ACCREDITED, INCORPORATED OR OTHERWISE OBTAINING ANY PERMIS- SION OF THE SUPERINTENDENT REQUIRED BY THIS CHAPTER BEFORE ENGAGING IN SUCH ACTIVITY SHALL BE SUBJECT TO THE LAWS OF THIS CHAPTER AND THE PENALTIES CONTAINED HEREIN AS IF THE PERSON OR ENTITY WAS SO LICENSED, CERTIFIED, REGISTERED, AUTHORIZED, CHARTERED, ACCREDITED, INCORPORATED, OR OTHERWISE APPROVED BY THE SUPERINTENDENT. § 3. Subsection (a) of section 309 of the financial services law is amended and a new subsection (c) is added to read as follows: (a) In addition to such other remedies as are provided under this chapter, the superintendent may maintain and prosecute an action against any person subject to this chapter, the insurance law or the banking law, or the person's officers, directors, trustees or agents, for the purpose of obtaining an injunction restraining such person or persons from doing any acts in violation of the provisions of this chapter, the insurance law or the banking law. THE SUPERINTENDENT MAY COMMENCE SUCH ACTION AGAINST ANY PERSON OR ENTITY THAT IS REQUIRED BY THIS CHAPTER, THE BANKING LAW, OR THE INSURANCE LAW TO BE LICENSED, CERTIFIED, REGIS- TERED, AUTHORIZED, CHARTERED, ACCREDITED, OR INCORPORATED, AS IF THE PERSON OR ENTITY WAS SO LICENSED, CERTIFIED, REGISTERED, AUTHORIZED, CHARTERED, ACCREDITED, OR INCORPORATED, EVEN IF THE PERSON OR ENTITY DOES NOT POSSESS THE REQUIRED LICENSE, CERTIFICATION, REGISTRATION, AUTHORIZATION, CHARTER, ACCREDITATION, OR INCORPORATION. (C) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, EITHER (I) PROSECUTE ANY SUCH ACTION AND RETAIN CHARGE AND CONTROL OF THE ACTION; OR (II) REFER SUCH ACTION TO THE DEPARTMENT OF LAW FOR PROSECUTION. § 4. This act shall take effect immediately. PART Z S. 2008--A 100 A. 3008--A Section 1. The banking law is amended by adding a new article 14-A to read as follows: ARTICLE XIV-A STUDENT LOAN SERVICERS SECTION 710. DEFINITIONS. 711. LICENSING. 712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN THE BUSINESS OF STUDENT LOAN SERVICING. 714. CHANGES IN OFFICERS AND DIRECTORS. 715. CHANGES IN CONTROL. 716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE. 717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING. 718. RULES AND REGULATIONS. 719. PROHIBITED PRACTICES. 720. SERVICING STUDENT LOANS WITHOUT A LICENSE. 721. RESPONSIBILITIES. 722. EXAMINATIONS. 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 724. SEVERABILITY OF PROVISIONS. 725. COMPLIANCE WITH OTHER LAWS. § 710. DEFINITIONS. 1. "APPLICANT" SHALL MEAN ANY PERSON APPLYING FOR A LICENSE TO BE A STUDENT LOAN SERVICER. 2. "BORROWER" SHALL MEAN ANY RESIDENT OF THIS STATE WHO HAS RECEIVED A STUDENT LOAN OR AGREED TO PAY A STUDENT LOAN OR ANY PERSON WHO SHARES RESPONSIBILITY WITH SUCH RESIDENT FOR REPAYING A STUDENT LOAN. 3. "BORROWER BENEFIT" SHALL MEAN AN INCENTIVE OFFERED TO A BORROWER IN CONNECTION WITH THE ORIGINATION OF A STUDENT LOAN, INCLUDING BUT NOT LIMITED TO AN INTEREST RATE REDUCTION, PRINCIPAL REBATE, FEE WAIVER OR REBATE, LOAN CANCELLATION, OR COSIGNER RELEASE. 4. "EXEMPT ORGANIZATION" SHALL MEAN ANY BANKING ORGANIZATION, FOREIGN BANKING CORPORATION, NATIONAL BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL CREDIT UNION, OR ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE, OR ANY PERSON EXEMPTED BY THE SUPERINTENDENT OF FINANCIAL SERVICES PURSUANT TO REGULATIONS PROMULGATED IN ACCORDANCE WITH THIS ARTICLE. 5. "PERSON" SHALL MEAN ANY INDIVIDUAL, ASSOCIATION, CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, TRUST, UNINCORPORATED ORGANIZA- TION, GOVERNMENT OR POLITICAL SUBDIVISION OF A GOVERNMENT, AND ANY OTHER ENTITY. 6. "SERVICER" OR "STUDENT LOAN SERVICER" SHALL MEAN A PERSON LICENSED PURSUANT TO SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE TO ENGAGE IN THE BUSINESS OF SERVICING ANY STUDENT LOAN OF A BORROWER. 7. "SERVICING" SHALL MEAN: (A) RECEIVING ANY PAYMENT FROM A BORROWER PURSUANT TO THE TERMS OF ANY STUDENT LOAN; (B) APPLYING ANY PAYMENT TO A BORROWER'S ACCOUNT PURSUANT TO THE TERMS OF A STUDENT LOAN OR THE CONTRACT GOVERNING THE SERVICING OF ANY SUCH LOAN; (C) PROVIDING ANY NOTIFICATION OF AMOUNTS OWED ON A STUDENT LOAN BY OR ON ACCOUNT OF ANY BORROWER; (D) DURING A PERIOD WHEN A BORROWER IS NOT REQUIRED TO MAKE A PAYMENT ON A STUDENT LOAN, MAINTAINING ACCOUNT RECORDS FOR THE STUDENT LOAN AND COMMUNICATING WITH THE BORROWER REGARDING THE STUDENT LOAN ON BEHALF OF THE OWNER OF THE STUDENT LOAN PROMISSORY NOTE; S. 2008--A 101 A. 3008--A (E) INTERACTING WITH A BORROWER WITH RESPECT TO OR REGARDING ANY ATTEMPT TO AVOID DEFAULT ON THE BORROWER'S STUDENT LOAN, OR FACILITATING THE ACTIVITIES DESCRIBED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION; OR (F) PERFORMING OTHER ADMINISTRATIVE SERVICES WITH RESPECT TO A BORROW- ER'S STUDENT LOAN. 8. "STUDENT LOAN" SHALL MEAN ANY LOAN TO A BORROWER TO FINANCE POSTSE- CONDARY EDUCATION OR EXPENSES RELATED TO POSTSECONDARY EDUCATION. § 711. LICENSING. 1. NO PERSON SHALL ENGAGE IN THE BUSINESS OF SERVIC- ING STUDENT LOANS OWED BY ONE OR MORE BORROWERS RESIDING IN THIS STATE WITHOUT FIRST BEING LICENSED BY THE SUPERINTENDENT AS A STUDENT LOAN SERVICER IN ACCORDANCE WITH THIS ARTICLE AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE SUPERINTENDENT. 2. THE LICENSING PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPT ORGANIZATION, OR ANY PERSON THAT SHALL BE EXEMPTED IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SUPERINTENDENT HEREUNDER; PROVIDED THAT SUCH EXEMPT ORGANIZATION NOTIFIES THE SUPERINTENDENT THAT THE EXEMPT ORGANIZATION IS ACTING AS A STUDENT LOAN SERVICER IN THIS STATE AND COMPLIES WITH SECTIONS SEVEN HUNDRED NINETEEN AND SEVEN HUNDRED TWENTY-ONE OF THIS ARTICLE AND ANY REGULATION APPLICABLE TO STUDENT LOAN SERVICERS PROMULGATED BY THE SUPERINTENDENT. § 712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 1. THE APPLICATION FOR A LICENSE TO BE A STUDENT LOAN SERVICER SHALL BE IN WRITING, UNDER OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION FOR A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE BE MADE OR EXECUTED BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. THE APPLICATION SHALL INCLUDE A DESCRIPTION OF THE ACTIVITIES OF THE APPLICANT, IN SUCH DETAIL AND FOR SUCH PERIODS AS THE SUPERINTENDENT MAY REQUIRE, INCLUDING: (A) AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH CAPITALIZATION REQUIREMENTS AS MAY BE REQUIRED BY THE SUPERINTENDENT, AND ACCESS TO SUCH CREDIT AS MAY BE REQUIRED BY THE SUPERINTENDENT; (B) A FINANCIAL STATEMENT PREPARED BY A CERTIFIED PUBLIC ACCOUNTANT, THE ACCURACY OF WHICH IS SWORN TO UNDER OATH BEFORE A NOTARY PUBLIC BY AN OFFICER OR OTHER REPRESENTATIVE OF THE APPLICANT WHO IS AUTHORIZED TO EXECUTE SUCH DOCUMENTS; (C) THE FINGERPRINTS OF THE APPLICANT, OR ITS MEMBERS, OFFICERS, PART- NERS, DIRECTORS AND PRINCIPALS AS MAY BE APPROPRIATE, WHICH MAY BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE FEDERAL BUREAU OF INVESTIGATION FOR STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS; (D) AN AFFIRMATION THAT THE APPLICANT, OR ITS MEMBERS, OFFICERS, PART- NERS, DIRECTORS AND PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWEN- TY-ONE YEARS OF AGE; (E) INFORMATION AS TO THE CHARACTER, FITNESS, FINANCIAL AND BUSINESS RESPONSIBILITY, BACKGROUND AND EXPERIENCES OF THE APPLICANT, OR ITS MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS AS MAY BE APPRO- PRIATE; (F) ANY ADDITIONAL DETAIL OR INFORMATION REQUIRED BY THE SUPERINTEN- DENT. 2. AN APPLICATION TO BECOME A STUDENT LOAN SERVICER OR ANY APPLICATION WITH RESPECT TO A STUDENT LOAN SERVICER SHALL BE ACCOMPANIED BY A FEE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER. S. 2008--A 102 A. 3008--A § 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN THE BUSI- NESS OF STUDENT LOAN SERVICING. 1. UPON THE FILING OF AN APPLICATION FOR A LICENSE, IF THE SUPERINTENDENT SHALL FIND THAT THE FINANCIAL RESPONSI- BILITY, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF THE APPLICANT AND, IF APPLICABLE, THE MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS OF THE APPLICANT ARE SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY AND TO WARRANT BELIEF THAT THE BUSINESS WILL BE OPERATED HONESTLY, FAIR- LY, AND EFFICIENTLY WITHIN THE PURPOSE OF THIS ARTICLE, THE SUPERINTEN- DENT SHALL THEREUPON ISSUE A LICENSE IN DUPLICATE TO ENGAGE IN THE BUSI- NESS OF SERVICING STUDENT LOANS DESCRIBED IN SECTION SEVEN HUNDRED TEN OF THIS ARTICLE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. IF THE SUPERINTENDENT SHALL NOT SO FIND, THE SUPERINTENDENT SHALL NOT ISSUE A LICENSE, AND THE SUPERINTENDENT SHALL SO NOTIFY THE APPLICANT. THE SUPERINTENDENT SHALL TRANSMIT ONE COPY OF A LICENSE TO THE APPLICANT AND FILE ANOTHER COPY IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES. UPON RECEIPT OF SUCH LICENSE, A STUDENT LOAN SERVICER SHALL BE AUTHOR- IZED TO ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. SUCH LICENSE SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL IT IS SURRENDERED BY THE SERVICER OR REVOKED OR SUSPENDED AS HEREINAFTER PROVIDED. 2. THE SUPERINTENDENT MAY REFUSE TO ISSUE A LICENSE PURSUANT TO THIS ARTICLE IF HE OR SHE SHALL FIND THAT THE APPLICANT, OR ANY PERSON WHO IS A DIRECTOR, OFFICER, PARTNER, AGENT, EMPLOYEE, MEMBER, SUBSTANTIAL STOCKHOLDER OF THE APPLICANT, CONSULTANT OR PERSON HAVING A RELATIONSHIP WITH THE APPLICANT SIMILAR TO A CONSULTANT: (A) HAS BEEN CONVICTED OF A CRIME INVOLVING AN ACTIVITY WHICH IS A FELONY UNDER THIS CHAPTER OR UNDER ARTICLE ONE HUNDRED FIFTY-FIVE, ONE HUNDRED SEVENTY, ONE HUNDRED SEVENTY-FIVE, ONE HUNDRED SEVENTY-SIX, ONE HUNDRED EIGHTY, ONE HUNDRED EIGHTY-FIVE, ONE HUNDRED EIGHTY-SEVEN, ONE HUNDRED NINETY, TWO HUNDRED, TWO HUNDRED TEN OR FOUR HUNDRED SEVENTY OF THE PENAL LAW OR ANY COMPARABLE FELONY UNDER THE LAWS OF ANY OTHER STATE OR THE UNITED STATES, PROVIDED THAT SUCH CRIME WOULD BE A FELONY IF COMMITTED AND PROSECUTED UNDER THE LAWS OF THIS STATE; (B) HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; (C) HAS BEEN AN OFFICER, DIRECTOR, PARTNER, MEMBER OR SUBSTANTIAL STOCKHOLDER OF AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; OR (D) HAS BEEN AN AGENT, EMPLOYEE, OFFICER, DIRECTOR, PARTNER OR MEMBER OF AN ENTITY, OR A CONSULTANT TO, OR PERSON HAVING HAD A SIMILAR RELATIONSHIP WITH, ANY ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT WHERE SUCH PERSON SHALL HAVE BEEN FOUND BY THE SUPERINTENDENT TO BEAR RESPONSIBILITY IN CONNECTION WITH THE REVOCA- TION. 3. THE TERM "SUBSTANTIAL STOCKHOLDER", AS USED IN THIS SUBDIVISION, SHALL BE DEEMED TO REFER TO A PERSON OWNING OR CONTROLLING DIRECTLY OR INDIRECTLY TEN PER CENTUM OR MORE OF THE TOTAL OUTSTANDING STOCK OF A CORPORATION. § 714. CHANGES IN OFFICERS AND DIRECTORS. UPON ANY CHANGE OF ANY OF THE EXECUTIVE OFFICERS, DIRECTORS, PARTNERS OR MEMBERS OF ANY STUDENT LOAN SERVICER, THE STUDENT LOAN SERVICER SHALL SUBMIT TO THE SUPERINTEN- DENT THE NAME, ADDRESS, AND OCCUPATION OF EACH NEW OFFICER, DIRECTOR, PARTNER OR MEMBER, AND PROVIDE SUCH OTHER INFORMATION AS THE SUPERINTEN- DENT MAY REQUIRE. § 715. CHANGES IN CONTROL. 1. IT SHALL BE UNLAWFUL, EXCEPT WITH THE PRIOR APPROVAL OF THE SUPERINTENDENT, FOR ANY ACTION TO BE TAKEN WHICH S. 2008--A 103 A. 3008--A RESULTS IN A CHANGE OF CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVI- CER. PRIOR TO ANY CHANGE OF CONTROL, THE PERSON DESIROUS OF ACQUIRING CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVICER SHALL MAKE WRITTEN APPLICATION TO THE SUPERINTENDENT AND PAY AN INVESTIGATION FEE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER TO THE SUPER- INTENDENT. THE APPLICATION SHALL CONTAIN SUCH INFORMATION AS THE SUPER- INTENDENT, BY RULE OR REGULATION, MAY PRESCRIBE AS NECESSARY OR APPRO- PRIATE FOR THE PURPOSE OF MAKING THE DETERMINATION REQUIRED BY SUBDIVISION TWO OF THIS SECTION. SUCH INFORMATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE INFORMATION AND OTHER MATERIAL REQUIRED FOR A STUDENT LOAN SERVICER BY SUBDIVISION ONE OF SECTION SEVEN HUNDRED TWELVE OF THIS ARTICLE. 2. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED CHANGE OF CONTROL OF A STUDENT LOAN SERVICER IN ACCORDANCE WITH THE PROVISIONS OF SECTION SEVEN HUNDRED THIRTEEN OF THIS ARTICLE. 3. FOR A PERIOD OF SIX MONTHS FROM THE DATE OF QUALIFICATION THEREOF AND FOR SUCH ADDITIONAL PERIOD OF TIME AS THE SUPERINTENDENT MAY PRESCRIBE, IN WRITING, THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL NOT APPLY TO A TRANSFER OF CONTROL BY OPERATION OF LAW TO THE LEGAL REPRESENTATIVE, AS HEREINAFTER DEFINED, OF ONE WHO HAS CONTROL OF A STUDENT LOAN SERVICER. THEREAFTER, SUCH LEGAL REPRESEN- TATIVE SHALL COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION. THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL BE APPLICABLE TO AN APPLICATION MADE UNDER THIS SECTION BY A LEGAL REPRESENTATIVE. THE TERM "LEGAL REPRESENTATIVE", FOR THE PURPOSES OF THIS SUBDIVISION, SHALL MEAN A PERSON DULY APPOINTED BY A COURT OF COMPETENT JURISDICTION TO ACT AS EXECUTOR, ADMINISTRATOR, TRUSTEE, COMMITTEE, CONSERVATOR OR RECEIVER, INCLUDING A PERSON WHO SUCCEEDS A LEGAL REPRESENTATIVE AND A PERSON ACTING IN AN ANCILLARY CAPACITY THERE- TO IN ACCORDANCE WITH THE PROVISIONS OF SUCH COURT APPOINTMENT. 4. AS USED IN THIS SECTION THE TERM "CONTROL" MEANS THE POSSESSION, DIRECTLY OR INDIRECTLY, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLICIES OF A STUDENT LOAN SERVICER, WHETHER THROUGH THE OWNERSHIP OF VOTING STOCK OF SUCH STUDENT LOAN SERVICER, THE OWNER- SHIP OF VOTING STOCK OF ANY PERSON WHICH POSSESSES SUCH POWER OR OTHER- WISE. CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER OR OF ANY PERSON WHICH OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER, BUT NO PERSON SHALL BE DEEMED TO CONTROL A STUDENT LOAN SERVICER SOLELY BY REASON OF BEING AN OFFICER OR DIRECTOR OF SUCH STUDENT LOAN SERVICER. THE SUPERINTENDENT MAY IN HIS DISCRETION, UPON THE APPLICATION OF A STUDENT LOAN SERVICER OR ANY PERSON WHO, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE OR SEEKS TO OWN, CONTROL OR HOLD WITH POWER TO VOTE ANY VOTING STOCK OF SUCH STUDENT LOAN SERVICER, DETERMINE WHETHER OR NOT THE OWNERSHIP, CONTROL OR HOLDING OF SUCH VOTING STOCK CONSTITUTES OR WOULD CONSTITUTE CONTROL OF SUCH STUDENT LOAN SERVICER FOR PURPOSES OF THIS SECTION. § 716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE. 1. THE SUPER- INTENDENT MAY REVOKE ANY LICENSE TO ENGAGE IN THE BUSINESS OF A STUDENT LOAN SERVICER ISSUED PURSUANT TO THIS ARTICLE IF HE OR SHE SHALL FIND THAT: (A) A SERVICER HAS VIOLATED ANY PROVISION OF THIS ARTICLE, ANY RULE OR REGULATION PROMULGATED BY THE SUPERINTENDENT UNDER AND WITHIN THE AUTHORITY OF THIS ARTICLE, OR ANY OTHER APPLICABLE LAW; S. 2008--A 104 A. 3008--A (B) ANY FACT OR CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE TIME OF THE ORIGINAL APPLICATION FOR SUCH LICENSE, WOULD HAVE WARRANTED THE SUPERINTENDENT REFUSING ORIGINALLY TO ISSUE SUCH LICENSE; (C) A SERVICER DOES NOT COOPERATE WITH AN EXAMINATION OR INVESTIGATION BY THE SUPERINTENDENT; (D) A SERVICER ENGAGES IN FRAUD, INTENTIONAL MISREPRESENTATION, OR GROSS NEGLIGENCE IN SERVICING A STUDENT LOAN; (E) THE COMPETENCE, EXPERIENCE, CHARACTER, OR GENERAL FITNESS OF THE SERVICER, AN INDIVIDUAL CONTROLLING, DIRECTLY OR INDIRECTLY, TEN PERCENT OR MORE OF THE OUTSTANDING INTERESTS, OR ANY PERSON RESPONSIBLE FOR SERVICING A STUDENT LOAN FOR THE SERVICER INDICATES THAT IT IS NOT IN THE PUBLIC INTEREST TO PERMIT THE SERVICER TO CONTINUE SERVICING STUDENT LOANS; (F) THE SERVICER ENGAGES IN UNSAFE OR INJURIOUS PRACTICE; (G) THE SERVICER IS INSOLVENT, SUSPENDS PAYMENT OF ITS OBLIGATIONS, OR MAKES A GENERAL ASSIGNMENT FOR THE BENEFIT OF ITS CREDITORS; OR (H) A SERVICER HAS VIOLATED THE LAWS OF THIS STATE, ANY OTHER STATE LAW OR ANY FEDERAL LAW INVOLVING FRAUDULENT OR DISHONEST DEALING, OR A FINAL JUDGMENT HAS BEEN ENTERED AGAINST A STUDENT LOAN SERVICER IN A CIVIL ACTION UPON GROUNDS OF FRAUD, MISREPRESENTATION OR DECEIT. 2. AS A PART OF HIS OR HER DETERMINATION REGARDING SUSPENSION OR REVO- CATION, THE SUPERINTENDENT IS AUTHORIZED TO REQUIRE THE FINGERPRINTING OF ANY PERSON, OFFICER, DIRECTOR, PARTNER, MEMBER OR EMPLOYEE OF A STUDENT LOAN SERVICER. SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE DIVI- SION OF CRIMINAL JUSTICE SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK. 3. THE SUPERINTENDENT MAY, ON GOOD CAUSE SHOWN, OR WHERE THERE IS A SUBSTANTIAL RISK OF PUBLIC HARM, SUSPEND ANY LICENSE FOR A PERIOD NOT EXCEEDING THIRTY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN A STUDENT LOAN SERVICER HAS DEFAULTED OR IS LIKELY TO DEFAULT IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQUITABLE PRACTICES WHICH MAY CAUSE SUBSTAN- TIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE. 4. EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION, NO LICENSE SHALL BE REVOKED OR SUSPENDED EXCEPT AFTER NOTICE AND A HEARING THEREON. ANY ORDER OF SUSPENSION ISSUED AFTER NOTICE AND A HEARING MAY INCLUDE AS A CONDITION OF REINSTATEMENT THAT THE STUDENT LOAN SERVICER MAKE RESTI- TUTION TO CONSUMERS OF FEES OR OTHER CHARGES WHICH HAVE BEEN IMPROPERLY CHARGED OR COLLECTED, INCLUDING BUT NOT LIMITED TO BY ALLOCATING PAYMENTS CONTRARY TO A BORROWER'S DIRECTION OR IN A MANNER THAT FAILS TO HELP A BORROWER AVOID DEFAULT, AS DETERMINED BY THE SUPERINTENDENT. ANY HEARING HELD PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE NOTICED, CONDUCTED AND ADMINISTERED IN COMPLIANCE WITH THE STATE ADMIN- ISTRATIVE PROCEDURE ACT. 5. ANY STUDENT LOAN SERVICER MAY SURRENDER ANY LICENSE BY DELIVERING TO THE SUPERINTENDENT WRITTEN NOTICE THAT THE STUDENT LOAN SERVICER THEREBY SURRENDERS SUCH LICENSE, BUT SUCH SURRENDER SHALL NOT AFFECT THE SERVICER'S CIVIL OR CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO THE SURRENDER. IF SUCH SURRENDER IS MADE AFTER THE ISSUANCE BY THE SUPER- INTENDENT OF A STATEMENT OF CHARGES AND NOTICE OF HEARING, THE SUPER- INTENDENT MAY PROCEED AGAINST THE SERVICER AS IF THE SURRENDER HAD NOT TAKEN PLACE. 6. NO REVOCATION, SUSPENSION, OR SURRENDER OF ANY LICENSE SHALL IMPAIR OR AFFECT THE OBLIGATION OF ANY PRE-EXISTING LAWFUL CONTRACT BETWEEN THE S. 2008--A 105 A. 3008--A STUDENT LOAN SERVICER AND ANY PERSON, INCLUDING THE DEPARTMENT OF FINAN- CIAL SERVICES. 7. EVERY LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL THE SAME SHALL HAVE BEEN SURRENDERED, REVOKED OR SUSPENDED IN ACCORDANCE WITH ANY OTHER PROVISIONS OF THIS ARTICLE. 8. WHENEVER THE SUPERINTENDENT SHALL REVOKE OR SUSPEND A LICENSE ISSUED PURSUANT TO THIS ARTICLE, HE OR SHE SHALL FORTHWITH EXECUTE IN DUPLICATE A WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT SHALL FILE ONE COPY OF THE ORDER IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES AND SHALL FORTHWITH SERVE THE OTHER COPY UPON THE STUDENT LOAN SERVICER. ANY SUCH ORDER MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTI- CLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. AN APPLICATION FOR REVIEW AS AUTHORIZED BY THIS SECTION MUST BE MADE WITHIN THIRTY DAYS FROM THE DATE OF THE ORDER OF SUSPENSION OR REVOCATION. § 717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING. 1. EACH STUDENT LOAN SERVICER AND EXEMPT ORGANIZATION SHALL KEEP AND USE IN ITS BUSINESS SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTEN- DENT TO DETERMINE WHETHER THE SERVICER OR EXEMPT ORGANIZATION IS COMPLY- ING WITH THE PROVISIONS OF THIS ARTICLE AND WITH THE RULES AND REGU- LATIONS LAWFULLY MADE BY THE SUPERINTENDENT. EVERY SERVICER AND EXEMPT ORGANIZATION SHALL PRESERVE SUCH BOOKS, ACCOUNTS, AND RECORDS, FOR AT LEAST THREE YEARS. 2. (A) EACH STUDENT LOAN SERVICER SHALL ANNUALLY, ON OR BEFORE A DATE TO BE DETERMINED BY THE SUPERINTENDENT, FILE A REPORT WITH THE SUPER- INTENDENT GIVING SUCH INFORMATION AS THE SUPERINTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS DURING THE PRECEDING CALENDAR YEAR OF SUCH SERVICER UNDER AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. (B) IN ADDITION TO ANNUAL REPORTS, THE SUPERINTENDENT MAY REQUIRE SUCH ADDITIONAL REGULAR OR SPECIAL REPORTS AS HE OR SHE MAY DEEM NECESSARY TO THE PROPER SUPERVISION OF STUDENT LOAN SERVICERS UNDER THIS ARTICLE. SUCH ADDITIONAL REPORTS SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. 3. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT ANY SUBMISSION OR APPROVAL AS MAY BE REQUIRED BY THE SUPERINTENDENT BE MADE OR EXECUTED BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT ADMINISTRATION OF THIS ARTICLE. § 718. RULES AND REGULATIONS. 1. IN ADDITION TO SUCH POWERS AS MAY OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY IN THE JUDGMENT OF THE SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO: (A) SUCH RULES AND REGULATIONS IN CONNECTION WITH THE ACTIVITIES OF STUDENT LOAN SERVICERS AND EXEMPT ORGANIZATIONS AS MAY BE NECESSARY AND APPROPRIATE FOR THE PROTECTION OF BORROWERS IN THIS STATE. (B) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE TO DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH THE ACTIVITIES OF STUDENT LOAN SERVICERS AND EXEMPT ORGANIZATIONS IN SERVICING STUDENT LOANS. (C) SUCH RULES AND REGULATIONS AS MAY DEFINE THE TERMS USED IN THIS ARTICLE AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND IMPLE- MENT THE PROVISIONS OF THIS ARTICLE. S. 2008--A 106 A. 3008--A (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT OF THIS ARTICLE. 2. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH SPECIFIC RULINGS, DEMANDS AND FINDINGS AS THE SUPERINTENDENT MAY DEEM NECESSARY FOR THE PROPER CONDUCT OF THE STUDENT LOAN SERVICING INDUSTRY. § 719. PROHIBITED PRACTICES. NO STUDENT LOAN SERVICER SHALL: 1. DIRECTLY OR INDIRECTLY EMPLOY ANY SCHEME, DEVICE OR ARTIFICE TO DEFRAUD OR MISLEAD A BORROWER. 2. ENGAGE IN ANY UNFAIR, DECEPTIVE OR PREDATORY ACT OR PRACTICE TOWARD ANY PERSON OR MISREPRESENT OR OMIT ANY MATERIAL INFORMATION IN CONNECTION WITH THE SERVICING OF A STUDENT LOAN, INCLUDING, BUT NOT LIMITED TO, MISREPRESENTING THE AMOUNT, NATURE OR TERMS OF ANY FEE OR PAYMENT DUE OR CLAIMED TO BE DUE ON A STUDENT LOAN, THE TERMS AND CONDI- TIONS OF THE LOAN AGREEMENT OR THE BORROWER'S OBLIGATIONS UNDER THE LOAN. 3. MISAPPLY PAYMENTS TO THE OUTSTANDING BALANCE OF ANY STUDENT LOAN OR TO ANY RELATED INTEREST OR FEES. 4. PROVIDE INACCURATE INFORMATION TO A CONSUMER REPORTING AGENCY. 5. REFUSE TO COMMUNICATE WITH AN AUTHORIZED REPRESENTATIVE OF THE BORROWER WHO PROVIDES A WRITTEN AUTHORIZATION SIGNED BY THE BORROWER, PROVIDED THAT THE SERVICER MAY ADOPT PROCEDURES REASONABLY RELATED TO VERIFYING THAT THE REPRESENTATIVE IS IN FACT AUTHORIZED TO ACT ON BEHALF OF THE BORROWER. 6. MAKE ANY FALSE STATEMENT OR MAKE ANY OMISSION OF A MATERIAL FACT IN CONNECTION WITH ANY INFORMATION OR REPORTS FILED WITH A GOVERNMENTAL AGENCY OR IN CONNECTION WITH ANY INVESTIGATION CONDUCTED BY THE SUPER- INTENDENT OR ANOTHER GOVERNMENTAL AGENCY. § 720. SERVICING STUDENT LOANS WITHOUT A LICENSE. 1. WHENEVER, IN THE OPINION OF THE SUPERINTENDENT, A PERSON IS ENGAGED IN THE BUSINESS OF SERVICING STUDENT LOANS, EITHER ACTUALLY OR THROUGH SUBTERFUGE, WITHOUT A LICENSE FROM THE SUPERINTENDENT, THE SUPERINTENDENT MAY ORDER THAT PERSON TO DESIST AND REFRAIN FROM ENGAGING IN THE BUSINESS OF SERVICING STUDENT LOANS IN THE STATE. IF, WITHIN THIRTY DAYS AFTER AN ORDER IS SERVED, A REQUEST FOR A HEARING IS FILED IN WRITING AND THE HEARING IS NOT HELD WITHIN SIXTY DAYS OF THE FILING, THE ORDER SHALL BE RESCINDED. 2. THE SUPERINTENDENT MAY MAINTAIN A CIVIL ACTION TO ENFORCE ANY ORDER ISSUED BY THE SUPERINTENDENT PURSUANT TO THIS SECTION. 3. THIS SECTION SHALL NOT APPLY TO EXEMPT ORGANIZATIONS. § 721. RESPONSIBILITIES. 1. IF A STUDENT LOAN SERVICER REGULARLY REPORTS INFORMATION TO A CONSUMER REPORTING AGENCY, THE SERVICER SHALL ACCURATELY REPORT A BORROWER'S PAYMENT PERFORMANCE TO AT LEAST ONE CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE BASIS AS DEFINED IN SECTION 603(P) OF THE FEDERAL FAIR CREDIT REPORTING ACT (15 U.S.C. SEC. 1681A(P)), UPON ACCEPTANCE AS A DATA FURNISHER BY THAT CONSUMER REPORTING AGENCY. 2. (A) EXCEPT AS PROVIDED IN FEDERAL LAW OR REQUIRED BY A STUDENT LOAN AGREEMENT, A STUDENT LOAN SERVICER SHALL INQUIRE OF A BORROWER HOW TO APPLY A BORROWER'S NONCONFORMING PAYMENT. A BORROWER'S DIRECTION ON HOW TO APPLY A NONCONFORMING PAYMENT SHALL REMAIN IN EFFECT FOR ANY FUTURE NONCONFORMING PAYMENT DURING THE TERM OF A STUDENT LOAN UNTIL THE BORROWER PROVIDES DIFFERENT DIRECTIONS. (B) FOR PURPOSES OF THIS SUBDIVISION, "NONCONFORMING PAYMENT" SHALL MEAN A PAYMENT THAT IS EITHER MORE OR LESS THAN THE BORROWER'S REQUIRED STUDENT LOAN PAYMENT. 3. (A) IF THE SALE, ASSIGNMENT, OR OTHER TRANSFER OF THE SERVICING OF A STUDENT LOAN RESULTS IN A CHANGE IN THE IDENTITY OF THE PERSON TO WHOM S. 2008--A 107 A. 3008--A THE BORROWER IS REQUIRED TO SEND SUBSEQUENT PAYMENTS OR DIRECT ANY COMMUNICATIONS CONCERNING THE STUDENT LOAN, A STUDENT LOAN SERVICER SHALL TRANSFER ALL INFORMATION REGARDING A BORROWER, A BORROWER'S ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS ASSOCIATED WITH THE BORROWER'S STUDENT LOAN, TO THE NEW STUDENT LOAN SERVICER SERVICING THE BORROWER'S STUDENT LOAN WITHIN FORTY-FIVE DAYS. (B) A STUDENT LOAN SERVICER SHALL ADOPT POLICIES AND PROCEDURES TO VERIFY THAT IT HAS RECEIVED ALL INFORMATION REGARDING A BORROWER, A BORROWER'S ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS ASSOCIATED WITH THE BORROWER'S STUDENT LOAN, WHEN THE SERVICER OBTAINS THE RIGHT TO SERVICE A STUDENT LOAN. 4. IF A STUDENT LOAN SERVICER SELLS, ASSIGNS, OR OTHERWISE TRANSFERS THE SERVICING OF A STUDENT LOAN TO A NEW SERVICER, THE SALE, ASSIGNMENT OR OTHER TRANSFER SHALL BE COMPLETED AT LEAST SEVEN DAYS BEFORE THE BORROWER'S NEXT PAYMENT IS DUE. 5. (A) A STUDENT LOAN SERVICER THAT SELLS, ASSIGNS, OR OTHERWISE TRANSFERS THE SERVICING OF A STUDENT LOAN SHALL REQUIRE AS A CONDITION OF SUCH SALE, ASSIGNMENT OR OTHER TRANSFER THAT THE NEW STUDENT LOAN SERVICER SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET QUALIFIED. (B) A STUDENT LOAN SERVICER THAT OBTAINS THE RIGHT TO SERVICE A STUDENT LOAN SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET QUALIFIED. 6. A STUDENT LOAN SERVICER SHALL RESPOND WITHIN THIRTY DAYS AFTER RECEIPT TO A WRITTEN INQUIRY FROM A BORROWER OR A BORROWER'S REPRESEN- TATIVE. 7. A STUDENT LOAN SERVICER SHALL PRESERVE RECORDS OF EACH STUDENT LOAN AND ALL COMMUNICATIONS WITH BORROWERS FOR NOT LESS THAN TWO YEARS FOLLOWING THE FINAL PAYMENT ON A STUDENT LOAN OR THE SALE, ASSIGNMENT OR OTHER TRANSFER OF THE SERVICING OF A STUDENT LOAN, WHICHEVER OCCURS FIRST, OR SUCH LONGER PERIOD AS MAY BE REQUIRED BY ANY OTHER PROVISION OF LAW. § 722. EXAMINATIONS. 1. THE SUPERINTENDENT MAY AT ANY TIME, AND AS OFTEN AS HE OR SHE MAY DETERMINE, EITHER PERSONALLY OR BY A PERSON DULY DESIGNATED BY THE SUPERINTENDENT, INVESTIGATE THE BUSINESS AND EXAMINE THE BOOKS, ACCOUNTS, RECORDS, AND FILES USED THEREIN OF EVERY STUDENT LOAN SERVICER. FOR THAT PURPOSE THE SUPERINTENDENT AND HIS OR HER DULY DESIGNATED REPRESENTATIVE SHALL HAVE FREE ACCESS TO THE OFFICES AND PLACES OF BUSINESS, BOOKS, ACCOUNTS, PAPERS, RECORDS, FILES, SAFES AND VAULTS OF ALL STUDENT LOAN SERVICERS. THE SUPERINTENDENT AND ANY PERSON DULY DESIGNATED BY HIM OR HER SHALL HAVE THE AUTHORITY TO REQUIRE THE ATTENDANCE OF AND TO EXAMINE UNDER OATH ALL PERSONS WHOSE TESTIMONY HE OR SHE MAY REQUIRE RELATIVE TO SUCH BUSINESS. 2. NO PERSON SUBJECT TO INVESTIGATION OR EXAMINATION UNDER THIS SECTION MAY KNOWINGLY WITHHOLD, ABSTRACT, REMOVE, MUTILATE, DESTROY OR SECRETE ANY BOOKS, RECORDS, COMPUTER RECORDS OR OTHER INFORMATION. 3. THE EXPENSES INCURRED IN MAKING ANY EXAMINATION PURSUANT TO THIS SECTION SHALL BE ASSESSED AGAINST AND PAID BY THE STUDENT LOAN SERVICER S. 2008--A 108 A. 3008--A SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO INCURRED SHALL BE CHARGED AGAINST AND PAID BY SERVICERS IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE, AND SUCH PROPOR- TIONATE CHARGES SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER EXPENSES INCURRED UPON EACH EXAMINATION. UPON WRITTEN NOTICE BY THE SUPERINTEN- DENT OF THE TOTAL AMOUNT OF SUCH ASSESSMENT, THE SERVICER SHALL BECOME LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTENDENT. 4. IN ANY HEARING IN WHICH A DEPARTMENT EMPLOYEE ACTING UNDER AUTHORI- TY OF THIS CHAPTER IS AVAILABLE FOR CROSS-EXAMINATION, ANY OFFICIAL WRITTEN REPORT, WORKSHEET, OTHER RELATED PAPERS, OR DULY CERTIFIED COPY THEREOF, COMPILED, PREPARED, DRAFTED, OR OTHERWISE MADE BY SUCH DEPART- MENT EMPLOYEE, AFTER BEING DULY AUTHENTICATED BY THE EMPLOYEE, MAY BE ADMITTED AS COMPETENT EVIDENCE UPON THE OATH OF THE EMPLOYEE THAT SUCH WORKSHEET, INVESTIGATIVE REPORT, OR OTHER RELATED DOCUMENTS WERE PREPARED AS A RESULT OF AN EXAMINATION OF THE BOOKS AND RECORDS OF A SERVICER OR OTHER PERSON, CONDUCTED PURSUANT TO THE AUTHORITY OF THIS CHAPTER. 5. UNLESS OTHERWISE EXEMPT PURSUANT TO SUBDIVISION TWO OF SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE, AFFILIATES OF A STUDENT LOAN SERVICER SHALL BE SUBJECT TO EXAMINATION BY THE SUPERINTENDENT ON THE SAME TERMS AS THE SERVICER, BUT ONLY WHEN REPORTS FROM, OR EXAMINATION OF, A SERVICER PROVIDES EVIDENCE OF UNLAWFUL ACTIVITY BETWEEN A SERVICER AND AFFILIATE BENEFITTING, AFFECTING, OR ARISING FROM THE ACTIVITIES REGULATED BY THIS ARTICLE. § 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 1. IN ADDITION TO SUCH PENALTIES AS MAY OTHERWISE BE APPLICABLE BY LAW, THE SUPERINTENDENT MAY, AFTER NOTICE AND HEARING, REQUIRE ANY PERSON FOUND VIOLATING THE PROVISIONS OF THIS ARTICLE OR THE RULES OR REGULATIONS PROMULGATED HERE- UNDER TO PAY TO THE PEOPLE OF THIS STATE AN ADDITIONAL PENALTY FOR EACH VIOLATION OF THE ARTICLE OR ANY REGULATION OR POLICY PROMULGATED HERE- UNDER A SUM NOT TO EXCEED AN AMOUNT AS DETERMINED PURSUANT TO SECTION FORTY-FOUR OF THIS CHAPTER FOR EACH SUCH VIOLATION. 2. NOTHING IN THIS ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON-LAW RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF ANY LAW. § 724. SEVERABILITY OF PROVISIONS. IF ANY PROVISION OF THIS ARTICLE, OR THE APPLICATION OF SUCH PROVISION TO ANY PERSON OR CIRCUMSTANCE, SHALL BE HELD INVALID, ILLEGAL OR UNENFORCEABLE, THE REMAINDER OF THE ARTICLE, AND THE APPLICATION OF SUCH PROVISION TO PERSONS OR CIRCUM- STANCES OTHER THAN THOSE AS TO WHICH IT IS HELD INVALID, ILLEGAL OR UNENFORCEABLE, SHALL NOT BE AFFECTED THEREBY. § 725. COMPLIANCE WITH OTHER LAWS. 1. STUDENT LOAN SERVICERS SHALL ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN CONFORMITY WITH THE PROVISIONS OF THIS CHAPTER, SUCH RULES AND REGULATIONS AS MAY BE PROMUL- GATED BY THE SUPERINTENDENT THEREUNDER AND ALL APPLICABLE FEDERAL LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER. 2. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT ANY OTHERWISE APPLICABLE STATE OR FEDERAL LAW OR REGULATIONS. § 2. Subdivision 10 of section 36 of the banking law, as amended by chapter 182 of the laws of 2011, is amended to read as follows: 10. All reports of examinations and investigations, correspondence and memoranda concerning or arising out of such examination and investi- gations, including any duly authenticated copy or copies thereof in the possession of any banking organization, bank holding company or any subsidiary thereof (as such terms "bank holding company" and "subsid- iary" are defined in article three-A of this chapter), any corporation S. 2008--A 109 A. 3008--A or any other entity affiliated with a banking organization within the meaning of subdivision six of this section and any non-banking subsid- iary of a corporation or any other entity which is an affiliate of a banking organization within the meaning of subdivision six-a of this section, foreign banking corporation, licensed lender, licensed casher of checks, licensed mortgage banker, registered mortgage broker, licensed mortgage loan originator, licensed sales finance company, registered mortgage loan servicer, LICENSED STUDENT LOAN SERVICER, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, any other person or entity subject to supervision under this chapter, or the department, shall be confidential communications, shall not be subject to subpoena and shall not be made public unless, in the judgment of the superintendent, the ends of justice and the public advantage will be subserved by the publication thereof, in which event the superintendent may publish or authorize the publication of a copy of any such report or any part thereof in such manner as may be deemed proper or unless such laws specifically author- ize such disclosure. For the purposes of this subdivision, "reports of examinations and investigations, and any correspondence and memoranda concerning or arising out of such examinations and investigations", includes any such materials of a bank, insurance or securities regulato- ry agency or any unit of the federal government or that of this state any other state or that of any foreign government which are considered confidential by such agency or unit and which are in the possession of the department or which are otherwise confidential materials that have been shared by the department with any such agency or unit and are in the possession of such agency or unit. § 3. Subdivisions 1, 2, 3 and 5 of section 39 of the banking law, subdivisions 1, 2 and 5 as amended by chapter 123 of the laws of 2009 and subdivision 3 as amended by chapter 155 of the laws of 2012, are amended to read as follows: 1. To appear and explain an apparent violation. Whenever it shall appear to the superintendent that any banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corporation licensed by the superintendent to do business or maintain a representative office in this state has violated any law or regulation, he or she may, in his or her discretion, issue an order describing such apparent violation and requiring such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVI- CER, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or represen- tative or other offices in this state, or foreign banking corporation to appear before him or her, at a time and place fixed in said order, to present an explanation of such apparent violation. 2. To discontinue unauthorized or unsafe and unsound practices. When- ever it shall appear to the superintendent that any banking organiza- tion, bank holding company, registered mortgage broker, licensed mort- gage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan S. 2008--A 110 A. 3008--A servicer, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corpo- ration licensed by the superintendent to do business in this state is conducting business in an unauthorized or unsafe and unsound manner, he or she may, in his or her discretion, issue an order directing the discontinuance of such unauthorized or unsafe and unsound practices, and fixing a time and place at which such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corporation may volun- tarily appear before him or her to present any explanation in defense of the practices directed in said order to be discontinued. 3. To make good impairment of capital or to ensure compliance with financial requirements. Whenever it shall appear to the superintendent that the capital or capital stock of any banking organization, bank holding company or any subsidiary thereof which is organized, licensed or registered pursuant to this chapter, is impaired, or the financial requirements imposed by subdivision one of section two hundred two-b of this chapter or any regulation of the superintendent on any branch or agency of a foreign banking corporation or the financial requirements imposed by this chapter or any regulation of the superintendent on any licensed lender, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner or private banker are not satisfied, the superintendent may, in the superintendent's discretion, issue an order directing that such banking organization, bank holding company, branch or agency of a foreign banking corporation, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, or private bank- er make good such deficiency forthwith or within a time specified in such order. 5. To keep books and accounts as prescribed. Whenever it shall appear to the superintendent that any banking organization, bank holding compa- ny, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, agency or branch of a foreign banking corporation licensed by the superintendent to do business in this state, does not keep its books and accounts in such manner as to enable him or her to readily ascertain its true condi- tion, he or she may, in his or her discretion, issue an order requiring such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis- tered mortgage loan servicer, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance S. 2008--A 111 A. 3008--A company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, or foreign banking corporation, or the officers or agents thereof, or any of them, to open and keep such books or accounts as he or she may, in his or her discretion, determine and prescribe for the purpose of keeping accurate and convenient records of its transactions and accounts. § 4. Paragraph (a) of subdivision 1 of section 44 of the banking law, as amended by chapter 155 of the laws of 2012, is amended to read as follows: (a) Without limiting any power granted to the superintendent under any other provision of this chapter, the superintendent may, in a proceeding after notice and a hearing, require any safe deposit company, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis- tered mortgage broker, licensed mortgage loan originator, registered mortgage loan servicer or licensed budget planner to pay to the people of this state a penalty for any violation of this chapter, any regu- lation promulgated thereunder, any final or temporary order issued pursuant to section thirty-nine of this article, any condition imposed in writing by the superintendent in connection with the grant of any application or request, or any written agreement entered into with the superintendent. § 5. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART AA Section 1. The banking law is amended by adding a new section 4-d to read as follows: § 4-D. PROTECTING VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION. 1. DEFINITIONS. AS USED IN THIS SECTION: (A) "BANKING INSTITUTION" MEANS ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, CREDIT UNION, OR BRANCH OF A FOREIGN BANK- ING CORPORATION, WHICH IS CHARTERED, ORGANIZED OR LICENSED UNDER THE LAWS OF THIS STATE OR ANY OTHER STATE OR THE UNITED STATES, AND, IN THE ORDINARY COURSE OF BUSINESS TAKES DEPOSIT ACCOUNTS IN THIS STATE. (B) "VULNERABLE ADULT" MEANS AN INDIVIDUAL WHO, BECAUSE OF MENTAL AND/OR PHYSICAL IMPAIRMENT IS POTENTIALLY UNABLE TO MANAGE HIS OR HER OWN RESOURCES OR PROTECT HIMSELF OR HERSELF FROM FINANCIAL EXPLOITATION. (C) "FINANCIAL EXPLOITATION" MEANS: (I) THE IMPROPER TAKING, WITHHOLD- ING, APPROPRIATION, OR USE OF A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY; OR (II) ANY ACT OR OMISSION BY A PERSON, INCLUDING THROUGH THE USE OF A POWER OF ATTORNEY, GUARDIANSHIP, OR ANY OTHER AUTHORITY REGARD- ING A VULNERABLE ADULT TO: (A) OBTAIN CONTROL, THROUGH DECEPTION, INTIM- IDATION OR UNDUE INFLUENCE, OVER THE VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY OR (B) CONVERT THE VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY. (D) "TRANSACTION HOLD" MEANS A DELAY IN THE COMPLETION OF ONE OR MORE FINANCIAL TRANSACTIONS PENDING AN INVESTIGATION BY A BANKING INSTITU- TION, ADULT PROTECTIVE SERVICES, OR A LAW ENFORCEMENT AGENCY. (E) "ADULT PROTECTIVE SERVICES" MEANS THE DIVISION OF THE NEW YORK CITY HUMAN RESOURCES ADMINISTRATION AND EACH COUNTY'S DEPARTMENT OF HUMAN SERVICES OR DEPARTMENT OF SOCIAL SERVICES RESPONSIBLE FOR PROVID- ING ADULT PROTECTIVE SERVICES PURSUANT TO SECTION FOUR HUNDRED SEVENTY- THREE OF THE SOCIAL SERVICES LAW. S. 2008--A 112 A. 3008--A (F) "LAW ENFORCEMENT AGENCY" MEANS ANY AGENCY, INCLUDING THE FINANCIAL FRAUDS AND CONSUMER PROTECTION UNIT OF THE DEPARTMENT OF FINANCIAL SERVICES, WHICH IS EMPOWERED BY LAW TO CONDUCT AN INVESTIGATION OR TO MAKE AN ARREST FOR A FELONY, AND ANY AGENCY WHICH IS AUTHORIZED BY LAW TO PROSECUTE OR PARTICIPATE IN THE PROSECUTION OF A FELONY. 2. APPLICATION OF TRANSACTION HOLD. (A) IF A BANKING INSTITUTION REASONABLY BELIEVES: (I) THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (II) THAT THE PLACEMENT OF A TRANSACTION HOLD MAY BE NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY FROM FINANCIAL EXPLOITATION, THEN THE BANKING INSTITUTION MAY, AT ITS DISCRETION, APPLY A TRANSACTION HOLD ON THE ACCOUNT OF A VULNERABLE ADULT, THE ACCOUNT ON WHICH A VULNERABLE ADULT IS A BENEFICIARY, INCLUDING A TRUST OR GUARDI- ANSHIP ACCOUNT, OR THE ACCOUNT OF A PERSON WHO IS REASONABLY BELIEVED BY THE BANKING INSTITUTION TO BE ENGAGING IN THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT. (B) A BANKING INSTITUTION MAY ALSO APPLY A TRANSACTION HOLD ON THE ACCOUNT OF A VULNERABLE ADULT, THE ACCOUNT ON WHICH A VULNERABLE ADULT IS A BENEFICIARY, INCLUDING A TRUST OR GUARDIANSHIP ACCOUNT, OR THE ACCOUNT OF A PERSON WHO IS REASONABLY BELIEVED BY THE BANKING INSTITU- TION TO BE ENGAGING IN THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT, IF: (I) ADULT PROTECTIVE SERVICES OR A LAW ENFORCEMENT AGENCY PROVIDES INFORMATION TO THE BANKING INSTITUTION ESTABLISHING A REASONABLE BASIS TO BELIEVE THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (II) THE PLACEMENT OF A TRANSACTION HOLD MAY BE NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY FROM FINANCIAL EXPLOITATION. (C) A BANKING INSTITUTION THAT APPLIES A TRANSACTION HOLD SHALL: (I) MAKE A REASONABLE EFFORT TO PROVIDE NOTICE, ORALLY OR IN WRITING, TO ALL PARTIES AUTHORIZED TO TRANSACT BUSINESS ON THE ACCOUNT ON WHICH A TRANSACTION HOLD WAS PLACED WITHIN TWO BUSINESS DAYS OF WHEN THE TRANS- ACTION HOLD WAS PLACED; (II) IMMEDIATELY, BUT NO LATER THAN ONE BUSINESS DAY AFTER THE TRANS- ACTION HOLD IS PLACED, REPORT THE TRANSACTION HOLD, INCLUDING THE BASIS FOR THE BAKING INSTITUTION'S BELIEF THAT THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED, TO ADULT PROTECTIVE SERVICES AND TO A LAW ENFORCEMENT AGENCY; (III) AT THE REQUEST OF ADULT PROTECTIVE SERVICES OR A LAW ENFORCEMENT AGENCY, PROVIDE ALL INFORMATION AND DOCUMENTS THAT RELATE TO THE TRANS- ACTION HOLD WITHIN THREE BUSINESS DAYS OF THE REQUEST FOR THE INFORMA- TION OR DOCUMENTS; AND (IV) NOTWITHSTANDING THE TRANSACTION HOLD, MAKE FUNDS AVAILABLE FROM THE ACCOUNT ON WHICH A TRANSACTION HOLD IS PLACED TO ALLOW THE VULNER- ABLE ADULT OR OTHER ACCOUNT HOLDER TO MEET HIS OR HER ONGOING OBLI- GATIONS SUCH AS HOUSING AND OTHER LIVING EXPENSES OR EMERGENCY EXPENSES AS DETERMINED BY ADULT PROTECTIVE SERVICES, A LAW ENFORCEMENT AGENCY OR A NOT-FOR-PROFIT ORGANIZATION THAT REGULARLY PROVIDES SERVICES TO VULNERABLE ADULTS IN THE COMMUNITY IN WHICH THE VULNERABLE ADULT RESIDES. (D) DURING THE PENDENCY OF A TRANSACTION HOLD, A BANKING INSTITUTION MAY, IN ITS DISCRETION, ALSO MAKE FUNDS AVAILABLE FROM THE ACCOUNT ON WHICH A TRANSACTION HOLD IS PLACED TO ALLOW THE VULNERABLE ADULT OR OTHER ACCOUNT HOLDER MEET HIS OR HER ONGOING OBLIGATIONS SUCH AS HOUSING AND OTHER LIVING EXPENSES OR EMERGENCY EXPENSES, PROVIDED THE BANKING INSTITUTION DOES NOT HAVE A REASONABLE BASIS TO BELIEVE THAT THE DISPERSAL OF SUCH FUNDS TO THE VULNERABLE ADULT OR OTHER ACCOUNT HOLDER S. 2008--A 113 A. 3008--A WILL RESULT IN THE FINANCIAL EXPLOITATION OF THE VULNERABLE ADULT. ANY SUCH DISPERSAL OF FUNDS PURSUANT TO THIS SUBDIVISION SHALL BE REPORTED WITHIN ONE BUSINESS DAY AFTER THE DISPERSAL IS MADE TO ADULT PROTECTIVE SERVICES AND TO A LAW ENFORCEMENT AGENCY. (E) THE SUPERINTENDENT MAY ADOPT REGULATIONS IDENTIFYING THE FACTORS THAT A BANKING INSTITUTION SHOULD CONSIDER IN DETERMINING WHETHER: (I) THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (II) THE PLACEMENT OF A TRANSACTION HOLD IS NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY. 3. DURATION OF TRANSACTION HOLD. (A) SUBJECT TO PARAGRAPHS (B), (C) AND (D) OF THIS SUBDIVISION, A TRANSACTION HOLD THAT A BANKING INSTITU- TION PLACES ON AN ACCOUNT PURSUANT TO THIS SECTION SHALL TERMINATE FIVE BUSINESS DAYS AFTER THE DATE ON WHICH THE TRANSACTION HOLD IS APPLIED BY THE BANKING INSTITUTION. A BANKING INSTITUTION MAY TERMINATE THE TRANS- ACTION HOLD AT ANY TIME DURING THIS FIVE DAY PERIOD IF THE BANKING INSTITUTION IS SATISFIED THAT THE TERMINATION OF THE TRANSACTION HOLD IS NOT LIKELY TO RESULT IN FINANCIAL EXPLOITATION OF A VULNERABLE ADULT. (B) A TRANSACTION HOLD MAY BE EXTENDED BEYOND THE PERIOD SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION FOR UP TO AN ADDITIONAL FIFTEEN DAYS AT THE REQUEST OF EITHER ADULT PROTECTIVE SERVICES OR A LAW ENFORCEMENT AGENCY. (C) A TRANSACTION HOLD MAY BE EXTENDED BEYOND THE PERIODS SET FORTH IN PARAGRAPHS (A) AND (B) OF THIS SUBDIVISION ONLY PURSUANT TO AN ORDER ISSUED BY A COURT OF COMPETENT JURISDICTION. (D) A TRANSACTION HOLD MAY BE TERMINATED AT ANY TIME PURSUANT AN ORDER ISSUED BY A COURT OF COMPETENT JURISDICTION. 4. IMMUNITY. A BANKING INSTITUTION OR AN EMPLOYEE OF A BANKING INSTI- TUTION SHALL BE IMMUNE FROM CRIMINAL, CIVIL, AND ADMINISTRATIVE LIABIL- ITY FOR ALL GOOD FAITH ACTIONS IN RELATION TO THE APPLICATION OF THIS SECTION INCLUDING ANY GOOD FAITH DETERMINATION TO APPLY OR NOT APPLY A TRANSACTION HOLD ON AN ACCOUNT. WHERE THERE IS REASONABLE BASIS TO CONCLUDE: (A) THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR IS BEING ATTEMPTED; AND (B) THAT THE PLACEMENT OF A TRANSACTION HOLD MAY BE NECESSARY TO PROTECT A VULNERABLE ADULT'S MONEY, ASSETS, OR PROPERTY FROM FINANCIAL EXPLOITA- TION, SUCH IMMUNITY SHALL NOT APPLY TO A DETERMINATION NOT TO APPLY A TRANSACTION HOLD WHEN THE BANKING INSTITUTION OR EMPLOYEE ACTS RECKLESS- LY OR ENGAGES IN INTENTIONAL MISCONDUCT IN MAKING THE DETERMINATION, OR THE DETERMINATION RESULTS FROM A CONFLICT OF INTEREST. 5. CERTIFICATION PROGRAM. THE DEPARTMENT MAY DEVELOP A FINANCIAL EXPLOITATION CERTIFICATION PROGRAM FOR BANKING INSTITUTIONS. UPON COMPLETION OF THE TRAINING COMPONENTS REQUIRED BY THE PROGRAM AND AFTER ESTABLISHING THE NECESSARY INTERNAL POLICIES, PROCEDURES, AND IN-HOUSE TRAINING PROGRAMS, A BANKING INSTITUTION SHALL RECEIVE FROM THE DEPART- MENT AN ADULT FINANCIAL EXPLOITATION PREVENTION CERTIFICATE DEMONSTRAT- ING THAT STAFF AT SUCH BANKING INSTITUTION HAVE BEEN TRAINED ON HOW TO IDENTIFY, HELP PREVENT, AND REPORT THE FINANCIAL EXPLOITATION OF A VULNERABLE ADULT. AT THE DISCRETION OF THE SUPERINTENDENT, THE CERTIF- ICATION PROGRAM MAY BE MANDATORY FOR BANKING INSTITUTIONS LICENSED BY THE DEPARTMENT. 6. REGULATIONS. THE SUPERINTENDENT MAY ISSUE SUCH RULES AND REGU- LATIONS THAT PROVIDE THE PROCEDURES FOR THE ENFORCEMENT OF THE TERMS OF THIS SECTION AND ANY OTHER RULES AND REGULATIONS THAT HE OR SHE DEEMS NECESSARY TO IMPLEMENT THE TERMS OF THIS SECTION. S. 2008--A 114 A. 3008--A § 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART BB Section 1. The financial services law is amended by adding a new section 105 to read as follows: § 105. DISQUALIFICATION. (A) DEFINITIONS. (1) COVERED INDIVIDUAL. THE TERM "COVERED INDIVIDUAL," WHEN USED IN THIS SECTION, MEANS (A) AN INDI- VIDUAL OPERATING UNDER OR REQUIRED TO OPERATE UNDER A LICENSE, REGISTRA- TION, PERMIT CERTIFICATION OR AUTHORIZATION UNDER THIS CHAPTER, THE BANKING LAW, THE INSURANCE LAW, OR THE REGULATIONS PROMULGATED THERE- UNDER, (B) AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY, OR (C) AN INDIVIDUAL OTHERWISE ENGAGED IN THE BUSINESS OF BANKING, INSURANCE OR FINANCIAL SERVICES IN THE STATE. (2) COVERED ENTITY. THE TERM "COVERED ENTITY," WHEN USED IN THIS SECTION, MEANS ANY ENTITY (A) OPERATING UNDER OR REQUIRED TO OPERATE UNDER A LICENSE, REGISTRATION, PERMIT, CERTIFICATE OR AUTHORIZATION UNDER THE BANKING LAW OR THE INSURANCE LAW; (B) AUTHORIZED, ACCREDITED, CHARTERED OR INCORPORATED OR POSSESSING OR REQUIRED TO POSSESS OTHER SIMILAR STATUS UNDER THE BANKING LAW, OR THE INSURANCE LAW; (C) REGU- LATED BY THE SUPERINTENDENT PURSUANT TO THIS CHAPTER; (D) THAT HAS SUBMITTED AN APPLICATION TO THE SUPERINTENDENT (I) FOR A LICENSE, REGIS- TRATION, PERMIT, CERTIFICATE OR AUTHORIZATION UNDER THE BANKING LAW OR THE INSURANCE LAW, (II) TO BE AUTHORIZED, ACCREDITED, CHARTERED OR INCORPORATED UNDER THE BANKING LAW, OR THE INSURANCE LAW OR TO BE REGU- LATED PURSUANT TO THIS CHAPTER. (3) DISQUALIFYING EVENT. FOR PURPOSES OF THIS SECTION, AN INDIVIDUAL COMMITS A "DISQUALIFYING EVENT," WHEN HE OR SHE: (A) HAS VIOLATED A WRITTEN AGREEMENT BETWEEN THE SUPERINTENDENT AND THE COVERED INDIVIDUAL; (B) HAS WILLFULLY VIOLATED AN AGREEMENT BETWEEN THE SUPERINTENDENT AND A COVERED ENTITY; (C) HAS ENGAGED OR PARTICIPATED IN ANY UNSAFE OR UNSOUND PRACTICE IN CONNECTION WITH ANY COVERED ENTITY; (D) HAS WILLFULLY MADE OR CAUSED TO BE MADE IN ANY APPLICATION, FILING, OR SUBMISSION WITH THE SUPERINTENDENT, ANY STATEMENT WHICH WAS AT THE TIME AND IN THE LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT WAS MADE FALSE OR MISLEADING WITH RESPECT TO ANY MATERIAL FACT, OR HAS OMIT- TED TO STATE IN ANY SUCH APPLICATION OR REPORT ANY MATERIAL FACT WHICH IS REQUIRED TO BE STATED THEREIN; (E) HAS BEEN CONVICTED WITHIN FIVE YEARS OF ANY FELONY OR MISDEMEANOR THAT: (I) INVOLVES THE PURCHASE OR SALE OF ANY FINANCIAL PRODUCT OR SERVICE, THE TAKING OF A FALSE OATH, THE MAKING OF A FALSE REPORT, BRIBERY, PERJURY, BURGLARY, ANY SUBSTANTIALLY EQUIVALENT ACTIVITY HOWEVER DENOMI- NATED, OR CONSPIRACY TO COMMIT ANY SUCH OFFENSE; (II) ARISES OUT OF THE CONDUCT OF THE BUSINESS OF A COVERED ENTITY OR IN CONNECTION WITH THE PROMOTION, SALE OR DELIVERY OF A FINANCIAL PROD- UCT OR SERVICE; (III) INVOLVES THE LARCENY, THEFT, ROBBERY, EXTORTION, FORGERY, COUN- TERFEITING, FRAUDULENT CONCEALMENT, EMBEZZLEMENT, FRAUDULENT CONVERSION, OR MISAPPROPRIATION OF FUNDS, OR SECURITIES, OR SUBSTANTIALLY EQUIVALENT ACTIVITY HOWEVER DENOMINATED; OR S. 2008--A 115 A. 3008--A (IV) HAS A DIRECT BEARING ON THE INDIVIDUAL'S FITNESS OR ABILITY TO PERFORM ONE OR MORE OF THE DUTIES OR RESPONSIBILITIES NECESSARILY RELATED TO THE LICENSE, POSITION, OR JOB IN QUESTION; (F) HAS BEEN FOUND BY A FEDERAL FINANCIAL REGULATORY AUTHORITY, A STATE FINANCIAL REGULATORY AUTHORITY, OR A FOREIGN FINANCIAL REGULATORY AUTHORITY THAT IS RECOGNIZED BY THE SUPERINTENDENT AS SUCH TO HAVE: (I) MADE OR CAUSED TO BE MADE IN ANY APPLICATION FOR REGISTRATION OR REPORT REQUIRED TO BE FILED WITH THE FINANCIAL REGULATORY AUTHORITY, OR IN ANY PROCEEDING BEFORE THE FINANCIAL REGULATORY AUTHORITY WITH RESPECT TO REGISTRATION, ANY STATEMENT THAT WAS AT THE TIME AND IN THE LIGHT OF THE CIRCUMSTANCES UNDER WHICH IT WAS MADE FALSE OR MISLEADING WITH RESPECT TO ANY MATERIAL FACT, OR HAS OMITTED TO STATE IN ANY APPLICATION OR REPORT TO THE FINANCIAL REGULATORY AUTHORITY ANY MATERIAL FACT THAT IS REQUIRED TO BE STATED THEREIN; OR (II) VIOLATED ANY BANKING LAW, OR STATUTE OR REGULATION REGARDING TRANSACTIONS IN SECURITIES, OR CONTRACTS OF SALE OF A COMMODITY FOR FUTURE DELIVERY, TRADED ON OR SUBJECT TO THE RULES OF A CONTRACT MARKET OR ANY BOARD OF TRADE; OR (G) IS SUBJECT TO ANY FINAL ORDER OF ANY FEDERAL FINANCIAL REGULATORY AUTHORITY, A STATE FINANCIAL REGULATORY AUTHORITY, OR A FOREIGN FINAN- CIAL REGULATORY AUTHORITY THAT IS RECOGNIZED BY THE SUPERINTENDENT AS SUCH THAT: (I) BARS SUCH PERSON FROM ASSOCIATION WITH AN ENTITY REGULATED BY SUCH COMMISSION, AUTHORITY, AGENCY, OR OFFICER, OR FROM ENGAGING IN THE BUSI- NESS OF SECURITIES, INSURANCE, BANKING, SAVINGS ASSOCIATION ACTIVITIES, OR CREDIT UNION ACTIVITIES; OR (II) CONSTITUTES A FINAL ORDER BASED ON VIOLATIONS OF ANY LAWS OR REGULATIONS THAT PROHIBITS FRAUDULENT, MANIPULATIVE, OR DECEPTIVE CONDUCT. (B) DISQUALIFICATION. WITHOUT LIMITING ANY POWER GRANTED TO THE SUPER- INTENDENT UNDER ANY OTHER PROVISION OF STATE OR FEDERAL LAW, (1) WHENEV- ER THE SUPERINTENDENT HAS REASON TO BELIEVE THAT A COVERED INDIVIDUAL HAS COMMITTED A DISQUALIFYING EVENT THAT IS OF SUCH SEVERITY AS TO HAVE A DIRECT BEARING ON THE INDIVIDUAL'S FITNESS OR ABILITY TO (A) SERVE AS AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLD ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORIZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGE IN THE BUSINESS OF BANKING, INSURANCE, OR FINANCIAL SERVICES IN THE STATE, (2) THE SUPERINTENDENT MAY SERVE A STATEMENT OF THE CHARGES AGAINST SUCH COVERED INDIVIDUAL AND A NOTICE OF AN OPPORTUNITY TO APPEAR BEFORE THE SUPERINTENDENT TO SHOW CAUSE WHY HE OR SHE SHOULD NOT BE DISQUALIFIED FROM (A) SERVING AS AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLDING ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORI- ZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGING IN THE BUSI- NESS OF BANKING, INSURANCE, OR FINANCIAL SERVICES IN THE STATE. (C) ORDER OF DISQUALIFICATION. WITHOUT LIMITING ANY POWER GRANTED TO THE SUPERINTENDENT UNDER ANY OTHER PROVISION OF STATE OR FEDERAL LAW, IF SUCH COVERED INDIVIDUAL WAIVES A HEARING, OR FAILS TO APPEAR IN PERSON OR BY A DULY AUTHORIZED REPRESENTATIVE WITHOUT GOOD CAUSE SHOWN AT THE TIME AND PLACE SET FOR THE HEARING OR, IF AFTER A HEARING, (1) THE SUPERINTENDENT FINDS THAT THE COVERED INDIVIDUAL HAS ENGAGED IN A DISQUALIFYING EVENT THAT IS OF SUCH SEVERITY AS TO HAVE A DIRECT BEARING ON THE INDIVIDUAL'S FITNESS OR ABILITY TO (A) SERVE AS AN OWNER, DIREC- TOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY S. 2008--A 116 A. 3008--A OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLD ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORIZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGE IN THE BUSINESS OF BANKING, INSUR- ANCE, OR FINANCIAL SERVICES IN THE STATE, (2) THE SUPERINTENDENT MAY ISSUE AN ORDER DISQUALIFYING THE COVERED INDIVIDUAL FROM (A) SERVING AS AN OWNER, DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY, (B) HOLDING ANY LICENSE, REGISTRATION, PERMIT, CERTIFICATION OR AUTHORI- ZATION ISSUED BY THE DEPARTMENT, OR (C) OTHERWISE ENGAGING IN THE BUSI- NESS OF BANKING, INSURANCE, OR FINANCIAL SERVICES IN THE STATE. SUCH ORDER OF DISQUALIFICATION MAY ALSO PROHIBIT THE COVERED INDIVIDUAL'S PERFORMANCE OF ANY CONTRACTUAL AGREEMENTS WITH ANY COVERED ENTITY. SUCH ORDER OF DISQUALIFICATION MAY BE FOR THE COVERED INDIVIDUAL'S LIFETIME OR FOR ANY SHORTER PERIOD DETERMINED BY THE SUPERINTENDENT TO BE IN THE PUBLIC'S INTEREST. ANY ORDER ISSUED PURSUANT TO THIS SUBSECTION AND THE FINDINGS OF FACT UPON WHICH IT IS BASED MAY NOT BE MADE PUBLIC OR DISCLOSED TO ANYONE, EXCEPT AS PROVIDED IN SUBDIVISION TEN OF SECTION THIRTY-SIX OF THE BANKING LAW OR IN CONNECTION WITH PROCEEDINGS FOR A VIOLATION OF THIS SECTION. (D) SUSPENSION PENDING DETERMINATION OF CHARGES. (1) IN CONNECTION WITH, OR AT ANY TIME AFTER SERVICE OF THE WRITTEN NOTICE PURSUANT TO SUBSECTION (B) OF THIS SECTION, THE SUPERINTENDENT MAY SUSPEND FOR A PERIOD OF UP TO ONE HUNDRED EIGHTY DAYS, PENDING THE DETERMINATION OF THE CHARGES, A COVERED INDIVIDUAL FROM SERVING AS A DIRECTOR, TRUSTEE, OFFICER, EMPLOYEE, MEMBER OR PARTNER OF A COVERED ENTITY OR HAVING ANY ASSOCIATION WITH A COVERED ENTITY; OR HOLDING ANY LICENSE, REGISTRATION, CERTIFICATION OR AUTHORIZATION ISSUED BY THE DEPARTMENT, IF THE SUPER- INTENDENT HAS REASON TO BELIEVE THAT BY REASON OF THE CONDUCT GIVING RISE TO THE ALLEGED DISQUALIFYING EVENT: (A) A COVERED ENTITY HAS SUFFERED OR WILL PROBABLY SUFFER FINANCIAL LOSS; (B) THE INTERESTS OF THE DEPOSITORS AT A COVERED ENTITY HAVE BEEN OR COULD BE PREJUDICED; OR (C) THE COVERED INDIVIDUAL DEMONSTRATES WILLFUL DISREGARD FOR THE SAFETY AND SOUNDNESS OF A COVERED ENTITY. (2) THE SUPERINTENDENT MAY EXTEND THE SUSPENSION FOR ADDITIONAL PERI- ODS OF UP TO ONE HUNDRED EIGHTY DAYS IF THE HEARING CONDUCTED PURSUANT TO SUBSECTION (C) OF THIS SECTION IS NOT COMPLETED WITHIN THE PRIOR SUSPENSION PERIOD DUE TO THE REQUEST OF THE COVERED INDIVIDUAL. (3) ANY SUSPENSION ORDER ISSUED PURSUANT TO THIS SUBSECTION SHALL BECOME EFFECTIVE UPON SERVICE, UNLESS IT IS AMENDED OR RESCINDED BY THE SUPERINTENDENT OR A COURT OF COMPETENT JURISDICTION, OR REPLACED BY AN ORDER ISSUED PURSUANT TO SUBSECTION (C) OF THIS SECTION. SUCH SUSPENSION ORDER MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. (E) RULES AND REGULATIONS. THE SUPERINTENDENT MAY ISSUE SUCH RULES AND REGULATIONS AS ARE NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION. § 2. This act shall take effect January 1, 2018. PART CC Section 1. The banking law is amended by adding a new section 340-a to read as follows: § 340-A. EXEMPTION FOR CERTAIN LENDERS AND PARTNERING ORGANIZATIONS. 1. FOR PURPOSES OF THIS SECTION: S. 2008--A 117 A. 3008--A (A) "EXEMPT ENTITY" SHALL MEAN AN ENTITY EXEMPTED PURSUANT TO SUBDIVI- SION TWO OF THIS SECTION. (B) "LIMITED LENDING ACTIVITY" SHALL MEAN THE LENDING OF MONEY TO AN INDIVIDUAL BORROWER FOR WHICH NO INTEREST OR FEES, EXCEPT AS OTHERWISE PROVIDED FOR IN THIS SECTION, ARE CHARGED AND FOR WHICH THE BORROWER MAY MAKE FULL OR PARTIAL REPAYMENT OF THE LOAN PRIOR TO THE DISBURSEMENT OF THE LOAN PROCEEDS. 2. NOTWITHSTANDING THIS SECTION AND SECTIONS ONE, TEN, FOURTEEN, THIR- TY-SIX-B AND THIRTY-EIGHT OF THIS CHAPTER, THE SUPERINTENDENT MAY ALLOW AN ENTITY TO ENGAGE IN LIMITED LENDING ACTIVITY WITHOUT BEING SUBJECT TO THE REQUIREMENTS OF THIS CHAPTER, IF THE ENTITY: (A) ENGAGES IN NO ACTIVITY REGULATED BY THIS CHAPTER EXCEPT THE MAKING OF ZERO-INTEREST LOANS AND ANY ACTIVITY INCIDENTAL THERETO; (B) IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501 (C) (3) OF THE INTERNAL REVENUE CODE AND IS ORGANIZED AND OPERATED EXCLUSIVELY FOR ONE OR MORE OF THE PURPOSES DESCRIBED IN SECTION 501 (C) (3) OF THE INTERNAL REVENUE CODE; (C) PAYS NO PART OF ITS NET EARNINGS TO A PRIVATE SHAREHOLDER OR INDI- VIDUAL; (D) PAYS OR RECEIVES NO BROKER'S FEE IN CONNECTION WITH ANY LOAN THAT IT MAKES; AND (E) SATISFIES THE OTHER REQUIREMENTS SET FORTH IN THIS SECTION. 3. (A) AN APPLICATION TO OPERATE AS AN EXEMPT ENTITY SHALL BE FILED WITH THE SUPERINTENDENT, IN A MANNER PRESCRIBED BY THE SUPERINTENDENT, ALONG WITH A FEE IN THE AMOUNT OF FIVE HUNDRED DOLLARS. THE SUPERINTEN- DENT SHALL INVESTIGATE THE FINANCIAL CONDITION AND RESPONSIBILITY, FINANCIAL AND BUSINESS EXPERIENCE, CHARACTER AND GENERAL FITNESS OF THE APPLICANT AND, IF THE SUPERINTENDENT FINDS THESE QUALITIES ARE SUCH AS TO WARRANT THE BELIEF THAT THE APPLICANT'S BUSINESS WILL BE CONDUCTED HONESTLY, FAIRLY, EQUITABLY, CAREFULLY AND EFFICIENTLY WITHIN THE PURPOSES AND INTENT OF THIS SECTION, AND IN A MANNER COMMANDING THE CONFIDENCE AND TRUST OF THE COMMUNITY, THE SUPERINTENDENT SHALL ADVISE THE APPLICANT IN WRITING OF THE SUPERINTENDENT'S APPROVAL OF THE APPLI- CATION FOR AN EXEMPTION PURSUANT TO THIS SECTION. THE SUPERINTENDENT MAY, IN HIS OR HER DISCRETION, REFUSE TO GRANT AN EXEMPTION IF HE OR SHE FINDS THAT ONE OR MORE OF THE PROVISIONS OF THIS SECTION WERE NOT MET OR ARE NOT BEING MET BY THE APPLICANT OR THAT DENIAL OF THE EXEMPTION IS IN THE BEST INTERESTS OF THE PUBLIC. (B) THE SUPERINTENDENT MAY SUSPEND OR REVOKE ANY EXEMPTION GRANTED PURSUANT TO THIS SECTION, IF HE OR SHE FINDS THAT: (I) ANY SUCH ENTITY, KNOWINGLY OR WITHOUT THE EXERCISE OF DUE CARE TO PREVENT SUCH VIOLATION, HAS VIOLATED ANY PROVISION OF THIS SECTION OR ARTICLE, OR HAS FAILED TO COMPLY WITH ANY DEMAND, OR REQUIREMENT MADE BY THE SUPERINTENDENT; (II) THERE HAS BEEN ANY MATERIAL MISSTATEMENT OR FAILURE TO GIVE A TRUE AND CORRECT ANSWER IN AN APPLICATION OR IN RESPONSE TO ANY QUESTION POSED BY THE SUPERINTENDENT; (III) THE EXEMPT ENTITY HAS DEFRAUDED ANY BORROWER OR WILLFULLY FAILED TO PERFORM ANY WRITTEN AGREEMENT WITH SUCH PERSON; OR (IV) ANY FACT OR CONDITION EXISTS WHICH, IF IT HAD EXISTED AT THE TIME OF THE ORIGINAL APPLICATION FOR AN EXEMPTION, WOULD HAVE WARRANTED THE SUPERINTENDENT TO REFUSE TO GRANT SUCH EXEMPTION. (C) EXCEPT AS PROVIDED FOR IN PARAGRAPH (D) OF THIS SUBDIVISION, NO EXEMPTION GRANTED HEREUNDER SHALL BE SUSPENDED OR REVOKED EXCEPT AFTER A HEARING. THE SUPERINTENDENT SHALL GIVE THE EXEMPT ENTITY AT LEAST TEN DAYS WRITTEN NOTICE OF THE TIME AND PLACE OF SUCH HEARING BY REGISTERED S. 2008--A 118 A. 3008--A MAIL ADDRESSED TO THE PRINCIPAL PLACE OF BUSINESS OF THE EXEMPT ENTITY. ANY ORDER SUSPENDING OR REVOKING AN EXEMPTION SHALL RECITE THE GROUNDS UPON WHICH IT IS BASED AND SHALL NOT BE EFFECTIVE UNTIL TEN DAYS AFTER WRITTEN NOTICE HAS BEEN SENT BY REGISTERED MAIL TO THE EXEMPT ENTITY'S PRINCIPAL PLACE OF BUSINESS. (D) UPON, OR AT ANY TIME AFTER SERVICE OF WRITTEN NOTICE PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, THE SUPERINTENDENT MAY SUSPEND, PEND- ING THE DETERMINATION OF THE CHARGES, AN EXEMPTION ISSUED PURSUANT TO THIS SECTION IF THE SUPERINTENDENT HAS REASON TO BELIEVE THAT AN EXEMPT ENTITY: (I) HAS DEFAULTED OR IS LIKELY TO DEFAULT IN THE PERFORMANCE OF ITS FINANCIAL ENGAGEMENTS; (II) IS ENGAGING IN DISHONEST OR INEQUITABLE PRACTICES; OR (III) POSES A SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS SECTION. 4. (A) EVERY EXEMPT ENTITY SHALL MAINTAIN RECORDS RELATING TO ITS LENDING ACTIVITIES FOR AT LEAST FIVE YEARS. (B) EVERY EXEMPT ENTITY SHALL FILE AN ANNUAL REPORT WITH THE SUPER- INTENDENT ON OR BEFORE MARCH FIFTEENTH OF EACH YEAR, CONTAINING INFORMA- TION THAT THE SUPERINTENDENT REQUIRES CONCERNING LENDING ACTIVITIES BY THE ENTITY, INCLUDING ANY LOANS FACILITATED BY A PARTNERING NONPROFIT ORGANIZATION DESCRIBED IN SUBDIVISION THIRTEEN OF THIS SECTION, WITHIN THE STATE DURING THE PRECEDING CALENDAR YEAR. 5. EVERY LOAN MADE BY AN EXEMPT ENTITY SHALL COMPLY WITH THE FOLLOWING REQUIREMENTS: (A) THE LOAN SHALL BE UNSECURED. (B) NO INTEREST MAY BE IMPOSED. (C) EXCEPT FOR A REIMBURSEMENT OF UP TO TEN DOLLARS TO COVER AN INSUF- FICIENT FUNDS FEE INCURRED BY AN EXEMPT ENTITY DUE TO ACTIONS OF THE BORROWER, NO ADMINISTRATIVE OR OTHER FEES MAY BE IMPOSED ON A BORROWER. NO EXEMPT ENTITY SHALL CHARGE MORE THAN TWO INSUFFICIENT FUNDS FEES TO THE SAME BORROWER IN A SINGLE MONTH. (D) THE FOLLOWING INFORMATION SHALL BE DISCLOSED TO THE BORROWER IN WRITING, IN A TYPEFACE NO SMALLER THAN TWELVE-POINT TYPE AND IN THE PRIMARY LANGUAGE OF THE BORROWER, AT THE TIME THE LOAN APPLICATION IS RECEIVED BY THE EXEMPT ENTITY: (I) THE AMOUNT TO BE BORROWED, THAT NO INTEREST WILL BE CHARGED ON THE LOAN, AND THE TOTAL DOLLAR COST OF THE LOAN TO THE BORROWER IF THE LOAN IS PAID BACK ON TIME, INCLUDING THE PRINCIPAL AMOUNT BORROWED, THE REPAYMENT INSTALLMENT AMOUNT, THE FREQUENCY OF PAYMENT, AND THE INSUFFI- CIENT FUNDS FEE, IF APPLICABLE; AND (II) AN EXPLANATION OF WHETHER, AND UNDER WHAT CIRCUMSTANCES, A BORROWER MAY EXIT A LOAN AGREEMENT. (E) THE PRINCIPAL AMOUNT UPON ORIGINATION OF THE LOAN SHALL BE NO LESS THAN TWO HUNDRED FIFTY DOLLARS AND NO MORE THAN TWO THOUSAND FIVE HUNDRED DOLLARS, AND A TERM OF NOT LESS THAN THE FOLLOWING: (I) NINETY DAYS FOR LOANS WHOSE PRINCIPAL BALANCE UPON ORIGINATION IS LESS THAN FIVE HUNDRED DOLLARS; (II) ONE HUNDRED TWENTY DAYS FOR LOANS WHOSE PRINCIPAL BALANCE UPON ORIGINATION IS AT LEAST FIVE HUNDRED DOLLARS, BUT IS LESS THAN ONE THOU- SAND FIVE HUNDRED DOLLARS; OR (III) ONE HUNDRED EIGHTY DAYS FOR LOANS WHOSE PRINCIPAL BALANCE UPON ORIGINATION IS AT LEAST ONE THOUSAND FIVE HUNDRED DOLLARS. 6. THE EXEMPT ENTITY MAY RESTRUCTURE A BORROWER'S LOAN ONLY IF THE LOAN AS RESTRUCTURED CONTINUES TO COMPLY WITH THE REQUIREMENTS IN PARA- GRAPHS (A), (B) AND (C) OF SUBDIVISION FIVE OF THIS SECTION. S. 2008--A 119 A. 3008--A 7. AN EXEMPT ENTITY SHALL NOT SELL OR ASSIGN UNPAID DEBT ARISING OUT OF ANY LOANS MADE PURSUANT TO THE AUTHORITY OF THIS SECTION TO THIRD PARTIES FOR COLLECTION. 8. PRIOR TO DISBURSEMENT OF LOAN PROCEEDS, THE EXEMPT ENTITY SHALL AT NO COST TO THE BORROWER EITHER: (A) PROVIDE A CREDIT EDUCATION PROGRAM OR SEMINAR TO THE BORROWER THAT HAS BEEN PREVIOUSLY REVIEWED AND APPROVED BY THE SUPERINTENDENT FOR USE IN COMPLYING WITH THIS SECTION; OR (B) OBTAIN EVIDENCE THAT THE BORROWER HAS ATTENDED A CREDIT EDUCATION PROGRAM OR SEMINAR OFFERED BY AN INDEPENDENT THIRD PARTY THAT HAS BEEN PREVIOUSLY REVIEWED AND APPROVED BY THE SUPERINTENDENT FOR USE IN COMPLYING WITH THIS SECTION. 9. AN EXEMPT ENTITY SHALL REPORT EACH BORROWER'S PAYMENT PERFORMANCE TO AT LEAST ONE CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE BASIS. FOR PURPOSES OF THIS SECTION, A CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUM- ERS ON A NATIONWIDE BASIS IS ONE THAT MEETS THE DEFINITION IN SECTION 603(P) OF THE FEDERAL FAIR CREDIT REPORTING ACT (15 U.S.C. SEC. 1681A(P)). ANY EXEMPT ENTITY THAT IS ACCEPTED AS A DATA FURNISHER SHALL REPORT ALL BORROWER PAYMENT PERFORMANCE SINCE THE INCEPTION OF LENDING BY SUCH ENTITY, AS SOON AS PRACTICABLE AFTER SUCH INDIVIDUAL IS ACCEPTED INTO THE EXEMPT ENTITY'S LENDING PROGRAM, BUT IN NO EVENT MORE THAN SIX MONTHS AFTER ITS ACCEPTANCE INTO THE PROGRAM. 10. THE EXEMPT ENTITY SHALL UNDERWRITE EACH LOAN AND SHALL ENSURE THAT A LOAN IS NOT MADE IF, THROUGH ITS UNDERWRITING, THE ENTITY DETERMINES THAT THE BORROWER'S TOTAL MONTHLY DEBT SERVICE PAYMENTS, AT THE TIME OF LOAN ORIGINATION, INCLUDING THE LOAN FOR WHICH THE BORROWER IS BEING CONSIDERED, AND ACROSS ALL OUTSTANDING FORMS OF CREDIT THAT CAN BE INDE- PENDENTLY VERIFIED BY THE EXEMPT ENTITY, EXCEEDS FIFTY PERCENT OF THE BORROWER'S GROSS MONTHLY HOUSEHOLD INCOME, UNLESS A LESSER AMOUNT IS MANDATED BY SUBPARAGRAPH (III) OF PARAGRAPH (C) OF THIS SUBDIVISION. THE EXEMPT ENTITY SHALL IN EVERY CASE: (A) OBTAIN INFORMATION AND DOCUMENTATION PERTAINING TO ALL OF A BORROWER'S OUTSTANDING DEBT OBLIGATIONS DURING THE LOAN APPLICATION AND UNDERWRITING PROCESS, INCLUDING BUT NOT LIMITED TO VERIFIED INFORMATION FROM A CREDIT REPORT AND LOANS THAT ARE SELF-REPORTED BY THE BORROWER BUT NOT AVAILABLE THROUGH INDEPENDENT VERIFICATION. (B) NOT INCLUDE FOR PURPOSES OF A DEBT-TO-INCOME RATIO EVALUATION, LOANS FROM FRIENDS OR FAMILY, EXCEPT IF IN THE JUDGMENT OF THE EXEMPT ENTITY, SUCH INCLUSION IS NECESSARY TO PROTECT THE INTERESTS OF THE CONSUMER. (C) VERIFY THE BORROWER'S HOUSEHOLD INCOME TO DETERMINE THE BORROWER'S DEBT-TO-INCOME RATIO USING INFORMATION FROM ANY OF THE FOLLOWING SOURC- ES: (I) ELECTRONIC MEANS OR SERVICES DEEMED ACCEPTABLE BY THE SUPERINTEN- DENT; (II) INTERNAL REVENUE SERVICE FORM W-2, TAX RETURNS, PAYROLL RECEIPTS, BANK STATEMENTS, OR OTHER THIRD-PARTY DOCUMENTS THAT PROVIDE REASONABLY RELIABLE EVIDENCE OF THE BORROWER'S ACTUAL INCOME; OR (III) A SIGNED STATEMENT FROM THE BORROWER STATING SOURCES AND AMOUNTS OF INCOME, IF THE BORROWER'S ACTUAL INCOME CANNOT BE INDEPENDENTLY VERI- FIED USING ELECTRONIC MEANS OR SERVICES, INTERNAL REVENUE SERVICE FORMS, TAX RETURNS, PAYROLL RECEIPTS, BANK STATEMENTS, OR OTHER THIRD-PARTY DOCUMENTS. IF INCOME IS VERIFIED USING A SIGNED STATEMENT FROM A BORROW- ER, A LOAN SHALL NOT BE MADE IF THE BORROWER'S TOTAL MONTHLY DEBT SERVICE PAYMENTS, AT THE TIME OF LOAN ORIGINATION, INCLUDING THE LOAN S. 2008--A 120 A. 3008--A FOR WHICH THE BORROWER IS BEING CONSIDERED, AND ACROSS ALL OUTSTANDING FORMS OF CREDIT, EXCEEDS TWENTY-FIVE PERCENT OF THE BORROWER'S GROSS MONTHLY HOUSEHOLD INCOME. 11. THE EXEMPT ENTITY SHALL NOTIFY EACH BORROWER, AT LEAST TWO DAYS PRIOR TO EACH PAYMENT DUE DATE, OF THE AMOUNT DUE AND THE PAYMENT DUE DATE. NOTIFICATION MAY BE PROVIDED BY ANY MEANS MUTUALLY ACCEPTABLE TO THE BORROWER AND THE EXEMPT ENTITY. A BORROWER SHALL HAVE THE RIGHT TO OPT OUT OF THIS NOTIFICATION AT ANY TIME, UPON ELECTRONIC OR WRITTEN REQUEST TO THE EXEMPT ENTITY. THE EXEMPT ENTITY SHALL NOTIFY EACH BORROWER OF THIS RIGHT PRIOR TO DISBURSING LOAN PROCEEDS. 12. NO EXEMPT ENTITY, IN CONNECTION WITH, OR INCIDENTAL TO, THE FACIL- ITATING OF ANY LOAN MADE PURSUANT TO THIS SECTION, SHALL OFFER, SELL, OR REQUIRE A BORROWER TO CONTRACT FOR "CREDIT INSURANCE" OR INSURANCE ON TANGIBLE PERSONAL OR REAL PROPERTY OF ANY TYPE SECURING ANY LOAN. 13. AN EXEMPT ENTITY MAY PARTNER WITH A NONPROFIT ORGANIZATION FOR THE PURPOSE OF FACILITATING ZERO-INTEREST LOANS BY THE EXEMPT ENTITY PURSU- ANT TO THIS SECTION. THIS NONPROFIT ORGANIZATION SHALL NOT BE SUBJECT TO THIS SECTION, PROVIDED THAT IT SATISFIES THE REQUIREMENTS APPLICABLE TO AN EXEMPT ENTITY SET FORTH IN PARAGRAPHS (B), (C) AND (D) OF SUBDIVISION TWO OF THIS SECTION AND PROVIDED THAT: (A) THE EXEMPT ENTITY NOTIFIES THE SUPERINTENDENT WITHIN FIFTEEN DAYS OF ENTERING INTO A WRITTEN AGREEMENT WITH A PARTNERING NONPROFIT ORGAN- IZATION, ON SUCH FORM AND IN SUCH MANNER AS THE SUPERINTENDENT MAY PRESCRIBE. AT A MINIMUM, THIS NOTIFICATION SHALL INCLUDE THE NAME OF THE PARTNERING NONPROFIT ORGANIZATION, THE CONTACT INFORMATION FOR A PERSON RESPONSIBLE FOR THE LENDING ACTIVITIES FACILITATED BY THAT PARTNERING ORGANIZATION, A COPY OF THE AGREEMENT AND THE ADDRESS OR ADDRESSES AT WHICH THE PARTNERING ORGANIZATION CAN BE REACHED. (B) THE EXEMPT ENTITY INCLUDES INFORMATION REGARDING THE LOANS FACILI- TATED BY THE PARTNERING ORGANIZATION IN THE ANNUAL REPORT REQUIRED PURSUANT TO SUBDIVISION FOUR OF THIS SECTION. (C) THE SUPERINTENDENT MAY, AT HIS OR HER SOLE DISCRETION, DISQUALIFY A PARTNERING NONPROFIT ORGANIZATION UPON A DETERMINATION THAT THIS ORGANIZATION HAS ACTED IN VIOLATION OF THIS SECTION OR ANY REGULATION ADOPTED HEREUNDER. 14. THE SUPERINTENDENT MAY EXAMINE OR REQUEST A SPECIAL REPORT FROM EACH EXEMPT ENTITY AND EACH PARTNERING NONPROFIT ORGANIZATION FOR COMPLIANCE WITH THE PROVISIONS OF THIS SECTION AT ANY TIME. ANY ENTITY SO EXAMINED SHALL MAKE AVAILABLE TO THE SUPERINTENDENT OR HIS OR HER REPRESENTATIVE ALL BOOKS AND RECORDS REQUESTED BY THE SUPERINTENDENT RELATED TO THE LENDING ACTIVITIES FACILITATED BY THAT ENTITY. IN ADDI- TION TO THE APPLICATION FEE PROVIDED FOR IN PARAGRAPH (A) OF SUBDIVISION THREE OF THIS SECTION, THE COST OF ANY SUCH EXAMINATION SHALL BE PAID FOR BY THE ENTITY BEING EXAMINED. 15. ALL REPORTS OF EXAMINATIONS AND INVESTIGATIONS, CORRESPONDENCE AND MEMORANDA CONCERNING OR ARISING OUT OF ANY EXAMINATION OR INVESTIGATION OF AN EXEMPT ENTITY SHALL BE SUBJECT TO THE PROVISIONS OF SUBDIVISION TEN OF SECTION THIRTY-SIX OF THIS CHAPTER. 16. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH GENERAL RULES AND REGULATIONS, AND SUCH SPECIFIC RULINGS, DEMANDS AND FINDINGS AS HE OR SHE MAY DEEM NECESSARY FOR THE PROPER CONDUCT OF THE LENDING ACTIVITIES EXEMPTED FROM LICENSING UNDER THIS SECTION. § 2. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART DD S. 2008--A 121 A. 3008--A Section 1. The state finance law is amended by adding a new section 89-i to read as follows: § 89-I. PAID FAMILY LEAVE RISK ADJUSTMENT FUND. 1. THERE IS HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE SUPERINTENDENT OF FINANCIAL SERVICES A SPECIAL FUND, TO BE KNOWN AS THE "PAID FAMILY LEAVE RISK ADJUSTMENT FUND". 2. SUCH FUND SHALL CONSIST OF MONEY RECEIVED BY THE SUPERINTENDENT FROM INSURANCE CARRIERS AS PAYMENTS INTO ANY RISK ADJUSTMENT MECHANISM ESTABLISHED BY REGULATION IN ACCORDANCE WITH PARAGRAPH TWO OF SUBSECTION (N) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THE INSURANCE LAW. 3. ALL MONEYS RETAINED IN SUCH FUND SHALL BE HELD ON BEHALF OF INSUR- ANCE CARRIERS AND PAID OUT BY THE SUPERINTENDENT TO INSURANCE CARRIERS PURSUANT TO THE RISK ADJUSTMENT MECHANISM ESTABLISHED BY REGULATION IN ACCORDANCE WITH PARAGRAPH TWO OF SUBSECTION (N) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THE INSURANCE LAW. 4. THE FUNDS SO RECEIVED AND DEPOSITED IN SUCH RISK ADJUSTMENT FUND SHALL NOT BE DEEMED TO BE STATE FUNDS. § 2. This act shall take effect immediately. PART EE Section 1. Section 340 of the banking law, as amended by chapter 22 of the laws of 1990, is amended to read as follows: § 340. Doing business without license prohibited. 1. No person or other entity shall engage in the business of making loans in the princi- pal amount of twenty-five thousand dollars or less for any loan to an individual for personal, family, household, or investment purposes and in a principal amount of fifty thousand dollars or less TO AN INDIVIDUAL OR BUSINESS for business and commercial loans, [and charge, contract for, or receive a greater rate of interest than the lender would be permitted by law to charge if he were not a licensee hereunder] except as authorized by this article OR BY REGULATIONS ISSUED BY THE SUPER- INTENDENT and without first obtaining a license from the superintendent. 2. For the purposes of this section, a person or entity shall be considered as engaging in the business of making loans in New York, and subject to the licensing and other requirements of this article, if it solicits loans in the amounts prescribed by this section [within this state] and, in connection with such solicitation, makes loans, PURCHASES OR OTHERWISE ACQUIRES FROM OTHERS LOANS OR OTHER FORMS OF FINANCING, OR ARRANGES OR FACILITATES THE FUNDING OF LOANS, to individuals then resi- dent in this state OR TO BUSINESSES LOCATED OR DOING BUSINESS IN THIS STATE, except that no person or entity shall be considered as engaging in the business of making loans in this state on the basis of isolated[, incidental] or occasional transactions which otherwise meet the require- ments of this section. 3. WHEN NECESSARY TO FACILITATE LOW COST LENDING IN ANY COMMUNITY, THE SUPERINTENDENT SHALL HAVE THE POWER TO ADOPT REGULATIONS THAT PROVIDE AN EXEMPTION FROM THE LICENSURE REQUIREMENT IN SUBDIVISION ONE OF THIS SECTION FOR A PERSON OR ENTITY. THE SUPERINTENDENT MAY ALSO ADOPT ANY SUCH ADDITIONAL RULES OR REGULATIONS THAT HE OR SHE DEEMS NECESSARY TO IMPLEMENT THE TERMS OF THIS SECTION INCLUDING THE EXEMPTION PROVISION IN THIS SUBDIVISION. 4. Nothing in this article shall apply to licensed collateral loan brokers. § 2. This act shall take effect January 1, 2018. S. 2008--A 122 A. 3008--A PART FF Section 1. Paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, as amended by section 7 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: (b) (1) "Home loan" means a home loan, including an open-end credit plan, [other than a reverse mortgage transaction,] in which: (i) The principal amount of the loan at origination did not exceed the conforming loan size that was in existence at the time of origination for a comparable dwelling as established by the FEDERAL HOUSING ADMINIS- TRATION OR federal national mortgage association; (ii) The borrower is a natural person; (iii) The debt is incurred by the borrower primarily for personal, family, or household purposes; (iv) The loan is secured by a mortgage or deed of trust on real estate upon which there is located or there is to be located a structure or structures intended principally for occupancy of from one to four fami- lies which is or will be occupied by the borrower as the borrower's principal dwelling; and (v) The property is located in this state. (2) A HOME LOAN SHALL INCLUDE A LOAN SECURED BY A REVERSE MORTGAGE THAT MEETS THE REQUIREMENTS OF CLAUSES (I) THROUGH (V) OF SUBPARAGRAPH ONE OF THIS PARAGRAPH. § 2. Subdivision (a) of rule 3408 of the civil practice law and rules, as amended by section 2 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: (a) [In] 1. EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, IN any residential foreclosure action involving a home loan as such term is defined in section thirteen hundred four of the real property actions and proceedings law, in which the defendant is a resident of the proper- ty subject to foreclosure, plaintiff shall file proof of service within twenty days of such service, however service is made, and the court shall hold a mandatory conference within sixty days after the date when proof of service upon such defendant is filed with the county clerk, or on such adjourned date as has been agreed to by the parties, for the purpose of holding settlement discussions pertaining to the relative rights and obligations of the parties under the mortgage loan documents, including, but not limited to: [1.] (I) determining whether the parties can reach a mutually agreeable resolution to help the defendant avoid losing his or her home, and evaluating the potential for a resolution in which payment schedules or amounts may be modified or other workout options may be agreed to, including, but not limited to, a loan modifi- cation, short sale, deed in lieu of foreclosure, or any other loss miti- gation option; or [2.] (II) whatever other purposes the court deems appropriate. 2. PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY TO A HOME LOAN SECURED BY A REVERSE MORTGAGE WHERE THE DEFAULT WAS TRIGGERED BY THE DEATH OF THE LAST SURVIVING BORROWER UNLESS THE LAST SURVIVING BORROW- ER'S SPOUSE, IF ANY, IS A RESIDENT OF THE PROPERTY SUBJECT TO FORECLO- SURE. § 3. This act shall take effect immediately; provided, however, that: (a) the amendments to paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, made by section one of this act, shall take effect on the same date and in the same manner as section 7 of part Q of chapter 73 of the laws of 2016 takes effect; and S. 2008--A 123 A. 3008--A (b) the amendments to subdivision (a) of rule 3408 of the civil prac- tice law and rules, made by section two of this act, shall be subject to the expiration and reversion of such subdivision pursuant to subdivision e of section 25 of chapter 507 of the laws of 2009, as amended. PART GG Section 1. This act enacts into law major components of legislation relating to assessments, distribution of assets, and insurers deemed to be in a hazardous financial condition. Each component is wholly contained within a Subpart identified as Subparts A through C. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes references to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. Subsection (a) of section 206 of the financial services law, is amended and a new subsection (g) is added to read as follows: (a) For each fiscal year commencing on or after April first, two thou- sand twelve, assessments to defray operating expenses, including all direct and indirect costs, of the department, except expenses incurred in the liquidation of banking organizations, shall be assessed by the superintendent in accordance with this subsection. Persons regulated under the insurance law shall be assessed by the superintendent for the operating expenses of the department that are solely attributable to regulating persons under the insurance law, which shall include any expenses that were permissible to be assessed in fiscal year two thou- sand nine-two thousand ten, with the assessments allocated pro rata upon all domestic insurers and all licensed United States branches of alien insurers domiciled in this state within the meaning of paragraph four of subsection (b) of section seven thousand four hundred eight of the insurance law, in proportion to the gross direct premiums and other considerations, written or received by them in this state during the calendar year ending December thirty-first immediately preceding the end of the fiscal year for which the assessment is made (less return premi- ums and considerations thereon) for policies or contracts of insurance covering property or risks resident or located in this state the issu- ance of which policies or contracts requires a license from the super- intendent. Persons regulated under the banking law shall be assessed by the superintendent for the operating expenses of the department that are solely attributable to regulating persons under the banking law in such proportions as the superintendent shall deem just and reasonable. PERSONS REGULATED UNDER THIS CHAPTER SHALL BE ASSESSED BY THE SUPER- INTENDENT FOR THE OPERATING EXPENSES OF THE DEPARTMENT THAT ARE SOLELY ATTRIBUTABLE TO REGULATED PERSONS UNDER THIS CHAPTER IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE. Operating expenses of the department not covered by the assessments set forth above shall be assessed by the superintendent in such proportions as the superinten- dent shall deem just and reasonable upon all domestic insurers and all licensed United States branches of alien insurers domiciled in this S. 2008--A 124 A. 3008--A state within the meaning of paragraph four of subsection (b) of section seven thousand four hundred eight of the insurance law, and upon any regulated person under THIS CHAPTER AND the banking law, other than mortgage loan originators, except as otherwise provided by sections one hundred fifty-one and two hundred twenty-eight of the workers' compen- sation law and by section sixty of the volunteer firefighters' benefit law. The provisions of this subsection shall not be applicable to a bank holding company, as that term is defined in article three-A of the bank- ing law. Persons regulated under the banking law will not be assessed for expenses that the superintendent deems to benefit solely persons regulated under the insurance law, and persons regulated under the insurance law will not be assessed for expenses that the superintendent deems to benefit solely persons regulated under the banking law. (G) THE EXPENSES OF EVERY EXAMINATION OF THE AFFAIRS OF ANY REGULATED PERSON SUBJECT TO THIS CHAPTER, SHALL BE BORNE AND PAID BY THE REGULATED PERSON SO EXAMINED, BUT THE SUPERINTENDENT, WITH THE APPROVAL OF THE COMPTROLLER, MAY, IN THE SUPERINTENDENT'S DISCRETION FOR GOOD CAUSE SHOWN, REMIT SUCH CHARGES. § 2. This act shall take effect January 1, 2018. SUBPART B Section 1. Legislative findings. In order to provide an appropriate scheme of distribution of assets of all insolvent insurers, the legisla- ture finds that it is in the best interest of the people of this state to amend statutes regarding the priority of distribution under Article 74 of the Insurance Law. § 2. Paragraph 1 of subsection (a) of section 7434 of the insurance law, as amended by chapter 134 of the laws of 1999, is amended to read as follows: (1) Upon the recommendation of the superintendent, AS RECEIVER, and under the direction of the court, distribution payments shall be made in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the [liqui- dation] PROCEEDING SUBJECT TO THIS ARTICLE and the protection of unliq- uidated and undetermined claims. The priority of distribution of claims from [an] ALL insolvent [property/casualty insurer] INSURERS in any proceeding subject to this article, UNLESS OTHERWISE SPECIFIED, shall be in accordance with the order in which each class of claims is set forth in this paragraph and as provided in this paragraph. Every claim in each class shall be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. No claim by a shareholder, poli- cyholder, CONTRACT HOLDER or other creditor shall be permitted to circumvent the priority classes through the use of equitable remedies. The order of distribution of claims shall be: (i) Class one. Claims with respect to the actual and necessary costs and expenses of administration, incurred by the liquidator, rehabilita- tor or conservator under this article. (ii) Class two. All claims under policies OR CONTRACTS, including such claims of the federal or any state or local government for losses incurred, third party claims, claims for unearned premiums, and all claims of a security fund, guaranty association or the equivalent except claims arising under reinsurance contracts. (iii) Class three. Claims of the federal government except those under class two above. S. 2008--A 125 A. 3008--A (iv) Class four. Claims for wages owing to employees of an insurer against whom a proceeding under this article is commenced for services rendered within one year before commencement of the proceeding, not exceeding one thousand two hundred dollars to each employee, and claims for unemployment insurance contributions required by article eighteen of the labor law. Such priority shall be in lieu of any other similar priority which may be authorized by law. (v) Class five. Claims of state and local governments except those under class two above. (vi) Class six. Claims of general creditors including[, but not limit- ed to,] claims arising under reinsurance contracts. (vii) Class seven. Claims filed late or any other claims other than claims under class eight or class nine below. (viii) Class eight. Claims for advanced or borrowed funds made pursu- ant to section one thousand three hundred seven of this chapter. (ix) Class nine. Claims of shareholders or other owners in their capacity as shareholders. § 3. Section 7435 of the insurance law, as added by chapter 802 of the laws of 1985, paragraph 7 of subsection (a) as amended by chapter 300 of the laws of 1996, is amended to read as follows: § 7435. Distribution for life insurers. (a) UPON THE RECOMMENDATION OF THE SUPERINTENDENT, AS RECEIVER, AND UNDER THE DIRECTION OF THE COURT, DISTRIBUTION PAYMENTS SHALL BE MADE IN A MANNER THAT WILL ASSURE THE PROPER RECOGNITION OF PRIORITIES AND A REASONABLE BALANCE BETWEEN THE EXPEDITIOUS COMPLETION OF THE PROCEEDING SUBJECT TO THIS ARTICLE AND THE PROTECTION OF UNLIQUIDATED AND UNDETERMINED CLAIMS. The priority of distribution of claims from the estate of [a] AN INSOLVENT life insur- ance company in any proceeding subject to this article shall be in accordance with the order in which each class of claims is [herein] set forth IN THIS SECTION AND AS PROVIDED IN THIS SECTION. Every claim in each class shall[, subject to such limitations as may be prescribed by law and do not directly conflict with the express provisions of this section,] be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. NO CLAIM BY A SHAREHOLDER, POLI- CYHOLDER, ANNUITANT, OR OTHER CREDITOR SHALL BE PERMITTED TO CIRCUMVENT THE PRIORITY CLASSES THROUGH THE USE OF EQUITABLE REMEDIES. The order of distribution of claims shall be: (1) Class one. Claims with respect to the actual and necessary costs and expenses of administration, incurred by the liquidator, rehabilita- tor, conservator or ancillary rehabilitator under this article, or by The Life Insurance Guaranty Corporation or The Life Insurance Company Guaranty Corporation of New York, and claims described in subsection (d) of section seven thousand seven hundred thirteen of this chapter. (2) Class two. [Debts due to employees for services performed to the extent that they do not exceed one thousand two hundred dollars and represent payment for services performed within one year before the commencement of a proceeding under this article. Such priority shall be in lieu of any other similar priority which may be authorized by law as to wages or compensation of employees] ALL CLAIMS UNDER INSURANCE POLI- CIES, INCLUDING SUCH CLAIMS OF THE FEDERAL OR ANY STATE OR LOCAL GOVERN- MENT, ANNUITY CONTRACTS, AND FUNDING AGREEMENTS, AND ALL CLAIMS OF THE THE LIFE INSURANCE COMPANY GUARANTY CORPORATION OF NEW YORK OR ANY OTHER GUARANTY CORPORATION OR ASSOCIATION OF THIS STATE OR ANOTHER JURISDIC- TION, OTHER THAN CLAIMS PROVIDED FOR IN PARAGRAPH ONE OF THIS SUBSECTION AND CLAIMS FOR INTEREST. S. 2008--A 126 A. 3008--A (3) Class three. [All claims for payment for goods furnished or services rendered to the impaired or insolvent insurer in the ordinary course of business within ninety days prior to the date on which the insurer was determined to be impaired or insolvent, whichever is appli- cable] CLAIMS OF THE FEDERAL GOVERNMENT EXCEPT CLAIMS PROVIDED FOR IN PARAGRAPH TWO OF THIS SUBSECTION. (4) Class four. [All claims under insurance policies, annuity contracts and funding agreements, and all claims of The Life Insurance Company Guaranty Corporation of New York or any other guaranty corpo- ration or association of this state or another jurisdiction, other than (i) claims provided for in paragraph one of this subsection, and (ii) claims for interest] DEBTS DUE TO EMPLOYEES FOR SERVICES PERFORMED TO THE EXTENT THAT THEY DO NOT EXCEED ONE THOUSAND TWO HUNDRED DOLLARS AND REPRESENT PAYMENT FOR SERVICES PERFORMED WITHIN ONE YEAR BEFORE THE COMMENCEMENT OF A PROCEEDING UNDER THIS ARTICLE. SUCH PRIORITY SHALL BE IN LIEU OF ANY OTHER SIMILAR PRIORITY THAT MAY BE AUTHORIZED BY LAW AS TO WAGES OR COMPENSATION OF EMPLOYEES. (5) Class five. [Claims of the federal or any state or local govern- ment. Claims, including those of any governmental body for a penalty or forfeiture, shall be allowed to this class only to the extent of the pecuniary loss sustained from the act, transaction or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of such claims shall be postponed to the class of claims under paragraph eight of this subsection] ALL CLAIMS FOR PAYMENT FOR GOODS FURNISHED OR SERVICES RENDERED TO THE IMPAIRED OR INSOLVENT INSURER IN THE ORDINARY COURSE OF BUSINESS WITHIN NINETY DAYS PRIOR TO THE DATE ON WHICH THE INSURER WAS DETERMINED TO BE IMPAIRED OR INSOLVENT, WHICHEVER IS APPLICABLE. (6) Class six. [Claims of general creditors and any other claims other than claims under paragraphs seven and eight of this subsection] CLAIMS OF ANY STATE OR LOCAL GOVERNMENT OTHER THAN CLAIMS PROVIDED FOR UNDER PARAGRAPH TWO OF THIS SUBSECTION. CLAIMS, INCLUDING THOSE OF ANY GOVERN- MENTAL BODY FOR A PENALTY OR FORFEITURE, SHALL BE ALLOWED TO THIS CLASS ONLY TO THE EXTENT OF PECUNIARY LOSS SUSTAINED FROM THE ACT, TRANS- ACTION, OR PROCEEDING OUT OF WHICH THE PENALTY OR FORFEITURE AROSE, WITH REASONABLE AND ACTUAL COSTS OCCASIONED THEREBY. THE REMAINDER OF SUCH CLAIMS SHALL BE POSTPONED TO THE CLASS OF CLAIMS UNDER PARAGRAPH NINE OF THIS SUBSECTION. (7) Class seven. [Surplus, capital or contribution notes, or similar obligations] CLAIMS OF GENERAL CREDITORS AND ANY OTHER CLAIMS OTHER THAN CLAIMS UNDER PARAGRAPHS EIGHT AND NINE OF THIS SUBSECTION. (8) Class eight. [The claims of (i) policyholders, other than claims under paragraph four of this subsection, and (ii) shareholders or other owners] SURPLUS, CAPITAL, OR CONTRIBUTION NOTES, OR SIMILAR OBLIGATIONS. (9) CLASS NINE. THE CLAIMS OF POLICYHOLDERS OR ANNUITANTS, OTHER THAN CLAIMS UNDER PARAGRAPH TWO OF THIS SUBSECTION, AND SHAREHOLDERS OR OTHER OWNERS. (b) Every claim under a separate account agreement providing, in effect, that the assets in the separate account shall not be chargeable with liabilities arising out of any other business of the insurer shall be satisfied out of the assets in the separate account equal to the reserves maintained in such account for such agreement and, to the extent, if any, not fully discharged thereby, shall be treated as a class four claim against the estate of the life insurance company. (c) For purposes of this section: S. 2008--A 127 A. 3008--A (1) "The estate of the life insurance company" shall mean the general assets of such company less any assets held in separate accounts that, pursuant to section four thousand two hundred forty of this chapter, are not chargeable with liabilities arising out of any other business of the insurer. (2) "Insurance policies, annuity contracts and funding agreements" shall mean all policies and contracts of any of the kinds of insurance specified in paragraph one, two or three of subsection (a) of section one thousand one hundred thirteen of this chapter and all funding agree- ments described in section three thousand two hundred twenty-two of this chapter, including all separate account agreements, except that separate account agreements referred to in subsection (b) of this section shall be included only to the extent referred to therein. (3) "Separate account agreement or agreements" shall mean any agree- ment or agreements for separate accounts referred to in section four thousand two hundred forty of this chapter. § 4. This act shall take effect immediately. SUBPART C Section 1. Section 1104 of the insurance law, the section heading as amended and subsections (c) and (d) as added by chapter 235 of the laws of 1989, the opening paragraph of subsection (c) as amended by chapter 598 of the laws of 2000, is amended to read as follows: § 1104. Revocation or suspension of license; restriction of license authority or limitation on premiums written. (a) The superintendent may revoke any license, CERTIFICATE OF AUTHORITY, OR REGISTRATION issued to any foreign or alien insurer to do an insurance business in this state if, after notice to and hearing, [he] THE SUPERINTENDENT finds that such insurer has failed to comply with any requirement imposed upon it by the provisions of this chapter and if in [his] THE SUPERINTENDENT'S judgment such revocation is reasonably necessary to protect the interests of the people of this state. The superintendent may, in his OR HER discretion, reinstate any such license, CERTIFICATE OF AUTHORITY, OR REGISTRATION if [he] THE SUPERINTENDENT finds that a ground for such revocation no long- er exists. (b) The superintendent shall revoke the certificate of authority of any corporation or agent convicted of violating section two thousand six hundred three of this chapter. (c) [The] (1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE superintendent may [suspend the license, restrict the license authority, or limit the amount of premiums written in this state of any accident and health insurance company, property/casualty insurance company, co-operative property/casualty insurance company, title insurance compa- ny, mortgage guaranty insurance company, reciprocal insurer, Lloyds underwriters or nonprofit property/casualty insurance company] TAKE ONE OR MORE OF THE ACTIONS SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF THIS SUBSECTION AGAINST AN INSURER, except those insurers subject to the provisions of subsection (c) of section two thousand three hundred forty-three of this chapter, if after a hearing on a record, unless waived by the affected insurer, the superintendent determines that such insurer's surplus to policyholders is not adequate in relation to the insurer's outstanding liabilities or to its financial needs OR IF THE SUPERINTENDENT OTHERWISE DETERMINES THAT THE CONTINUED OPERATION OF THE INSURER MIGHT BE DEEMED TO BE HAZARDOUS TO THE INSURER'S POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC. S. 2008--A 128 A. 3008--A (2) All matters pertaining to a proceeding or determination pursuant to this subsection shall be confidential and not subject to subpoena or public inspection under article six of the public officers law or any other statute, except to the extent that the superintendent finds release of information necessary to protect the public. The hearing shall be initiated within twenty days after written notice to the insur- er. Any determination pursuant to this subsection shall contain findings specifying the factors deemed significant in regard to the particular insurer, and shall set forth the reasons supporting the suspension, restriction or limitation ordered by the superintendent. (3) The SUPERINTENDENT MAY CONSIDER THE following factors [shall be considered by the superintendent] in making [such] A determination AS TO WHETHER AN INSURER'S SURPLUS TO POLICYHOLDERS IS ADEQUATE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES OR TO ITS FINANCIAL NEEDS: [(1)] (A) the size of the insurer as measured by its admitted assets, capital and surplus to policyholders, reserves, premium writings, insur- ance in force and other appropriate criteria, with such surplus to poli- cyholders for foreign insurers adjusted in accordance with section one thousand four hundred thirteen of this chapter; [(2)] (B) the extent to which the insurer's business is diversified among the several kinds of insurance; [(3)] (C) the number and size of risks insured in each kind of insur- ance and the insurer's loss experience in regard to such risks; [(4)] (D) the extent of geographical dispersion of the insurer's risks; [(5)] (E) the nature and extent of the insurer's reinsurance program; [(6)] (F) the quality, diversification and liquidity of the insurer's investment portfolio; [(7)] (G) the recent past and projected future trends in regard to the insurer's loss experience and in the size of the insurer's surplus to policyholders; [(8)] (H) the surplus to policyholders maintained by other comparable insurers; [(9)] (I) the adequacy of the insurer's reserves; and [(10)] (J) the quality and liquidity of investments in subsidiaries made pursuant to this chapter. (4)(A) THE SUPERINTENDENT MAY CONSIDER THE FOLLOWING STANDARDS, EITHER SINGLY OR A COMBINATION OF TWO OR MORE, TO DETERMINE WHETHER THE CONTIN- UED OPERATION OF ANY INSURER MIGHT BE DEEMED TO BE HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC: (I) ADVERSE FINDINGS REPORTED IN FINANCIAL CONDITION AND MARKET CONDUCT EXAMINATION REPORTS, AUDIT REPORTS, ACTUARIAL OPINIONS, REPORTS, OR SUMMARIES, OR OTHER REPORTS; (II) THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS INSURANCE REGULATORY INFORMATION SYSTEM AND ITS OTHER FINANCIAL ANALYSIS SOLVENCY TOOLS AND REPORTS; (III) WHETHER THE INSURER HAS MADE ADEQUATE PROVISION, ACCORDING TO PRESENTLY ACCEPTED ACTUARIAL STANDARDS OF PRACTICE, FOR THE ANTICIPATED CASH FLOWS REQUIRED BY THE CONTRACTUAL OBLIGATIONS AND RELATED EXPENSES OF THE INSURER, WHEN CONSIDERED IN LIGHT OF THE ASSETS HELD BY THE INSURER WITH RESPECT TO SUCH RESERVES AND RELATED ACTUARIAL ITEMS, INCLUDING THE INVESTMENT EARNINGS ON SUCH ASSETS, AND THE CONSIDERATIONS ANTICIPATED TO BE RECEIVED AND RETAINED UNDER SUCH POLICIES AND CONTRACTS; (IV) THE ABILITY OF AN ASSUMING REINSURER TO PERFORM AND WHETHER THE INSURER'S REINSURANCE PROGRAM PROVIDES SUFFICIENT PROTECTION FOR THE S. 2008--A 129 A. 3008--A INSURER'S REMAINING SURPLUS AFTER TAKING INTO ACCOUNT THE INSURER'S CASH FLOW AND THE CLASSES OF BUSINESS WRITTEN AS WELL AS THE FINANCIAL CONDI- TION OF THE ASSUMING REINSURER; (V) WHETHER THE INSURER'S OPERATING LOSS IN THE LAST TWELVE-MONTH PERIOD OR ANY SHORTER PERIOD OF TIME, INCLUDING NET CAPITAL GAIN OR LOSS, CHANGE IN NON-ADMITTED ASSETS, AND CASH DIVIDENDS PAID TO SHARE- HOLDERS, IS GREATER THAN FIFTY PERCENT OF THE INSURER'S REMAINING SURPLUS TO POLICYHOLDERS IN EXCESS OF THE MINIMUM REQUIRED; (VI) WHETHER THE INSURER'S OPERATING LOSS IN THE LAST TWELVE-MONTH PERIOD OR ANY SHORTER PERIOD OF TIME, EXCLUDING NET CAPITAL GAINS, IS GREATER THAN TWENTY PERCENT OF THE INSURER'S REMAINING SURPLUS TO POLI- CYHOLDERS IN EXCESS OF THE MINIMUM REQUIRED; (VII) WHETHER A REINSURER, AN OBLIGOR, ANY ENTITY IN THE INSURER'S HOLDING COMPANY SYSTEM, AS DEFINED IN PARAGRAPH SIX OF SUBSECTION (A) OF SECTION ONE THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, OR ANY SUBSIDIARY OF AN INSURER, IS INSOLVENT, THREATENED WITH INSOLVENCY, OR DELINQUENT IN PAYMENT OF ITS MONETARY OR OTHER OBLIGATIONS, AND WHICH IN THE OPIN- ION OF THE SUPERINTENDENT MAY AFFECT THE SOLVENCY OF THE INSURER; (VIII) CONTINGENT LIABILITIES, PLEDGES, OR GUARANTEES THAT EITHER INDIVIDUALLY OR COLLECTIVELY INVOLVE A TOTAL AMOUNT THAT IN THE SUPER- INTENDENT'S OPINION MAY AFFECT THE INSURER'S SOLVENCY; (IX) WHETHER ANY PERSON WHO CONTROLS AN INSURER, AS DEFINED IN PARA- GRAPH TWO OF SUBSECTION (A) OF SECTION ONE THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, IS DELINQUENT IN THE TRANSMITTING TO, OR PAYMENT OF, NET PREMIUMS TO THE INSURER; (X) THE AGE AND COLLECTABILITY OF RECEIVABLES; (XI) WHETHER THE MANAGEMENT OF AN INSURER, INCLUDING OFFICERS, DIREC- TORS, OR ANY OTHER PERSON WHO DIRECTLY OR INDIRECTLY CONTROLS THE OPERA- TION OF THE INSURER, FAILS TO POSSESS AND DEMONSTRATE THE COMPETENCE, FITNESS, AND REPUTATION DEEMED NECESSARY TO SERVE THE INSURER IN SUCH POSITION; (XII) WHETHER THE INSURER'S MANAGEMENT HAS FAILED TO RESPOND TO AN INQUIRY OF THE SUPERINTENDENT RELATIVE TO THE INSURER'S CONDITION OR HAS FURNISHED FALSE AND MISLEADING INFORMATION CONCERNING SUCH AN INQUIRY; (XIII) WHETHER THE INSURER HAS FAILED TO MEET FINANCIAL FILING REQUIREMENTS OR FILING REQUIREMENTS PURSUANT TO ARTICLES FIFTEEN, SIXTEEN, OR SEVENTEEN OF THIS CHAPTER, OR REGULATIONS PROMULGATED THERE- UNDER, IN THE ABSENCE OF A REASON SATISFACTORY TO THE SUPERINTENDENT; (XIV) WHETHER THE INSURER'S MANAGEMENT EITHER HAS FILED ANY FALSE OR MISLEADING SWORN FINANCIAL STATEMENT, OR HAS RELEASED FALSE OR MISLEAD- ING FINANCIAL STATEMENTS TO LENDING INSTITUTIONS OR TO THE GENERAL PUBLIC, OR HAS MADE A FALSE OR MISLEADING ENTRY, OR HAS OMITTED AN ENTRY OF MATERIAL AMOUNT IN THE INSURER'S BOOKS; (XV) WHETHER THE INSURER HAS GROWN SO RAPIDLY AND TO SUCH AN EXTENT THAT IT LACKS ADEQUATE FINANCIAL AND ADMINISTRATIVE CAPACITY TO MEET ITS OBLIGATIONS IN A TIMELY MANNER; (XVI) WHETHER THE INSURER HAS EXPERIENCED OR IS EXPECTED TO EXPERIENCE IN THE FORESEEABLE FUTURE CASH FLOW OR LIQUIDITY PROBLEMS; (XVII) WHETHER MANAGEMENT HAS ESTABLISHED RESERVES THAT DO NOT COMPLY WITH MINIMUM STANDARDS ESTABLISHED BY THIS CHAPTER OR REGULATIONS PROMULGATED THEREUNDER, STATUTORY ACCOUNTING STANDARDS, AS ADOPTED BY THE SUPERINTENDENT, SOUND ACTUARIAL PRINCIPLES AND STANDARDS OF PRAC- TICE; (XVIII) WHETHER MANAGEMENT PERSISTENTLY ENGAGES IN MATERIAL UNDER RESERVING THAT RESULTS IN ADVERSE DEVELOPMENT; S. 2008--A 130 A. 3008--A (XIX) WHETHER ANY TRANSACTION WITH AN AFFILIATE, A SUBSIDIARY, OR A PARENT FOR WHICH THE INSURER RECEIVES ASSETS OR CAPITAL GAINS, OR BOTH, DO NOT PROVIDE SUFFICIENT VALUE, LIQUIDITY, OR DIVERSITY TO ASSURE THE INSURER'S ABILITY TO MEET ITS OUTSTANDING OBLIGATIONS AS THEY MATURE; AND (XX) ANY OTHER FINDING DETERMINED BY THE SUPERINTENDENT TO BE HAZARD- OUS TO THE INSURER'S POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC. (B) IF THE SUPERINTENDENT DETERMINES THAT THE INSURER'S SURPLUS TO POLICYHOLDERS IS NOT ADEQUATE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES OR TO ITS FINANCIAL NEEDS OR IF THE SUPERINTENDENT OTHERWISE DETERMINES THAT THE CONTINUED OPERATION OF THE INSURER MAY BE HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC, THEN THE SUPERINTENDENT MAY, UPON A DETERMINATION, SUSPEND THE INSURER'S LICENSE, CERTIFICATE OF AUTHORITY, OR REGISTRATION, RESTRICT THE INSURER'S LICENSE, CERTIFICATE OF AUTHORITY, OR REGISTRATION AUTHORITY, OR ISSUE AN ORDER REQUIRING THE INSURER TO DO ONE OR MORE OF THE FOLLOWING: (I) REDUCE THE TOTAL AMOUNT OF PRESENT AND POTENTIAL LIABILITY FOR POLICY BENEFITS BY REINSURANCE; (II) REDUCE, SUSPEND, OR LIMIT THE VOLUME OF BUSINESS BEING ACCEPTED OR RENEWED, OR LIMIT THE AMOUNT OF PREMIUMS WRITTEN IN THIS STATE; (III) REDUCE GENERAL INSURANCE AND COMMISSION EXPENSES BY SPECIFIED METHODS; (IV) INCREASE THE INSURER'S CAPITAL AND SURPLUS; (V) SUSPEND OR LIMIT THE DECLARATION AND PAYMENT OF DIVIDENDS BY AN INSURER TO ITS STOCKHOLDERS OR POLICYHOLDERS; (VI) FILE REPORTS ON A FORM AND IN A MANNER ACCEPTABLE TO THE SUPER- INTENDENT CONCERNING THE MARKET VALUE OF AN INSURER'S ASSETS; (VII) LIMIT OR WITHDRAW FROM CERTAIN INVESTMENTS OR DISCONTINUE CERTAIN INVESTMENT PRACTICES TO THE EXTENT THE SUPERINTENDENT DEEMS NECESSARY; (VIII) DOCUMENT THE ADEQUACY OF PREMIUM RATES IN RELATION TO THE RISKS INSURED; (IX) FILE, IN ADDITION TO REGULAR ANNUAL STATEMENTS, INTERIM FINANCIAL REPORTS ON A FORM AND IN A MANNER PRESCRIBED BY THE SUPERINTENDENT, WHICH MAY INCLUDE A FORM ADOPTED BY THE NATIONAL ASSOCIATION OF INSUR- ANCE COMMISSIONERS; (X) CORRECT CORPORATE GOVERNANCE PRACTICE DEFICIENCIES, AND ADOPT AND UTILIZE GOVERNANCE PRACTICES ACCEPTABLE TO THE SUPERINTENDENT; (XI) PROVIDE A BUSINESS PLAN TO THE SUPERINTENDENT IN ORDER TO CONTIN- UE TO TRANSACT BUSINESS IN THIS STATE; OR (XII) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ADJUST RATES FOR ANY NON-LIFE INSURANCE POLICY OR CONTRACT WRITTEN BY THE INSURER THAT THE SUPERINTENDENT CONSIDERS NECESSARY TO IMPROVE THE INSURER'S FINANCIAL CONDITION. (d) [The superintendent shall identify and review those licensed property/casualty insurers needing immediate or targeted regulatory attention, and shall include the number of insurers so identified in the report required by section three hundred thirty-four of this chapter. Such report shall also include the name of each licensed property/casualty insurer placed in formal conservatorship, rehabili- tation or liquidation during the preceding year. Nothing herein shall be construed to restrict or diminish any right or power of the superinten- dent under any other provision of this chapter] FOR THE PURPOSES OF THIS SECTION, "INSURER" SHALL MEAN ANY PERSON, FIRM, ASSOCIATION, CORPO- RATION, OR JOINT-STOCK COMPANY AUTHORIZED TO DO AN INSURANCE BUSINESS IN THIS STATE BY A LICENSE IN FORCE PURSUANT TO THE PROVISIONS OF THIS S. 2008--A 131 A. 3008--A CHAPTER OR EXEMPTED BY THE PROVISIONS OF THIS CHAPTER FROM SUCH LICENS- ING, EXCEPT THAT, FOR PURPOSES OF THIS SECTION, THE TERM "INSURER" SHALL NOT INCLUDE ANY HEALTH MAINTENANCE ORGANIZATION OPERATING PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED NINE OF THIS CHAPTER OR ANY CONTINUING CARE RETIREMENT COMMUNITY OPERATING PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED NINETEEN OF THIS CHAPTER. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through C of this act shall be as specifically set forth in the last section of such Subparts. PART HH Section 1. Paragraph (a) of subdivision 2 of section 179 of the navi- gation law, as amended by section 2 of part X of chapter 58 of the laws of 2015, is amended to read as follows: (a) An account which shall be credited with all license fees and penalties collected pursuant to paragraph (b) of subdivision one and paragraph (a) of subdivision four of section one hundred seventy-four of this article EXCEPT AS PROVIDED IN SECTION ONE HUNDRED SEVENTY-NINE-A OF THIS ARTICLE, the portion of the surcharge collected pursuant to para- graph (d) of subdivision four of section one hundred seventy-four of this article, penalties collected pursuant to paragraph (b) of subdivi- sion four of section one hundred seventy-four-a of this article, money collected pursuant to section one hundred eighty-seven of this article, all penalties collected pursuant to section one hundred ninety-two of this article, and registration fees collected pursuant to subdivision two of section 17-1009 of the environmental conservation law. § 2. The navigation law is amended by adding a new section 179-a to read as follows: § 179-A. NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT. 1. THERE IS HEREBY CREATED AN ACCOUNT WITHIN THE MISCELLANEOUS CAPITAL PROJECTS FUND, THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT. THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT SHALL CONSIST OF LICENSE FEES RECEIVED BY THE STATE PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE, IN AN AMOUNT EQUAL TO EXPENDITURES MADE FROM THIS ACCOUNT. 2. THESE MONEYS, AFTER APPROPRIATION BY THE LEGISLATURE, AND WITHIN THE AMOUNTS SET FORTH AND FOR THE SEVERAL PURPOSES SPECIFIED, SHALL BE AVAILABLE TO REIMBURSE THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR EXPENDITURES ASSOCIATED WITH THE PURPOSES OF COSTS INCURRED UNDER THIS ARTICLE, INCLUDING CLEANUP AND REMOVAL OF PETROLEUM SPILLS, AND OTHER CAPITAL, INVESTIGATION, MAINTENANCE AND REMEDIATION COSTS. 3. ALL PAYMENTS MADE FROM THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT SHALL BE MADE BY THE ADMINISTRATOR UPON CERTIFICATION BY THE COMMISSIONER. S. 2008--A 132 A. 3008--A 4. SPENDING PURSUANT TO THIS SECTION SHALL BE INCLUDED IN THE ANNUAL REPORT REQUIRED BY SECTION ONE HUNDRED NINETY-SIX OF THIS ARTICLE. § 3. Subdivision 3 of section 176 of the navigation law, as added by chapter 845 of the laws of 1977, is amended to read as follows: 3. Any unexplained discharge of petroleum within state jurisdiction or discharge of petroleum occurring in waters beyond state jurisdiction that for any reason penetrates within state jurisdiction shall be removed by or under the direction of the department. Except for those expenses incurred by the party causing such discharge, any expenses incurred in the removal of discharges shall be paid promptly from the New York environmental protection and spill compensation fund pursuant to [section] SECTIONS one hundred and eighty-six AND ONE HUNDRED SEVEN- TY-NINE-A of this article and any reimbursements due such fund shall be collected in accordance with the provisions of section one hundred and eighty-seven of this article. § 4. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART II Section 1. This act shall be known and may be cited as the "clean water infrastructure act of 2017". § 2. Article 15 of the environmental conservation law is amended by adding a new title 33 to read as follows: TITLE 33 SOURCE WATER PROTECTION PROJECTS SECTION 15-3301. DEFINITIONS. 15-3303. LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION. § 15-3301. DEFINITIONS. AS USED IN THIS TITLE THE FOLLOWING TERMS SHALL MEAN: 1. "LAND ACQUISITION PROJECTS" MEANS OPEN SPACE ACQUISITION PROJECTS UNDERTAKEN WITH WILLING SELLERS INCLUDING, BUT NOT LIMITED TO, THE PURCHASE OF CONSERVATION EASEMENTS, UNDERTAKEN BY A MUNICIPALITY, A NOT-FOR-PROFIT CORPORATION, OR PURCHASE OF CONSERVATION EASEMENTS BY A SOIL AND WATER CONSERVATION DISTRICT. 2. "MUNICIPALITY" MEANS THE SAME AS SUCH TERM AS DEFINED IN SECTION 56-0101 OF THIS CHAPTER. 3. "NOT-FOR-PROFIT CORPORATION" MEANS A CORPORATION FORMED PURSUANT TO THE NOT-FOR-PROFIT CORPORATION LAW AND QUALIFIED FOR TAX-EXEMPT STATUS UNDER THE FEDERAL INTERNAL REVENUE CODE. 4. "SOIL AND WATER CONSERVATION DISTRICT" MEANS THE SAME AS SUCH TERM AS DEFINED IN SECTION FIVE OF THE SOIL AND WATER CONSERVATION DISTRICTS LAW. 5. "STATE ASSISTANCE PAYMENT" MEANS PAYMENT OF THE STATE SHARE OF THE COST OF PROJECTS AUTHORIZED BY THIS TITLE TO PRESERVE, ENHANCE, RESTORE AND IMPROVE THE QUALITY OF THE STATE'S ENVIRONMENT. § 15-3303. LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION. 1. THE COMMISSIONER IS AUTHORIZED TO PROVIDE STATE ASSISTANCE TO MUNI- CIPALITIES, NOT-FOR-PROFIT CORPORATIONS AND SOIL AND WATER CONSERVATION DISTRICTS TO UNDERTAKE LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION, IN COOPERATION WITH WILLING SELLERS. PROJECTS SHALL DEVELOP, EXPAND OR ENHANCE WATER QUALITY PROTECTION, INCLUDING BUT NOT LIMITED TO AQUIFERS, WATERSHEDS, RESERVOIRS, LAKES, RIVERS AND STREAMS. THE DEPARTMENT SHALL SET FORTH THE STATE SHARE OF LAND ACQUISITION PROJECTS IN ANY REQUEST FOR PROPOSAL ISSUED TO SOLICIT PROJECTS. S. 2008--A 133 A. 3008--A 2. ANY CONSERVATION EASEMENT ACQUIRED PURSUANT TO THIS SECTION THAT ENCUMBERS LANDS IN A COUNTY DESIGNATED STATE CERTIFIED AGRICULTURAL DISTRICT SHALL ALLOW AGRICULTURAL ACTIVITY ON SUCH LANDS PROVIDED THAT THE ACTIVITY COMPLIES WITH ALL APPLICABLE TECHNICAL STANDARDS ESTAB- LISHED BY THE NATURAL RESOURCES CONSERVATION SERVICE. 3. IN EVALUATING PROJECTS PURSUANT TO THIS SECTION, THE DEPARTMENT SHALL GIVE PRIORITY FIRST TO PROJECTS WHICH PROTECT OR RECHARGE DRINKING WATER SOURCES AND WATERSHEDS INCLUDING RIPARIAN BUFFERS AND SECOND TO PROJECTS WHICH IMPROVE RESILIENCE. 4. NO STATE ASSISTANCE MAY BE PROVIDED PURSUANT TO THIS SECTION TO FUND ANY PROJECT COMMITTED TO IN ANY AGREEMENT PURSUANT TO A FILTRATION AVOIDANCE DETERMINATION. 5. THE COMMISSIONER MAY ENTER INTO A CONTRACT WITH A MUNICIPALITY OR A NOT-FOR-PROFIT CORPORATION FOR THE UNDERTAKING OF A LAND ACQUISITION PROJECT. COSTS UNDER SUCH CONTRACTS ARE SUBJECT TO FINAL COMPUTATION BY THE DEPARTMENT UPON COMPLETION OF THE PROJECT, AND SHALL NOT EXCEED THE MAXIMUM ELIGIBLE COST SET FORTH IN ANY SUCH CONTRACT. 6. THE COST OF A SOURCE WATER PROTECTION LAND ACQUISITION PROJECT MAY INCLUDE THE COST OF PREPARATION OF A PLAN FOR THE PRESERVATION OF THE REAL PROPERTY INTEREST IN LAND ACQUIRED PURSUANT TO THIS SECTION EXCEPT WHERE SUCH CONSIDERATIONS HAVE ALREADY BEEN UNDERTAKEN AS PART OF ANY EXISTING PLAN APPLICABLE TO THE NEWLY ACQUIRED REAL PROPERTY INTEREST IN LAND. 7. THE SOIL AND WATER CONSERVATION COMMITTEE IN CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE AND MARKETS IS AUTHORIZED TO PROVIDE STATE ASSISTANCE PAYMENTS TO COUNTY SOIL AND WATER CONSERVATION DISTRICTS FOR LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION CONSISTENT WITH SECTION ELEVEN-B OF THE SOIL AND WATER CONSERVATION DISTRICTS LAW. PROJECTS SHALL DEVELOP, EXPAND OR ENHANCE WATER QUALITY PROTECTION, INCLUDING BUT NOT LIMITED TO AQUIFERS, WATERSHEDS, RESERVOIRS, LAKES, RIVERS AND STREAMS. SUCH COMMITTEE SHALL GIVE PRIORITY TO PROJECTS WHICH ESTABLISH BUFFERS FROM WATERS WHICH SERVES AS OR ARE TRIBUTARIES TO DRINKING WATER SUPPLIES FOR SUCH PROJECTS USING STATE ASSISTANCE PURSUANT TO THIS SECTION. 8. A. REAL PROPERTY ACQUIRED, DEVELOPED, IMPROVED, RESTORED OR REHA- BILITATED BY OR THROUGH A MUNICIPALITY WITH FUNDS MADE AVAILABLE PURSU- ANT TO THIS TITLE SHALL NOT BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF OR USED FOR OTHER THAN WATER QUALITY PROTECTION PURPOSES WITHOUT APPROVAL FROM THE DEPARTMENT, WHICH SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL ENVIRONMENTAL VALUE AND FAIR MARKET VALUE AND REASONABLY EQUIVALENT USEFULNESS AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF, AND SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE COMMISSIONER; PROVIDED, HOWEVER, THAT SUCH REAL PROPERTY MAY BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF TO THE STATE, ANOTHER MUNICIPALITY OR A NOT-FOR-PROFIT FOR THE SAME PURPOSES. B. REAL PROPERTY ACQUIRED BY A NOT-FOR-PROFIT ORGANIZATION WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE SHALL NOT BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF, EXCEPT TO A MUNICIPALITY OR THE STATE FOR THE SAME PURPOSES, WITHOUT THE APPROVAL OF THE DEPARTMENT. 9. IF THE STATE ACQUIRES A REAL PROPERTY INTEREST IN LAND PURCHASED BY A MUNICIPALITY OR NOT-FOR-PROFIT WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE, THE STATE SHALL PAY THE FAIR MARKET VALUE OF SUCH INTEREST LESS THE AMOUNT OF FUNDING PROVIDED BY THE STATE PURSUANT TO THIS SECTION. S. 2008--A 134 A. 3008--A § 3. The public health law is amended by adding a new section 1113 to read as follows: § 1113. LEAD SERVICE LINE REPLACEMENT GRANT PROGRAM. NOTWITHSTANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW OR ANY INCON- SISTENT PROVISION OF LAW TO THE CONTRARY, AND WITHIN AMOUNTS APPROPRI- ATED THEREFOR, THE DEPARTMENT SHALL AWARD GRANTS TO MUNICIPALITIES WITH- OUT A FORMAL COMPETITIVE PROCESS, FOR PURPOSES OF REPLACING LEAD SERVICE LINES USED TO SUPPLY DRINKING WATER. WHEN DETERMINING WHICH MUNICI- PALITIES SHALL RECEIVE AWARDS AND THE AMOUNT OF SUCH AWARDS, THE DEPART- MENT SHALL CONSIDER FOR EACH MUNICIPALITY THE COST OF REPLACING LEAD SERVICE LINES AND THE NUMBER OF PERSONS WHO RECEIVE DRINKING WATER FROM SUCH SERVICE LINES, AND SHALL GIVE PRIORITY TO THOSE MUNICIPALITIES WITH LOW-INCOME COMMUNITIES, ACCORDING TO A METHODOLOGY AS SHALL BE DETER- MINED BY THE DEPARTMENT. § 4. Article 27 of the environmental conservation law is amended by adding a new title 12 to read as follows: TITLE 12 CLEANUP AND ABATEMENT OF CERTAIN SOLID WASTE SITE AND DRINKING WATER CONTAMINATION SECTION 27-1201. DEFINITIONS. 27-1203. MITIGATION AND CLEANUP OF SOLID WASTE SITES. 27-1205. MITIGATION OF CONTAMINANTS IN DRINKING WATER. 27-1207. USE AND REPORTING OF SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 27-1209. RULES AND REGULATIONS. § 27-1201. DEFINITIONS. WHEN USED IN THIS TITLE: 1. "MITIGATION AND CLEANUP" MEANS THE INVESTIGATION, SAMPLING, MANAGE- MENT, REMOVAL, REMEDIATION OR RESTORATION OF A SOLID WASTE SITE AND ALL OTHER ACTIONS REQUIRED TO RESTORE OR PROTECT DRINKING WATER SUPPLIES, GROUNDWATER, OR OTHER ENVIRONMENTAL MEDIA AND RESTORATION OF THE SITE TO A CONDITION THAT IT IS NO LONGER CAUSING OR CONTRIBUTING TO POLLUTION OF GROUNDWATER, WATER SUPPLIES OR THE ENVIRONMENT. 2. "SOLID WASTE SITE" MEANS A DISPOSAL FACILITY AS DEFINED IN REGU- LATIONS WHERE SOLID WASTE HAS BEEN IMPROPERLY DISPOSED AS DETERMINED BY THE DEPARTMENT OR A COURT OF COMPETENT JURISDICTION, OR AN ACTIVE OR INACTIVE SOLID WASTE MANAGEMENT FACILITY AS DEFINED IN REGULATIONS WHERE AN IMPACT TO DRINKING WATER SUPPLIES, GROUNDWATER CONTAMINATION OR OTHER ENVIRONMENTAL CONTAMINATION IS KNOWN OR SUSPECTED. SOLID WASTE SITE SHALL NOT INCLUDE A SITE SUBJECT TO INVESTIGATION OR REMEDIATION PURSU- ANT TO TITLE THIRTEEN OR FOURTEEN OF THIS ARTICLE. 3. "SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT" MEANS THE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION ONE OF SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW. § 27-1203. MITIGATION AND CLEANUP OF SOLID WASTE SITES. 1. THE SOLID WASTE SITE CLEANUP PRIORITIES IN THIS STATE ARE: A. FIRST, TO MITIGATE AND CLEANUP ANY SOLID WASTE SITE CAUSING OR CONTRIBUTING TO IMPAIRMENTS OF DRINKING WATER QUALITY; AND B. SECOND, TO MITIGATE AND CLEANUP SOLID WASTE SITES WHICH ARE CAUSING OR CONTRIBUTING TO OTHER ENVIRONMENTAL CONTAMINATION WHICH MAY IMPACT PUBLIC HEALTH. 2. THE OWNER OR OPERATOR OF A SOLID WASTE SITE SHALL, AT THE DEPART- MENT'S WRITTEN REQUEST, SUBMIT TO AND COOPERATE WITH ANY AND ALL REMEDI- AL MEASURES DEEMED NECESSARY BY THE DEPARTMENT FOR THE MITIGATION AND CLEANUP OF SOLID WASTE. THE DEPARTMENT MAY IMPLEMENT ALL NECESSARY MEAS- S. 2008--A 135 A. 3008--A URES TO MITIGATE AND CLEANUP THE SOLID WASTE SITE AFTER MAKING ALL REASONABLE EFFORTS TO IDENTIFY AND COMPEL THE OWNER OR OPERATOR TO COOP- ERATE WITH THE DEPARTMENT. THE DEPARTMENT IS NOT REQUIRED TO COMMENCE A HEARING OR ISSUE AN ORDER PRIOR TO USING MONEYS FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 3. ALL NECESSARY AND REASONABLE EXPENSES OF MITIGATION AND CLEANUP OF A SOLID WASTE SITE SHALL BE PAID BY THE PERSON OR PERSONS WHO OWNED, OPERATED OR MAINTAINED THE SOLID WASTE SITE EXCEPT AS PROVIDED IN SUBDI- VISION FOUR OF THIS SECTION, OR FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT AND SHALL BE A DEBT RECOVERABLE BY THE STATE FROM ALL PERSONS WHO OWNED, OPERATED OR MAINTAINED THE SOLID WASTE SITE, AND A LIEN MAY BE IMPOSED UPON REAL PROPERTY PURSUANT TO SUBDIVISION SIXTEEN OF SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW, AND A CHARGE MAY BE PLACED ON THE PREMISES UPON WHICH THE SOLID WASTE SITE IS MAINTAINED AND UPON ANY REAL OR PERSONAL PROPERTY, EQUIPMENT, VEHICLES, AND INVENTORY CONTROLLED BY SUCH PERSON OR PERSONS. MONEYS RECOVERED SHALL BE PAID TO THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 4. A. THE DEPARTMENT SHALL MAKE ALL REASONABLE EFFORTS TO RECOVER THE FULL AMOUNT OF ANY FUNDS EXPENDED FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT FOR MITIGATION AND CLEANUP THROUGH LITIGATION OR COOPERATIVE AGREEMENTS. ANY AND ALL MONEYS RECOVERED, REPAID OR REIM- BURSED PURSUANT TO THIS SECTION SHALL BE DEPOSITED WITH THE COMPTROLLER AND CREDITED TO SUCH FUND. B. WHEN A MUNICIPALITY DEVELOPS AND IMPLEMENTS A PLAN TO INVESTIGATE, MITIGATE AND CLEANUP A SOLID WASTE SITE, AS APPROVED BY THE DEPARTMENT, FOR A SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY OR WHEN THE DEPARTMENT, PURSUANT TO AN AGREEMENT WITH A MUNICIPALITY, DEVELOPS AND IMPLEMENTS SUCH A PLAN, THE COMMISSIONER SHALL, IN THE NAME OF THE STATE, AGREE IN SUCH AGREEMENT TO PROVIDE FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT, WITHIN THE LIMITATIONS OF APPROPRI- ATIONS THEREFOR, SEVENTY-FIVE PERCENT OF THE ELIGIBLE DESIGN AND CONSTRUCTION COSTS OF SUCH PROGRAM WHICH ARE NOT RECOVERED FROM OR REIM- BURSED OR PAID BY A RESPONSIBLE PARTY OR THE FEDERAL GOVERNMENT. 5. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO ENTER ALL SOLID WASTE SITES FOR THE PURPOSE OF INVESTIGATION, MITIGATION AND CLEANUP. § 27-1205. MITIGATION OF CONTAMINANTS IN DRINKING WATER. 1. WHENEVER THE COMMISSIONER OF HEALTH HAS REQUIRED A PUBLIC WATER SYSTEM TO TAKE ACTION TO REDUCE EXPOSURE TO CONTAMINANTS PURSUANT TO SECTION ELEVEN HUNDRED TWELVE OF THE PUBLIC HEALTH LAW, OR AT ANY TIME UPON THE REQUEST OF THE COMMISSIONER OF HEALTH, THE DEPARTMENT MAY UNDERTAKE ALL REASONABLE AND NECESSARY MEASURES TO ENSURE THAT SAFE DRINKING WATER IS EXPEDITIOUSLY MADE AVAILABLE TO ALL PEOPLE IN ANY AREA OF THE STATE IN WHICH CONTAMINATION IS KNOWN TO BE PRESENT. SUCH AREA SHALL INCLUDE, AT A MINIMUM, ALL PROPERTIES SERVED BY THE WATER SYSTEM AND ANY LAND AND ANY SURFACE OR UNDERGROUND WATER SOURCES IDENTIFIED BY THE DEPARTMENT OR DEPARTMENT OF HEALTH AS CAUSING OR CONTRIBUTING TO THE CONTAMINATION. THE DEPARTMENT'S MEASURES MAY INCLUDE THE INSTALLATION OF TREATMENT SYSTEMS, INCLUDING BUT NOT LIMITED TO INSTALLATION OF ONSITE WATER SUPPLIES, OR THE PROVISION OF ALTERNATIVE WATER SUPPLY SOURCES TO ENSURE THAT WATER MEETS APPLICABLE MAXIMUM CONTAMINANT LEVELS OR OTHER THRESHOLD CONCENTRATIONS SET BY THE DEPARTMENT OF HEALTH. 2. IF THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF HEALTH, IS ABLE TO IDENTIFY A SOURCE OF CONTAMINATION WHICH CAUSED OR CONTRIB- UTED TO CONTAMINATION, THE DEPARTMENT SHALL REQUIRE THE OWNER OR OPERA- TOR OF THE SOURCE OF CONTAMINATION TO INVESTIGATE, DEVELOP AND IMPLEMENT A PLAN TO REMEDIATE THE SOURCE OF CONTAMINATION. S. 2008--A 136 A. 3008--A 3. THE DEPARTMENT SHALL MAKE ALL REASONABLE EFFORTS TO RECOVER THE FULL AMOUNT OF ANY FUNDS EXPENDED FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT FOR A DRINKING WATER RESPONSE THROUGH LITIGATION OR COOPERATIVE AGREEMENTS. ANY AND ALL MONEYS RECOVERED, REPAID OR REIMBURSED PURSUANT TO THIS SECTION SHALL BE DEPOSITED WITH THE COMP- TROLLER AND CREDITED TO SUCH ACCOUNT. A. WHEN A MUNICIPALITY DEVELOPS AND IMPLEMENTS A PLAN TO RESPOND TO DRINKING WATER CONTAMINATION, DETERMINED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, AND THE PLAN IS APPROVED BY THE DEPARTMENT, FOR A SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY OR WHEN THE DEPARTMENT, PURSUANT TO AN AGREEMENT WITH A MUNICIPALITY, DEVELOPS AND IMPLEMENTS SUCH A PLAN, THE COMMISSIONER SHALL, IN THE NAME OF THE STATE, AGREE IN SUCH AGREEMENT TO PROVIDE FROM THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT, WITHIN THE LIMITATIONS OF APPROPRI- ATIONS THEREFOR, SEVENTY-FIVE PERCENT OF THE ELIGIBLE DESIGN AND CONSTRUCTION COSTS OF SUCH PROGRAM AND WHICH ARE NOT RECOVERED FROM OR REIMBURSED OR PAID BY A RESPONSIBLE PARTY OR THE FEDERAL GOVERNMENT. § 27-1207. USE AND REPORTING OF SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT. 1. THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT SHALL BE MADE AVAILABLE TO THE DEPARTMENT FOR THE FOLLOWING PURPOSES: A. ENUMERATION AND ASSESSMENT OF SOLID WASTE SITES; B. INVESTIGATION AND ENVIRONMENTAL CHARACTERIZATION OF SOLID WASTE SITES, INCLUDING ENVIRONMENTAL SAMPLING; C. MITIGATION AND CLEANUP OF SOLID WASTE SITES; D. MITIGATION OF DRINKING WATER CONTAMINATION; E. MONITORING OF SOLID WASTE SITES; AND F. ADMINISTRATION AND ENFORCEMENT OF THE REQUIREMENTS OF THIS TITLE. 2. ON OR BEFORE JULY FIRST, TWO THOUSAND NINETEEN AND JULY FIRST OF EACH SUCCEEDING YEAR, THE DEPARTMENT SHALL REPORT ON THE STATUS OF THE PROGRAM. § 27-1209. RULES AND REGULATIONS. THE COMMISSIONER SHALL HAVE THE POWER TO PROMULGATE RULES AND REGU- LATIONS NECESSARY AND APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS TITLE. § 5. Subdivisions 1, 2 and 6 and paragraphs (i) and (j) of subdivision 3 of section 97-b of the state finance law, subdivision 1 as amended and paragraph (j) of subdivision 3 as added by section 4 of part I of chap- ter 1 of the laws of 2003, subdivision 2 as amended by section 5 of part X of chapter 58 of the laws of 2015, paragraph (i) of subdivision 3 as amended by section 1 of part R of chapter 59 of the laws of 2007, subdi- vision 6 as amended by chapter 38 of the laws of 1985, are amended and a new paragraph (k) is added to subdivision 3 to read as follows: 1. There is hereby established in the custody of the state comptroller a nonlapsing revolving fund to be known as the "hazardous waste remedial fund", which shall consist of [a "site investigation and construction account",] an "industry fee transfer account", an "environmental resto- ration project account", "hazardous waste cleanup account", [and] a "hazardous waste remediation oversight and assistance account" AND A "SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT". 2. Such fund shall consist of all of the following: (a) [moneys appropriated for transfer to the fund's site investigation and construction account; (b) all fines and other sums accumulated in the fund prior to April first, nineteen hundred eighty-eight pursuant to section 71-2725 of the environmental conservation law for deposit in the fund's site investigation and construction account; (c)] all moneys S. 2008--A 137 A. 3008--A collected or received by the department of taxation and finance pursuant to section 27-0923 of the environmental conservation law for deposit in the fund's industry fee transfer account; [(d)] (B) all moneys paid into the fund pursuant to section 72-0201 of the environmental conservation law which shall be deposited in the fund's industry fee transfer account; [(e)] (C) all moneys paid into the fund pursuant to paragraph (b) of subdivision one of section one hundred eighty-six of the naviga- tion law which shall be deposited in the fund's industry fee transfer account; [(f)] (D) all [monies] MONEYS recovered under sections 56-0503, 56-0505 and 56-0507 of the environmental conservation law into the fund's environmental restoration project account; [(g)] (E) all fees paid into the fund pursuant to section 72-0402 of the environmental conservation law which shall be deposited in the fund's industry fee transfer account; [(h)] (F) payments received for all state costs incurred in negotiating and overseeing the implementation of brownfield site cleanup agreements pursuant to title fourteen of article twenty- seven of the environmental conservation law shall be deposited in the hazardous waste remediation oversight and assistance account; (G) ALL MONEYS RECOVERED PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW INTO THE FUND'S SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT and [(i)] (H) other moneys credited or trans- ferred thereto from any other fund or source for deposit in the fund's [site investigation and construction] HAZARDOUS WASTE CLEANUP account. (i) with respect to moneys in the hazardous waste remediation over- sight and assistance account, non-bondable costs associated with hazard- ous waste remediation projects. Such costs shall be limited to agency staff costs associated with the administration of state assistance for brownfield opportunity areas pursuant to section nine hundred seventy-r of the general municipal law, agency staff costs associated with the administration of technical assistance grants pursuant to titles thir- teen and fourteen of article twenty-seven of the environmental conserva- tion law, and costs of the department of environmental conservation related to the geographic information system required by section 3-0315 of the environmental conservation law; [and] (j) with respect to moneys in the hazardous waste remediation over- sight and assistance account, technical assistance grants pursuant to titles thirteen and fourteen of article twenty-seven of the environ- mental conservation law[.]; AND (K) WITH RESPECT TO MONEYS IN THE SOLID WASTE AND DRINKING WATER RESPONSE ACCOUNT, WHEN ALLOCATED, SHALL BE AVAILABLE TO THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO UNDERTAKE MITIGATION AND CLEANUP AS THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION MAY DETERMINE NECESSARY DUE TO ENVIRONMENTAL CONDITIONS RELATED TO A SOLID WASTE SITE PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW WHICH INDICATES THAT CONDITIONS ON SUCH PROPERTY ARE IMPAIRING DRINKING WATER QUALITY, GROUND WATER QUALITY OR CREATING OTHER ENVIRONMENTAL CONTAMINATION AND TO ENSURE THE PROVISION OF SAFE DRINKING WATER IN AREAS DETERMINED TO HAVE DRINKING WATER CONTAMINATION BY THE DEPARTMENT OF HEALTH. 6. The commissioner of the department of environmental conservation shall make all reasonable efforts to recover the full amount of any funds expended from the fund pursuant to paragraph (a) AND PARAGRAPH (K) of subdivision three of this section through litigation or cooperative agreements with responsible persons. Any and all moneys recovered or reimbursed pursuant to this section through voluntary agreements or S. 2008--A 138 A. 3008--A court orders shall be deposited with the comptroller and credited to the account of such fund from which such expenditures were made. § 6. Section 97-b of the state finance law is amended by adding a new subdivision 16 to read as follows: 16. (A) ALL COSTS AND DAMAGES FOR WHICH A PERSON IS LIABLE TO THE STATE OF NEW YORK UNDER TITLES TWELVE AND THIRTEEN OF ARTICLE TWENTY- SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW SHALL CONSTITUTE A LIEN IN FAVOR OF THE STATE UPON ALL REAL PROPERTY AND RIGHTS TO SUCH PROPERTY WHICH: (I) BELONGS TO SUCH PERSON; AND (II) ARE SUBJECT TO MITIGATION OR CLEANUP PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRON- MENTAL CONSERVATION LAW OR AN INACTIVE HAZARDOUS WASTE DISPOSAL SITE REMEDIAL PROGRAM PURSUANT TO TITLE THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW. (B) THE LIEN IMPOSED BY THIS SUBDIVISION SHALL ARISE AT THE LATER OF THE FOLLOWING: (I) THE TIME COSTS ARE FIRST INCURRED BY THE STATE WITH RESPECT TO A RESPONSE ACTION PURSUANT TO TITLES TWELVE AND THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW; OR (II) THE TIME THAT THE PERSON REFERRED TO IN PARAGRAPH (A) OF THIS SUBDIVISION IS PROVIDED (BY CERTIFIED OR REGISTERED MAIL) WRITTEN NOTICE OF POTENTIAL LIABILITY. SUCH LIEN SHALL CONTINUE UNTIL THE LIABILITY FOR THE COSTS, OR A JUDGMENT AGAINST THE PERSON ARISING OUT OF SUCH LIABILITY, IS SATISFIED, BECOMES UNENFORCEABLE, IS OTHERWISE VACATED BY COURT ORDER OR IS RELEASED BY THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION WHERE A LEGALLY ENFORCEABLE AGREEMENT SATISFACTORY TO THE COMMISSIONER HAS BEEN EXECUTED RELATING TO THE CLEANUP AND REMOVAL COSTS AND DAMAGE COSTS OR REIMBURSING THE HAZARDOUS WASTE REMEDIAL FUND FOR CLEANUP AND REMOVAL COSTS AND DAMAGE COSTS, OR THE ATTACHMENT OR ENFORCEMENT OF THE LIEN IS DETERMINED BY THE COMMISSIONER NOT TO BE IN THE PUBLIC INTEREST. (C) THE LIEN SHALL STATE: (I) THAT THE LIENOR IS THE HAZARDOUS WASTE REMEDIAL FUND; (II) THE NAME OF RECORD OWNER OF THE REAL PROPERTY ON WHICH THE LIEN HAS ATTACHED; (III) THE REAL PROPERTY SUBJECT TO THE LIEN, WITH A DESCRIPTION THEREOF SUFFICIENT FOR IDENTIFICATION; (IV) THAT THE REAL PROPERTY DESCRIBED IN THE NOTICE IS OR HAS BEEN SUBJECT TO MITIGATION OR CLEANUP PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW OR AN INACTIVE HAZARDOUS WASTE DISPOSAL SITE REMEDIAL PROGRAM PURSUANT TO TITLE THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW AND THAT COSTS HAVE BEEN INCURRED BY THE LIENOR AS A RESULT OF SUCH ACTIVITIES; (V) THAT THE OWNER IS POTENTIALLY LIABLE FOR COSTS; AND (VI) THAT A LIEN HAS ATTACHED TO THE DESCRIBED REAL PROPERTY. (D) THE LIEN IMPOSED BY THIS SUBDIVISION SHALL BE SUBJECT TO THE RIGHTS OF ANY PURCHASER ENTITLED TO THE AFFIRMATIVE DEFENSE SET FORTH IN SUBPARAGRAPH THREE OF PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION 27-1323 OF THE ENVIRONMENTAL CONSERVATION LAW, HOLDER OF A SECURITY INTEREST, OR JUDGMENT LIEN CREDITOR WHOSE INTEREST IS PERFECTED UNDER NEW YORK STATE LAW BEFORE NOTICE OF THE LIEN HAS BEEN FILED PURSUANT TO PARAGRAPH (E) OF THIS SUBDIVISION. (E) A NOTICE OF LIEN IMPOSED BY THIS SUBDIVISION SHALL BE FILED PURSU- ANT TO THE REQUIREMENTS OF SECTION ONE HUNDRED EIGHTY-ONE-C OF THE NAVI- GATION LAW; PROVIDED HOWEVER, THAT A COPY OF THE NOTICE OF LIEN IS SERVED UPON THE OWNER OF THE REAL PROPERTY SUBJECT TO THE LIEN IN ACCORDANCE WITH THE PROVISIONS OF SECTION ELEVEN OF THE LIEN LAW. (F) THE COSTS CONSTITUTING THE LIEN MAY BE RECOVERED IN AN ACTION IN REM IN A COURT OF COMPETENT JURISDICTION. NOTHING IN THIS SUBDIVISION SHALL AFFECT THE RIGHT OF THE STATE TO BRING AN ACTION AGAINST ANY PERSON TO RECOVER ALL COSTS AND DAMAGES FOR WHICH SUCH PERSON IS LIABLE S. 2008--A 139 A. 3008--A UNDER TITLES TWELVE AND THIRTEEN OF ARTICLE TWENTY-SEVEN OF THE ENVIRON- MENTAL CONSERVATION LAW. § 7. The public authorities law is amended by adding a new section 1285-s to read as follows: § 1285-S. NEW YORK STATE REGIONAL WATER INFRASTRUCTURE PROJECTS. 1. FOR PURPOSES OF THIS SECTION, "MUNICIPALITY" MEANS ANY COUNTY, CITY, TOWN, VILLAGE, DISTRICT CORPORATION, COUNTY OR TOWN IMPROVEMENT DISTRICT, ANY PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY ESTABLISHED PURSUANT TO THE LAWS OF NEW YORK OR ANY AGENCY OF NEW YORK STATE WHICH IS EMPOWERED TO CONSTRUCT AND OPERATE A WASTE WATER OR DRINKING WATER INFRASTRUCTURE PROJECT, OR ANY TWO OR MORE OF THE FOREGOING WHICH ARE ACTING JOINTLY IN CONNECTION WITH SUCH A PROJECT. 2. (A) THE CORPORATION SHALL ESTABLISH, WITH FUNDS APPROPRIATED FOR SUCH PURPOSE, A NEW YORK STATE REGIONAL WATER INFRASTRUCTURE GRANTS PROGRAM TO PROVIDE STATE ASSISTANCE TO MUNICIPALITIES FOR WASTE WATER AND DRINKING WATER INFRASTRUCTURE PROJECTS THAT HAVE A REGIONAL IMPACT OR DEMONSTRATED EFFICIENCIES. SUCH REGIONAL PROJECTS SHALL BENEFIT OR SERVE MULTIPLE MUNICIPALITIES, AND MAY INCLUDE SHARED INFRASTRUCTURE, CONSOLIDATION OR INTERCONNECTION OF SYSTEMS OF MULTIPLE MUNICIPALITIES, OR PROJECTS THAT OTHERWISE ACHIEVE EFFICIENCIES. (B) A MUNICIPALITY MAY MAKE AN APPLICATION FOR A REGIONAL WATER INFRASTRUCTURE GRANT IN A MANNER, FORM AND TIMEFRAME AND CONTAINING SUCH INFORMATION AS THE CORPORATION MAY REQUIRE PROVIDED HOWEVER, SUCH REQUIREMENTS SHALL NOT INCLUDE A REQUIREMENT FOR PRIOR LISTING ON THE INTENDED USE PLAN. 3. MONEYS FOR THE REGIONAL WATER INFRASTRUCTURE GRANTS PROGRAM SHALL BE SEGREGATED FROM ALL OTHER FUNDS OF OR IN THE CUSTODY OF THE CORPO- RATION AND SHALL ONLY BE USED TO PROVIDE STATE ASSISTANCE TO MUNICI- PALITIES IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND TO PROVIDE FOR THE ADMINISTRATIVE AND MANAGEMENT COSTS OF THE PROGRAM. 4. MONEYS FOR THE REGIONAL WATER INFRASTRUCTURE GRANTS PROGRAM MAY BE INVESTED AS PROVIDED IN SUBDIVISION SIX OF SECTION TWELVE HUNDRED EIGHT- Y-FIVE-J OF THIS TITLE. 5. CONTRACTS FOR THE CONSTRUCTION OF PROJECTS FINANCED WITH STATE ASSISTANCE MADE AVAILABLE PURSUANT TO THIS SECTION SHALL BE SUBJECT TO THE REQUIREMENTS OF SECTION TWO HUNDRED TWENTY OF THE LABOR LAW AND SHALL BE CONSIDERED "STATE CONTRACTS" SUBJECT TO THE REQUIREMENTS AND PROVISIONS OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. § 8. Section 1285-q of the public authorities law, as added by section 6 of part I of chapter 1 of the laws of 2003, subdivisions 1 and 3 as amended by section 43 of part BB of chapter 56 of the laws of 2015, is amended to read as follows: § 1285-q. Financing of hazardous waste site remediation AND SOLID WASTE AND DRINKING WATER RESPONSE SITE projects. In order to effectuate the purposes of this title, the corporation shall have the following additional special powers: 1. Subject to chapter fifty-nine of the laws of two thousand, but notwithstanding any other provisions of law to the contrary, in order to assist the corporation in undertaking the administration and the financ- ing of hazardous waste site remediation projects for payment of the state's share of the costs of the remediation of hazardous waste sites AND SOLID WASTE AND DRINKING WATER RESPONSE SITES, in accordance with [title] TITLES TWELVE AND thirteen of article twenty-seven of the envi- ronmental conservation law and section ninety-seven-b of the state finance law, and for payment of state costs associated with the remedi- ation of offsite contamination at significant threat sites as provided S. 2008--A 140 A. 3008--A in section 27-1411 of the environmental conservation law, and beginning in state fiscal year two thousand fifteen - two thousand sixteen for environmental restoration projects pursuant to title five of article fifty-six of the environmental conservation law provided that funding for such projects shall not exceed ten percent of the funding appropri- ated for the purposes of financing hazardous waste site remediation projects, pursuant to [title] TITLES TWELVE AND thirteen of article twenty-seven of the environmental conservation law in any state fiscal year pursuant to capital appropriations made to the department of envi- ronmental conservation, the director of the division of budget and the corporation are each authorized to enter into one or more service contracts, none of which shall exceed twenty years in duration, upon such terms and conditions as the director and the corporation may agree, so as to annually provide to the corporation in the aggregate, a sum not to exceed the annual debt service payments and related expenses required for any bonds and notes authorized pursuant to section twelve hundred ninety of this title. Any service contract entered into pursuant to this section shall provide that the obligation of the state to fund or to pay the amounts therein provided for shall not constitute a debt of the state within the meaning of any constitutional or statutory provision and shall be deemed executory only to the extent of moneys available for such purposes, subject to annual appropriation by the legislature. Any such service contract or any payments made or to be made thereunder may be assigned and pledged by the corporation as security for its bonds and notes, as authorized pursuant to section twelve hundred ninety of this title. 2. The comptroller is hereby authorized to receive from the corpo- ration any portion of bond proceeds paid to provide funds for or reim- burse the state for its costs associated with any hazardous waste site remediation AND SOLID WASTE AND DRINKING WATER RESPONSE projects and to credit such amounts to the capital projects fund or any other appropri- ate fund. 3. The maximum amount of bonds that may be issued for the purpose of financing hazardous waste site remediation AND SOLID WASTE AND DRINKING WATER RESPONSE projects and environmental restoration projects author- ized by this section shall not exceed two billion two hundred million dollars and shall not exceed one hundred million dollars for appropri- ations enacted for any state fiscal year, provided that the bonds not issued for such appropriations may be issued pursuant to reappropriation in subsequent fiscal years. No bonds shall be issued for the repayment of any new appropriation enacted after March thirty-first, two thousand twenty-six for hazardous waste site remediation projects authorized by this section. Amounts authorized to be issued by this section shall be exclusive of bonds issued to fund any debt service reserve funds, pay costs of issuance of such bonds, and bonds or notes issued to refund or otherwise repay bonds or notes previously issued. Such bonds and notes of the corporation shall not be a debt of the state, and the state shall not be liable thereon, nor shall they be payable out of any funds other than those appropriated by this state to the corporation for debt service and related expenses pursuant to any service contracts executed pursuant to subdivision one of this section, and such bonds and notes shall contain on the face thereof a statement to such effect. § 9. Subdivision 9 of section 97-b of the state finance law is REPEALED. S. 2008--A 141 A. 3008--A § 10. Subdivision 4 of section 52-0303 of the environmental conserva- tion law, as added by chapter 512 of the laws of 1986, is amended to read as follows: 4. A provision that in the event that any federal payments and respon- sible party payments become available which were not included in the calculation of the state share pursuant to subdivision two of this section, the amount of the state share shall be recalculated accordingly and the municipality shall pay to the state for deposit in the [design and construction] HAZARDOUS WASTE CLEANUP account of the hazardous waste remedial fund established under section ninety-seven-b of the state finance law the amount by which the state payment actually made exceeds the recalculated state share. § 11. The opening paragraph, and paragraphs i and j of subdivision 4 of section 27-1305 of the environmental conservation law, as amended by section 3 of part E of chapter 1 of the laws of 2003, are amended to read as follows: On or before July first, nineteen hundred eighty-six and July first of each succeeding year, the department shall prepare a status report on the implementation of the plan, and an update of the policies, program objectives, methods and strategies as outlined in the plan which guide the overall inactive hazardous waste site remediation program AND SOLID WASTE SITE AND DRINKING WATER RESPONSE MITIGATION AND CLEANUP PROGRAMS. Such status report shall reflect information available to the department as of March thirty-first of each year, and shall include an accounting of all [monies] MONEYS expended or encumbered from the environmental quality bond act of nineteen hundred eighty-six or the hazardous waste remedial fund during the preceding fiscal year, such accounting to sepa- rately list: i. [monies] MONEYS expended or encumbered in stand-by contracts entered into pursuant to section 3-0309 of this chapter and the purposes for which these stand-by contracts were entered into; [and] j. MONEYS EXPENDED OR ENCUMBERED PURSUANT TO TITLE TWELVE OF THIS ARTICLE; AND K. an accounting of payments received and payments obligated to be received pursuant to this title AND TITLE TWELVE OF THIS ARTICLE, and a report of the department's attempts to secure such obligations. § 12. Subparagraph (ii) of paragraph b of subdivision 3 of section 27-1313 of the environmental conservation law is REPEALED. § 13. Paragraph b of subdivision 1 and paragraphs b and f of subdivi- sion 5 of section 27-1313 of the environmental conservation law, para- graph b of subdivision 1 as added by section 5 of part E of chapter 1 of the laws of 2003, paragraph b as amended by and paragraph f of subdivi- sion 5 as added by chapter 857 of the laws of 1982, are amended and a new subdivision 11 is added to read as follows: b. The department shall have the authority to require, AND MAY UNDER- TAKE DIRECTLY, the development and implementation of a department-ap- proved inactive hazardous waste disposal site remedial program, IN ACCORDANCE WITH SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW. b. In the event that the commissioner has found that hazardous wastes at a site constitute a significant threat to the environment, but after a reasonable attempt to determine who may be responsible is either unable to determine who may be responsible, [or] is unable to locate a person who may be responsible, OR IS UNABLE AFTER MAKING ALL REASONABLE EFFORT TO SECURE VOLUNTARY AGREEMENT TO PAY THE COSTS OF NECESSARY REME- DIAL ACTIONS FROM OWNERS OR OPERATORS OR OTHER RESPONSIBLE PERSONS, the department may develop and implement an inactive hazardous waste S. 2008--A 142 A. 3008--A disposal site remedial program for such site. The commissioner shall make every effort, IN AN ACTION BROUGHT BEFORE A COURT OF APPROPRIATE JURISDICTION OR in accordance with the requirements for notice, hearing and review provided for in this title, to secure appropriate relief from any person subsequently identified or located who is responsible for the disposal of hazardous waste at such site, including, but not limited to, development and implementation of an inactive hazardous waste disposal site remedial program, payment of the cost of such a program, recovery of any reasonable expenses incurred by the state, money damages and penalties. f. The commissioner shall make every effort, IN AN ACTION BROUGHT BEFORE A COURT OF APPROPRIATE JURISDICTION OR in accordance with the requirements for notice, hearing and review provided for in this title to secure appropriate relief from the owner or operator of such site and/or any person responsible for the disposal of hazardous wastes at such site PURSUANT TO APPLICABLE PRINCIPLES OF STATUTORY OR COMMON LAW LIABILITY, including, but not limited to, development and implementation of an inactive hazardous waste disposal site remedial program, payment of the cost of such program, recovery of any reasonable expenses incurred by the state, money damages and penalties. 11. A REMEDIAL DECISION BY THE STATE OR THE DEPARTMENT OR A RESPONSE ACTION TAKEN BY THE DEPARTMENT OR ORDERED BY THE DEPARTMENT UNDER THIS SECTION SHALL NOT CONSTITUTE A FINAL DECISION OR ORDER UNTIL THE DEPART- MENT FILES AN ACTION TO ENFORCE SUCH DECISION OR ORDER OR TO COLLECT A PENALTY FOR VIOLATION OF SUCH ORDER OR TO RECOVER ITS RESPONSE COSTS. § 14. The section heading and subdivision 1 of section 27-1316 of the environmental conservation law, as added by section 8 of part E of chap- ter 1 of the laws of 2003, are amended to read as follows: [Citizen technical] TECHNICAL assistance grants. 1. The commissioner is authorized to provide, or order a person acting under order or on consent, to provide grants to any ELIGIBLE MUNICI- PALITY OR not-for-profit corporation exempt from taxation under section 501(c)(3) of the internal revenue code who may be affected by an inac- tive hazardous waste disposal site remedial program. To qualify to receive such assistance, a community group must demonstrate that its membership represents the interests of the community affected by such site, and that members', OR IN THE CASE OF A MUNICIPALITY ITS RESIDENTS, health, economic well-being or enjoyment of the environment are poten- tially affected by such site. AN ELIGIBLE MUNICIPALITY SHALL BE A COUN- TY, CITY, TOWN, VILLAGE, OR INDIAN TRIBE OR NATION RESIDING WITHIN NEW YORK STATE, WITH A POPULATION OF TEN THOUSAND OR LESS, PROVIDED, HOWEV- ER, THAT THE DEPARTMENT MAY MAKE A MUNICIPALITY ELIGIBLE IF IT DETER- MINES THAT A MUNICIPALITY IS A HARDSHIP COMMUNITY. A MUNICIPALITY SHALL NOT BE ELIGIBLE FOR A GRANT FOR ANY SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY. Such grants shall be known as technical assistance grants and may be used to obtain technical assistance in interpreting information with regard to the nature of the hazard posed by hazardous waste located at or emanating from an inactive hazardous waste disposal site or sites and the development and implementation of an inactive hazardous waste disposal site remedial program or programs. Such grants may also be used: (a) to advise affected residents on any health assessment; and (b) for training funds for the education of interested affected commu- nity members OR MUNICIPALITY to enable them to more effectively partic- ipate in the remedy selection process. S. 2008--A 143 A. 3008--A Grants awarded under this section may not be used for the purposes of collecting field sampling data, political activity or lobbying legisla- tive bodies. § 15. Subdivision 1 of section 27-1321 of the environmental conserva- tion law, as amended by section 22 of part G of chapter 58 of the laws of 2012, is amended to read as follows: 1. Notwithstanding any other provision of law to the contrary, any person who is, by professional training or experience and attainment, qualified to analyze and interpret matters pertaining to the treatment, storage, disposal, or transport of hazardous materials or hazardous wastes, and who voluntarily and without expectation of monetary compen- sation provides assistance or advice in mitigating the effects of an accidental or threatened discharge of any hazardous materials or hazard- ous wastes, or in preventing, cleaning up, or disposing of any such discharge, shall not be subject to a penalty or to civil liability for damages or injuries alleged to have been sustained by any person or entity by reason of an act or omission in the giving of such assistance or advice. For the purposes of this section, the term "hazardous materi- als" shall have the same meaning as that term is defined in regulations promulgated by the commissioner of transportation pursuant to section fourteen-f of the transportation law, and the term "hazardous wastes" shall mean those wastes identified or listed pursuant to SUBDIVISION ONE OF section [27-0903] 27-1301 of this article and any rules and regu- lations promulgated thereunder. § 16. Subdivision 10 of section 71-2702 of the environmental conserva- tion law, as added by chapter 671 of the laws of 1986, is amended to read as follows: 10. "Substance hazardous to public health, safety or the environment" means any substance which: (a) is identified or listed as a hazardous waste in regulations promulgated pursuant to section 27-0903 of this chapter and all amend- ments thereto, regardless of whether at the time of release the substance was actually a waste; [or] (b) appears on the list in regulations promulgated pursuant to para- graph (a) of subdivision one of section 37-0103 of this chapter and all amendments thereto[.]; (C) IS PETROLEUM; OR (D) POSES A PRESENT OR POTENTIAL HAZARD TO THE ENVIRONMENT WHEN IMPROPERLY TREATED, STORED, TRANSPORTED, DISPOSED OF, OR OTHERWISE MANAGED. § 17. Paragraph a of subdivision 1 of section 71-2725 of the environ- mental conservation law is REPEALED. § 18. Subdivision 4 of section 11-b of the soil and water conservation districts law, as amended by chapter 538 of the laws of 1996, is amended to read as follows: 4. Eligible costs that may be funded pursuant to this section are architectural and engineering services, plans and specifications, including watershed based or individual agricultural nonpoint source pollution assessments, consultant and legal services, CONSERVATION EASE- MENTS AND ASSOCIATED TRANSACTION COSTS SPECIFIC TO TITLE THIRTY-THREE OF ARTICLE FIFTEEN OF THE ENVIRONMENTAL CONSERVATION LAW and other direct expenses related to project implementation. § 19. If any clause, sentence, paragraph, 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 ther- eof, but shall be confined in its operation to the clause, sentence, S. 2008--A 144 A. 3008--A paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. § 20. This act shall take effect immediately. PART JJ Section 1. Paragraph (a) of subdivision 6 of section 92-s of the state finance law, as amended by chapter 432 of the laws of 1997, is amended to read as follows: (a) All moneys heretofore and hereafter deposited in the environmental protection transfer account shall be transferred by the comptroller to the solid waste account, the parks, recreation and historic preservation account, THE CLIMATE CHANGE MITIGATION AND ADAPTATION ACCOUNT or the open space account upon the request of the director of the budget. § 2. Subdivision 5 of section 27-1012 of the environmental conserva- tion law, as amended by section 6 of part F of chapter 58 of the laws of 2013, is amended to read as follows: 5. All monies collected or received by the department of taxation and finance pursuant to this title shall be deposited to the credit of the comptroller with such responsible banks, banking houses or trust compa- nies as may be designated by the comptroller. Such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected, the comptroller shall retain the amount determined by the commissioner of taxation and finance to be necessary for refunds out of which the comptroller must pay any refunds to which a deposit initiator may be entitled. After reserving the amount to pay refunds, the comptroller must, by the tenth day of each month, pay into the state treasury to the credit of the general fund the revenue deposited under this subdivision during the preceding calendar month and remaining to the comptroller's credit on the last day of that preceding month; provided, however, that, beginning April first, two thousand [thirteen] FOURTEEN, and all fiscal years thereafter, [fifteen] TWENTY-THREE million dollars plus all funds received from the payments due each fiscal year pursuant to subdivision four of this section in excess of [the amount received from April first, two thousand twelve through March thirty-first, two thousand thirteen] ONE HUNDRED TWENTY-TWO MILLION TWO HUNDRED THOUSAND DOLLARS, shall be deposited to the credit of the environmental protection fund established pursuant to section ninety-two-s of the state finance law. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2016. PART KK Section 1. Approximately 40 percent of the food produced in the United States today goes uneaten. Much of this organic waste is disposed of in solid waste landfills, where its decomposition accounts for over 15 percent of our nation's emissions of methane, a potent greenhouse gas. Meanwhile, an estimated 2.8 million New Yorkers are facing hunger and food insecurity. This legislation is designed to address these multiple challenges by: encouraging the prevention of food waste generation by commercial generators and residents; directing the recovery of excess edible food from high-volume commercial food waste generators; and ensuring that a significant portion of inedible food waste from large S. 2008--A 145 A. 3008--A volume food waste generators is managed in a sustainable manner, and does not end up being sent to landfills or incinerators. § 2. Article 27 of the environmental conservation law is amended by adding a new title 22 to read as follows: TITLE 22 FOOD DONATION AND FOOD SCRAPS RECYCLING SECTION 27-2201. DEFINITIONS. 27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES. 27-2205. TRANSPORTER RESPONSIBILITIES. 27-2207. TRANSFER STATION OR OTHER INTERMEDIARY RESPONSIBIL- ITIES. 27-2209. FOOD SCRAPS DISPOSAL PROHIBITION. 27-2211. DEPARTMENT RESPONSIBILITIES. 27-2213. REGULATIONS. 27-2215. EXCLUSIONS. 27-2217. PREEMPTION AND SEVERABILITY. § 27-2201. DEFINITIONS. 1. "DESIGNATED FOOD SCRAPS GENERATOR" MEANS A PERSON WHO GENERATES AT A SINGLE LOCATION AN ANNUAL AVERAGE OF TWO TONS PER WEEK OR MORE OF EXCESS FOOD AND FOOD SCRAPS, INCLUDING, BUT NOT LIMITED TO, SUPERMAR- KETS, RESTAURANTS, HIGHER EDUCATIONAL INSTITUTIONS, HOTELS, FOOD PROCES- SORS, CORRECTIONAL FACILITIES, SPORTS OR ENTERTAINMENT VENUES, HOSPITALS AND OTHER HEALTH CARE FACILITIES. FOR A LOCATION WITH MULTIPLE INDEPEND- ENT FOOD SERVICE BUSINESSES, SUCH AS A MALL OR COLLEGE CAMPUS, THE ENTI- TY RESPONSIBLE FOR CONTRACTING FOR SOLID WASTE HAULING SERVICES IS RESPONSIBLE FOR MANAGING EXCESS FOOD AND FOOD SCRAPS FROM THE INDEPEND- ENT BUSINESSES. 2. "EXCESS FOOD" MEANS EDIBLE FOOD THAT IS NOT SOLD OR USED BY ITS GENERATOR. 3. "FOOD SCRAPS" MEANS INEDIBLE FOOD, TRIMMINGS FROM THE PREPARATION OF FOOD, FOOD-SOILED PAPER, AND EDIBLE FOOD THAT IS NOT DONATED. FOOD SCRAPS SHALL NOT INCLUDE FOOD FROM RESIDENTIAL SOURCES OR ANY FOOD WHICH IS SUBJECT TO A RECALL OR SEIZURE DUE TO THE PRESENCE OF PATHOGENS, INCLUDING BUT NOT LIMITED TO: LISTERIA MONOCYTOGENES, CONFIRMED CLOS- TRIDIUM BOTULINUM, E. COLI 0157:H7 AND ALL SALMONELLA IN READY-TO-EAT FOODS. 4. "ORGANICS RECYCLER" MEANS A FACILITY THAT RECYCLES FOOD SCRAPS THROUGH USE AS ANIMAL FEED OR A FEED INGREDIENT, RENDERING, LAND APPLI- CATION, COMPOSTING, AEROBIC DIGESTION, ANAEROBIC DIGESTION, OR ETHANOL PRODUCTION. ANIMAL SCRAPS, FOOD SOILED PAPER, AND POST-CONSUMER FOOD SCRAPS ARE PROHIBITED FOR USE AS ANIMAL FEED OR AS A FEED INGREDIENT. THE PRODUCT CREATED FROM FOOD SCRAPS BY A COMPOSTING OR DIGESTION FACIL- ITY, OR OTHER TREATMENT SYSTEM, MUST BE USED IN A BENEFICIAL MANNER AS A SOIL AMENDMENT AND SHALL NOT BE COMBUSTED OR LANDFILLED. THE DEPARTMENT MAY DESIGNATE OTHER TECHNIQUES OR TECHNOLOGIES BY REGULATION, PROVIDED THEY DO NOT INCLUDE COMBUSTION OR LANDFILLING. 5. "PERSON" MEANS ANY INDIVIDUAL, BUSINESS ENTITY, PARTNERSHIP, COMPA- NY, CORPORATION, NOT-FOR-PROFIT CORPORATION, ASSOCIATION, GOVERNMENTAL ENTITY, PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY, FIRM, ORGANIZATION OR ANY OTHER GROUP OF INDIVIDUALS, OR ANY OFFICER OR EMPLOYEE OR AGENT THEREOF. 6. "SINGLE LOCATION" MEANS CONTIGUOUS PROPERTY UNDER COMMON OWNERSHIP, WHICH MAY INCLUDE ONE OR MORE BUILDINGS. § 27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES. 1. NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-ONE: S. 2008--A 146 A. 3008--A (A) ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SEPARATE THEIR EXCESS FOOD FOR DONATION FOR HUMAN CONSUMPTION TO THE MAXIMUM EXTENT PRACTICA- BLE, AND IN ACCORDANCE WITH APPLICABLE LAWS, RULES AND REGULATIONS RELATED TO FOOD DONATION; AND (B) EXCEPT AS PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION, EACH DESIGNATED FOOD SCRAPS GENERATOR THAT IS WITHIN FIFTY MILES OF AN ORGAN- ICS RECYCLER, TO THE EXTENT THAT THE RECYCLER HAS CAPACITY TO ACCEPT A SUBSTANTIAL PORTION OR ALL OF THE GENERATOR'S EXCESS FOOD AND FOOD SCRAPS AS DETERMINED BY THE DEPARTMENT ON A YEARLY BASIS, SHALL: (I) SEPARATE ITS REMAINING EXCESS FOOD AND FOOD SCRAPS FROM OTHER SOLID WASTE THAT CANNOT BE EFFECTIVELY PROCESSED BY THE ORGANICS RECY- CLER THAT WILL BE MANAGING THE MATERIALS. WHENEVER PRACTICABLE, EXCESS FOOD AND FOOD SCRAPS SHOULD BE REMOVED FROM PACKAGING AT THE POINT OF GENERATION OR BE SENT TO A FACILITY THAT CAN REMOVE THE PACKAGING FROM THE PRODUCT; (II) ENSURE PROPER STORAGE FOR EXCESS FOOD AND FOOD SCRAPS COLLECTION ON SITE WHICH SHALL PRECLUDE SUCH MATERIALS FROM BECOMING ODOROUS OR ATTRACTING VECTORS; (III) POST INSTRUCTIONS AND PROVIDE TRAINING FOR EMPLOYEES CONCERNING THE PROPER METHODS TO SEPARATE AND STORE EXCESS FOOD AND FOOD SCRAPS; AND (IV) OBTAIN A TRANSPORTER THAT WILL DELIVER ITS EXCESS FOOD AND FOOD SCRAPS TO AN ORGANICS RECYCLER, EITHER DIRECTLY OR THROUGH AN INTERME- DIARY, SELF-HAUL ITS FOOD SCRAPS TO AN ORGANICS RECYCLER, EITHER DIRECT- LY OR THROUGH AN INTERMEDIARY, OR PROVIDE FOR ORGANICS RECYCLING ON-SITE. (C) THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION SHALL NOT APPLY TO ANY DESIGNATED FOOD SCRAPS GENERATOR THAT HAS ALL OF ITS SOLID WASTE PROCESSED IN A MIXED SOLID WASTE COMPOSTING OR MIXED SOLID WASTE ANAEROBIC DIGESTION FACILITY. 2. ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT ON OR BEFORE MARCH FIRST, TWO THOUSAND TWENTY-TWO, AND ANNUALLY THEREAFTER, IN AN ELECTRONIC FORMAT. THE ANNUAL REPORT MUST SUMMARIZE THE AMOUNT OF EXCESS FOOD DONATED AND THE AMOUNT OF EXCESS FOOD NOT DONATED, THE AMOUNT OF FOOD SCRAPS RECYCLED, THE ORGANICS RECY- CLER OR RECYCLERS AND ASSOCIATED TRANSPORTERS USED, AND ANY OTHER INFOR- MATION AS REQUIRED BY THE DEPARTMENT. 3. A DESIGNATED FOOD SCRAPS GENERATOR MAY PETITION THE DEPARTMENT FOR A TEMPORARY WAIVER FROM SOME OR ALL OF THE REQUIREMENTS OF THIS TITLE. THE PETITION MUST INCLUDE EVIDENCE OF UNDUE HARDSHIP BASED ON THE UNIQUE CIRCUMSTANCES OF THE GENERATOR. A WAIVER SHALL BE NO LONGER THAN ONE YEAR IN DURATION. § 27-2205. TRANSPORTER RESPONSIBILITIES. 1. ANY TRANSPORTER THAT COLLECTS SOURCE-SEPARATED EXCESS FOOD AND FOOD SCRAPS FOR RECYCLING FROM A DESIGNATED FOOD SCRAPS GENERATOR SHALL: (A) DELIVER COLLECTED EXCESS FOOD AND FOOD SCRAPS TO A TRANSFER STATION OR OTHER INTERMEDIARY THAT WILL DELIVER SUCH EXCESS FOOD AND FOOD SCRAPS TO AN ORGANICS RECYCLER; OR (B) DELIVER SUCH FOOD SCRAPS DIRECTLY TO AN ORGANICS RECYCLER. 2. ANY TRANSPORTER THAT COLLECTS SOURCE-SEPARATED EXCESS FOOD AND FOOD SCRAPS FROM A DESIGNATED FOOD SCRAPS GENERATOR SHALL NOT DELIVER THOSE EXCESS FOOD AND FOOD SCRAPS TO A COMBUSTION FACILITY OR A LANDFILL NOR COMMINGLE THE MATERIAL WITH ANY OTHER SOLID WASTE UNLESS SUCH WASTE CAN BE PROCESSED BY AN ORGANICS RECYCLER. § 27-2207. TRANSFER STATION OR OTHER INTERMEDIARY RESPONSIBILITIES. S. 2008--A 147 A. 3008--A ANY TRANSFER STATION OR OTHER INTERMEDIARY THAT RECEIVES SOURCE-SEPA- RATED EXCESS FOOD AND FOOD SCRAPS FROM A DESIGNATED FOOD SCRAPS GENERA- TOR MUST ENSURE THAT THE FOOD SCRAPS ARE TAKEN TO AN ORGANICS RECYCLER. NO TRANSFER STATION OR OTHER INTERMEDIARY MAY COMMINGLE THE MATERIAL WITH ANY OTHER SOLID WASTE UNLESS SUCH WASTE CAN BE PROCESSED BY AN ORGANICS RECYCLER. § 27-2209. FOOD SCRAPS DISPOSAL PROHIBITION. SOLID WASTE COMBUSTION FACILITIES AND LANDFILLS SHALL NOT ACCEPT SOURCE-SEPARATED EXCESS FOOD AND FOOD SCRAPS FROM DESIGNATED FOOD SCRAPS GENERATORS REQUIRED TO SEND THEIR EXCESS FOOD NOT DONATED AND FOOD SCRAPS TO AN ORGANICS RECYCLER AS OUTLINED UNDER SECTION 27-2203 OF THIS TITLE, EITHER DIRECTLY OR FROM AN INTERMEDIARY, AFTER JANUARY FIRST, TWO THOUSAND TWENTY-ONE, UNLESS THE DESIGNATED FOOD SCRAPS GENERATOR HAS RECEIVED A TEMPORARY WAIVER UNDER SUBDIVISION THREE OF SECTION 27-2203 OF THIS TITLE. § 27-2211. DEPARTMENT RESPONSIBILITIES. 1. THE DEPARTMENT SHALL, IN CONSULTATION WITH INDUSTRY REPRESEN- TATIVES, PUBLISH ON ITS WEBSITE: (A) THE METHODOLOGY THE DEPARTMENT WILL USE TO DETERMINE WHO IS A DESIGNATED FOOD SCRAP GENERATOR; AND (B) A LIST OF ALL DESIGNATED FOOD SCRAPS GENERATORS, ORGANICS RECYCLERS, AND ALL TRANSPORTERS THAT MANAGE SOURCE-SEPARATED ORGANICS. 2. NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY, THE DEPARTMENT SHALL ASSESS THE CAPACITY OF ORGANIC RECYCLERS AND NOTIFY DESIGNATED FOOD SCRAPS GENERATORS IF THEY ARE REQUIRED TO COMPLY WITH THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE. 3. THE DEPARTMENT SHALL DEVELOP AND MAKE AVAILABLE EDUCATIONAL MATERI- ALS TO ASSIST DESIGNATED FOOD SCRAPS GENERATORS WITH COMPLIANCE WITH THIS TITLE. THE DEPARTMENT SHALL ALSO DEVELOP EDUCATION MATERIALS ON FOOD WASTE MINIMIZATION AND ENCOURAGE MUNICIPALITIES TO DISSEMINATE THESE MATERIALS BOTH ON THEIR MUNICIPAL WEBSITES AND IN ANY SUCH FUTURE MAILINGS TO THEIR RESIDENTS AS THEY MAY DISTRIBUTE. § 27-2213. REGULATIONS. THE DEPARTMENT MAY PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS TITLE. AT A MINIMUM, THE DEPARTMENT SHALL PROMULGATE RULES AND REGULATIONS THAT SET FORTH HOW DESIGNATED FOOD SCRAPS GENERATORS SHALL COMPLY WITH THE PROVISIONS OF PARAGRAPH (A) AND SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE. § 27-2215. EXCLUSIONS. 1. THIS TITLE SHALL NOT APPLY TO ANY DESIGNATED FOOD SCRAPS GENERATORS LOCATED IN A CITY WITH A POPULATION OF ONE MILLION OR MORE WHICH HAS A LOCAL LAW, ORDINANCE OR REGULATION IN PLACE WHICH REQUIRES THE DIVERSION OF EXCESS FOOD AND FOOD SCRAPS FROM DISPOSAL. 2. THIS TITLE DOES NOT APPLY TO ELEMENTARY AND SECONDARY SCHOOLS. § 27-2217. PREEMPTION AND SEVERABILITY. 1. ANY PROVISION OF ANY LOCAL LAW OR ORDINANCE, OR ANY REGULATION PROMULGATED THERETO, GOVERNING THE RECYCLING OF FOOD SCRAPS SHALL UPON THE EFFECTIVE DATE OF THIS TITLE BE PREEMPTED, EXCEPT IN A CITY WITH A POPULATION OF ONE MILLION OF MORE. HOWEVER, LOCAL LAWS OR ORDINANCES, OR PARTS THEREOF, AFFECTING THE RECYCLING OF FOOD SCRAPS THAT INCLUDE GENERATORS NOT COVERED BY THIS TITLE SHALL NOT BE PREEMPTED. 2. THE PROVISIONS OF THIS TITLE SHALL BE SEVERABLE AND IF ANY PORTION THEREOF OR THE APPLICABILITY THEREOF TO ANY PERSON OR CIRCUMSTANCES IS HELD INVALID, THE REMAINDER OF THIS TITLE AND THE APPLICATION THEREOF SHALL NOT BE AFFECTED THEREBY. S. 2008--A 148 A. 3008--A § 3. This act shall take effect immediately. PART LL Section 1. The public authorities law is amended by adding a new section 1005-d to read as follows: § 1005-D. SHARING EMPLOYEES, SERVICES AND RESOURCES; INDEMNITY AND DEFENSE. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT INDICATES ANOTHER MEANING OR INTENT: (A) "DEPARTMENT" MEANS THE DEPARTMENT OF TRANSPORTATION. (B) "SERVICES AND ASSISTANCE" INCLUDES BUT IS NOT LIMITED TO ENGINEER- ING SERVICES; ENVIRONMENTAL SAMPLING AND TESTING; FACILITY, PROPERTY, INFRASTRUCTURE AND EQUIPMENT MAINTENANCE; AND EQUIPMENT AND MATERIALS STORAGE. 2. ONE OR MORE SHARED SERVICES AGREEMENTS MAY BE EXECUTED BETWEEN THE DEPARTMENT AND THE AUTHORITY, CANAL CORPORATION, OR BOTH OF THEM, ONLY FOR (A) AN EMERGENCY SITUATION, (B) EXTREME WEATHER CONDITIONS, AND (C) THE PROVISION OF SERVICES AND ASSISTANCE TO SUPPORT THE OPERATION AND MAINTENANCE OF THE CANAL SYSTEM AND RELATED INFRASTRUCTURE, AS DEEMED APPROPRIATE, INCLUDING BUT LIMITED TO SHARE EMPLOYEES, SERVICES OR RESOURCES AS DEEMED APPROPRIATE INCLUDING, BUT NOT LIMITED TO, FOR THE PERFORMANCE OF WORK AND ACTIVITIES BY THE DEPARTMENT ON THE FACILITIES AND PROPERTY UNDER THE JURISDICTION OF THE AUTHORITY OR CANAL CORPO- RATION, AND FOR THE PERFORMANCE OF WORK AND ACTIVITIES BY THE AUTHORITY OR CANAL CORPORATION ON THE FACILITIES AND PROPERTY UNDER THE JURISDIC- TION OF THE DEPARTMENT. SUCH AGREEMENT OR ANY PROJECT UNDERTAKEN PURSU- ANT TO SUCH AN AGREEMENT SHALL NOT BE DEEMED TO IMPAIR THE RIGHTS OF BONDHOLDERS AND MAY PROVIDE FOR, BUT NOT BE LIMITED TO, THE MANAGEMENT, SUPERVISION AND DIRECTION OF SUCH EMPLOYEES' PERFORMANCE OF SUCH SERVICES. ALL SHARED EMPLOYEES SHALL REMAIN EMPLOYEES OF THEIR RESPEC- TIVE EMPLOYERS AND ALL APPLICABLE COLLECTIVELY BARGAINED AGREEMENTS SHALL REMAIN IN EFFECT FOR THE ENTIRE LENGTH OF THE SHARED SERVICES AGREEMENT. FURTHER, SUCH SHARED SERVICES AGREEMENT SHALL NOT AMEND, REPEAL OR REPLACE THE TERMS OF ANY AGREEMENT THAT IS COLLECTIVELY NEGO- TIATED BETWEEN AN EMPLOYER AND AN EMPLOYEE ORGANIZATION, INCLUDING AN AGREEMENT OR INTEREST ARBITRATION AWARD MADE PURSUANT TO ARTICLE FOUR- TEEN OF THE CIVIL SERVICE LAW. 3. THE AUTHORITY SHALL DEFEND ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT, USING THE FORCES OF THE DEPARTMENT OF LAW PURSUANT TO SUBDIVISION ELEVEN OF THIS SECTION IN ANY ACTION, PROCEEDING, CLAIM, DEMAND OR THE PROSECUTION OF ANY APPEAL ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT IN THE PERFORMANCE OF THE FUNCTIONS OF THE AUTHORITY OR CANAL CORPORATION PURSUANT TO A SHARED SERVICES AGREEMENT. 4. DEFENSE PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL BE CONDITIONED UPON THE FULL COOPERATION OF THE DEPARTMENT. 5. THE AUTHORITY SHALL INDEMNIFY AND HOLD HARMLESS ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT IN THE AMOUNT OF ANY JUDGMENT OBTAINED AGAINST THE DEPARTMENT OR IN THE AMOUNT OF ANY SETTLEMENT THE DEPARTMENT ENTERS INTO WITH THE CONSENT OF THE AUTHORITY FOR ANY AND ALL CLAIMS, DAMAGES OR LIABILITIES ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT OF THE AUTHORITY OR CANAL CORPORATION PURSUANT TO A SHARED SERVICES AGREEMENT; PROVIDED, HOWEVER, THAT THE ACT OR OMISSION FROM WHICH SUCH JUDGMENT OR SETTLEMENT AROSE OCCURRED WHILE THE AUTHORI- TY OR CANAL CORPORATION WAS ACTING WITHIN THE SCOPE OF ITS FUNCTIONS PURSUANT TO A SHARED SERVICES AGREEMENT. NO SUCH SETTLEMENT OF ANY SUCH S. 2008--A 149 A. 3008--A ACTION, PROCEEDING, CLAIM OR DEMAND SHALL BE MADE WITHOUT THE APPROVAL OF THE AUTHORITY'S BOARD OF TRUSTEES OR ITS DESIGNEE. 6. ANY CLAIM OR PROCEEDING COMMENCED AGAINST ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION THAT ARISES PURSUANT TO ANY SHARED SERVICES AGREEMENT SHALL NOT BE CONSTRUED IN ANY WAY TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY IMMUNITY AVAIL- ABLE TO OR CONFERRED UPON ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION, OR TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY RIGHT TO DEFENSE AND INDEMNIFICATION PROVIDED FOR ANY GOVERNMENTAL OFFICER OR EMPLOYEE BY, IN ACCORDANCE WITH, OR BY REASON OF, ANY OTHER PROVISION OF STATE OR FEDERAL STATUTORY OR COMMON LAW. 7. (A) THE STATE SHALL DEFEND ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY AND CANAL CORPORATION USING THE FORCES OF THE DEPARTMENT OF LAW IN ANY ACTION, PROCEEDING, CLAIM, DEMAND OR THE PROSECUTION OF ANY APPEAL ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT IN THE PERFORMANCE OF THE FUNCTIONS OF THE DEPARTMENT PURSUANT TO A SHARED SERVICES AGREEMENT. (B) DEFENSE PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE CONDITIONED UPON THE FULL COOPERATION OF THE AUTHORITY AND CANAL CORPO- RATION. (C) THE STATE SHALL INDEMNIFY AND HOLD HARMLESS ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION IN THE AMOUNT OF ANY JUDGMENT OBTAINED AGAINST THE AUTHORITY OR CANAL CORPORATION IN THE AMOUNT OF ANY SETTLEMENT THE AUTHORITY OR CANAL CORPORATION ENTERS INTO WITH THE CONSENT OF THE STATE FOR ANY AND ALL CLAIMS, DAMAGES OR LIABILITIES ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT ON BEHALF OF THE DEPARTMENT PURSUANT TO A SHARED SERVICES AGREEMENT, PROVIDED, HOWEVER, THAT THE ACT OR OMISSION FROM WHICH SUCH JUDGMENT OR SETTLEMENT AROSE OCCURRED WHILE THE DEPARTMENT WAS ACTING WITHIN THE SCOPE OF ITS FUNCTIONS PURSUANT TO A SHARED SERVICES AGREEMENT. ANY SUCH SETTLEMENT SHALL BE EXECUTED PURSUANT TO SECTION TWENTY-A OF THE COURT OF CLAIMS ACT. (D) ANY CLAIM OR PROCEEDING COMMENCED AGAINST ANY UNIT, ENTITY, OFFI- CER OR EMPLOYEE OF THE DEPARTMENT PURSUANT TO ANY SHARED SERVICES AGREE- MENT SHALL NOT BE CONSTRUED IN ANY WAY TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY IMMUNITY AVAILABLE TO OR CONFERRED UPON ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY RIGHT TO DEFENSE AND INDEMNIFICATION PROVIDED FOR ANY GOVERNMENTAL OFFICER OR EMPLOYEE BY, IN ACCORDANCE WITH, OR BY REASON OF, ANY OTHER PROVISION OF STATE OR FEDER- AL STATUTORY OR COMMON LAW. (E) ANY PAYMENT MADE PURSUANT TO THIS SUBDIVISION OR ANY MONIES PAID FOR A CLAIM AGAINST OR SETTLEMENT WITH THE DEPARTMENT, AUTHORITY OR CANAL CORPORATION PURSUANT TO THIS SUBDIVISION AND PURSUANT TO A SHARED SERVICES AGREEMENT SHALL BE PAID FROM APPROPRIATIONS FOR PAYMENT BY THE STATE PURSUANT TO THE COURT OF CLAIMS ACT. 8. THIS SECTION SHALL NOT IN ANY WAY AFFECT THE OBLIGATION OF ANY CLAIMANT TO GIVE NOTICE TO THE STATE, AUTHORITY, OR CANAL CORPORATION UNDER SECTION TEN AND SECTION ELEVEN OF THE COURT OF CLAIMS ACT OR ANY OTHER PROVISION OF LAW PROVIDED, HOWEVER, THAT NOTICE SERVED UPON THE STATE, AUTHORITY, OR CANAL CORPORATION WHO IS A PARTY TO THE SHARED SERVICES AGREEMENT SHALL BE VALID NOTICE ON ALL PARTIES TO THE AGREE- MENT, WHEN SUCH CLAIM ARISES OUT OF SUCH SHARED SERVICES AGREEMENT. THE STATE, AUTHORITY AND CANAL CORPORATION SHALL NOTIFY EACH OTHER WHEN THEY S. 2008--A 150 A. 3008--A RECEIVE A NOTICE OF CLAIM, NOTICE OF INTENTION TO MAKE A CLAIM OR A CLAIM ARISING OUT OF SUCH AGREEMENT. 9. THE PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED TO IMPAIR, ALTER, LIMIT OR MODIFY THE RIGHTS AND OBLIGATIONS OF ANY INSURER UNDER ANY INSURANCE AGREEMENT. 10. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHEN EMPLOYED PURSUANT TO A SHARED SERVICES AGREEMENT, EMPLOYEES OF THE AUTHORITY, CANAL CORPO- RATION AND DEPARTMENT SHALL BE DEEMED EMPLOYEES OF ALL SUCH ENTITIES AND THE STATE FOR PURPOSES OF THE WORKERS' COMPENSATION LAW. 11. AT THE REQUEST OF THE AUTHORITY OR CANAL CORPORATION, SERVICES AND ASSISTANCE AND LEGAL SERVICES FOR THE AUTHORITY OR CANAL CORPORATION SHALL BE PERFORMED BY FORCES OR OFFICERS OF THE DEPARTMENT AND THE DEPARTMENT OF LAW RESPECTIVELY, AND ALL OTHER STATE OFFICERS, DEPART- MENTS, BOARDS, DIVISIONS AND COMMISSIONS SHALL RENDER SERVICES WITHIN THEIR RESPECTIVE FUNCTIONS. § 2. Subdivision 1 of section 17 of the public officers law is amended by adding a new paragraph (z) to read as follows: (Z) FOR PURPOSES OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE MEMBERS OF THE GOVERNING BOARDS, OFFICERS AND EMPLOYEES OF THE POWER AUTHORITY OF THE STATE OF NEW YORK OR ITS SUBSIDIARIES. § 3. This act, being necessary for the prosperity of the state and its inhabitants, shall be liberally construed to effect the purposes and secure the beneficial intents hereof. § 4. If any provision of any section of this act or the application thereof to any person or circumstance shall be adjudged invalid by a court of competent jurisdiction, such order or judgment shall be confined in its operation to the controversy in which it was rendered, and shall not affect or invalidate the remainder of any provision of any section of this act or the application thereof to any other person or circumstance and to this end the provisions of each section of this act are hereby declared to be severable. § 5. This act shall take effect immediately. PART MM Section 1. Expenditures of moneys by the New York state energy research and development authority for services and expenses of the energy research, development and demonstration program, including grants, the energy policy and planning program, the zero emissions vehi- cle and electric vehicle rebate program, and the Fuel NY program shall be subject to the provisions of this section. Notwithstanding the provisions of subdivision 4-a of section 18-a of the public service law, all moneys committed or expended in an amount not to exceed $19,700,000 shall be reimbursed by assessment against gas corporations, as defined in subdivision 11 of section 2 of the public service law and electric corporations as defined in subdivision 13 of section 2 of the public service law, where such gas corporations and electric corporations have gross revenues from intrastate utility operations in excess of $500,000 in the preceding calendar year, and the total amount which may be charged to any gas corporation and any electric corporation shall not exceed one cent per one thousand cubic feet of gas sold and .010 cent per kilowatt-hour of electricity sold by such corporations in their intrastate utility operations in calendar year 2015. Such amounts shall be excluded from the general assessment provisions of subdivision 2 of section 18-a of the public service law. The chair of the public service commission shall bill such gas and/or electric corporations for such S. 2008--A 151 A. 3008--A amounts on or before August 10, 2017 and such amounts shall be paid to the New York state energy research and development authority on or before September 10, 2017. Upon receipt, the New York state energy research and development authority shall deposit such funds in the ener- gy research and development operating fund established pursuant to section 1859 of the public authorities law. The New York state energy research and development authority is authorized and directed to: (1) transfer $1 million to the state general fund for services and expenses of the department of environmental conservation, $150,000 to the state general fund for services and expenses of the department of agriculture and markets, and $750,000 to the University of Rochester laboratory for laser energetics from the funds received; and (2) commencing in 2016, provide to the chair of the public service commission and the director of the budget and the chairs and secretaries of the legislative fiscal committees, on or before August first of each year, an itemized record, certified by the president and chief executive officer of the authority, or his or her designee, detailing any and all expenditures and commit- ments ascribable to moneys received as a result of this assessment by the chair of the department of public service pursuant to section 18-a of the public service law. This itemized record shall include an item- ized breakdown of the programs being funded by this section and the amount committed to each program. The authority shall not commit for any expenditure, any moneys derived from the assessment provided for in this section, until the chair of such authority shall have submitted, and the director of the budget shall have approved, a comprehensive financial plan encompassing all moneys available to and all anticipated commitments and expenditures by such authority from any source for the operations of such authority. Copies of the approved comprehensive financial plan shall be immediately submitted by the chair to the chairs and secretaries of the legislative fiscal committees. Any such amount not committed by such authority to contracts or contracts to be awarded or otherwise expended by the authority during the fiscal year shall be refunded by such authority on a pro-rata basis to such gas and/or elec- tric corporations, in a manner to be determined by the department of public service. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. § 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.
2017-A3008B - Details
- See Senate Version of this Bill:
- S2008
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3008B - Summary
Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year; increases certain motor vehicle transaction fees (Part A); relates to divisible load permits; provides that after December thirty-first, two thousand sixteen, no more than twenty-seven thousand power units shall be issued annual permits by the department of motor vehicles for any twelve-month period (Part B)
2017-A3008B - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 3008--B I N A S S E M B L Y January 23, 2017 ___________ A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommit- ted to said committee AN ACT to amend chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increasing certain motor vehi- cle transaction fees, in relation to the disposition of revenues (Part A); to amend the vehicle and traffic law, in relation to divisible load permits (Part B); intentionally omitted (Part C); to amend the vehicle and traffic law in relation to compliance with new federal regulations (Part D); intentionally omitted (Part E); intentionally omitted (Part F); intentionally omitted (Part G); to amend the vehicle and traffic law, in relation to the waiver of non-driver identifica- tion card fees for crime victims (Part H); to amend the vehicle and traffic law, in relation to the reinstatement fee for non-residents (Part I); to amend the vehicle and traffic law, in relation to increasing fees for original and duplicate certificates of title (Part J); to amend the vehicle and traffic law, in relation to additional fees for certain identification cards (Part K); intentionally omitted (Part L); to amend the New York state urban development corporation act, in relation to extending certain provisions relating to the empire state economic development fund (Part M); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effective- ness thereof (Part N); to amend chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, in relation to the minority and women-owned business enterprise program (Part O); intentionally omit- ted (Part P); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part Q); intentionally omitted (Part R); to amend the real property law, in
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12573-05-7 A. 3008--B 2 relation to streamlining the licensing process for real estate profes- sionals (Part S); to amend the environmental conservation law and the executive law, in relation to local waterfront revitalization (Part T); to amend the executive law, in relation to the chairperson of the state athletic commission (Part U); deeming certain expenses of the department of health to be expenses of the department of public service (Part V); intentionally omitted (Part W); intentionally omit- ted (Part X); to amend the insurance law, in relation to the enforce- ment of the insurance law against unlicensed participants (Part Y); to amend the banking law, in relation to the licensing and regulation of student loan servicers (Part Z); intentionally omitted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); to amend the state finance law, in relation to creating a paid family leave risk adjustment fund (Part DD); intentionally omitted (Part EE); to amend the real property actions and proceedings law, in relation to making the prior notice requirements applicable to the foreclosure of reverse mortgages (Part FF); to amend the financial services law, in relation to assessments to defray operating expenses of the department (Subpart A); to amend the insurance law, in relation to the distrib- ution of assets (Subpart B); and to amend the insurance law, in relation to insurers deemed to be in a hazardous financial condition (Subpart C)(Part GG); intentionally omitted (Part HH); to amend the environmental conservation law, the public health law, and the public authorities law, in relation to the implementation of the "clean water infrastructure act of 2017"; to amend the soil and water conservation districts law, in relation to certain costs; to amend the New York State water infrastructure improvement act of 2015, in relation to water quality infrastructure projects financed with state assistance; and to repeal subdivision 9 of section 97-b of the state finance law, relating to certain moneys in the hazardous waste remedial fund (Part II); to amend the state finance law and the environmental conservation law, in relation to environmental protection fund deposits and trans- fers; and to amend part F of chapter 58 of the laws of 2013 amending the environmental conservation law and the state finance law relating to the "Cleaner, Greener NY Act of 2013", in relation to extending the effectiveness thereof (Part JJ); to amend the environmental conserva- tion law, in relation to the donation of excess food and recycling of food scraps (Part KK); intentionally omitted (Part LL); to authorize the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, and Fuel NY programs, as well as the department of environmental conserva- tion's climate change program, from an assessment on gas and electric corporations (Part MM); to repeal subdivision 18-a of section 1261 of the public authorities law relating to the definition of "transporta- tion purpose" for purposes of the metropolitan transportation authori- ty (Part NN); to amend the public authorities law, in relation to prohibiting certain roadway lighting (Part OO); to amend the New York state urban development corporation act, in relation to economic development entities (Part PP); to amend the New York state urban development corporation act and the economic development law, in relation to reporting requirements (Part QQ); to amend the New York state urban development corporation act, in relation to creating the small business innovation research/small business technology transfer technical assistance program; and repealing section 3102-c of the public authorities law relating thereto (Part RR); to amend subpart H of part C of chapter 20 of the laws of 2015, appropriating money for A. 3008--B 3 certain municipal corporations and school districts, in relation to establishing a potential award schedule (Part SS); to amend the envi- ronmental conservation law, in relation to establishing a paint stewardship program (Part TT); to amend the environmental conservation law, in relation to establishing the New York state environmental justice act and grants (Part UU); in relation to establishing the Indian Point closure task force and providing for the repeal of such provisions upon expiration thereof (Part VV); to amend the New York state urban development corporation act, in relation to the creation of the strategic investment in workforce development program (Part WW); to amend the environmental conservation law, the public service law, the public authorities law, the labor law and the community risk and resiliency act, in relation to establishing the New York state climate and community protection act (Part XX); to amend the environ- mental conservation law, in relation to pesticide registration time frames and fees; and to amend chapter 67 of the laws of 1992, amending the environmental conservation law relating to pesticide product registration timetables and fees, in relation to the effectiveness thereof (Part YY); to direct the metropolitan transportation authority to produce an alternatives analysis for the construction of a light rail system along the west shore of Staten Island (Part ZZ); to devel- op and implement a toll rebate plan for the Cross Bay Veterans Memori- al Bridge (Part AAA); and to prohibit the purchase of zero emission credits until the heads of the public service commission and the New York state energy research and development authority appear before a joint public hearing (Part BBB) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2017-2018 state fiscal year. Each component is wholly contained within a Part identified as Parts A through BBB. 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 Section 1. Section 13 of part U1 of chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increas- ing certain motor vehicle transaction fees, as amended by section 1 of part A of chapter 58 of the laws of 2015, is amended to read as follows: § 13. This act shall take effect immediately; provided however that sections one through seven of this act, the amendments to subdivision 2 of section 205 of the tax law made by section eight of this act, and section nine of this act shall expire and be deemed repealed on April 1, 2020; [provided further, however, that the amendments to subdivision 3 of section 205 of the tax law made by section eight of this act shall expire and be deemed repealed on March 31, 2018;] provided further, A. 3008--B 4 however, that the provisions of section eleven of this act shall take effect April 1, 2004 and shall expire and be deemed repealed on April 1, 2020. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART B Section 1. Paragraph (f) of subdivision 15 of section 385 of the vehi- cle and traffic law, as amended by section 4 of part C of chapter 59 of the laws of 2004, the third undesignated paragraph as amended by chapter 277 of the laws of 2014, is amended to read as follows: (f) 1. The department of transportation, or other issuing authority, may issue an annual permit for a vehicle designed and constructed to carry loads that are not of one piece or item, which is registered in this state. Motor carriers having apportioned vehicles registered under the international registration plan must either have a currently valid permit at the time this provision becomes effective or shall have desig- nated New York as its base state or one of the eligible jurisdictions of operation under the international registration plan in order to be eligible to receive a permit issued pursuant to [subparagraph] CLAUSE (i), (ii) or (ii-a) OF SUBPARAGRAPH EIGHT of this paragraph. No permit issued pursuant to this paragraph shall be valid for the operation or movement of vehicles on any state or other highway within any city not wholly included within one county unless such permit was issued by the city department of transportation of such city. 2. Effective January first, two thousand five, no vehicle or combina- tion of vehicles issued a permit pursuant to this paragraph shall cross a bridge designated as an R-posted bridge by the commissioner of trans- portation or any other permit issuing authority absent a determination by such commissioner or permit issuing authority that the permit appli- cant has demonstrated special circumstances warranting the crossing of such bridge or bridges and a determination by such commissioner or permit issuing authority that such bridge or bridges may be crossed safely, provided, however, that in no event shall a vehicle or combina- tion of vehicles issued a permit under this paragraph be permitted to cross a bridge designated as an R-posted bridge if such vehicle or combination of vehicles has a maximum gross weight exceeding one hundred two thousand pounds, and provided further, however, that nothing contained herein shall be deemed to authorize any vehicle or combination of vehicles to cross any such bridge within any city not wholly included within one county unless such vehicle or combination of vehicles has been issued a valid permit by the city department of transportation of such city pursuant to this subdivision. 3. No vehicle having a model year of two thousand six or newer shall be issued a permit pursuant to this paragraph unless each axle of such vehicle or combination of vehicles, other than steerable or trackable axles, is equipped with two tires on each side of the axle, any air pressure controls for lift axles are located outside the cab of the vehicle and are beyond the reach of occupants of the cab while the vehi- cle is in motion, the weight on any grouping of two or more axles is distributed such that no axle in the grouping carries less than eighty percent of any other axle in the grouping and any liftable axle is steerable or trackable; and, further provided, after December thirty- first, two thousand nineteen, no permit shall be issued pursuant to this paragraph to a vehicle of any model year that does not meet the require- A. 3008--B 5 ments of this provision, except that such permits may be issued prior to January first, two thousand twenty to a vehicle that does not meet the requirement concerning axle grouping weight distribution, but meets all other requirements of this section. 4. A divisible load permit may only be transferred to a replacement vehicle by the same registrant or transferred with the permitted vehicle as part of the sale or transfer of the permit holder's business; or, if the divisible load permit is issued pursuant to [subparagraph] CLAUSE (iv), (v) or (vi) OF SUBPARAGRAPH EIGHT of this paragraph for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess and has been effective for the five years preceding a transfer of such permit, the permit may be transferred with the permit- ted vehicle in the sale of the permitted vehicle to the holder of a permit issued pursuant to [subparagraph] CLAUSE (iv), (v) or (vi) OF SUBPARAGRAPH EIGHT of this paragraph for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess. 5. If a permit holder operates a vehicle or combination of vehicles in violation of any posted weight restriction, the permit issued to such vehicle or combination of vehicles shall be deemed void as of the next day and shall not be reissued for a period of twelve calendar months. 6. Until June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand power units shall be issued annual permits by the department for any twelve-month period in accordance with this para- graph. After June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand five hundred power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, nineteen hundred ninety-five, no more than seventeen thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand three, no more than twenty-one thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, two thousand five, no more than twenty-two thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand six, no more than twenty-three thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand seven, no more than twenty-four thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand eight, no more than twenty- five thousand power units shall be issued annual permits by the depart- ment for any twelve-month period. AFTER DECEMBER THIRTY-FIRST, TWO THOU- SAND SIXTEEN, NO MORE THAN TWENTY-SEVEN THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, NO MORE THAN TWEN- TY-NINE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY, NO MORE THAN THIRTY THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO, NO MORE THAN THIR- TY-ONE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-THREE, NO MORE THAN THIRTY-TWO THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR, NO MORE THAN THIRTY-THREE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. AFTER DECEMBER THIRTY- A. 3008--B 6 FIRST, TWO THOUSAND TWENTY-FIVE, NO MORE THAN THIRTY-FIVE THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE- MONTH PERIOD. Whenever permit application requests exceed permit availability, the department shall renew annual permits that have been expired for less than four years which meet program requirements, and then shall issue permit applicants having less than three divisible load permits such additional permits as the applicant may request, providing that the total of existing and new permits does not exceed three. Remaining permits shall be allocated by lottery in accordance with procedures established by the commissioner in rules and regulations. 7. The department of transportation may issue a seasonal agricultural permit in accordance with [subparagraphs] CLAUSES (i), (ii) and (iii) OF SUBPARAGRAPH EIGHT of this paragraph that will be valid for four consec- utive months with a fee equal to one-half the annual permit fees estab- lished under this subdivision. 8. For a vehicle issued a permit in accordance with [subparagraphs] CLAUSES (iii), (iv), (v) and (vi) of this [paragraph] SUBPARAGRAPH, such a vehicle must have been registered in this state prior to January first, nineteen hundred eighty-six or be a vehicle or combination of vehicles which replace such type of vehicle which was registered in this state prior to such date provided that the manufacturer's recommended maximum gross weight of the replacement vehicle or combination of vehi- cles does not exceed the weight for which a permit may be issued and the maximum load to be carried on the replacement vehicle or combination of vehicles does not exceed the maximum load which could have been carried on the vehicle being replaced or the registered weight of such vehicle, whichever is lower, in accordance with the following [subparagraphs] CLAUSES: (i) A permit may be issued for a vehicle having at least three axles and a wheelbase not less than sixteen feet and for a vehicle with a trailer not exceeding forty-eight feet. The maximum gross weight of such a vehicle shall not exceed forty-two thousand five hundred pounds plus one thousand two hundred fifty pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rearmost axle, or one hundred two thousand pounds, which- ever is more restrictive provided, however, that any four axle group weight shall not exceed sixty-two thousand pounds, any tridem axle group weight shall not exceed fifty-seven thousand pounds, any tandem axle weight does not exceed forty-seven thousand pounds and any single axle weight shall not exceed twenty-five thousand pounds. Any additional special authorizations contained in a currently valid annual permit shall cease upon the expiration of such current annual permit. (ii) A permit may be issued subject to bridge restrictions for a vehi- cle or a combination of vehicles having at least six axles and a wheel base of at least thirty-six and one-half feet. The maximum gross weight of such vehicle or combination of vehicles shall not exceed one hundred seven thousand pounds and any tridem axle group weight shall not exceed fifty-eight thousand pounds and any tandem axle group weight shall not exceed forty-eight thousand pounds. (ii-a) A permit may be issued subject to bridge restrictions for a combination of vehicles having at least seven axles and a wheelbase of at least forty-three feet. The maximum gross weight of such combination of vehicles shall not exceed one hundred seventeen thousand pounds, any four axle group weight shall not exceed sixty-three thousand pounds, any A. 3008--B 7 tridem axle group weight shall not exceed fifty-eight thousand pounds, any tandem axle group weight shall not exceed forty-eight thousand pounds, and any single axle weight shall not exceed twenty-five thousand pounds. Each axle of such combination of vehicles, other than steerable or trackable axles, shall be equipped with two tires on each side of the axle, any air pressure controls for lift axles shall be located outside the cab of the combination of vehicles and shall be beyond the reach of occupants of the cab while the combination of vehicles is in motion, the weight on any grouping of two or more axles shall be distributed such that no axle in the grouping carries less than eighty percent of any other axle in the grouping, and any liftable axle of such combination of vehicles shall be steerable or trackable. (iii) A permit may be issued for a vehicle having two axles and a wheelbase not less than ten feet, with the maximum gross weight not in excess of one hundred twenty-five percent of the total weight limitation as set forth in subdivision ten of this section. Furthermore, until December thirty-first, nineteen hundred ninety-four, any single rear axle weight shall not exceed twenty-eight thousand pounds. After Decem- ber thirty-first, nineteen hundred ninety-four, any axle weight shall not exceed twenty-seven thousand pounds. (iv) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle having at least three axles and a wheelbase not exceeding forty-four feet nor less than seven- teen feet or for a vehicle with a trailer not exceeding forty feet. Until December thirty-first, nineteen hundred ninety-four, a permit may only be issued for such a vehicle having a maximum gross weight not exceeding eighty-two thousand pounds and any tandem axle group weight shall not exceed sixty-two thousand pounds. After January first, nineteen hundred ninety-five, the operation of such a vehicle shall be further limited and a permit may only be issued for such a vehicle having a maximum gross weight not exceeding seventy- nine thousand pounds and any tandem axle group weight shall not exceed fifty-nine thousand pounds, and any tridem shall not exceed sixty-four thousand pounds. A permit may be issued only until December thirty-first, nineteen hundred ninety-four for a vehicle having at least three axles and a wheelbase between fifteen and seventeen feet. The maximum gross weight of such a vehicle shall not exceed seventy-three thousand two hundred eighty pounds and any tandem axle group weight shall not exceed fifty- four thousand pounds. No vehicle having a model year of two thousand six or newer shall be issued a permit pursuant to this subparagraph for use within the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess unless it is equipped with at least four axles, and further provided, after December thirty-first, two thousand fourteen, no permit shall be issued pursuant to this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess to a vehicle of any model year unless the vehicle is equipped with at least four axles. (v) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange or Dutch- ess, a permit may be issued only until December thirty-first, nineteen hundred ninety-nine for a vehicle or combination of vehicles that has been permitted within the past four years having five axles and a wheel- A. 3008--B 8 base of at least thirty-six and one-half feet. The maximum gross weight of such a vehicle or combination of vehicles shall not exceed one hundred five thousand pounds and any tandem axle group weight shall not exceed fifty-one thousand pounds. Within a city not wholly included within one county and the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle or combination of vehicles having at least five axles and a wheelbase of at least thirty feet. The maximum gross weight of such vehicle or combination of vehicles shall not exceed ninety-three thousand pounds and any tridem axle group weight shall not exceed fifty-seven thousand pounds and any tandem axle group weight shall not exceed forty-five thousand pounds. (vi) Within a city not wholly included within one county and the coun- ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, a permit may be issued for a vehicle or combination of vehi- cles having at least five axles or more and a wheelbase of at least thirty-six and one-half feet, provided such permit contains routing restrictions. Until December thirty-first, nineteen hundred ninety-four, the maximum gross weight of a vehicle or combination of vehicles permitted under this [subparagraph] CLAUSE shall not exceed one hundred twenty thousand pounds and any tandem or tridem axle group weight shall not exceed sixty-nine thousand pounds, provided, however, that any replacement vehicle or combination of vehicles permitted after the effective date of this [subparagraph] CLAUSE shall have at least six axles, any tandem axle group shall not exceed fifty thousand pounds and any tridem axle group shall not exceed sixty-nine thousand pounds. After December thirty-first, nineteen hundred ninety-four, the tridem axle group weight of any vehicle or combination of vehicles issued a permit under this [subparagraph] CLAUSE shall not exceed sixty-seven thousand pounds, any tandem axle group weight shall not exceed fifty thousand pounds and any single axle weight shall not exceed twenty-five thousand seven hundred fifty pounds. After December thirty-first, nineteen hundred ninety-nine, all vehi- cles issued a permit under this [subparagraph] CLAUSE must have at least six axles. After December thirty-first, two thousand fourteen, all combinations of vehicles issued a permit under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess must have at least seven axles and a wheelbase of at least forty-three feet. After December thirty-first, two thousand six, no permits shall be issued under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for a vehicle or combination of vehicles having less than seven axles or having a wheelbase of less than forty-three feet, provided, however, that permits may be issued for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for vehicles or combinations of vehicles where the permit applicant demonstrates that the applicant acquired the vehicle or combination of vehicles prior to December thirty-first, two thousand six, and that if the vehicle or combination of vehicles was acquired by the applicant after the effec- tive date of this provision, such vehicle or combination of vehicles is less than fifteen years old. In instances where the application is for a combination of vehicles, the applicant shall demonstrate that the power unit of such combination satisfies the conditions of this [subparagraph] A. 3008--B 9 CLAUSE. In no event shall a permit be issued under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for a vehicle or combination of vehicles having less than seven axles or having a wheelbase of less than forty-three feet after December thirty-first, two thousand fourteen. Except as otherwise provided by this subparagraph for the period ending December thirty-first, two thousand fourteen, after December thirty-first, two thousand three, any combination of vehicles issued a permit under this [subparagraph] CLAUSE for use within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess shall not exceed one hundred twenty thousand pounds, shall have at least seven axles, shall have a wheelbase of at least forty-three feet, and single axle weight shall not exceed twenty-five thousand seven hundred fifty pounds, any tandem axle group weight shall not exceed forty-eight thousand pounds, any tridem axle group weight shall not exceed sixty- three thousand pounds and any four axle group shall not exceed sixty- five thousand pounds. From the date of enactment of this paragraph, permit applications under [subparagraphs] CLAUSES (i), (ii), (ii-a), (iii), (iv), (v) and (vi) of this [paragraph] SUBPARAGRAPH for vehicles registered in this state may be honored by the commissioner of transportation or other appropriate authority. The commissioner of transportation and other appropriate authorities may confer and develop a system through rules and regulations to assure compliance herewith. § 2. This act shall take effect immediately. PART C Intentionally Omitted PART D Section 1. Intentionally omitted. § 2. Subparagraphs 5 and 6 of paragraph (b) of subdivision 4 of section 385 of the vehicle and traffic law, subparagraph 5 as amended by chapter 669 of the laws of 2005, and subparagraph 6 as amended by chap- ter 26 of the laws of 2002, are amended and a new subparagraph 7 is added to read as follows: 5. A vehicle or combination of vehicles which is disabled and unable to proceed under its own power and is being towed for a distance not in excess of ten miles for the purpose of repairs or removal from the high- way, except that the distance to the nearest exit of a controlled-access highway shall not be considered in determining such ten mile distance; [and] 6. Stinger-steered automobile transporters or stinger-steered boat transporters, while operating on qualifying and access highways. [Such vehicles] STINGER-STEERED BOAT TRANSPORTERS shall not, however, exceed seventy-five feet exclusive of an overhang of not more than three feet on the front and four feet on the rear of the vehicle[.] AND STINGER- STEERED AUTOMOBILE TRANSPORTERS SHALL NOT EXCEED EIGHTY FEET EXCLUSIVE OF AN OVERHANG OF NOT MORE THAN FOUR FEET ON THE FRONT AND SIX FEET ON THE REAR OF THE VEHICLE; AND 7. A COMBINATION OF VEHICLES OPERATING ON ANY QUALIFYING OR ACCESS HIGHWAYS CONSISTING OF A POWER UNIT AND TWO TRAILERS OR SEMITRAILERS WITH A TOTAL WEIGHT THAT SHALL NOT EXCEED TWENTY-SIX THOUSAND POUNDS WHEN THE OVERALL LENGTH IS GREATER THAN SIXTY-FIVE FEET BUT SHALL NOT A. 3008--B 10 EXCEED EIGHTY-TWO FEET IN WHICH THE TRAILERS OR SEMITRAILERS CARRY NO PROPERTY AND CONSTITUTE INVENTORY PROPERTY OF A MANUFACTURER, DISTRIBU- TOR, OR DEALER OF SUCH TRAILERS OR SEMITRAILERS. § 3. Paragraph (c) of subdivision 4 of section 385 of the vehicle and traffic law, as amended by chapter 26 of the laws of 2002, is amended to read as follows: (c) Notwithstanding the provisions of paragraph (a) of this subdivi- sion, an overhang of not more than three feet on the front and four feet on the rear of an automobile transporter or AN OVERHANG OF NOT MORE THAN FOUR FEET ON THE FRONT AND SIX FEET ON THE REAR OF A stinger-steered automobile transporter or AN OVERHANG OF NOT MORE THAN THREE FEET ON THE FRONT AND FOUR FEET ON THE REAR OF a boat transporter or stinger-steered boat transporter shall be permitted. § 4. Subdivision 10 of section 385 of the vehicle and traffic law, as amended by chapter 1008 of the laws of 1983, is amended to read as follows: 10. A single vehicle or a combination of vehicles having three axles or more and equipped with pneumatic tires, when loaded, may have a total weight on all axles not to exceed thirty-four thousand pounds, plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rear- most axle. Axles to be counted as provided in subdivision five of this section. In no case, however, shall the total weight exceed eighty thou- sand pounds EXCEPT FOR A VEHICLE IF OPERATED BY AN ENGINE FUELED PRIMA- RILY BY NATURAL GAS WHICH MAY HAVE A MAXIMUM GROSS WEIGHT OF UP TO EIGHTY-TWO THOUSAND POUNDS. For any vehicle or combination of vehicles having a total gross weight less than seventy-one thousand pounds, the higher of the following shall apply: (a) the total weight on all axles shall not exceed thirty-four thou- sand pounds plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rearmost axle, or (b) the overall gross weight on a group of two or more consecutive axles shall not exceed the weight produced by application of the follow- ing formula: W = 500 ((LxN)/(N-1) + (12xN)+36) where W equals overall gross weight on any group of two or more consec- utive axles to the nearest five hundred pounds, L equals distance in feet from the center of the foremost axle to the center of the rearmost axle of any group of two or more consecutive axles, and N equals number of axles in group under consideration, except that two consecutive sets of tandem axles may carry a gross load of thirty-four thousand pounds each providing the overall distance between the first and last axles of such consecutive sets of tandem axles is thirty-six feet or more. For any vehicle or combination of vehicles having a total gross weight of seventy-one thousand pounds or greater, paragraph (b) shall apply to determine maximum gross weight which is permitted hereunder. § 5. Section 385 of the vehicle and traffic law is amended by adding a new subdivision 24 to read as follows: 24. THE PROVISIONS OF SUBDIVISIONS SIX, SEVEN, EIGHT, NINE, TEN, ELEV- EN AND TWELVE OF THIS SECTION SHALL NOT APPLY TO ANY TOW TRUCK THAT IS TRANSPORTING A DISABLED VEHICLE FROM THE PLACE WHERE SUCH VEHICLE BECAME DISABLED TO THE NEAREST APPROPRIATE REPAIR FACILITY AND HAS A GROSS VEHICLE WEIGHT THAT IS EQUAL TO OR EXCEEDS THE GROSS VEHICLE WEIGHT OF THE DISABLED VEHICLE BEING TRANSPORTED. § 6. Intentionally omitted. A. 3008--B 11 § 7. This act shall take effect immediately. PART E Intentionally Omitted PART F Intentionally Omitted PART G Intentionally Omitted PART H Section 1. Section 491 of the vehicle and traffic law is amended by adding a new subdivision 3 to read as follows: 3. WAIVER OF FEE. THE COMMISSIONER MAY WAIVE THE PAYMENT OF FEES REQUIRED BY SUBDIVISION TWO OF THIS SECTION IF THE APPLICANT IS A VICTIM OF A CRIME AND THE IDENTIFICATION CARD APPLIED FOR IS A REPLACEMENT FOR ONE THAT WAS LOST OR DESTROYED AS A RESULT OF THE CRIME. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART I Section 1. Paragraph (i) of subdivision 2 of section 503 of the vehi- cle and traffic law, as amended by chapter 55 of the laws of 1992, is amended to read as follows: (i) A non-resident whose driving privileges have been revoked pursuant to sections five hundred ten, eleven hundred ninety-three and eleven hundred ninety-four of this chapter shall, upon application for rein- statement of such driving privileges, pay to the commissioner of motor vehicles a fee of [twenty-five] ONE HUNDRED dollars. WHEN THE BASIS FOR THE REVOCATION IS A FINDING OF DRIVING AFTER HAVING CONSUMED ALCOHOL PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED NINETY-TWO-A OF THIS CHAPTER, THE FEE TO BE PAID TO THE COMMISSIONER SHALL BE ONE HUNDRED DOLLARS. Such fee is not refundable and shall not be returned to the applicant regardless of the action the commissioner may take on such person's application for reinstatement of such driving privileges. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART J Section 1. Paragraphs 1 and 3 of subdivision (a) of section 2125 of the vehicle and traffic law, as amended by section 1-b of part A of chapter 63 of the laws of 2005, are amended to read as follows: (1) for filing an application for a certificate of title, [fifty] SEVENTY-FIVE dollars except where the application relates to a mobile home or a manufactured home as defined in section one hundred twenty- two-c of this chapter, in which case the fee shall be one hundred twen- ty-five dollars; (3) for a duplicate certificate of title, [twenty] FORTY dollars. § 2. Section 2125 of the vehicle and traffic law is amended by adding a new subdivision (h) to read as follows: A. 3008--B 12 (H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE INCREASE OF TWEN- TY-FIVE DOLLARS FOR THE FEE ASSESSED FOR FILING AN APPLICATION FOR A CERTIFICATE OF TITLE AND THE INCREASE OF TWENTY DOLLARS FOR THE FEE ASSESSED FOR FILING AN APPLICATION FOR A DUPLICATE CERTIFICATE OF TITLE, COLLECTED PURSUANT TO PARAGRAPHS ONE AND THREE OF SUBDIVISION (A) OF THIS SECTION, SHALL BE DEPOSITED TO THE CREDIT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND, ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately; provided that the amend- ments to paragraph 1 of subdivision (a) of section 2125 of the vehicle and traffic law made by section one of this act shall not affect the expiration and reversion of such paragraph and shall be deemed to expire therewith. PART K Section 1. Subdivision 2 of section 491 of the vehicle and traffic law is amended by adding a new paragraph (f) to read as follows: (F) IN ADDITION TO ANY OTHER FEE PRESCRIBED IN THIS SECTION, AN ADDI- TIONAL FEE OF FIVE DOLLARS SHALL BE CHARGED FOR ANY NON-DRIVER IDENTIFI- CATION CARD, OR RENEWAL OR AMENDMENT OF SUCH CARD, THAT IS ISSUED IN ACCORDANCE WITH THE REAL ID ACT OF 2005, PUBLIC LAW 109-13, AND REGU- LATIONS PROMULGATED THEREUNDER AT 6 CFR PART 37. THE FEE COLLECTED PURSUANT TO THIS PARAGRAPH SHALL BE PAID TO THE COMMISSIONER AND SHALL BE DEPOSITED TO THE CREDIT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 2. Subdivision 2 of section 503 of the vehicle and traffic law is amended by adding a new paragraph (f-2) to read as follows: (F-2) IN ADDITION TO ANY OTHER FEE PRESCRIBED IN THIS SECTION, AN ADDITIONAL FEE OF FIVE DOLLARS SHALL BE CHARGED FOR ANY LICENSE, OR RENEWAL OR AMENDMENT OF SUCH LICENSE, THAT IS ISSUED IN ACCORDANCE WITH THE REAL ID ACT OF 2005, PUBLIC LAW 109-13, AND REGULATIONS PROMULGATED THEREUNDER AT 6 CFR PART 37. THE FEE COLLECTED PURSUANT TO THIS PARA- GRAPH SHALL BE PAID TO THE COMMISSIONER AND SHALL BE DEPOSITED TO THE CREDIT OF THE DEDICATED HIGHWAY AND BRIDGE TRUST FUND ESTABLISHED PURSU- ANT TO SECTION EIGHTY-NINE-B OF THE STATE FINANCE LAW. § 3. This act shall take effect immediately. PART L Intentionally Omitted PART M Section 1. Subdivision 3 of section 16-m of section 1 of chapter 174 of the laws of 1968 constituting the New York state urban development corporation act, as amended by section 1 of part F of chapter 58 of the laws of 2016, is amended to read as follows: 3. The provisions of this section shall expire, notwithstanding any inconsistent provision of subdivision 4 of section 469 of chapter 309 of the laws of 1996 or of any other law, on July 1, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2017. PART N A. 3008--B 13 Section 1. Section 2 of chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, as amended by section 1 of part G of chapter 58 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect immediately provided, however, that section one of this act shall expire on July 1, [2017] 2018, at which time the provisions of subdivision 26 of section 5 of the New York state urban development corporation act shall be deemed repealed; provided, however, that neither the expiration nor the repeal of such subdivision as provided for herein shall be deemed to affect or impair in any manner any loan made pursuant to the authority of such subdivision prior to such expiration and repeal. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART O Section 1. The opening paragraph of subdivision (h) of section 121 of chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, as amended by section 2 of part Q of chapter 58 of the laws of 2015, is amended to read as follows: The provisions of [section] SECTIONS sixty-two through sixty-six of this act shall expire on December thirty-first, two thousand [seventeen] NINETEEN, except that: § 2. This act shall take effect immediately. PART P Intentionally Omitted PART Q Section 1. Section 2 of chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, as amended by section 1 of part M of chapter 58 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect immediately, provided however, that section one of this act shall be deemed to have been in full force and effect on and after April 1, 2003 and shall expire March 31, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after March 31, 2017. PART R Intentionally Omitted PART S Section 1. Subdivision 6 of section 441-a of the real property law, as amended by chapter 183 of the laws of 2006, is amended to read as follows: A. 3008--B 14 6. Pocket card. The department shall prepare, issue and deliver, with the assistance of the department of motor vehicles, [to each licensee] UPON PAYMENT OF A FEE OF FIVE DOLLARS BY A LICENSEE, a pocket card in such form and manner as the department shall prescribe, but which shall contain the photo, name and business address of the licensee, and, in the case of a real estate salesman, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesman, as may be. Such cards must be shown on demand. In the case of loss, destruction or damage, the secretary of state may, upon submission of satisfactory proof, issue a duplicate pocket card upon payment of a fee of ten dollars. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 2 of section 54-1101 of the environmental conservation law, as amended by section 4 of part U of chapter 58 of the laws of 2016, is amended to read as follows: 2. State assistance payments and/or technical assistance, as defined in section nine hundred seventeen of the executive law, shall not exceed fifty percent of the cost of the program PROVIDED, HOWEVER, IN ENVIRON- MENTAL JUSTICE COMMUNITIES, SUCH ASSISTANCE PAYMENTS AND/OR TECHNICAL ASSISTANCE SHALL NOT EXCEED SEVENTY-FIVE PERCENT OF THE COST OF THE PROGRAM. For the purpose of determining the amount of state assistance payments, costs shall not be more than the amount set forth in the application for state assistance payments approved by the secretary. The state assistance payments shall be paid on audit and warrant of the state comptroller on a certificate of availability of the director of the budget. § 2. Paragraph a of subdivision 1 of section 918 of the executive law, as added by chapter 840 of the laws of 1981, is amended to read as follows: a. To any local governments, or to two or more local governments, for projects approved by the secretary which lead to preparation of a water- front revitalization program; provided, however, that such grants shall not exceed fifty percent of the approved cost of such projects PROVIDED, HOWEVER, IN ENVIRONMENTAL JUSTICE COMMUNITIES, SUCH ASSISTANCE PAYMENTS AND/OR TECHNICAL ASSISTANCE SHALL NOT EXCEED SEVENTY-FIVE PERCENT OF THE COST OF THE PROGRAM; § 2-a. Subdivision 2 of section 54-0509 of the environmental conserva- tion law, as amended by section 8 of part L of chapter 59 of the laws of 2005, is amended to read as follows: 2. An agreement by the commissioner to make state assistance payments toward the cost of the project by periodically reimbursing the munici- pality for costs incurred during the progress of the project. For a municipal landfill closure project, which does not include a landfill gas management system, such reimbursement shall be a maximum of either fifty percent of the cost, or ninety percent of the cost for a munici- pality with a population smaller than thirty-five hundred as determined by the current federal decennial census, or two million dollars, which- ever is less. For a landfill gas management system, which is part of a municipal landfill closure project, reimbursement shall be a maximum of either [fifty] SEVENTY-FIVE percent of the cost, or ninety percent of the cost for a municipality with a population smaller than thirty-five hundred as determined by the current federal decennial census, or two A. 3008--B 15 million dollars, whichever is less. For a municipal landfill gas manage- ment project, reimbursement shall be a maximum of either [fifty] SEVEN- TY-FIVE percent of the cost, or ninety percent of the cost for a munici- pality with a population smaller than thirty-five hundred as determined by the current federal decennial census, or two million dollars, which- ever is less. Project costs are subject to final computation and deter- mination by the commissioner upon completion of the project, and shall not exceed the maximum cost set forth in the contract. For purposes of this subdivision, the approved project cost shall be reduced by the amount of any specific state assistance payments for municipal landfill closure or municipal landfill gas management project purposes received by the municipality from any source; provided, however, that non-specif- ic state assistance payments, such as amounts paid pursuant to section fifty-four of the state finance law, shall not be included in such cost reduction. § 3. This act shall take effect immediately. PART U Section 1. Paragraph (e) of subdivision 1 of section 169 of the execu- tive law, as amended by section 9 of part A of chapter 60 of the laws of 2012, is amended to read as follows: (e) [chairman of state athletic commission,] director of the office of victim services, chairman of human rights appeal board, chairman of the industrial board of appeals, chairman of the state commission of correction, members of the board of parole, member-chairman of unemploy- ment insurance appeal board, director of veterans' affairs, and vice- chairman of the workers' compensation board; § 2. This act shall take effect immediately. PART V Section 1. Intentionally Omitted § 2. Intentionally Omitted § 3. Intentionally Omitted § 4. Intentionally Omitted § 5. Notwithstanding any other law, rule or regulation to the contra- ry, expenses of the department of health public service education program incurred pursuant to appropriations from the cable television account of the state miscellaneous special revenue funds shall be deemed expenses of the department of public service. No later than August 15, 2018, the commissioner of the department of health shall submit an accounting of expenses in the 2017 -- 2018 fiscal year to the chair of the public service commission for the chair's review pursuant to the provisions of section 217 of the public service law. § 6. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART W Intentionally Omitted PART X Intentionally Omitted A. 3008--B 16 PART Y Section 1. Paragraph 1 of subsection (c) of section 109 of the insur- ance law, as amended by section 55 of part A of chapter 62 of the laws of 2011, is amended to read as follows: (1) If the superintendent finds after notice and hearing that any authorized insurer, representative of the insurer, [licensed insurance agent, licensed insurance broker, licensed adjuster,] or any other [person or] entity licensed, certified, registered, or authorized pursu- ant to this chapter, has wilfully violated the provisions of this chap- ter or any regulation promulgated thereunder, then the superintendent may order the [person or] entity to pay to the people of this state a penalty in a sum [not exceeding one thousand dollars for each offense] OF EITHER (A) FIVE THOUSAND DOLLARS FOR EACH OFFENSE; (B) THE AGGREGATE DAMAGES PROXIMATELY CAUSED BY THE VIOLATION OR VIOLATIONS; OR (C) THE AGGREGATE PROFIT MADE FROM THE VIOLATION OR VIOLATIONS. IF THE SUPER- INTENDENT FINDS AFTER NOTICE AND HEARING THAT ANY LICENSED INSURANCE AGENT, LICENSED INSURANCE BROKER, LICENSED ADJUSTER, OR ANY OTHER PERSON LICENSED, CERTIFIED, REGISTERED OR AUTHORIZED PURSUANT TO THIS CHAPTER HAS WILLFULLY VIOLATED THE PROVISIONS OF THIS CHAPTER OR ANY REGULATION PROMULGATED THEREUNDER, THEN THE SUPERINTENDENT MAY ORDER THE PERSON TO PAY TO THE PEOPLE OF THIS STATE A PENALTY IN A SUM NOT EXCEEDING ONE THOUSAND DOLLARS FOR EACH OFFENSE. § 2. This act shall take effect immediately. PART Z Section 1. The banking law is amended by adding a new article 14-A to read as follows: ARTICLE XIV-A STUDENT LOAN SERVICERS SECTION 710. DEFINITIONS. 711. LICENSING. 712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN THE BUSINESS OF STUDENT LOAN SERVICING. 714. CHANGES IN OFFICERS AND DIRECTORS. 715. CHANGES IN CONTROL. 716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE. 717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING. 718. RULES AND REGULATIONS. 719. PROHIBITED PRACTICES. 720. SERVICING STUDENT LOANS WITHOUT A LICENSE. 721. RESPONSIBILITIES. 722. EXAMINATIONS. 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 724. SEVERABILITY OF PROVISIONS. 725. COMPLIANCE WITH OTHER LAWS. § 710. DEFINITIONS. 1. "APPLICANT" SHALL MEAN ANY PERSON APPLYING FOR A LICENSE TO BE A STUDENT LOAN SERVICER. 2. "BORROWER" SHALL MEAN ANY RESIDENT OF THIS STATE WHO HAS RECEIVED A STUDENT LOAN OR AGREED IN WRITING TO PAY A STUDENT LOAN OR ANY PERSON WHO SHARES A LEGAL OBLIGATION WITH SUCH RESIDENT FOR REPAYING A STUDENT LOAN. 3. "BORROWER BENEFIT" SHALL MEAN AN INCENTIVE OFFERED TO A BORROWER IN CONNECTION WITH THE ORIGINATION OF A STUDENT LOAN, INCLUDING BUT NOT A. 3008--B 17 LIMITED TO AN INTEREST RATE REDUCTION, PRINCIPAL REBATE, FEE WAIVER OR REBATE, LOAN CANCELLATION, OR COSIGNER RELEASE. 4. "EXEMPT ORGANIZATION" SHALL MEAN ANY BANKING ORGANIZATION, FOREIGN BANKING CORPORATION, NATIONAL BANK, FEDERAL SAVINGS ASSOCIATION, FEDERAL CREDIT UNION, OR ANY BANK, TRUST COMPANY, SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, OR CREDIT UNION ORGANIZED UNDER THE LAWS OF ANY OTHER STATE. 5. "PERSON" SHALL MEAN ANY INDIVIDUAL, ASSOCIATION, CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, TRUST, UNINCORPORATED ORGANIZA- TION, OR ANY OTHER ENTITY. 6. "SERVICER" OR "STUDENT LOAN SERVICER" SHALL MEAN A PERSON LICENSED PURSUANT TO SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE TO ENGAGE IN THE BUSINESS OF SERVICING ANY STUDENT LOAN OF A BORROWER. 7. "SERVICING" SHALL MEAN: (A) RECEIVING ANY PAYMENT FROM A BORROWER PURSUANT TO THE TERMS OF ANY STUDENT LOAN; (B) APPLYING ANY PAYMENT TO A BORROWER'S ACCOUNT PURSUANT TO THE TERMS OF A STUDENT LOAN OR THE CONTRACT GOVERNING THE SERVICING OF ANY SUCH LOAN; (C) PROVIDING ANY NOTIFICATION OF AMOUNTS OWED ON A STUDENT LOAN BY OR ON ACCOUNT OF ANY BORROWER; (D) DURING A PERIOD WHEN A BORROWER IS NOT REQUIRED TO MAKE A PAYMENT ON A STUDENT LOAN, MAINTAINING ACCOUNT RECORDS FOR THE STUDENT LOAN AND COMMUNICATING WITH THE BORROWER REGARDING THE STUDENT LOAN ON BEHALF OF THE OWNER OF THE STUDENT LOAN PROMISSORY NOTE; (E) INTERACTING WITH A BORROWER WITH RESPECT TO OR REGARDING ANY ATTEMPT TO AVOID DEFAULT ON THE BORROWER'S STUDENT LOAN, OR FACILITATING THE ACTIVITIES DESCRIBED IN PARAGRAPH (A) OR (B) OF THIS SUBDIVISION; OR (F) PERFORMING OTHER ADMINISTRATIVE SERVICES WITH RESPECT TO A BORROW- ER'S STUDENT LOAN. 8. "STUDENT LOAN" SHALL MEAN ANY LOAN TO A BORROWER TO FINANCE POSTSE- CONDARY EDUCATION OR EXPENSES RELATED TO POSTSECONDARY EDUCATION. § 711. LICENSING. 1. NO PERSON SHALL ENGAGE IN THE BUSINESS OF SERVIC- ING STUDENT LOANS OWED BY ONE OR MORE BORROWERS RESIDING IN THIS STATE WITHOUT FIRST BEING LICENSED BY THE SUPERINTENDENT AS A STUDENT LOAN SERVICER IN ACCORDANCE WITH THIS ARTICLE AND SUCH REGULATIONS AS MAY BE PRESCRIBED BY THE SUPERINTENDENT. 2. THE LICENSING PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPT ORGANIZATION; PROVIDED THAT SUCH EXEMPT ORGANIZATION NOTIFIES THE SUPERINTENDENT THAT THE EXEMPT ORGANIZATION IS ACTING AS A STUDENT LOAN SERVICER IN THIS STATE AND COMPLIES WITH SECTIONS SEVEN HUNDRED NINETEEN AND SEVEN HUNDRED TWENTY-ONE OF THIS ARTICLE AND ANY REGULATION APPLICA- BLE TO STUDENT LOAN SERVICERS PROMULGATED BY THE SUPERINTENDENT. § 712. APPLICATION FOR A STUDENT LOAN SERVICER LICENSE; FEES. 1. THE APPLICATION FOR A LICENSE TO BE A STUDENT LOAN SERVICER SHALL BE IN WRITING, UNDER OATH, AND IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT AN APPLICATION FOR A LICENSE OR ANY OTHER SUBMISSION OR APPLICATION FOR APPROVAL AS MAY BE REQUIRED BY THIS ARTICLE BE MADE OR EXECUTED BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE. THE APPLICATION SHALL INCLUDE A DESCRIPTION OF THE ACTIVITIES OF THE APPLICANT, IN SUCH DETAIL AND FOR SUCH PERIODS AS THE SUPERINTENDENT MAY REQUIRE, INCLUDING: A. 3008--B 18 (A) AN AFFIRMATION OF FINANCIAL SOLVENCY NOTING SUCH CAPITALIZATION REQUIREMENTS AS MAY BE REQUIRED BY THE SUPERINTENDENT, AND ACCESS TO SUCH CREDIT AS MAY BE REQUIRED BY THE SUPERINTENDENT; (B) A FINANCIAL STATEMENT PREPARED BY A CERTIFIED PUBLIC ACCOUNTANT, THE ACCURACY OF WHICH IS SWORN TO UNDER OATH BEFORE A NOTARY PUBLIC BY AN OFFICER OR OTHER REPRESENTATIVE OF THE APPLICANT WHO IS AUTHORIZED TO EXECUTE SUCH DOCUMENTS; (C) AN AFFIRMATION THAT THE APPLICANT, OR ITS MEMBERS, OFFICERS, PART- NERS, DIRECTORS AND PRINCIPALS AS MAY BE APPROPRIATE, ARE AT LEAST TWEN- TY-ONE YEARS OF AGE; (D) INFORMATION AS TO THE CHARACTER, FITNESS, FINANCIAL AND BUSINESS RESPONSIBILITY, BACKGROUND AND EXPERIENCES OF THE APPLICANT, OR ITS MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS AS MAY BE APPRO- PRIATE; (E) ANY ADDITIONAL DETAIL OR INFORMATION REQUIRED BY THE SUPERINTEN- DENT. 2. AN APPLICATION TO BECOME A STUDENT LOAN SERVICER OR ANY APPLICATION WITH RESPECT TO A STUDENT LOAN SERVICER SHALL BE ACCOMPANIED BY A FEE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER. § 713. APPLICATION PROCESS TO RECEIVE LICENSE TO ENGAGE IN THE BUSI- NESS OF STUDENT LOAN SERVICING. 1. UPON THE FILING OF AN APPLICATION FOR A LICENSE, IF THE SUPERINTENDENT SHALL FIND THAT THE FINANCIAL RESPONSI- BILITY, EXPERIENCE, CHARACTER, AND GENERAL FITNESS OF THE APPLICANT AND, IF APPLICABLE, THE MEMBERS, OFFICERS, PARTNERS, DIRECTORS AND PRINCIPALS OF THE APPLICANT ARE SUCH AS TO COMMAND THE CONFIDENCE OF THE COMMUNITY AND TO WARRANT BELIEF THAT THE BUSINESS WILL BE OPERATED HONESTLY, FAIR- LY, AND EFFICIENTLY WITHIN THE PURPOSE OF THIS ARTICLE, THE SUPERINTEN- DENT SHALL THEREUPON ISSUE A LICENSE IN DUPLICATE TO ENGAGE IN THE BUSI- NESS OF SERVICING STUDENT LOANS DESCRIBED IN SECTION SEVEN HUNDRED TEN OF THIS ARTICLE IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. IF THE SUPERINTENDENT SHALL NOT SO FIND, THE SUPERINTENDENT SHALL NOT ISSUE A LICENSE, AND THE SUPERINTENDENT SHALL SO NOTIFY THE APPLICANT. THE SUPERINTENDENT SHALL TRANSMIT ONE COPY OF A LICENSE TO THE APPLICANT AND FILE ANOTHER COPY IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES. UPON RECEIPT OF SUCH LICENSE, A STUDENT LOAN SERVICER SHALL BE AUTHOR- IZED TO ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE. SUCH LICENSE SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL IT IS SURRENDERED BY THE SERVICER OR REVOKED OR SUSPENDED AS HEREINAFTER PROVIDED. 2. THE SUPERINTENDENT MAY REFUSE TO ISSUE A LICENSE PURSUANT TO THIS ARTICLE IF HE OR SHE SHALL FIND THAT THE APPLICANT, OR ANY PERSON WHO IS A DIRECTOR, OFFICER, PARTNER, AGENT, EMPLOYEE, MEMBER OR SUBSTANTIAL STOCKHOLDER OF THE APPLICANT: (A) LACKS THE GOOD MORAL CHARACTER AND GENERAL FITNESS SUCH AS TO WARRANT BELIEF THAT THE LICENSED ENTITY WOULD BE OPERATED HONESTLY, FAIRLY AND EFFICIENTLY WITHIN THE PURPOSES OF THIS ARTICLE; (B) HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; (C) HAS BEEN AN OFFICER, DIRECTOR, PARTNER, MEMBER OR SUBSTANTIAL STOCKHOLDER OF AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT OR ANY OTHER REGULATOR OR JURISDICTION; OR (D) HAS BEEN AN AGENT, EMPLOYEE, OFFICER, DIRECTOR, PARTNER OR MEMBER OF AN ENTITY WHICH HAS HAD A LICENSE OR REGISTRATION REVOKED BY THE SUPERINTENDENT WHERE SUCH PERSON SHALL HAVE BEEN FOUND BY THE SUPER- INTENDENT TO BEAR RESPONSIBILITY IN CONNECTION WITH THE REVOCATION. A. 3008--B 19 3. THE TERM "SUBSTANTIAL STOCKHOLDER", AS USED IN THIS SUBDIVISION, SHALL BE DEEMED TO REFER TO A PERSON OWNING OR CONTROLLING DIRECTLY OR INDIRECTLY TEN PER CENTUM OR MORE OF THE TOTAL OUTSTANDING STOCK OF A CORPORATION. § 714. CHANGES IN OFFICERS AND DIRECTORS. UPON ANY CHANGE OF ANY OF THE EXECUTIVE OFFICERS, DIRECTORS, PARTNERS OR MEMBERS OF ANY STUDENT LOAN SERVICER, THE STUDENT LOAN SERVICER SHALL SUBMIT TO THE SUPERINTEN- DENT THE NAME, ADDRESS, AND OCCUPATION OF EACH NEW OFFICER, DIRECTOR, PARTNER OR MEMBER, AND PROVIDE SUCH OTHER INFORMATION AS THE SUPERINTEN- DENT MAY REQUIRE. § 715. CHANGES IN CONTROL. 1. IT SHALL BE UNLAWFUL, EXCEPT WITH THE PRIOR APPROVAL OF THE SUPERINTENDENT, FOR ANY ACTION TO BE TAKEN WHICH RESULTS IN A CHANGE OF CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVI- CER. PRIOR TO ANY CHANGE OF CONTROL, THE PERSON DESIROUS OF ACQUIRING CONTROL OF THE BUSINESS OF A STUDENT LOAN SERVICER SHALL MAKE WRITTEN APPLICATION TO THE SUPERINTENDENT AND PAY AN INVESTIGATION FEE AS PRESCRIBED PURSUANT TO SECTION EIGHTEEN-A OF THIS CHAPTER TO THE SUPER- INTENDENT. THE APPLICATION SHALL CONTAIN SUCH INFORMATION AS THE SUPER- INTENDENT, BY RULE OR REGULATION, MAY PRESCRIBE AS NECESSARY OR APPRO- PRIATE FOR THE PURPOSE OF MAKING THE DETERMINATION REQUIRED BY SUBDIVISION TWO OF THIS SECTION. SUCH INFORMATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE INFORMATION AND OTHER MATERIAL REQUIRED FOR A STUDENT LOAN SERVICER BY SUBDIVISION ONE OF SECTION SEVEN HUNDRED TWELVE OF THIS ARTICLE. 2. THE SUPERINTENDENT SHALL APPROVE OR DISAPPROVE THE PROPOSED CHANGE OF CONTROL OF A STUDENT LOAN SERVICER IN ACCORDANCE WITH THE PROVISIONS OF SECTION SEVEN HUNDRED THIRTEEN OF THIS ARTICLE. 3. FOR A PERIOD OF SIX MONTHS FROM THE DATE OF QUALIFICATION THEREOF AND FOR SUCH ADDITIONAL PERIOD OF TIME AS THE SUPERINTENDENT MAY PRESCRIBE, IN WRITING, THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL NOT APPLY TO A TRANSFER OF CONTROL BY OPERATION OF LAW TO THE LEGAL REPRESENTATIVE, AS HEREINAFTER DEFINED, OF ONE WHO HAS CONTROL OF A STUDENT LOAN SERVICER. THEREAFTER, SUCH LEGAL REPRESEN- TATIVE SHALL COMPLY WITH THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION. THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION SHALL BE APPLICABLE TO AN APPLICATION MADE UNDER THIS SECTION BY A LEGAL REPRESENTATIVE. THE TERM "LEGAL REPRESENTATIVE", FOR THE PURPOSES OF THIS SUBDIVISION, SHALL MEAN A PERSON DULY APPOINTED BY A COURT OF COMPETENT JURISDICTION TO ACT AS EXECUTOR, ADMINISTRATOR, TRUSTEE, COMMITTEE, CONSERVATOR OR RECEIVER, INCLUDING A PERSON WHO SUCCEEDS A LEGAL REPRESENTATIVE AND A PERSON ACTING IN AN ANCILLARY CAPACITY THERE- TO IN ACCORDANCE WITH THE PROVISIONS OF SUCH COURT APPOINTMENT. 4. AS USED IN THIS SECTION THE TERM "CONTROL" MEANS THE POSSESSION, DIRECTLY OR INDIRECTLY, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLICIES OF A STUDENT LOAN SERVICER, WHETHER THROUGH THE OWNERSHIP OF VOTING STOCK OF SUCH STUDENT LOAN SERVICER, THE OWNER- SHIP OF VOTING STOCK OF ANY PERSON WHICH POSSESSES SUCH POWER OR OTHER- WISE. CONTROL SHALL BE PRESUMED TO EXIST IF ANY PERSON, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER OR OF ANY PERSON WHICH OWNS, CONTROLS OR HOLDS WITH POWER TO VOTE TEN PER CENTUM OR MORE OF THE VOTING STOCK OF ANY STUDENT LOAN SERVICER, BUT NO PERSON SHALL BE DEEMED TO CONTROL A STUDENT LOAN SERVICER SOLELY BY REASON OF BEING AN OFFICER OR DIRECTOR OF SUCH STUDENT LOAN SERVICER. THE SUPERINTENDENT MAY IN HIS DISCRETION, UPON THE APPLICATION OF A STUDENT LOAN SERVICER OR ANY PERSON WHO, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS OR HOLDS WITH A. 3008--B 20 POWER TO VOTE OR SEEKS TO OWN, CONTROL OR HOLD WITH POWER TO VOTE ANY VOTING STOCK OF SUCH STUDENT LOAN SERVICER, DETERMINE WHETHER OR NOT THE OWNERSHIP, CONTROL OR HOLDING OF SUCH VOTING STOCK CONSTITUTES OR WOULD CONSTITUTE CONTROL OF SUCH STUDENT LOAN SERVICER FOR PURPOSES OF THIS SECTION. § 716. GROUNDS FOR SUSPENSION OR REVOCATION OF LICENSE. 1. THE SUPER- INTENDENT MAY REVOKE ANY LICENSE TO ENGAGE IN THE BUSINESS OF A STUDENT LOAN SERVICER ISSUED PURSUANT TO THIS ARTICLE IF A DETERMINATION HAS BEEN MADE, AFTER NOTICE AND A HEARING, THAT: (A) A SERVICER HAS VIOLATED ANY PROVISION OF THIS ARTICLE, ANY RULE OR REGULATION PROMULGATED BY THE SUPERINTENDENT UNDER AND WITHIN THE AUTHORITY OF THIS ARTICLE, OR ANY OTHER APPLICABLE LAW; (B) A SERVICER ENGAGES IN FRAUD, INTENTIONAL MISREPRESENTATION, OR GROSS NEGLIGENCE IN SERVICING A STUDENT LOAN; (C) THE COMPETENCE, EXPERIENCE, CHARACTER, OR GENERAL FITNESS OF THE SERVICER, AN INDIVIDUAL CONTROLLING, DIRECTLY OR INDIRECTLY, TEN PERCENT OR MORE OF THE OUTSTANDING INTERESTS, OR ANY PERSON RESPONSIBLE FOR SERVICING A STUDENT LOAN FOR THE SERVICER INDICATES THAT IT IS NOT IN THE PUBLIC INTEREST TO PERMIT THE SERVICER TO CONTINUE SERVICING STUDENT LOANS; (D) THE SERVICER IS INSOLVENT, SUSPENDS PAYMENT OF ITS OBLIGATIONS, OR MAKES A GENERAL ASSIGNMENT FOR THE BENEFIT OF ITS CREDITORS; OR (E) THE SERVICER HAS VIOLATED THE LAWS OF THIS STATE, ANY OTHER STATE LAW OR ANY FEDERAL LAW INVOLVING FRAUDULENT OR DISHONEST DEALING, OR A FINAL JUDGMENT HAS BEEN ENTERED AGAINST A STUDENT LOAN SERVICER IN A CIVIL ACTION UPON GROUNDS OF FRAUD, MISREPRESENTATION OF DECEIT. 2. THE SUPERINTENDENT MAY, ON GOOD CAUSE SHOWN, OR WHERE THERE IS A SUBSTANTIAL RISK OF PUBLIC HARM, SUSPEND ANY LICENSE FOR A PERIOD NOT EXCEEDING THIRTY DAYS, PENDING INVESTIGATION. "GOOD CAUSE", AS USED IN THIS SUBDIVISION, SHALL EXIST WHEN A STUDENT LOAN SERVICER HAS DEFAULTED IN PERFORMING ITS FINANCIAL ENGAGEMENTS OR ENGAGES IN DISHONEST OR INEQ- UITABLE PRACTICES WHICH MAY CAUSE SUBSTANTIAL HARM TO THE PERSONS AFFORDED THE PROTECTION OF THIS ARTICLE. 3. NO LICENSE SHALL BE REVOKED OR SUSPENDED EXCEPT AFTER NOTICE AND A HEARING THEREON. ANY ORDER OF SUSPENSION ISSUED AFTER NOTICE AND A HEAR- ING MAY INCLUDE AS A CONDITION OF REINSTATEMENT THAT THE STUDENT LOAN SERVICER MAKE RESTITUTION TO CONSUMERS OF FEES OR OTHER CHARGES WHICH HAVE BEEN IMPROPERLY CHARGED OR COLLECTED, INCLUDING BUT NOT LIMITED TO BY ALLOCATING PAYMENTS CONTRARY TO A BORROWER'S DIRECTION OR IN A MANNER THAT FAILS TO HELP A BORROWER AVOID DEFAULT, AS DETERMINED BY THE SUPER- INTENDENT. ANY HEARING HELD PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE NOTICED, CONDUCTED AND ADMINISTERED IN COMPLIANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT. 4. ANY STUDENT LOAN SERVICER MAY SURRENDER ANY LICENSE BY DELIVERING TO THE SUPERINTENDENT WRITTEN NOTICE THAT THE STUDENT LOAN SERVICER THEREBY SURRENDERS SUCH LICENSE, BUT SUCH SURRENDER SHALL NOT AFFECT THE SERVICER'S CIVIL OR CRIMINAL LIABILITY FOR ACTS COMMITTED PRIOR TO THE SURRENDER. IF SUCH SURRENDER IS MADE AFTER THE ISSUANCE BY THE SUPER- INTENDENT OF A STATEMENT OF CHARGES AND NOTICE OF HEARING, THE SUPER- INTENDENT MAY PROCEED AGAINST THE SERVICER AS IF THE SURRENDER HAD NOT TAKEN PLACE. 5. NO REVOCATION, SUSPENSION, OR SURRENDER OF ANY LICENSE SHALL IMPAIR OR AFFECT THE OBLIGATION OF ANY PRE-EXISTING LAWFUL CONTRACT BETWEEN THE STUDENT LOAN SERVICER AND ANY PERSON, INCLUDING THE DEPARTMENT OF FINAN- CIAL SERVICES. A. 3008--B 21 6. EVERY LICENSE ISSUED PURSUANT TO THIS ARTICLE SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL THE SAME SHALL HAVE BEEN SURRENDERED, REVOKED OR SUSPENDED IN ACCORDANCE WITH ANY OTHER PROVISIONS OF THIS ARTICLE. 7. WHENEVER THE SUPERINTENDENT SHALL REVOKE OR SUSPEND A LICENSE ISSUED PURSUANT TO THIS ARTICLE, HE OR SHE SHALL FORTHWITH EXECUTE IN DUPLICATE A WRITTEN ORDER TO THAT EFFECT. THE SUPERINTENDENT SHALL FILE ONE COPY OF THE ORDER IN THE OFFICE OF THE DEPARTMENT OF FINANCIAL SERVICES AND SHALL FORTHWITH SERVE THE OTHER COPY UPON THE STUDENT LOAN SERVICER. ANY SUCH ORDER MAY BE REVIEWED IN THE MANNER PROVIDED BY ARTI- CLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. § 717. BOOKS AND RECORDS; REPORTS AND ELECTRONIC FILING. 1. EACH STUDENT LOAN SERVICER AND EXEMPT ORGANIZATION SHALL KEEP AND USE IN ITS BUSINESS SUCH BOOKS, ACCOUNTS AND RECORDS AS WILL ENABLE THE SUPERINTEN- DENT TO DETERMINE WHETHER THE SERVICER OR EXEMPT ORGANIZATION IS COMPLY- ING WITH THE PROVISIONS OF THIS ARTICLE AND WITH THE RULES AND REGU- LATIONS LAWFULLY MADE BY THE SUPERINTENDENT. EVERY SERVICER AND EXEMPT ORGANIZATION SHALL PRESERVE SUCH BOOKS, ACCOUNTS, AND RECORDS, FOR AT LEAST THREE YEARS. 2. (A) EACH STUDENT LOAN SERVICER SHALL ANNUALLY, ON OR BEFORE A DATE TO BE DETERMINED BY THE SUPERINTENDENT, FILE A REPORT WITH THE SUPER- INTENDENT GIVING SUCH INFORMATION AS THE SUPERINTENDENT MAY REQUIRE CONCERNING THE BUSINESS AND OPERATIONS DURING THE PRECEDING CALENDAR YEAR OF SUCH SERVICER UNDER AUTHORITY OF THIS ARTICLE. SUCH REPORT SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. (B) IN ADDITION TO ANNUAL REPORTS, THE SUPERINTENDENT MAY REQUIRE SUCH ADDITIONAL REGULAR OR SPECIAL REPORTS AS HE OR SHE MAY DEEM NECESSARY TO THE PROPER SUPERVISION OF STUDENT LOAN SERVICERS UNDER THIS ARTICLE. SUCH ADDITIONAL REPORTS SHALL BE SUBSCRIBED AND AFFIRMED AS TRUE BY THE SERVICER UNDER THE PENALTIES OF PERJURY AND SHALL BE IN THE FORM PRESCRIBED BY THE SUPERINTENDENT. 3. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, THE SUPERINTENDENT MAY REQUIRE THAT ANY SUBMISSION OR APPROVAL AS MAY BE REQUIRED BY THE SUPERINTENDENT BE MADE OR EXECUTED BY ELECTRONIC MEANS IF HE OR SHE DEEMS IT NECESSARY TO ENSURE THE EFFICIENT ADMINISTRATION OF THIS ARTICLE. § 718. RULES AND REGULATIONS. 1. IN ADDITION TO SUCH POWERS AS MAY OTHERWISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY IN THE JUDGMENT OF THE SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE ADMINISTRATION OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO: (A) SUCH RULES AND REGULATIONS IN CONNECTION WITH THE ACTIVITIES OF STUDENT LOAN SERVICERS AND EXEMPT ORGANIZATIONS AS MAY BE NECESSARY AND APPROPRIATE FOR THE PROTECTION OF BORROWERS IN THIS STATE; (B) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND APPROPRIATE TO DEFINE UNFAIR, DECEPTIVE OR ABUSIVE ACTS OR PRACTICES IN CONNECTION WITH THE ACTIVITIES OF STUDENT LOAN SERVICERS AND EXEMPT ORGANIZATIONS IN SERVICING STUDENT LOANS; (C) SUCH RULES AND REGULATIONS AS MAY DEFINE THE TERMS USED IN THIS ARTICLE AND AS MAY BE NECESSARY AND APPROPRIATE TO INTERPRET AND IMPLE- MENT THE PROVISIONS OF THIS ARTICLE; AND (D) SUCH RULES AND REGULATIONS AS MAY BE NECESSARY FOR THE ENFORCEMENT OF THIS ARTICLE. A. 3008--B 22 2. THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE SUCH SPECIFIC RULINGS, DEMANDS AND FINDINGS AS THE SUPERINTENDENT MAY DEEM NECESSARY FOR THE PROPER CONDUCT OF THE STUDENT LOAN SERVICING INDUSTRY. § 719. PROHIBITED PRACTICES. NO STUDENT LOAN SERVICER SHALL: 1. DIRECTLY EMPLOY ANY SCHEME, DEVICE OR ARTIFICE TO DEFRAUD OR MISLEAD A BORROWER. 2. INTENTIONALLY ENGAGE IN ANY UNFAIR, DECEPTIVE OR PREDATORY ACT OR PRACTICE TOWARD ANY PERSON OR MISREPRESENT OR OMIT ANY MATERIAL INFORMA- TION IN CONNECTION WITH THE SERVICING OF A STUDENT LOAN, INCLUDING, BUT NOT LIMITED TO, MISREPRESENTING THE AMOUNT, NATURE OR TERMS OF ANY FEE OR PAYMENT DUE OR CLAIMED TO BE DUE ON A STUDENT LOAN, THE TERMS AND CONDITIONS OF THE LOAN AGREEMENT OR THE BORROWER'S OBLIGATIONS UNDER THE LOAN. 3. INTENTIONALLY MISAPPLY PAYMENTS TO THE OUTSTANDING BALANCE OF ANY STUDENT LOAN OR TO ANY RELATED INTEREST OR FEES. 4. INTENTIONALLY PROVIDE MISLEADING INFORMATION TO A CONSUMER REPORT- ING AGENCY. 5. REFUSE TO COMMUNICATE WITH AN AUTHORIZED REPRESENTATIVE OF THE BORROWER WHO PROVIDES A WRITTEN AUTHORIZATION SIGNED BY THE BORROWER, PROVIDED THAT THE SERVICER MAY ADOPT PROCEDURES REASONABLY RELATED TO VERIFYING THAT THE REPRESENTATIVE IS IN FACT AUTHORIZED TO ACT ON BEHALF OF THE BORROWER. 6. KNOWINGLY MAKE ANY FALSE STATEMENT OR MAKE ANY OMISSION OF A MATE- RIAL FACT IN CONNECTION WITH ANY INFORMATION OR REPORTS FILED WITH A GOVERNMENTAL AGENCY OR IN CONNECTION WITH ANY INVESTIGATION CONDUCTED BY THE SUPERINTENDENT OR ANOTHER GOVERNMENTAL AGENCY. § 720. SERVICING STUDENT LOANS WITHOUT A LICENSE. 1. WHENEVER, IN THE OPINION OF THE SUPERINTENDENT, A PERSON IS ENGAGED IN THE BUSINESS OF SERVICING STUDENT LOANS, EITHER ACTUALLY OR THROUGH SUBTERFUGE, WITHOUT A LICENSE FROM THE SUPERINTENDENT, THE SUPERINTENDENT MAY ORDER THAT PERSON TO DESIST AND REFRAIN FROM ENGAGING IN THE BUSINESS OF SERVICING STUDENT LOANS IN THE STATE. IF, WITHIN THIRTY DAYS AFTER AN ORDER IS SERVED, A REQUEST FOR A HEARING IS FILED IN WRITING AND THE HEARING IS NOT HELD WITHIN SIXTY DAYS OF THE FILING, THE ORDER SHALL BE RESCINDED. 2. THIS SECTION SHALL NOT APPLY TO EXEMPT ORGANIZATIONS. § 721. RESPONSIBILITIES. 1. IF A STUDENT LOAN SERVICER REGULARLY REPORTS INFORMATION TO A CONSUMER REPORTING AGENCY, THE SERVICER SHALL ACCURATELY REPORT A BORROWER'S PAYMENT PERFORMANCE TO AT LEAST ONE CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE BASIS AS DEFINED IN SECTION 603(P) OF THE FEDERAL FAIR CREDIT REPORTING ACT (15 U.S.C. SEC. 1681A(P)), UPON ACCEPTANCE AS A DATA FURNISHER BY THAT CONSUMER REPORTING AGENCY. 2. (A) EXCEPT AS PROVIDED IN FEDERAL LAW OR REQUIRED BY A STUDENT LOAN AGREEMENT, A STUDENT LOAN SERVICER SHALL INQUIRE OF A BORROWER HOW TO APPLY A BORROWER'S NONCONFORMING PAYMENT. A BORROWER'S DIRECTION ON HOW TO APPLY A NONCONFORMING PAYMENT SHALL REMAIN IN EFFECT FOR ANY FUTURE NONCONFORMING PAYMENT DURING THE TERM OF A STUDENT LOAN UNTIL THE BORROWER PROVIDES DIFFERENT DIRECTIONS. (B) FOR PURPOSES OF THIS SUBDIVISION, "NONCONFORMING PAYMENT" SHALL MEAN A PAYMENT THAT IS EITHER MORE OR LESS THAN THE BORROWER'S REQUIRED STUDENT LOAN PAYMENT. 3. (A) IF THE SALE, ASSIGNMENT, OR OTHER TRANSFER OF THE SERVICING OF A STUDENT LOAN RESULTS IN A CHANGE IN THE IDENTITY OF THE PERSON TO WHOM THE BORROWER IS REQUIRED TO SEND SUBSEQUENT PAYMENTS OR DIRECT ANY COMMUNICATIONS CONCERNING THE STUDENT LOAN, A STUDENT LOAN SERVICER SHALL TRANSFER ALL INFORMATION REGARDING A BORROWER, A BORROWER'S A. 3008--B 23 ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS ASSOCIATED WITH THE BORROWER'S STUDENT LOAN, TO THE NEW STUDENT LOAN SERVICER SERVICING THE BORROWER'S STUDENT LOAN WITHIN FORTY-FIVE DAYS. (B) A STUDENT LOAN SERVICER SHALL ADOPT POLICIES AND PROCEDURES TO VERIFY THAT IT HAS RECEIVED ALL INFORMATION REGARDING A BORROWER, A BORROWER'S ACCOUNT, AND A BORROWER'S STUDENT LOAN, INCLUDING BUT NOT LIMITED TO THE BORROWER'S REPAYMENT STATUS AND ANY BORROWER BENEFITS ASSOCIATED WITH THE BORROWER'S STUDENT LOAN, WHEN THE SERVICER OBTAINS THE RIGHT TO SERVICE A STUDENT LOAN. 4. IF A STUDENT LOAN SERVICER SELLS, ASSIGNS, OR OTHERWISE TRANSFERS THE SERVICING OF A STUDENT LOAN TO A NEW SERVICER, THE SALE, ASSIGNMENT OR OTHER TRANSFER SHALL BE COMPLETED AT LEAST SEVEN DAYS BEFORE THE BORROWER'S NEXT PAYMENT IS DUE. 5. (A) A STUDENT LOAN SERVICER THAT SELLS, ASSIGNS, OR OTHERWISE TRANSFERS THE SERVICING OF A STUDENT LOAN SHALL REQUIRE AS A CONDITION OF SUCH SALE, ASSIGNMENT OR OTHER TRANSFER THAT THE NEW STUDENT LOAN SERVICER SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET QUALIFIED. (B) A STUDENT LOAN SERVICER THAT OBTAINS THE RIGHT TO SERVICE A STUDENT LOAN SHALL HONOR ALL BORROWER BENEFITS ORIGINALLY REPRESENTED AS BEING AVAILABLE TO A BORROWER DURING THE REPAYMENT OF THE STUDENT LOAN AND THE POSSIBILITY OF SUCH BENEFITS, INCLUDING ANY BENEFITS THAT WERE REPRESENTED AS BEING AVAILABLE BUT FOR WHICH THE BORROWER HAD NOT YET QUALIFIED. 6. A STUDENT LOAN SERVICER SHALL RESPOND WITHIN THIRTY DAYS AFTER RECEIPT TO A WRITTEN INQUIRY FROM A BORROWER OR A BORROWER'S AUTHORIZED REPRESENTATIVE. 7. A STUDENT LOAN SERVICER SHALL PRESERVE RECORDS OF EACH STUDENT LOAN AND ALL COMMUNICATIONS WITH BORROWERS FOR NOT LESS THAN TWO YEARS FOLLOWING THE FINAL PAYMENT ON A STUDENT LOAN OR THE SALE, ASSIGNMENT OR OTHER TRANSFER OF THE SERVICING OF A STUDENT LOAN, WHICHEVER OCCURS FIRST, OR SUCH LONGER PERIOD AS MAY BE REQUIRED BY ANY OTHER PROVISION OF LAW. § 722. EXAMINATIONS. 1. THE SUPERINTENDENT MAY AT ANY TIME, AND AS OFTEN AS HE OR SHE MAY DETERMINE, EITHER PERSONALLY OR BY A PERSON DULY DESIGNATED BY THE SUPERINTENDENT, INVESTIGATE THE BUSINESS AND EXAMINE THE BOOKS, ACCOUNTS, RECORDS, AND FILES USED THEREIN OF EVERY STUDENT LOAN SERVICER. FOR THAT PURPOSE THE SUPERINTENDENT AND HIS OR HER DULY DESIGNATED REPRESENTATIVE SHALL HAVE FREE ACCESS TO THE OFFICES AND PLACES OF BUSINESS, BOOKS, ACCOUNTS, PAPERS, RECORDS, FILES, SAFES AND VAULTS OF ALL STUDENT LOAN SERVICERS. THE SUPERINTENDENT AND ANY PERSON DULY DESIGNATED BY HIM OR HER SHALL HAVE THE AUTHORITY TO REQUIRE THE ATTENDANCE OF AND TO EXAMINE UNDER OATH ALL PERSONS WHOSE TESTIMONY HE OR SHE MAY REQUIRE RELATIVE TO SUCH BUSINESS. 2. NO PERSON SUBJECT TO INVESTIGATION OR EXAMINATION UNDER THIS SECTION MAY KNOWINGLY WITHHOLD, ABSTRACT, REMOVE, MUTILATE, DESTROY OR SECRETE ANY BOOKS, RECORDS, COMPUTER RECORDS OR OTHER INFORMATION. 3. THE EXPENSES INCURRED IN MAKING ANY EXAMINATION PURSUANT TO THIS SECTION SHALL BE ASSESSED AGAINST AND PAID BY THE STUDENT LOAN SERVICER SO EXAMINED, EXCEPT THAT TRAVELING AND SUBSISTENCE EXPENSES SO INCURRED SHALL BE CHARGED AGAINST AND PAID BY SERVICERS IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE, AND SUCH PROPOR- A. 3008--B 24 TIONATE CHARGES SHALL BE ADDED TO THE ASSESSMENT OF THE OTHER EXPENSES INCURRED UPON EACH EXAMINATION. UPON WRITTEN NOTICE BY THE SUPERINTEN- DENT OF THE TOTAL AMOUNT OF SUCH ASSESSMENT, THE SERVICER SHALL BECOME LIABLE FOR AND SHALL PAY SUCH ASSESSMENT TO THE SUPERINTENDENT. 4. IN ANY HEARING IN WHICH A DEPARTMENT EMPLOYEE ACTING UNDER AUTHORI- TY OF THIS CHAPTER IS AVAILABLE FOR CROSS-EXAMINATION, ANY OFFICIAL WRITTEN REPORT, WORKSHEET, OTHER RELATED PAPERS, OR DULY CERTIFIED COPY THEREOF, COMPILED, PREPARED, DRAFTED, OR OTHERWISE MADE BY SUCH DEPART- MENT EMPLOYEE, AFTER BEING DULY AUTHENTICATED BY THE EMPLOYEE, MAY BE ADMITTED AS COMPETENT EVIDENCE UPON THE OATH OF THE EMPLOYEE THAT SUCH WORKSHEET, INVESTIGATIVE REPORT, OR OTHER RELATED DOCUMENTS WERE PREPARED AS A RESULT OF AN EXAMINATION OF THE BOOKS AND RECORDS OF A SERVICER OR OTHER PERSON, CONDUCTED PURSUANT TO THE AUTHORITY OF THIS CHAPTER. 5. UNLESS OTHERWISE EXEMPT PURSUANT TO SUBDIVISION TWO OF SECTION SEVEN HUNDRED ELEVEN OF THIS ARTICLE, AFFILIATES OF A STUDENT LOAN SERVICER SHALL BE SUBJECT TO EXAMINATION BY THE SUPERINTENDENT ON THE SAME TERMS AS THE SERVICER, BUT ONLY WHEN REPORTS FROM, OR EXAMINATION OF, A SERVICER PROVIDES EVIDENCE OF UNLAWFUL ACTIVITY BETWEEN A SERVICER AND AFFILIATE BENEFITTING, AFFECTING, OR ARISING FROM THE ACTIVITIES REGULATED BY THIS ARTICLE. § 723. PENALTIES FOR VIOLATION OF THIS ARTICLE. 1. IN ADDITION TO SUCH PENALTIES AS MAY OTHERWISE BE APPLICABLE BY LAW, THE SUPERINTENDENT MAY, AFTER NOTICE AND HEARING, REQUIRE ANY PERSON FOUND VIOLATING THE PROVISIONS OF THIS ARTICLE OR THE RULES OR REGULATIONS PROMULGATED HERE- UNDER TO PAY TO THE PEOPLE OF THIS STATE A PENALTY FOR EACH VIOLATION OF THE ARTICLE OR ANY REGULATION OR POLICY PROMULGATED HEREUNDER A SUM NOT TO EXCEED AN AMOUNT AS DETERMINED PURSUANT TO SECTION FORTY-FOUR OF THIS CHAPTER FOR EACH SUCH VIOLATION. 2. NOTHING IN THIS ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON-LAW RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF ANY LAW. § 724. SEVERABILITY OF PROVISIONS. IF ANY PROVISION OF THIS ARTICLE, OR THE APPLICATION OF SUCH PROVISION TO ANY PERSON OR CIRCUMSTANCE, SHALL BE HELD INVALID, ILLEGAL OR UNENFORCEABLE, THE REMAINDER OF THE ARTICLE, AND THE APPLICATION OF SUCH PROVISION TO PERSONS OR CIRCUM- STANCES OTHER THAN THOSE AS TO WHICH IT IS HELD INVALID, ILLEGAL OR UNENFORCEABLE, SHALL NOT BE AFFECTED THEREBY. § 725. COMPLIANCE WITH OTHER LAWS. 1. STUDENT LOAN SERVICERS SHALL ENGAGE IN THE BUSINESS OF SERVICING STUDENT LOANS IN CONFORMITY WITH THE PROVISIONS OF THIS CHAPTER, SUCH RULES AND REGULATIONS AS MAY BE PROMUL- GATED BY THE SUPERINTENDENT THEREUNDER AND ALL APPLICABLE FEDERAL LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER. 2. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT ANY OTHERWISE APPLICABLE STATE OR FEDERAL LAW OR REGULATIONS. § 2. Subdivision 10 of section 36 of the banking law, as amended by chapter 182 of the laws of 2011, is amended to read as follows: 10. All reports of examinations and investigations, correspondence and memoranda concerning or arising out of such examination and investi- gations, including any duly authenticated copy or copies thereof in the possession of any banking organization, bank holding company or any subsidiary thereof (as such terms "bank holding company" and "subsid- iary" are defined in article three-A of this chapter), any corporation or any other entity affiliated with a banking organization within the meaning of subdivision six of this section and any non-banking subsid- iary of a corporation or any other entity which is an affiliate of a A. 3008--B 25 banking organization within the meaning of subdivision six-a of this section, foreign banking corporation, licensed lender, licensed casher of checks, licensed mortgage banker, registered mortgage broker, licensed mortgage loan originator, licensed sales finance company, registered mortgage loan servicer, LICENSED STUDENT LOAN SERVICER, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, any other person or entity subject to supervision under this chapter, or the department, shall be confidential communications, shall not be subject to subpoena and shall not be made public unless, in the judgment of the superintendent, the ends of justice and the public advantage will be subserved by the publication thereof, in which event the superintendent may publish or authorize the publication of a copy of any such report or any part thereof in such manner as may be deemed proper or unless such laws specifically author- ize such disclosure. For the purposes of this subdivision, "reports of examinations and investigations, and any correspondence and memoranda concerning or arising out of such examinations and investigations", includes any such materials of a bank, insurance or securities regulato- ry agency or any unit of the federal government or that of this state any other state or that of any foreign government which are considered confidential by such agency or unit and which are in the possession of the department or which are otherwise confidential materials that have been shared by the department with any such agency or unit and are in the possession of such agency or unit. § 3. Subdivisions 1, 2, 3 and 5 of section 39 of the banking law, subdivisions 1, 2 and 5 as amended by chapter 123 of the laws of 2009 and subdivision 3 as amended by chapter 155 of the laws of 2012, are amended to read as follows: 1. To appear and explain an apparent violation. Whenever it shall appear to the superintendent that any banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corporation licensed by the superintendent to do business or maintain a representative office in this state has violated any law or regulation, he or she may, in his or her discretion, issue an order describing such apparent violation and requiring such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVI- CER, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or represen- tative or other offices in this state, or foreign banking corporation to appear before him or her, at a time and place fixed in said order, to present an explanation of such apparent violation. 2. To discontinue unauthorized or unsafe and unsound practices. When- ever it shall appear to the superintendent that any banking organiza- tion, bank holding company, registered mortgage broker, licensed mort- gage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget A. 3008--B 26 planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corpo- ration licensed by the superintendent to do business in this state is conducting business in an unauthorized or unsafe and unsound manner, he or she may, in his or her discretion, issue an order directing the discontinuance of such unauthorized or unsafe and unsound practices, and fixing a time and place at which such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, out-of-state state bank that maintains a branch or branches or representative or other offices in this state, or foreign banking corporation may volun- tarily appear before him or her to present any explanation in defense of the practices directed in said order to be discontinued. 3. To make good impairment of capital or to ensure compliance with financial requirements. Whenever it shall appear to the superintendent that the capital or capital stock of any banking organization, bank holding company or any subsidiary thereof which is organized, licensed or registered pursuant to this chapter, is impaired, or the financial requirements imposed by subdivision one of section two hundred two-b of this chapter or any regulation of the superintendent on any branch or agency of a foreign banking corporation or the financial requirements imposed by this chapter or any regulation of the superintendent on any licensed lender, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner or private banker are not satisfied, the superintendent may, in the superintendent's discretion, issue an order directing that such banking organization, bank holding company, branch or agency of a foreign banking corporation, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, or private bank- er make good such deficiency forthwith or within a time specified in such order. 5. To keep books and accounts as prescribed. Whenever it shall appear to the superintendent that any banking organization, bank holding compa- ny, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, registered mortgage loan servicer, licensed mort- gage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agen- cy, licensed transmitter of money, licensed budget planner, agency or branch of a foreign banking corporation licensed by the superintendent to do business in this state, does not keep its books and accounts in such manner as to enable him or her to readily ascertain its true condi- tion, he or she may, in his or her discretion, issue an order requiring such banking organization, bank holding company, registered mortgage broker, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis- tered mortgage loan servicer, licensed mortgage loan originator, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed budget planner, or foreign banking corporation, or the officers or agents thereof, or any of them, to open and keep such A. 3008--B 27 books or accounts as he or she may, in his or her discretion, determine and prescribe for the purpose of keeping accurate and convenient records of its transactions and accounts. § 4. Paragraph (a) of subdivision 1 of section 44 of the banking law, as amended by chapter 155 of the laws of 2012, is amended to read as follows: (a) Without limiting any power granted to the superintendent under any other provision of this chapter, the superintendent may, in a proceeding after notice and a hearing, require any safe deposit company, licensed lender, licensed casher of checks, licensed sales finance company, licensed insurance premium finance agency, licensed transmitter of money, licensed mortgage banker, LICENSED STUDENT LOAN SERVICER, regis- tered mortgage broker, licensed mortgage loan originator, registered mortgage loan servicer or licensed budget planner to pay to the people of this state a penalty for any violation of this chapter, any regu- lation promulgated thereunder, any final or temporary order issued pursuant to section thirty-nine of this article, any condition imposed in writing by the superintendent in connection with the grant of any application or request, or any written agreement entered into with the superintendent. § 5. This act shall take effect on the one hundred eightieth day after it shall have become a law. PART AA Intentionally Omitted PART BB Intentionally Omitted PART CC Intentionally Omitted PART DD Section 1. The state finance law is amended by adding a new section 89-i to read as follows: § 89-I. PAID FAMILY LEAVE RISK ADJUSTMENT FUND. 1. THERE IS HEREBY ESTABLISHED IN THE SOLE CUSTODY OF THE SUPERINTENDENT OF FINANCIAL SERVICES A SPECIAL FUND, TO BE KNOWN AS THE "PAID FAMILY LEAVE RISK ADJUSTMENT FUND". 2. SUCH FUND SHALL CONSIST OF MONEY RECEIVED BY THE SUPERINTENDENT FROM INSURANCE CARRIERS AS PAYMENTS INTO ANY RISK ADJUSTMENT MECHANISM ESTABLISHED BY REGULATION IN ACCORDANCE WITH PARAGRAPH TWO OF SUBSECTION (N) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THE INSURANCE LAW. 3. ALL MONEYS RETAINED IN SUCH FUND SHALL BE HELD ON BEHALF OF INSUR- ANCE CARRIERS AND PAID OUT BY THE SUPERINTENDENT TO INSURANCE CARRIERS PURSUANT TO THE RISK ADJUSTMENT MECHANISM ESTABLISHED BY REGULATION IN ACCORDANCE WITH PARAGRAPH TWO OF SUBSECTION (N) OF SECTION FOUR THOUSAND TWO HUNDRED THIRTY-FIVE OF THE INSURANCE LAW. 4. THE FUNDS SO RECEIVED AND DEPOSITED IN SUCH RISK ADJUSTMENT FUND SHALL NOT BE DEEMED TO BE STATE FUNDS. § 2. This act shall take effect immediately. A. 3008--B 28 PART EE Intentionally Omitted PART FF Section 1. The opening paragraph of paragraph (a) of subdivision 6 of section 1304 of the real property actions and proceedings law, as amended by section 6 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: "Home loan" means a loan, including an open-end credit plan, [other than a reverse mortgage transaction,] in which: § 2. The opening paragraph and subparagraph (i) of paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, as amended by section 7 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: "Home loan" means a home loan, including an open-end credit plan, [other than a reverse mortgage transaction,] in which: (i) The principal amount of the loan at origination did not exceed the conforming loan size that was in existence at the time of origination for a comparable dwelling as established by the FEDERAL HOUSING ADMINIS- TRATION OR THE federal national mortgage association; § 3. This act shall take effect immediately; provided, however, that the amendments to subdivision 6 of section 1304 of the real property actions and proceedings law made by section one of this act shall be subject to the expiration and reversion of such subdivision pursuant to subdivision a of section 25 of chapter 507 of the laws of 2009, as amended, when upon such date the provisions of section two of this act shall take effect. PART GG Section 1. This act enacts into law major components of legislation relating to assessments, distribution of assets, and insurers deemed to be in a hazardous financial condition. Each component is wholly contained within a Subpart identified as Subparts A through C. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes references to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this act sets forth the general effective date of this act. SUBPART A Section 1. Subsection (a) of section 206 of the financial services law, is amended and a new subsection (g) is added to read as follows: (a) For each fiscal year commencing on or after April first, two thou- sand twelve, assessments to defray operating expenses, including all direct and indirect costs, of the department, except expenses incurred in the liquidation of banking organizations, shall be assessed by the superintendent in accordance with this subsection. Persons regulated under the insurance law shall be assessed by the superintendent for the operating expenses of the department that are solely attributable to A. 3008--B 29 regulating persons under the insurance law, which shall include any expenses that were permissible to be assessed in fiscal year two thou- sand nine-two thousand ten, with the assessments allocated pro rata upon all domestic insurers and all licensed United States branches of alien insurers domiciled in this state within the meaning of paragraph four of subsection (b) of section seven thousand four hundred eight of the insurance law, in proportion to the gross direct premiums and other considerations, written or received by them in this state during the calendar year ending December thirty-first immediately preceding the end of the fiscal year for which the assessment is made (less return premi- ums and considerations thereon) for policies or contracts of insurance covering property or risks resident or located in this state the issu- ance of which policies or contracts requires a license from the super- intendent. Persons regulated under the banking law shall be assessed by the superintendent for the operating expenses of the department that are solely attributable to regulating persons under the banking law in such proportions as the superintendent shall deem just and reasonable. PERSONS REGULATED SOLELY UNDER THIS CHAPTER SHALL BE ASSESSED BY THE SUPERINTENDENT FOR THE OPERATING EXPENSES OF THE DEPARTMENT THAT ARE SOLELY ATTRIBUTABLE TO REGULATED PERSONS UNDER THIS CHAPTER IN SUCH PROPORTIONS AS THE SUPERINTENDENT SHALL DEEM JUST AND REASONABLE. Oper- ating expenses of the department not covered by the assessments set forth above shall be assessed by the superintendent in such proportions as the superintendent shall deem just and reasonable upon all domestic insurers and all licensed United States branches of alien insurers domi- ciled in this state within the meaning of paragraph four of subsection (b) of section seven thousand four hundred eight of the insurance law, and upon any [regulated] person REGULATED SOLELY under THIS CHAPTER AND the banking law, other than mortgage loan originators, except as other- wise provided by sections one hundred fifty-one and two hundred twenty- eight of the workers' compensation law and by section sixty of the volunteer firefighters' benefit law. The provisions of this subsection shall not be applicable to a bank holding company, as that term is defined in article three-A of the banking law. Persons regulated under the banking law will not be assessed for expenses that the superinten- dent deems to benefit solely persons regulated under the insurance law, and persons regulated under the insurance law will not be assessed for expenses that the superintendent deems to benefit solely persons regu- lated under the banking law. (G) THE EXPENSES OF EVERY EXAMINATION OF THE AFFAIRS OF ANY REGULATED PERSON SUBJECT SOLELY TO THIS CHAPTER, SHALL BE BORNE AND PAID BY THE REGULATED PERSON SO EXAMINED, BUT THE SUPERINTENDENT, WITH THE APPROVAL OF THE COMPTROLLER, MAY, IN THE SUPERINTENDENT'S DISCRETION FOR GOOD CAUSE SHOWN, REMIT SUCH CHARGES. § 2. This act shall take effect January 1, 2018. SUBPART B Section 1. Legislative findings. In order to provide an appropriate scheme of distribution of assets of all insolvent insurers, the legisla- ture finds that it is in the best interest of the people of this state to amend statutes regarding the priority of distribution under Article 74 of the Insurance Law. § 2. Paragraph 1 of subsection (a) of section 7434 of the insurance law, as amended by chapter 134 of the laws of 1999, is amended to read as follows: A. 3008--B 30 (1) Upon the recommendation of the superintendent, AS RECEIVER, and under the direction of the court, distribution payments shall be made in a manner that will assure the proper recognition of priorities and a reasonable balance between the expeditious completion of the [liqui- dation] PROCEEDING SUBJECT TO THIS ARTICLE and the protection of unliq- uidated and undetermined claims. The priority of distribution of claims from [an] ALL insolvent [property/casualty insurer] INSURERS in any proceeding subject to this article, UNLESS OTHERWISE SPECIFIED, shall be in accordance with the order in which each class of claims is set forth in this paragraph and as provided in this paragraph. Every claim in each class shall be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. No claim by a shareholder, poli- cyholder, CONTRACT HOLDER or other creditor shall be permitted to circumvent the priority classes through the use of equitable remedies. The order of distribution of claims shall be: (i) Class one. Claims with respect to the actual and necessary costs and expenses of administration, incurred by the liquidator, rehabilita- tor or conservator under this article. (ii) Class two. All claims under policies OR CONTRACTS, including such claims of the federal or any state or local government for losses incurred, third party claims, claims for unearned premiums, and all claims of a security fund, guaranty association or the equivalent except claims arising under reinsurance contracts. (iii) Class three. Claims of the federal government except those under class two above. (iv) Class four. Claims for wages owing to employees of an insurer against whom a proceeding under this article is commenced for services rendered within one year before commencement of the proceeding, not exceeding one thousand two hundred dollars to each employee, and claims for unemployment insurance contributions required by article eighteen of the labor law. Such priority shall be in lieu of any other similar priority which may be authorized by law. (v) Class five. Claims of state and local governments except those under class two above. (vi) Class six. Claims of general creditors including[, but not limit- ed to,] claims arising under reinsurance contracts. (vii) Class seven. Claims filed late or any other claims other than claims under class eight or class nine below. (viii) Class eight. Claims for advanced or borrowed funds made pursu- ant to section one thousand three hundred seven of this chapter. (ix) Class nine. Claims of shareholders or other owners in their capacity as shareholders. § 3. Section 7435 of the insurance law, as added by chapter 802 of the laws of 1985, paragraph 7 of subsection (a) as amended by chapter 300 of the laws of 1996, is amended to read as follows: § 7435. Distribution for life insurers. (a) UPON THE RECOMMENDATION OF THE SUPERINTENDENT, AS RECEIVER, AND UNDER THE DIRECTION OF THE COURT, DISTRIBUTION PAYMENTS SHALL BE MADE IN A MANNER THAT WILL ASSURE THE PROPER RECOGNITION OF PRIORITIES AND A REASONABLE BALANCE BETWEEN THE EXPEDITIOUS COMPLETION OF THE PROCEEDING SUBJECT TO THIS ARTICLE AND THE PROTECTION OF UNLIQUIDATED AND UNDETERMINED CLAIMS. The priority of distribution of claims from the estate of [a] AN INSOLVENT life insur- ance company in any proceeding subject to this article shall be in accordance with the order in which each class of claims is [herein] set forth IN THIS SECTION AND AS PROVIDED IN THIS SECTION. Every claim in A. 3008--B 31 each class shall[, subject to such limitations as may be prescribed by law and do not directly conflict with the express provisions of this section,] be paid in full or adequate funds retained for such payment before the members of the next class receive any payment. No subclasses shall be established within any class. NO CLAIM BY A SHAREHOLDER, POLI- CYHOLDER, ANNUITANT, OR OTHER CREDITOR SHALL BE PERMITTED TO CIRCUMVENT THE PRIORITY CLASSES THROUGH THE USE OF EQUITABLE REMEDIES. The order of distribution of claims shall be: (1) Class one. Claims with respect to the actual and necessary costs and expenses of administration, incurred by the liquidator, rehabilita- tor, conservator or ancillary rehabilitator under this article, or by The Life Insurance Guaranty Corporation or The Life Insurance Company Guaranty Corporation of New York, and claims described in subsection (d) of section seven thousand seven hundred thirteen of this chapter. (2) Class two. [Debts due to employees for services performed to the extent that they do not exceed one thousand two hundred dollars and represent payment for services performed within one year before the commencement of a proceeding under this article. Such priority shall be in lieu of any other similar priority which may be authorized by law as to wages or compensation of employees] ALL CLAIMS UNDER INSURANCE POLI- CIES, ANNUITY CONTRACTS, AND FUNDING AGREEMENTS, INCLUDING SUCH CLAIMS OF THE FEDERAL OR ANY STATE OR LOCAL GOVERNMENT AND ALL CLAIMS OF THE LIFE INSURANCE COMPANY GUARANTY CORPORATION OF NEW YORK OR ANY OTHER GUARANTY CORPORATION OR ASSOCIATION OF THIS STATE OR ANOTHER JURISDIC- TION, OTHER THAN CLAIMS PROVIDED FOR IN PARAGRAPH ONE OF THIS SUBSECTION AND CLAIMS FOR INTEREST. (3) Class three. [All claims for payment for goods furnished or services rendered to the impaired or insolvent insurer in the ordinary course of business within ninety days prior to the date on which the insurer was determined to be impaired or insolvent, whichever is appli- cable] CLAIMS OF THE FEDERAL GOVERNMENT EXCEPT CLAIMS PROVIDED FOR IN PARAGRAPH TWO OF THIS SUBSECTION. (4) Class four. [All claims under insurance policies, annuity contracts and funding agreements, and all claims of The Life Insurance Company Guaranty Corporation of New York or any other guaranty corpo- ration or association of this state or another jurisdiction, other than (i) claims provided for in paragraph one of this subsection, and (ii) claims for interest] DEBTS DUE TO EMPLOYEES FOR SERVICES PERFORMED TO THE EXTENT THAT THEY DO NOT EXCEED ONE THOUSAND TWO HUNDRED DOLLARS AND REPRESENT PAYMENT FOR SERVICES PERFORMED WITHIN ONE YEAR BEFORE THE COMMENCEMENT OF A PROCEEDING UNDER THIS ARTICLE. SUCH PRIORITY SHALL BE IN LIEU OF ANY OTHER SIMILAR PRIORITY THAT MAY BE AUTHORIZED BY LAW AS TO WAGES OR COMPENSATION OF EMPLOYEES. (5) Class five. [Claims of the federal or any state or local govern- ment. Claims, including those of any governmental body for a penalty or forfeiture, shall be allowed to this class only to the extent of the pecuniary loss sustained from the act, transaction or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder of such claims shall be postponed to the class of claims under paragraph eight of this subsection] ALL CLAIMS FOR PAYMENT FOR GOODS FURNISHED OR SERVICES RENDERED TO THE IMPAIRED OR INSOLVENT INSURER IN THE ORDINARY COURSE OF BUSINESS WITHIN NINETY DAYS PRIOR TO THE DATE ON WHICH THE INSURER WAS DETERMINED TO BE IMPAIRED OR INSOLVENT, WHICHEVER IS APPLICABLE. (6) Class six. [Claims of general creditors and any other claims other than claims under paragraphs seven and eight of this subsection] CLAIMS A. 3008--B 32 OF ANY STATE OR LOCAL GOVERNMENT OTHER THAN CLAIMS PROVIDED FOR UNDER PARAGRAPH TWO OF THIS SUBSECTION. CLAIMS, INCLUDING THOSE OF ANY GOVERN- MENTAL BODY FOR A PENALTY OR FORFEITURE, SHALL BE ALLOWED TO THIS CLASS ONLY TO THE EXTENT OF PECUNIARY LOSS SUSTAINED FROM THE ACT, TRANS- ACTION, OR PROCEEDING OUT OF WHICH THE PENALTY OR FORFEITURE AROSE, WITH REASONABLE AND ACTUAL COSTS OCCASIONED THEREBY. THE REMAINDER OF SUCH CLAIMS SHALL BE POSTPONED TO THE CLASS OF CLAIMS UNDER PARAGRAPH NINE OF THIS SUBSECTION. (7) Class seven. [Surplus, capital or contribution notes, or similar obligations] CLAIMS OF GENERAL CREDITORS AND ANY OTHER CLAIMS OTHER THAN CLAIMS UNDER PARAGRAPHS EIGHT AND NINE OF THIS SUBSECTION. (8) Class eight. [The claims of (i) policyholders, other than claims under paragraph four of this subsection, and (ii) shareholders or other owners] SURPLUS, CAPITAL, OR CONTRIBUTION NOTES, OR SIMILAR OBLIGATIONS. (9) CLASS NINE. THE CLAIMS OF POLICYHOLDERS OR ANNUITANTS, OTHER THAN CLAIMS UNDER PARAGRAPH TWO OF THIS SUBSECTION, AND SHAREHOLDERS OR OTHER OWNERS. (b) Every claim under a separate account agreement providing, in effect, that the assets in the separate account shall not be chargeable with liabilities arising out of any other business of the insurer shall be satisfied out of the assets in the separate account equal to the reserves maintained in such account for such agreement and, to the extent, if any, not fully discharged thereby, shall be treated as a class [four] TWO claim against the estate of the life insurance company. (c) For purposes of this section: (1) "The estate of the life insurance company" shall mean the general assets of such company less any assets held in separate accounts that, pursuant to section four thousand two hundred forty of this chapter, are not chargeable with liabilities arising out of any other business of the insurer. (2) "Insurance policies, annuity contracts and funding agreements" shall mean all policies and contracts of any of the kinds of insurance specified in paragraph one, two or three of subsection (a) of section one thousand one hundred thirteen of this chapter and all funding agree- ments described in section three thousand two hundred twenty-two of this chapter, including all separate account agreements, except that separate account agreements referred to in subsection (b) of this section shall be included only to the extent referred to therein. (3) "Separate account agreement or agreements" shall mean any agree- ment or agreements for separate accounts referred to in section four thousand two hundred forty of this chapter. § 4. This act shall take effect immediately. SUBPART C Section 1. Section 1104 of the insurance law, the section heading as amended and subsections (c) and (d) as added by chapter 235 of the laws of 1989, the opening paragraph of subsection (c) as amended by chapter 598 of the laws of 2000, is amended to read as follows: § 1104. Revocation or suspension of license; restriction of license authority or limitation on premiums written. (a) The superintendent may revoke any license, CERTIFICATE OF AUTHORITY, OR REGISTRATION issued to any foreign or alien insurer to do an insurance business in this state if, after notice to and hearing, [he] THE SUPERINTENDENT finds that such insurer has failed to comply with any requirement imposed upon it by the provisions of this chapter and if in [his] THE SUPERINTENDENT'S judgment A. 3008--B 33 such revocation is reasonably necessary to protect the interests of the people of this state. The superintendent may, in his OR HER discretion, reinstate any such license, CERTIFICATE OF AUTHORITY, OR REGISTRATION if [he] THE SUPERINTENDENT finds that a ground for such revocation no long- er exists. (b) The superintendent shall revoke the certificate of authority of any corporation or agent convicted of violating section two thousand six hundred three of this chapter. (c) [The] (1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE superintendent may [suspend the license, restrict the license authority, or limit the amount of premiums written in this state of any accident and health insurance company, property/casualty insurance company, co-operative property/casualty insurance company, title insurance compa- ny, mortgage guaranty insurance company, reciprocal insurer, Lloyds underwriters or nonprofit property/casualty insurance company] TAKE ONE OR MORE OF THE ACTIONS SPECIFIED IN SUBPARAGRAPH (B) OF PARAGRAPH FOUR OF THIS SUBSECTION AGAINST AN INSURER, except those insurers subject to the provisions of subsection (c) of section two thousand three hundred forty-three of this chapter, if after a hearing on a record, unless waived by the affected insurer, the superintendent determines that such insurer's surplus to policyholders is not adequate in relation to the insurer's outstanding liabilities or to its financial needs OR IF THE SUPERINTENDENT OTHERWISE DETERMINES THAT THE CONTINUED OPERATION OF THE INSURER MIGHT BE DEEMED TO BE HAZARDOUS TO THE INSURER'S POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC. (2) All matters pertaining to a proceeding or determination pursuant to this subsection shall be confidential and not subject to subpoena or public inspection under article six of the public officers law or any other statute, except to the extent that the superintendent finds release of information necessary to protect the public. The hearing shall be initiated within twenty days after written notice to the insur- er. Any determination pursuant to this subsection shall contain findings specifying the factors deemed significant in regard to the particular insurer, and shall set forth the reasons supporting the suspension, restriction or limitation ordered by the superintendent. (3) The SUPERINTENDENT MAY CONSIDER THE following factors [shall be considered by the superintendent] in making [such] A determination AS TO WHETHER AN INSURER'S SURPLUS TO POLICYHOLDERS IS ADEQUATE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES OR TO ITS FINANCIAL NEEDS: [(1)] (A) the size of the insurer as measured by its admitted assets, capital and surplus to policyholders, reserves, premium writings, insur- ance in force and other appropriate criteria, with such surplus to poli- cyholders for foreign insurers adjusted in accordance with section one thousand four hundred thirteen of this chapter; [(2)] (B) the extent to which the insurer's business is diversified among the several kinds of insurance; [(3)] (C) the number and size of risks insured in each kind of insur- ance and the insurer's loss experience in regard to such risks; [(4)] (D) the extent of geographical dispersion of the insurer's risks; [(5)] (E) the nature and extent of the insurer's reinsurance program; [(6)] (F) the quality, diversification and liquidity of the insurer's investment portfolio; [(7)] (G) the recent past and projected future trends in regard to the insurer's loss experience and in the size of the insurer's surplus to policyholders; A. 3008--B 34 [(8)] (H) the surplus to policyholders maintained by other comparable insurers; [(9)] (I) the adequacy of the insurer's reserves; and [(10)] (J) the quality and liquidity of investments in subsidiaries made pursuant to this chapter. (4)(A) THE SUPERINTENDENT MAY CONSIDER THE FOLLOWING STANDARDS, EITHER SINGLY OR A COMBINATION OF TWO OR MORE, TO DETERMINE WHETHER THE CONTIN- UED OPERATION OF ANY INSURER MIGHT BE DEEMED TO BE HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC: (I) ADVERSE FINDINGS REPORTED IN FINANCIAL CONDITION AND MARKET CONDUCT EXAMINATION REPORTS, AUDIT REPORTS, ACTUARIAL OPINIONS, REPORTS, OR SUMMARIES, OR OTHER REPORTS; (II) THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS INSURANCE REGULATORY INFORMATION SYSTEM AND ITS OTHER FINANCIAL ANALYSIS SOLVENCY TOOLS AND REPORTS; (III) WHETHER THE INSURER HAS MADE ADEQUATE PROVISION, ACCORDING TO PRESENTLY ACCEPTED ACTUARIAL STANDARDS OF PRACTICE, FOR THE ANTICIPATED CASH FLOWS REQUIRED BY THE CONTRACTUAL OBLIGATIONS AND RELATED EXPENSES OF THE INSURER, WHEN CONSIDERED IN LIGHT OF THE ASSETS HELD BY THE INSURER WITH RESPECT TO SUCH RESERVES AND RELATED ACTUARIAL ITEMS, INCLUDING THE INVESTMENT EARNINGS ON SUCH ASSETS, AND THE CONSIDERATIONS ANTICIPATED TO BE RECEIVED AND RETAINED UNDER SUCH POLICIES AND CONTRACTS; (IV) THE ABILITY OF AN ASSUMING REINSURER TO PERFORM AND WHETHER THE INSURER'S REINSURANCE PROGRAM PROVIDES SUFFICIENT PROTECTION FOR THE INSURER'S REMAINING SURPLUS AFTER TAKING INTO ACCOUNT THE INSURER'S CASH FLOW AND THE CLASSES OF BUSINESS WRITTEN AS WELL AS THE FINANCIAL CONDI- TION OF THE ASSUMING REINSURER; (V) WHETHER THE INSURER'S OPERATING LOSS IN THE LAST TWELVE-MONTH PERIOD OR ANY SHORTER PERIOD OF TIME, INCLUDING NET CAPITAL GAIN OR LOSS, CHANGE IN NON-ADMITTED ASSETS, AND CASH DIVIDENDS PAID TO SHARE- HOLDERS, IS GREATER THAN FIFTY PERCENT OF THE INSURER'S REMAINING SURPLUS TO POLICYHOLDERS IN EXCESS OF THE MINIMUM REQUIRED; (VI) WHETHER THE INSURER'S OPERATING LOSS IN THE LAST TWELVE-MONTH PERIOD OR ANY SHORTER PERIOD OF TIME, EXCLUDING NET CAPITAL GAINS, IS GREATER THAN TWENTY PERCENT OF THE INSURER'S REMAINING SURPLUS TO POLI- CYHOLDERS IN EXCESS OF THE MINIMUM REQUIRED; (VII) WHETHER A REINSURER, AN OBLIGOR, ANY ENTITY IN THE INSURER'S HOLDING COMPANY SYSTEM, AS DEFINED IN PARAGRAPH SIX OF SUBSECTION (A) OF SECTION ONE THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, OR ANY SUBSIDIARY OF AN INSURER, IS INSOLVENT, THREATENED WITH INSOLVENCY, OR DELINQUENT IN PAYMENT OF ITS MONETARY OR OTHER OBLIGATIONS, AND WHICH IN THE OPIN- ION OF THE SUPERINTENDENT MAY AFFECT THE SOLVENCY OF THE INSURER; (VIII) CONTINGENT LIABILITIES, PLEDGES, OR GUARANTEES THAT EITHER INDIVIDUALLY OR COLLECTIVELY INVOLVE A TOTAL AMOUNT THAT IN THE SUPER- INTENDENT'S OPINION MAY AFFECT THE INSURER'S SOLVENCY; (IX) WHETHER ANY PERSON WHO CONTROLS AN INSURER, AS DEFINED IN PARA- GRAPH TWO OF SUBSECTION (A) OF SECTION ONE THOUSAND FIVE HUNDRED ONE OF THIS CHAPTER, IS DELINQUENT IN THE TRANSMITTING TO, OR PAYMENT OF, NET PREMIUMS TO THE INSURER; (X) THE AGE AND COLLECTABILITY OF RECEIVABLES; (XI) WHETHER THE MANAGEMENT OF AN INSURER, INCLUDING OFFICERS, DIREC- TORS, OR ANY OTHER PERSON WHO DIRECTLY OR INDIRECTLY CONTROLS THE OPERA- TION OF THE INSURER, FAILS TO POSSESS AND DEMONSTRATE THE COMPETENCE, FITNESS, AND REPUTATION DEEMED NECESSARY TO SERVE THE INSURER IN SUCH POSITION; A. 3008--B 35 (XII) WHETHER THE INSURER'S MANAGEMENT HAS FAILED TO RESPOND TO AN INQUIRY OF THE SUPERINTENDENT RELATIVE TO THE INSURER'S CONDITION OR HAS FURNISHED FALSE AND MISLEADING INFORMATION CONCERNING SUCH AN INQUIRY; (XIII) WHETHER THE INSURER HAS FAILED TO MEET FINANCIAL FILING REQUIREMENTS OR FILING REQUIREMENTS PURSUANT TO ARTICLES FIFTEEN, SIXTEEN, OR SEVENTEEN OF THIS CHAPTER, OR REGULATIONS PROMULGATED THERE- UNDER, IN THE ABSENCE OF A REASON SATISFACTORY TO THE SUPERINTENDENT; (XIV) WHETHER THE INSURER'S MANAGEMENT EITHER HAS FILED ANY FALSE OR MISLEADING SWORN FINANCIAL STATEMENT, OR HAS RELEASED FALSE OR MISLEAD- ING FINANCIAL STATEMENTS TO LENDING INSTITUTIONS OR TO THE GENERAL PUBLIC, OR HAS MADE A FALSE OR MISLEADING ENTRY, OR HAS OMITTED AN ENTRY OF MATERIAL AMOUNT IN THE INSURER'S BOOKS; (XV) WHETHER THE INSURER HAS GROWN SO RAPIDLY AND TO SUCH AN EXTENT THAT IT LACKS ADEQUATE FINANCIAL AND ADMINISTRATIVE CAPACITY TO MEET ITS OBLIGATIONS IN A TIMELY MANNER; (XVI) WHETHER THE INSURER HAS EXPERIENCED OR IS EXPECTED TO EXPERIENCE IN THE FORESEEABLE FUTURE CASH FLOW OR LIQUIDITY PROBLEMS; (XVII) WHETHER MANAGEMENT HAS ESTABLISHED RESERVES THAT DO NOT COMPLY WITH MINIMUM STANDARDS ESTABLISHED BY THIS CHAPTER OR REGULATIONS PROMULGATED THEREUNDER, STATUTORY ACCOUNTING STANDARDS, AS ADOPTED BY THE SUPERINTENDENT, SOUND ACTUARIAL PRINCIPLES AND STANDARDS OF PRAC- TICE; (XVIII) WHETHER MANAGEMENT PERSISTENTLY ENGAGES IN MATERIAL UNDER RESERVING THAT RESULTS IN ADVERSE DEVELOPMENT; (XIX) WHETHER ANY TRANSACTION WITH AN AFFILIATE, A SUBSIDIARY, OR A PARENT FOR WHICH THE INSURER RECEIVES ASSETS OR CAPITAL GAINS, OR BOTH, DO NOT PROVIDE SUFFICIENT VALUE, LIQUIDITY, OR DIVERSITY TO ASSURE THE INSURER'S ABILITY TO MEET ITS OUTSTANDING OBLIGATIONS AS THEY MATURE; AND (XX) ANY OTHER FINDING DETERMINED BY THE SUPERINTENDENT TO BE HAZARD- OUS TO THE INSURER'S POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC. (B) IF THE SUPERINTENDENT DETERMINES THAT THE INSURER'S SURPLUS TO POLICYHOLDERS IS NOT ADEQUATE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES OR TO ITS FINANCIAL NEEDS OR IF THE SUPERINTENDENT OTHERWISE DETERMINES THAT THE CONTINUED OPERATION OF THE INSURER MAY BE HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS, OR TO THE GENERAL PUBLIC, THEN THE SUPERINTENDENT MAY, UPON A DETERMINATION, SUSPEND THE INSURER'S LICENSE, CERTIFICATE OF AUTHORITY, OR REGISTRATION, RESTRICT THE INSURER'S LICENSE, CERTIFICATE OF AUTHORITY, OR REGISTRATION AUTHORITY, OR ISSUE AN ORDER REQUIRING THE INSURER TO DO ONE OR MORE OF THE FOLLOWING: (I) REDUCE THE TOTAL AMOUNT OF PRESENT AND POTENTIAL LIABILITY FOR POLICY BENEFITS BY REINSURANCE; (II) REDUCE, SUSPEND, OR LIMIT THE VOLUME OF BUSINESS BEING ACCEPTED OR RENEWED, OR LIMIT THE AMOUNT OF PREMIUMS WRITTEN IN THIS STATE; (III) REDUCE GENERAL INSURANCE AND COMMISSION EXPENSES BY SPECIFIED METHODS; (IV) INCREASE THE INSURER'S CAPITAL AND SURPLUS; (V) SUSPEND OR LIMIT THE DECLARATION AND PAYMENT OF DIVIDENDS BY AN INSURER TO ITS STOCKHOLDERS OR POLICYHOLDERS; (VI) FILE REPORTS ON A FORM AND IN A MANNER ACCEPTABLE TO THE SUPER- INTENDENT CONCERNING THE MARKET VALUE OF AN INSURER'S ASSETS; (VII) LIMIT OR WITHDRAW FROM CERTAIN INVESTMENTS OR DISCONTINUE CERTAIN INVESTMENT PRACTICES TO THE EXTENT THE SUPERINTENDENT DEEMS NECESSARY; (VIII) DOCUMENT THE ADEQUACY OF PREMIUM RATES IN RELATION TO THE RISKS INSURED; A. 3008--B 36 (IX) FILE, IN ADDITION TO REGULAR ANNUAL STATEMENTS, INTERIM FINANCIAL REPORTS ON A FORM AND IN A MANNER PRESCRIBED BY THE SUPERINTENDENT, WHICH MAY INCLUDE A FORM ADOPTED BY THE NATIONAL ASSOCIATION OF INSUR- ANCE COMMISSIONERS; (X) CORRECT CORPORATE GOVERNANCE PRACTICE DEFICIENCIES, AND ADOPT AND UTILIZE GOVERNANCE PRACTICES ACCEPTABLE TO THE SUPERINTENDENT; (XI) PROVIDE A BUSINESS PLAN TO THE SUPERINTENDENT IN ORDER TO CONTIN- UE TO TRANSACT BUSINESS IN THIS STATE; OR (XII) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ADJUST RATES FOR ANY NON-LIFE INSURANCE POLICY OR CONTRACT WRITTEN BY THE INSURER THAT THE SUPERINTENDENT CONSIDERS NECESSARY TO IMPROVE THE INSURER'S FINANCIAL CONDITION. (d) [The superintendent shall identify and review those licensed property/casualty insurers needing immediate or targeted regulatory attention, and shall include the number of insurers so identified in the report required by section three hundred thirty-four of this chapter. Such report shall also include the name of each licensed property/casualty insurer placed in formal conservatorship, rehabili- tation or liquidation during the preceding year. Nothing herein shall be construed to restrict or diminish any right or power of the superinten- dent under any other provision of this chapter] FOR THE PURPOSES OF THIS SECTION, "INSURER" SHALL MEAN ANY PERSON, FIRM, ASSOCIATION, CORPO- RATION, OR JOINT-STOCK COMPANY AUTHORIZED TO DO AN INSURANCE BUSINESS IN THIS STATE BY A LICENSE IN FORCE PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR EXEMPTED BY THE PROVISIONS OF THIS CHAPTER FROM SUCH LICENS- ING, EXCEPT THAT, FOR PURPOSES OF THIS SECTION, THE TERM "INSURER" SHALL NOT INCLUDE ANY HEALTH MAINTENANCE ORGANIZATION OPERATING PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED NINE OF THIS CHAPTER OR ANY CONTINUING CARE RETIREMENT COMMUNITY OPERATING PURSUANT TO SECTION ONE THOUSAND ONE HUNDRED NINETEEN OF THIS CHAPTER. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or subpart of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or subpart thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through C of this act shall be as specifically set forth in the last section of such Subparts. PART HH Intentionally Omitted PART II Section 1. This act shall be known and may be cited as the "clean water infrastructure act of 2017". § 2. Article 15 of the environmental conservation law is amended by adding a new title 33 to read as follows: A. 3008--B 37 TITLE 33 SOURCE WATER PROTECTION PROJECTS SECTION 15-3301. DEFINITIONS. 15-3303. LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION. 15-3305. APPROVAL AND EXECUTION OF PROJECTS. § 15-3301. DEFINITIONS. AS USED IN THIS TITLE THE FOLLOWING TERMS SHALL MEAN: 1. "LAND ACQUISITION PROJECTS" MEANS OPEN SPACE ACQUISITION PROJECTS UNDERTAKEN WITH WILLING SELLERS INCLUDING, BUT NOT LIMITED TO, THE PURCHASE OF CONSERVATION EASEMENTS, UNDERTAKEN BY A MUNICIPALITY, A NOT-FOR-PROFIT CORPORATION, OR PURCHASE OF CONSERVATION EASEMENTS BY A SOIL AND WATER CONSERVATION DISTRICT. 2. "MUNICIPALITY" MEANS THE SAME AS SUCH TERM AS DEFINED IN SECTION 56-0101 OF THIS CHAPTER. 3. "NOT-FOR-PROFIT CORPORATION" MEANS A CORPORATION FORMED PURSUANT TO THE NOT-FOR-PROFIT CORPORATION LAW AND QUALIFIED FOR TAX-EXEMPT STATUS UNDER THE FEDERAL INTERNAL REVENUE CODE. 4. "SOIL AND WATER CONSERVATION DISTRICT" MEANS THE SAME AS SUCH TERM AS DEFINED IN SECTION THREE OF THE SOIL AND WATER CONSERVATION DISTRICTS LAW. 5. "STATE ASSISTANCE PAYMENT" MEANS PAYMENT OF THE STATE SHARE OF THE COST OF PROJECTS AUTHORIZED BY THIS TITLE TO PRESERVE, ENHANCE, RESTORE AND IMPROVE THE QUALITY OF THE STATE'S ENVIRONMENT. § 15-3303. LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION. 1. THE COMMISSIONER IS AUTHORIZED TO PROVIDE STATE ASSISTANCE TO MUNI- CIPALITIES, NOT-FOR-PROFIT CORPORATIONS AND SOIL AND WATER CONSERVATION DISTRICTS TO UNDERTAKE LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION, IN COOPERATION WITH WILLING SELLERS. SOURCE WATER PROTECTION PROJECTS SHALL SUPPORT, EXPAND OR ENHANCE DRINKING WATER AND/OR WATER QUALITY PROTECTION, INCLUDING BUT NOT LIMITED TO AQUIFERS, WATERSHEDS, RESERVOIRS, LAKES, RIVERS AND STREAMS AND SHALL PRIORITIZE WATER QUALI- TY-RELATED ACQUISITIONS THAT ARE PART OF THE STATE OPEN SPACE PLAN. 2. IN EVALUATING PROJECTS PURSUANT TO THIS SECTION, THE DEPARTMENT SHALL PRIORITIZE PROJECTS WHICH PROTECT OR RECHARGE DRINKING WATER SOURCES AND WATERSHEDS INCLUDING WETLANDS AND RIPARIAN BUFFERS. 3. THE SOIL AND WATER CONSERVATION COMMITTEE IN CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE AND MARKETS IS AUTHORIZED, CONSISTENT WITH SECTION ELEVEN-B OF THE SOIL AND WATER CONSERVATION DISTRICTS LAW, TO PROVIDE STATE ASSISTANCE PAYMENTS, WITHIN AMOUNTS APPROPRIATED, TO COUN- TY SOIL AND WATER CONSERVATION DISTRICTS FOR LAND ACQUISITION PROJECTS FOR SOURCE WATER PROTECTION PROJECTS TO SUPPORT, EXPAND OR ENHANCE DRINKING AND/OR WATER QUALITY PROTECTION INCLUDING BUT NOT LIMITED TO AQUIFERS, WATERSHEDS, RESERVOIRS, LAKES, RIVERS AND STREAMS. SUCH COMMITTEE SHALL GIVE PRIORITY TO PROJECTS WHICH ESTABLISH BUFFERS FROM WATERS WHICH SERVE AS OR ARE TRIBUTARIES TO DRINKING WATER SUPPLIES FOR SUCH PROJECTS USING STATE ASSISTANCE PURSUANT TO THIS SECTION. 4. REAL PROPERTY ACQUIRED, DEVELOPED, IMPROVED, RESTORED OR REHABILI- TATED BY OR THROUGH A MUNICIPALITY OR NOT-FOR-PROFIT CORPORATION WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE SHALL NOT BE SOLD, LEASED, EXCHANGED, DONATED OR OTHERWISE DISPOSED OF OR USED FOR OTHER THAN THE PUBLIC PURPOSES OF THIS TITLE WITHOUT THE EXPRESS AUTHORITY OF AN ACT OF THE LEGISLATURE, WHICH SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL ENVIRONMENTAL VALUE AND FAIR MARKET VALUE AND REASONABLY EQUIV- ALENT USEFULNESS AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF, AND SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE COMMISSIONER. A. 3008--B 38 5. IF THE STATE ACQUIRES A REAL PROPERTY INTEREST IN LAND PURCHASED BY A MUNICIPALITY OR NOT-FOR-PROFIT WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE, THE STATE SHALL PAY THE FAIR MARKET VALUE OF SUCH INTEREST LESS THE AMOUNT OF FUNDING PROVIDED BY THE STATE PURSUANT TO THIS SECTION. 6. TO THE FULLEST EXTENT PRACTICABLE, IT IS THE POLICY OF THE STATE TO PROMOTE AN EQUITABLE REGIONAL DISTRIBUTION OF FUNDS, CONSISTENT WITH THE PURPOSE OF THIS TITLE. § 15-3305. APPROVAL AND EXECUTION OF PROJECTS. 1. SOURCE WATER PROTECTION PROJECTS MAY BE UNDERTAKEN PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND OTHER APPLICABLE PROVISIONS OF LAW ONLY WITH THE APPROVAL OF THE COMMISSIONER. 2. ALL SOURCE WATER PROTECTION PROJECTS SHALL BE UNDERTAKEN IN THE STATE OF NEW YORK. THE TOTAL AMOUNT OF THE STATE ASSISTANCE PAYMENTS TOWARD THE COST OF ANY SUCH PROJECT SHALL IN NO EVENT EXCEED FIFTY PERCENT OF THE COST, PROVIDED HOWEVER, THAT IN THE CASE OF A PROJECT LOCATED IN AN AREA WHICH, ACCORDING TO THE MOST RECENT CENSUS DATA AVAILABLE, HAS A POVERTY RATE OF AT LEAST TEN PERCENT FOR THE YEAR TO WHICH THE DATA RELATES, STATE ASSISTANCE PAYMENTS TOWARD THE COST OF ANY SUCH PROJECT SHALL IN NO EVENT EXCEED SEVENTY-FIVE PERCENT OF THE COST. FOR THE PURPOSE OF DETERMINING THE AMOUNT OF THE STATE ASSISTANCE PAYMENTS, THE COST OF THE PROJECT SHALL NOT BE MORE THAN THE AMOUNT SET FORTH IN THE APPLICATION FOR STATE ASSISTANCE PAYMENTS APPROVED BY THE COMMISSIONER. THE STATE ASSISTANCE PAYMENTS TOWARD THE COST OF A PROJECT SHALL BE PAID ON AUDIT AND WARRANT OF THE STATE COMPTROLLER ON A CERTIF- ICATE OF AVAILABILITY OF THE DIRECTOR OF THE BUDGET. 3. A. THE COMMISSIONER AND A MUNICIPALITY MAY ENTER INTO A CONTRACT FOR THE UNDERTAKING BY THE MUNICIPALITY OF A SOURCE WATER PROTECTION PROJECT. SUCH PROJECT SHALL BE RECOMMENDED TO THE COMMISSIONER BY THE GOVERNING BODY OF THE MUNICIPALITY AND, WHEN APPROVED BY THE COMMISSION- ER, MAY BE UNDERTAKEN BY THE MUNICIPALITY PURSUANT TO THIS TITLE AND ANY OTHER APPLICABLE PROVISION OF LAW. B. THE COMMISSIONER AND A NOT-FOR-PROFIT CORPORATION MAY ENTER INTO A CONTRACT FOR THE UNDERTAKING BY THE NOT-FOR-PROFIT CORPORATION OF A SOURCE WATER PROTECTION PROJECT. SUCH A PROJECT SHALL BE RECOMMENDED TO THE COMMISSIONER BY THE GOVERNING BODY OF A NOT-FOR-PROFIT CORPORATION WHICH DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT IT IS CAPABLE OF OPERATING AND MAINTAINING SUCH PROPERTY FOR THE BENEFIT OF DRINKING WATER AND/OR WATER QUALITY PROTECTION. UPON APPROVAL BY THE COMMISSIONER, SUCH PROJECT MAY BE UNDERTAKEN PURSUANT TO THE PROVISIONS OF THIS TITLE AND ANY OTHER APPLICABLE PROVISION OF LAW. 4. NO MONIES SHALL BE EXPENDED FOR SOURCE WATER PROTECTION PROJECTS EXCEPT PURSUANT TO AN APPROPRIATION THEREFOR. § 3. The public health law is amended by adding a new section 1113 to read as follows: § 1113. LEAD SERVICE LINE REPLACEMENT GRANT PROGRAM. WITHIN AMOUNTS APPROPRIATED THEREFOR, THE DEPARTMENT SHALL DEVELOP A PROGRAM TO AWARD GRANTS TO MUNICIPALITIES FOR PURPOSES OF REPLACING LEAD SERVICE LINES USED TO SUPPLY DRINKING WATER. WHEN DETERMINING WHICH MUNICIPALITIES SHALL RECEIVE AWARDS AND THE AMOUNT OF SUCH AWARDS, THE DEPARTMENT SHALL CONSIDER FOR EACH MUNICIPALITY THE COST OF REPLACING LEAD SERVICE LINES AND THE NUMBER OF PERSONS WHO RECEIVE DRINKING WATER FROM SUCH SERVICE LINES, AND SHALL GIVE PRIORITY TO THOSE MUNICIPALITIES WITH ZIP CODES WHICH DEMONSTRATE ELEVATED CHILDHOOD BLOOD LEAD LEVELS BASED ON THE MOST RECENT AVAILABLE DATA AND LOW-INCOME COMMUNITIES, ACCORDING TO REGU- LATIONS AS SHALL BE DETERMINED BY THE DEPARTMENT. A. 3008--B 39 § 4. Section 54-1523 of the environmental conservation law, as added by section 5 of part U of chapter 58 of the laws of 2016, is amended to read as follows: § 54-1523. Climate adaptation and mitigation projects. 1. The commissioner is authorized to provide on a competitive basis, within amounts appropriated, state assistance payments to a municipality toward the cost of any climate adaptation or mitigation projects. Such projects shall include: a. the construction of natural resiliency measures, conservation or restoration of riparian areas and tidal marsh migration areas; b. nature-based solutions such as wetland protections to address phys- ical climate risk due to sea level rise, and/or storm surges and/or flooding, based on available data predicting the likelihood of future extreme weather events, including hazard risk analysis data if applica- ble; c. relocation or retrofit of facilities to address physical climate risk due to sea level rise, and/or storm surges and/or flooding based on available data predicting the likelihood of future extreme weather events, including hazard risk analysis data if applicable; d. flood risk reduction; e. greenhouse gas emission reductions outside the power sector; f. enabling communities to become certified under the climate smart communities program, including by developing natural resources invento- ries, right sizing of municipal fleets and developing climate adaptation strategies; [and] g. climate change adaptation planning and supporting studies, includ- ing but not limited to vulnerability assessment and risk analysis of municipal drinking water, wastewater, and transportation infrastructure; AND H. LAND ACQUISITION, INCLUDING BUT NOT LIMITED TO FLOOD MITIGATION AND COASTAL RIPARIAN RESILIENCY; PROVIDED, HOWEVER, NO MONIES SHALL BE EXPENDED FOR ACQUISITION BY EMINENT DOMAIN. 2. To the fullest extent practicable, it is the policy of the state to promote an equitable regional distribution of climate adaptation and mitigation projects, consistent with the purpose of this title, taking into account regional differences in climate change risks, socioeconomic conditions and ecological resources. [3. No monies shall be expended for land acquisition.] § 5. The environmental conservation law is amended by adding a new section 54-1525 to read as follows: § 54-1525. RESTRICTION ON ALIENATION. REAL PROPERTY ACQUIRED, DEVELOPED, IMPROVED, RESTORED OR REHABILITATED BY A MUNICIPALITY PURSUANT TO THIS TITLE WITH FUNDS MADE AVAILABLE PURSUANT TO THIS TITLE SHALL NOT BE SOLD OR DISPOSED OF OR USED FOR OTHER THAN PUBLIC PURPOSES WITHOUT THE EXPRESS AUTHORITY OF AN ACT OF THE LEGISLATURE, WHICH SHALL PROVIDE FOR THE SUBSTITUTION OF OTHER LANDS OF EQUAL ENVIRONMENTAL AND FAIR MARKET VALUE AND REASONABLY EQUIVALENT USEFULNESS AND LOCATION TO THOSE TO BE DISCONTINUED, SOLD OR DISPOSED OF, AND SUCH OTHER REQUIREMENTS AS SHALL BE APPROVED BY THE COMMISSION- ER. § 6. Article 27 of the environmental conservation law is amended by adding a new title 12 to read as follows: TITLE 12 DRINKING WATER CONTAMINATION REMEDIATION SECTION 27-1201. DEFINITIONS. A. 3008--B 40 27-1203. MITIGATION OF DRINKING WATER CONTAMINATION. 27-1205. REMEDIAL PROGRAMS. 27-1207. ACCESS TO RECORDS AND SITES. 27-1209. USE AND REPORTING OF THE DRINKING WATER CONTAMINATION RESPONSE ACCOUNT. 27-1211. RULES AND REGULATIONS. 27-1213. CITIZEN TECHNICAL ASSISTANCE GRANTS. § 27-1201. DEFINITIONS. WHEN USED IN THIS TITLE: 1. "DRINKING WATER CONTAMINATION RESPONSE ACCOUNT" MEANS THE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION ONE OF SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW. 2. "EMERGING CONTAMINANT". NOTWITHSTANDING THE DEFINITION OF EMERG- ING CONTAMINANT PURSUANT TO SECTION ELEVEN HUNDRED TWELVE OF THE PUBLIC HEALTH LAW, "EMERGING CONTAMINANT" DOES NOT INCLUDE: A. NATURAL GAS, NATURAL GAS LIQUIDS, LIQUEFIED NATURAL GAS, SYNTHETIC GAS USABLE FOR FUEL, OR MIXTURES OF NATURAL GAS AND SUCH SYNTHETIC GAS; NOR B. THE RESIDUE OF EMISSIONS FROM THE ENGINE EXHAUST OF A MOTOR VEHI- CLE, ROLLING STOCK, AIRCRAFT, VESSEL, OR PIPELINE PUMPING STATION ENGINE; NOR C. SOURCE, BYPRODUCT, OR SPECIAL NUCLEAR MATERIAL FROM A NUCLEAR INCI- DENT, AS THOSE TERMS ARE DEFINED IN THE ATOMIC ENERGY ACT OF 1954, IF SUCH RELEASE IS SUBJECT TO REQUIREMENTS WITH RESPECT TO FINANCIAL PROTECTION ESTABLISHED UNDER SECTION 170 OF SUCH ACT (42 U.S.C. 2210) OR, FOR THE PURPOSE OF SECTION 104 OF THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF 1980 (42 U.S.C. 9604), OR ANY OTHER RESPONSE ACTION, ANY SOURCE, BYPRODUCT, OR SPECIAL NUCLEAR MATERIAL FROM ANY PROCESSING SITE DESIGNATED UNDER SECTION 102(A)(1) OR 302(A) OF THE URANIUM MILL TAILINGS RADIATION CONTROL ACT OF 1978 (42 U.S.C. 7912(A)(1) OR 7942(A)); NOR D. PETROLEUM AS DEFINED IN SECTION ONE HUNDRED SEVENTY-TWO OF THE NAVIGATION LAW, EVEN IF APPEARING ON THE LIST PROMULGATED PURSUANT TO SECTION 37-0103 OF THIS CHAPTER. § 27-1203. MITIGATION OF DRINKING WATER CONTAMINATION. WHENEVER THE COMMISSIONER OF HEALTH HAS REQUIRED A PUBLIC WATER SYSTEM TO TAKE ACTION TO REDUCE EXPOSURE AS A RESULT OF EMERGING CONTAMINANT NOTIFICATION LEVELS PURSUANT TO SECTION ELEVEN HUNDRED TWELVE OF THE PUBLIC HEALTH LAW, OR AT ANY TIME UPON THE REQUEST OF THE COMMISSIONER OF HEALTH PURSUANT TO A PUBLIC HEALTH HAZARD, THE DEPARTMENT SHALL UNDERTAKE ALL REASONABLE AND NECESSARY MEASURES TO ENSURE THAT SAFE DRINKING WATER IS EXPEDITIOUSLY MADE AVAILABLE TO ALL PEOPLE IN ANY AREA OF THE STATE IN WHICH SUCH CONTAMINATION IS KNOWN TO BE PRESENT. SUCH AREA SHALL INCLUDE, AT A MINIMUM, ALL PROPERTIES SERVED BY THE PUBLIC WATER SYSTEM AND ANY LAND AND ANY SURFACE OR GROUNDWATER SOURCES IDENTI- FIED BY THE DEPARTMENT OR DEPARTMENT OF HEALTH AS CAUSING OR CONTRIBUT- ING TO SUCH CONTAMINATION. THE DEPARTMENT'S MEASURES SHALL BE PROTEC- TIVE OF HUMAN AND ENVIRONMENTAL HEALTH AND MAY INCLUDE THE INSTALLATION OF TREATMENT SYSTEMS, INCLUDING BUT NOT LIMITED TO INSTALLATION OF ONSITE WATER SUPPLIES, OR THE PROVISION OF ALTERNATIVE WATER SUPPLY SOURCES TO ENSURE THAT WATER MEETS APPLICABLE MAXIMUM CONTAMINANT LEVELS OR OTHER THRESHOLD CONCENTRATIONS, SUCH AS ACTION LEVELS, SET BY THE DEPARTMENT OF HEALTH OR FEDERAL GOVERNMENT. § 27-1205. REMEDIAL PROGRAMS. 1. A. THE DEPARTMENT SHALL BE RESPONSIBLE, AS PROVIDED IN THIS SECTION, FOR PUBLIC DRINKING WATER CONTAMINATION REMEDIAL PROGRAMS ONCE A. 3008--B 41 THE DEPARTMENT OF HEALTH HAS REQUIRED A PUBLIC WATER SYSTEM TO TAKE ACTION TO REDUCE EXPOSURE AS A RESULT OF AN EMERGING CONTAMINANT NOTIFI- CATION LEVEL PURSUANT TO SECTION ELEVEN HUNDRED TWELVE OF THE PUBLIC HEALTH LAW EXCEPT AS PROVIDED IN SECTION ONE THOUSAND THREE HUNDRED EIGHTY-NINE-B OF THE PUBLIC HEALTH LAW. B. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO REQUIRE THE DEVELOPMENT AND IMPLEMENTATION OF A DEPARTMENT-APPROVED PUBLIC DRINKING WATER CONTAMINATION REMEDIAL PROGRAM. C. SECTION EIGHT OF THE COURT OF CLAIMS ACT OR ANY OTHER PROVISION OF LAW TO THE CONTRARY NOTWITHSTANDING, THE STATE SHALL BE IMMUNE FROM LIABILITY AND ACTION WITH RESPECT TO ANY ACT OR OMISSION DONE IN THE DISCHARGE OF THE DEPARTMENT'S AFORESAID RESPONSIBILITY PURSUANT TO THIS SECTION; PROVIDED, HOWEVER, THAT THIS PARAGRAPH SHALL NOT LIMIT THE LIABILITY WHICH MAY OTHERWISE EXIST FOR UNLAWFUL, WILLFUL OR MALICIOUS ACTS OR OMISSIONS ON THE PART OF THE STATE, STATE AGENCIES, OR THEIR OFFICERS, EMPLOYEES OR AGENTS; OR FOR THE OWNERSHIP OR RESPONSIBILITY FOR THE DISPOSAL OF HAZARDOUS WASTE, INCLUDING THE COST OF CLEANUP, PURSUANT TO THIS SECTION. 2. THE DEPARTMENT SHALL HAVE THE AUTHORITY (A) TO DELEGATE SUCH RESPONSIBILITY FOR A SPECIFIC SITE TO THE MUNICIPALITY IN WHICH SUCH SITE IS LOCATED AND (B) TO CONTRACT WITH THE ENVIRONMENTAL FACILITIES CORPORATION AND ANY OTHER PERSON TO PERFORM NECESSARY WORK IN CONNECTION WITH SUCH SITES. 3. A. WHENEVER THE COMMISSIONER OF HEALTH REQUIRES THAT A PUBLIC WATER SYSTEM TAKE ACTION TO REDUCE EXPOSURE, AS A RESULT OF AN EMERGING CONTAMINATION NOTIFICATION LEVEL PURSUANT TO SECTION ELEVEN HUNDRED TWELVE OF THE PUBLIC HEALTH LAW, AND THAT SUCH EMERGING CONTAMINANT CONSTITUTES A SIGNIFICANT THREAT TO THE ENVIRONMENT, HE OR SHE MAY ORDER THE OWNER OF SUCH SITE AND/OR ANY PERSON RESPONSIBLE FOR SUCH CONTAM- INATION TO DEVELOP A DRINKING WATER CONTAMINATION REMEDIAL PROGRAM, SUBJECT TO THE APPROVAL OF THE DEPARTMENT, AT SUCH SITE, AND (II) TO IMPLEMENT SUCH PROGRAM WITHIN REASONABLE TIME LIMITS SPECIFIED IN THE ORDER. PROVIDED, HOWEVER, THAT IN THE EVENT THE COMMISSIONER OF HEALTH SHALL ISSUE AN ORDER PURSUANT TO SUBDIVISION THREE OF SECTION ONE THOU- SAND THREE HUNDRED EIGHTY-NINE-B OF THE PUBLIC HEALTH LAW, SUCH ORDER OF THE COMMISSIONER OF HEALTH SHALL SUPERSEDE ANY ORDER ISSUED HEREUNDER. B. WHENEVER THE COMMISSIONER, AFTER INVESTIGATION, FINDS: (I) THAT A PUBLIC DRINKING WATER CONTAMINATION SITE CONSTITUTES A SIGNIFICANT THREAT TO THE ENVIRONMENT; AND (II) THAT SUCH THREAT IS CAUSING OR PRESENTS AN IMMINENT DANGER OF CAUSING IRREVERSIBLE OR IRREPARABLE DAMAGE TO THE ENVIRONMENT; AND (III) THE THREAT MAKES IT PREJUDICIAL TO THE PUBLIC INTEREST TO DELAY ACTION UNTIL A HEARING CAN BE HELD PURSUANT TO THIS TITLE, THE DEPART- MENT MAY, PURSUANT TO PARAGRAPH C OF SUBDIVISION FIVE OF THIS SECTION AND WITHIN THE FUNDS AVAILABLE TO THE DEPARTMENT FROM THE DRINKING WATER CONTAMINANT RESPONSE ACCOUNT, DEVELOP AND IMPLEMENT A DRINKING WATER CONTAMINATION REMEDIAL PROGRAM FOR SUCH SITE. FINDINGS REQUIRED PURSU- ANT TO THIS PARAGRAPH SHALL BE IN WRITING AND MAY BE MADE BY THE COMMIS- SIONER ON AN EX PARTE BASIS SUBJECT TO JUDICIAL REVIEW. 4. ANY ORDER ISSUED PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL BE ISSUED ONLY AFTER NOTICE AND THE OPPORTUNITY FOR A HEARING IS PROVIDED TO PERSONS WHO MAY BE THE SUBJECT OF SUCH ORDER. THE COMMIS- SIONER SHALL DETERMINE WHICH PERSONS ARE RESPONSIBLE PURSUANT TO SAID SUBDIVISION ACCORDING TO APPLICABLE PRINCIPLES OF STATUTORY OR COMMON LAW LIABILITY. SUCH PERSONS SHALL BE ENTITLED TO RAISE ANY STATUTORY OR COMMON LAW DEFENSE AT ANY SUCH HEARING AND SUCH DEFENSES SHALL HAVE THE A. 3008--B 42 SAME FORCE AND EFFECT AT SUCH HEARINGS AS THEY WOULD HAVE IN A COURT OF LAW. IN THE EVENT A HEARING IS HELD, NO ORDER SHALL BE ISSUED BY THE COMMISSIONER UNDER SUBDIVISION THREE OF THIS SECTION UNTIL A FINAL DECI- SION HAS BEEN RENDERED. ANY SUCH ORDER SHALL BE REVIEWABLE PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES WITHIN THIRTY DAYS AFTER SERVICE OF SUCH ORDER. THE COMMISSIONER MAY REQUEST THE PARTICIPATION OF THE ATTORNEY GENERAL IN SUCH HEARINGS. 5. A. WHENEVER A PERSON ORDERED TO ELIMINATE A THREAT TO THE ENVIRON- MENT PURSUANT TO PARAGRAPH A OF SUBDIVISION THREE OF THIS SECTION HAS FAILED TO DO SO WITHIN THE TIME LIMITS SPECIFIED IN THE ORDER, THE DEPARTMENT MAY DEVELOP AND IMPLEMENT A PUBLIC DRINKING WATER CONTAM- INATION REMEDIAL PROGRAM FOR SUCH SITE. THE REASONABLE EXPENSES OF DEVELOPING AND IMPLEMENTING SUCH REMEDIAL PROGRAM BY THE DEPARTMENT SHALL BE PAID BY THE PERSON TO WHOM THE ORDER WAS ISSUED AND THE STATE MAY SEEK TO RECOVER SUCH REASONABLE EXPENSES IN ANY COURT OF APPROPRIATE JURISDICTION. B. IN THE EVENT THAT THE COMMISSIONER HAS FOUND THAT A PUBLIC DRINKING WATER CONTAMINATION SITE CONSTITUTES A SIGNIFICANT THREAT TO THE ENVI- RONMENT, BUT AFTER A REASONABLE ATTEMPT TO DETERMINE WHO MAY BE RESPON- SIBLE IS EITHER UNABLE TO DETERMINE WHO MAY BE RESPONSIBLE, OR IS UNABLE TO LOCATE A PERSON WHO MAY BE RESPONSIBLE, THE DEPARTMENT MAY DEVELOP AND IMPLEMENT A PUBLIC DRINKING WATER CONTAMINATION REMEDIAL PROGRAM FOR SUCH SITE. THE COMMISSIONER SHALL MAKE EVERY EFFORT, IN ACCORDANCE WITH THE REQUIREMENTS FOR NOTICE, HEARING AND REVIEW PROVIDED FOR IN THIS TITLE, TO SECURE APPROPRIATE RELIEF FROM ANY PERSON SUBSEQUENTLY IDENTI- FIED OR LOCATED WHO IS RESPONSIBLE FOR THE DISPOSAL OF HAZARDOUS WASTE AT SUCH SITE, INCLUDING, BUT NOT LIMITED TO, DEVELOPMENT AND IMPLEMENTA- TION OF AN INACTIVE HAZARDOUS WASTE DISPOSAL SITE REMEDIAL PROGRAM, PAYMENT OF THE COST OF SUCH A PROGRAM, RECOVERY OF ANY REASONABLE EXPENSES INCURRED BY THE STATE, MONEY DAMAGES AND PENALTIES. C. WHENEVER THE COMMISSIONER HAS MADE FINDINGS PURSUANT TO PARAGRAPH B OF SUBDIVISION THREE OF THIS SECTION OR THE COMMISSIONER OF HEALTH HAS MADE A DECLARATION AND FINDING PURSUANT TO PARAGRAPH (B) OF SUBDIVISION THREE OF SECTION ONE THOUSAND THREE HUNDRED EIGHTY-NINE-B OF THE PUBLIC HEALTH LAW, THE DEPARTMENT MAY DEVELOP AND IMPLEMENT A PUBLIC DRINKING WATER CONTAMINATION REMEDIAL PROGRAM TO CONTAIN, ALLEVIATE OR END THE THREAT TO LIFE OR HEALTH OR TO THE ENVIRONMENT. THE COSTS INCURRED BY THE DEPARTMENT IN DEVELOPING AND IMPLEMENTING SUCH A PROGRAM SHALL BE IN AN AMOUNT COMMENSURATE WITH THE ACTIONS THE DEPARTMENT DEEMS NECESSARY TO ELIMINATE SUCH DANGER. IN DETERMINING THE SCOPE, NATURE AND CONTENT OF SUCH PROGRAM, THE DEPARTMENT SHALL CONSIDER AMONG OTHERS, THE FOLLOW- ING FACTORS: (I) THE TECHNOLOGICAL FEASIBILITY OF ALL ACTIONS; (II) THE NATURE OF THE DANGER TO HUMAN HEALTH AND THE ENVIRONMENT WHICH THE ACTIONS ARE DESIGNED TO ADDRESS; AND (III) THE EXTENT TO WHICH THE ACTIONS WOULD REDUCE SUCH DANGER TO HUMAN HEALTH OR THE ENVIRONMENT OR WOULD OTHERWISE BENEFIT HUMAN HEALTH OR THE ENVIRONMENT. 6. THE COMMISSIONER SHALL MAKE EVERY EFFORT, IN ACCORDANCE WITH THE REQUIREMENTS FOR NOTICE, HEARING AND REVIEW PROVIDED FOR IN THIS TITLE TO SECURE APPROPRIATE RELIEF FROM THE OWNER OR OPERATOR OF SUCH SITE AND/OR ANY PERSON RESPONSIBLE FOR SUCH CONTAMINATION, INCLUDING, BUT NOT LIMITED TO, DEVELOPMENT AND IMPLEMENTATION OF A PUBLIC DRINKING WATER CONTAMINATION REMEDIAL PROGRAM, PAYMENT OF THE COST OF SUCH PROGRAM, RECOVERY OF ANY REASONABLE EXPENSES INCURRED BY THE STATE, MONEY DAMAGES AND PENALTIES. A. 3008--B 43 7. WHEN A MUNICIPALITY DEVELOPS AND IMPLEMENTS PURSUANT TO AN AGREE- MENT WITH THE DEPARTMENT A PUBLIC DRINKING WATER CONTAMINATION REMEDIAL PROGRAM AS APPROVED BY THE DEPARTMENT FOR A SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY OR WHEN THE DEPARTMENT, PURSUANT TO AN AGREEMENT WITH A MUNICIPALITY, DEVELOPS AND IMPLEMENTS SUCH A REMEDI- AL PROGRAM, THE COMMISSIONER SHALL, IN THE NAME OF THE STATE, AGREE IN SUCH AGREEMENT TO PROVIDE FROM THE DRINKING WATER CONTAMINATION RESPONSE FUND, WITHIN THE LIMITATIONS OF APPROPRIATIONS THEREFOR, SEVENTY-FIVE PERCENT OF THE ELIGIBLE DESIGN AND CONSTRUCTION COSTS OF SUCH REMEDIAL PROGRAM FOR WHICH SUCH MUNICIPALITY IS LIABLE SOLELY BECAUSE OF ITS OWNERSHIP AND/OR OPERATION OF SUCH SITE AND WHICH ARE NOT RECOVERED FROM OR REIMBURSED OR PAID BY A RESPONSIBLE PARTY OR THE FEDERAL GOVERNMENT. 8. NOTHING CONTAINED WITHIN THIS SECTION SHALL BE CONSTRUED AS IMPAIR- ING OR IN ANY MANNER AFFECTING THE RIGHT OR JURISDICTION OF THE ATTORNEY GENERAL TO SEEK APPROPRIATE RELIEF PURSUANT TO HIS STATUTORY OR COMMON LAW AUTHORITY. 9. MONEYS FOR ACTIONS TAKEN OR TO BE TAKEN BY THE DEPARTMENT, THE DEPARTMENT OF HEALTH OR ANY OTHER STATE AGENCY IN CONNECTION WITH THE ELIMINATION OF CONDITIONS DANGEROUS TO LIFE OR HEALTH OR WITH THE ELIMI- NATION OF A SIGNIFICANT THREAT TO THE ENVIRONMENT PURSUANT TO THIS SECTION SHALL BE PAYABLE DIRECTLY TO SUCH AGENCIES FROM THE DRINKING WATER CONTAMINATION RESPONSE ACCOUNT PURSUANT TO SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW. THIS INCLUDES ANY INSPECTION OR SAMPLING OF WASTES, SOILS, AIR, SURFACE WATER AND GROUNDWATER DONE ON BEHALF OF A STATE AGENCY WHETHER OR NOT SUCH ACTION IS TAKEN PRIOR TO A FINDING PURSUANT TO SUBDIVISION THREE OF THIS SECTION AND ANY ADMINISTRATIVE EXPENSES RELATED THERETO. 10. ANY DULY DESIGNATED OFFICER OR EMPLOYEE OF THE DEPARTMENT OR ANY OTHER STATE AGENCY, AND ANY AGENT, CONSULTANT, CONTRACTOR, OR OTHER PERSON, INCLUDING AN EMPLOYEE, AGENT, CONSULTANT, OR CONTRACTOR OF A RESPONSIBLE PERSON ACTING AT THE DIRECTION OF THE DEPARTMENT, SO AUTHOR- IZED IN WRITING BY THE COMMISSIONER, MAY ENTER ANY PUBLIC DRINKING WATER CONTAMINATION SITE AND AREAS NEAR SUCH SITE TO IMPLEMENT A PUBLIC DRINK- ING WATER CONTAMINATION REMEDIAL PROGRAM FOR SUCH SITE, PROVIDED THE COMMISSIONER HAS SENT A WRITTEN NOTICE TO THE OWNERS OF RECORD OR ANY KNOWN OCCUPANTS OF SUCH SITE OR NEARBY AREAS OF THE INTENDED ENTRY AND WORK AT LEAST TEN DAYS PRIOR TO SUCH INITIAL ENTRY UNLESS SUCH OWNERS AND OCCUPANTS CONSENT TO AN EARLIER DATE. § 27-1207. ACCESS TO RECORDS AND SITES. 1. EVERY PERSON SHALL, UPON THE WRITTEN REQUEST OF THE COMMISSIONER OR A DESIGNEE, PERMIT A DULY DESIGNATED OFFICER OR EMPLOYEE OF THE DEPART- MENT AT ALL REASONABLE TIMES TO HAVE ACCESS TO AND TO COPY ALL BOOKS, PAPERS, DOCUMENTS AND RECORDS PERTINENT TO AN ONGOING INVESTIGATION OF AN EMERGING CONTAMINANT NOTIFICATION IDENTIFIED IN SECTION 27-1203. 2. THE COMMISSIONER MAY SIGN AND ISSUE SUBPOENAS IN THE NAME OF THE DEPARTMENT REQUIRING THE PRODUCTION OF BOOKS, PAPERS, DOCUMENTS AND OTHER RECORDS AND MAY TAKE TESTIMONY BY DEPOSITIONS UNDER OATH OF ANY PERSON RELATING TO THE ONGOING INVESTIGATION OF AN EMERGING CONTAMINANT NOTIFICATION IDENTIFIED IN SECTION 27-1203. SUCH SUBPOENAS AND DEPOSI- TIONS SHALL BE REGULATED BY THE CIVIL PRACTICE LAW AND RULES. THE COMMISSIONER MAY INVOKE THE POWERS OF THE SUPREME COURT OF THE STATE OF NEW YORK TO COMPEL COMPLIANCE WITH ANY SUCH SUBPOENA OR ANY REQUEST TO TAKE SUCH DEPOSITIONS. 3. ANY DULY DESIGNATED OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR OF ANY STATE AGENCY, AND ANY AGENT, CONSULTANT, CONTRACTOR, OR OTHER PERSON, INCLUDING AN EMPLOYEE, AGENT, CONSULTANT, OR CONTRACTOR OF A A. 3008--B 44 RESPONSIBLE PERSON ACTING AT THE DIRECTION OF THE DEPARTMENT, SO AUTHOR- IZED IN WRITING BY THE COMMISSIONER, MAY ENTER ANY PUBLIC DRINKING WATER CONTAMINATION SITE AND AREAS NEAR SUCH SITE AND INSPECT AND TAKE SAMPLES OF WASTES, SOILS, AIR, SURFACE WATER, AND GROUNDWATER. IN ORDER TO TAKE SUCH SAMPLES, THE DEPARTMENT OR AUTHORIZED PERSON MAY UTILIZE OR CAUSE TO BE UTILIZED SUCH SAMPLING METHODS AS IT DETERMINES TO BE NECESSARY INCLUDING, BUT NOT LIMITED TO, SOIL BORINGS AND MONITORING WELLS. 4. THE DEPARTMENT OR AUTHORIZED PERSON SHALL NOT TAKE ANY SAMPLES INVOLVING THE SUBSTANTIAL DISTURBANCE OF THE GROUND SURFACE OF ANY PROP- ERTY UNLESS IT HAS MADE A REASONABLE EFFORT TO IDENTIFY THE OWNER OF THE PROPERTY AND TO NOTIFY SUCH OWNER OF THE INTENT TO TAKE SUCH SAMPLES. IF THE OWNER CAN BE IDENTIFIED, THE DEPARTMENT SHALL PROVIDE SUCH OWNER WITH A MINIMUM OF TEN DAYS' WRITTEN NOTICE OF THE INTENT, UNLESS SUCH OWNERS AND OCCUPANTS CONSENT TO AN EARLIER DATE, TO TAKE SUCH SAMPLES, UNLESS THE COMMISSIONER MAKES A WRITTEN DETERMINATION THAT SUCH TEN DAY NOTICE WILL NOT ALLOW THE DEPARTMENT TO PROTECT THE ENVIRONMENT OR PUBLIC HEALTH, IN WHICH CASE TWO DAYS' WRITTEN NOTICE SHALL BE SUFFI- CIENT. ANY INSPECTION OF THE PROPERTY AND EACH SUCH TAKING OF SAMPLES SHALL TAKE PLACE AT REASONABLE TIMES AND SHALL BE COMMENCED AND COMPLETED WITH REASONABLE PROMPTNESS. IF ANY OFFICER, EMPLOYEE, AGENT, CONSULTANT, CONTRACTOR, OR OTHER PERSON SO AUTHORIZED IN WRITING BY THE COMMISSIONER OBTAINS ANY SAMPLES PRIOR TO LEAVING THE PREMISES, HE OR SHE SHALL GIVE TO THE OWNER OR OPERATOR A RECEIPT DESCRIBING THE SAMPLE OBTAINED AND, IF REQUESTED, A PORTION OF SUCH SAMPLE EQUAL IN VOLUME OR WEIGHT TO THE PORTION RETAINED. IF ANY ANALYSIS IS MADE OF SUCH SAMPLES, A COPY OF THE RESULTS OF SUCH ANALYSIS SHALL BE FURNISHED PROMPTLY TO THE OWNER OR OPERATOR. UPON THE COMPLETION OF ALL SAMPLING ACTIVITIES, THE DEPARTMENT OR AUTHORIZED PERSON SHALL REMOVE, OR CAUSE TO BE REMOVED, ALL EQUIPMENT AND WELL MACHINERY AND RETURN THE GROUND SURFACE OF THE PROPERTY TO ITS CONDITION PRIOR TO SUCH SAMPLING, UNLESS THE DEPARTMENT OR AUTHORIZED PERSON, AND THE OWNER OF PROPERTY SHALL OTHER- WISE AGREE. 5. THE EXPENSE OF ANY SUCH SAMPLING AND ANALYSIS SHALL BE PAID BY THE DEPARTMENT, BUT MAY BE RECOVERED FROM ANY RESPONSIBLE PERSON IN ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO THIS TITLE OR COMMON LAW; PROVIDED, THAT IF THE PERSON SO AUTHORIZED IN WRITING SHALL BE AN EMPLOYEE, AGENT, CONSULTANT, OR CONTRACTOR OF A RESPONSIBLE PERSON ACTING AT THE DIRECTION OF THE DEPARTMENT, THEN THE EXPENSE OF ANY SUCH SAMPLING AND ANALYSIS SHALL BE PAID BY THE RESPONSIBLE PERSON. § 27-1209. USE AND REPORTING OF DRINKING WATER CONTAMINATION RESPONSE ACCOUNT. 1. THE DRINKING WATER CONTAMINATION RESPONSE ACCOUNT SHALL BE MADE AVAILABLE TO THE DEPARTMENT, SUBJECT TO APPROPRIATION, TO REMEDIATE PUBLIC DRINKING WATER CONTAMINATION SITES AND FOR CITIZEN TECHNICAL ASSISTANCE GRANTS PURSUANT TO THIS TITLE. 2. ON OR BEFORE JULY FIRST, TWO THOUSAND EIGHTEEN, AND ANNUALLY THERE- AFTER, THE DEPARTMENT SHALL REPORT ON THE STATUS OF THE PROGRAM INCLUD- ING: A. MONIES EXPENDED OR ENCUMBERED FOR THE PURPOSE OF CONDUCTING SITE INVESTIGATIONS, REMEDIAL INVESTIGATIONS, REMEDIAL DESIGN STUDIES, REME- DIAL CONSTRUCTION, INTERIM REMEDIAL MEASURES, AND FEASIBILITY STUDIES; B. AN ACCOUNTING OF PAYMENTS RECEIVED AND PAYMENTS OBLIGATED TO BE RECEIVED PURSUANT TO THIS TITLE, AND A REPORT OF THE DEPARTMENT'S ATTEMPT TO SECURE SUCH OBLIGATIONS. § 27-1211. RULES AND REGULATIONS. A. 3008--B 45 1. THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS NECESSARY AND APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS TITLE. ANY REGULATIONS SHALL AT A MINIMUM INCLUDE PROVISIONS WHICH ESTABLISH THE PROCEDURES PURSUANT TO SECTION 27-1205 OF THIS TITLE AND SHALL ENSURE A DIVISION OF FUNCTIONS BETWEEN THE COMMISSIONER, THE STAFF WHO PRESENT THE CASE, AND ANY HEARING OFFICERS APPOINTED. IN ADDITION, ANY REGULATIONS SHALL SET FORTH FINDINGS TO BE BASED ON A FACTUAL RECORD, WHICH MUST BE MADE BEFORE THE COMMISSIONER DETERMINES THAT A SIGNIFICANT THREAT TO THE ENVIRONMENT EXISTS. § 27-1213. CITIZEN TECHNICAL ASSISTANCE GRANTS. 1. THE COMMISSIONER IS AUTHORIZED TO PROVIDE, OR ORDER A PERSON ACTING UNDER ORDER OR ON CONSENT, TO PROVIDE GRANTS TO ANY NOT-FOR-PROFIT CORPORATION EXEMPT FROM TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE WHO MAY BE AFFECTED BY A PUBLIC DRINKING WATER CONTAM- INATION REMEDIAL PROGRAM. TO QUALIFY TO RECEIVE SUCH ASSISTANCE, A COMMUNITY GROUP MUST DEMONSTRATE THAT ITS MEMBERSHIP REPRESENTS THE INTERESTS OF THE COMMUNITY AFFECTED BY SUCH SITE, AND THAT MEMBERS' HEALTH, ECONOMIC WELL-BEING OR ENJOYMENT OF THE ENVIRONMENT ARE POTEN- TIALLY AFFECTED BY SUCH SITE. SUCH GRANTS SHALL BE KNOWN AS TECHNICAL ASSISTANCE GRANTS AND MAY BE USED TO OBTAIN TECHNICAL ASSISTANCE IN INTERPRETING INFORMATION WITH REGARD TO THE NATURE OF THE HAZARD FROM A PUBLIC DRINKING WATER CONTAMINATION SITE OR SITES AND THE DEVELOPMENT AND IMPLEMENTATION OF A PUBLIC DRINKING WATER CONTAMINATION SITE REMEDI- AL PROGRAM OR PROGRAMS. SUCH GRANTS MAY ALSO BE USED: (A) TO ADVISE AFFECTED RESIDENTS ON ANY HEALTH ASSESSMENT; AND (B) FOR TRAINING FUNDS FOR THE EDUCATION OF INTERESTED AFFECTED COMMU- NITY MEMBERS TO ENABLE THEM TO MORE EFFECTIVELY PARTICIPATE IN THE REME- DY SELECTION PROCESS. GRANTS AWARDED UNDER THIS SECTION MAY NOT BE USED FOR THE PURPOSES OF COLLECTING FIELD SAMPLING DATA, POLITICAL ACTIVITY OR LOBBYING LEGISLA- TIVE BODIES. 2. THE AMOUNT OF ANY GRANT AWARDED UNDER THIS SECTION MAY NOT EXCEED FIFTY THOUSAND DOLLARS AT ANY ONE SITE. 3. NO MATCHING CONTRIBUTION FROM THE GRANT RECIPIENT SHALL BE REQUIRED FOR A TECHNICAL ASSISTANCE GRANT. FOLLOWING A GRANT AWARD, A PORTION OF THE GRANT SHALL BE MADE AVAILABLE TO THE GRANT RECIPIENT, IN ADVANCE OF THE EXPENDITURES TO BE COVERED BY THE GRANT, IN FIVE THOUSAND DOLLAR INSTALLMENTS. § 7. The public authorities law is amended by adding a new section 1285-s to read as follows: § 1285-S. NEW YORK STATE INTERMUNICIPAL WATER INFRASTRUCTURE GRANTS PROGRAM. 1. FOR PURPOSES OF THIS SECTION: (A) "WATER QUALITY INFRASTRUCTURE PROJECT" SHALL MEAN "SEWAGE TREAT- MENT WORKS" AS DEFINED IN SECTION 17-1903 OF THE ENVIRONMENTAL CONSERVA- TION LAW OR "ELIGIBLE PROJECT" AS DEFINED IN PARAGRAPHS (A), (B), (C) AND (E) OF SUBDIVISION FOUR OF SECTION ELEVEN HUNDRED SIXTY OF THE PUBLIC HEALTH LAW. (B) "CONSTRUCTION" SHALL MEAN: (I) FOR SEWAGE TREATMENT WORKS, THE SAME MEANING AS DEFINED IN SECTION 17-1903 OF THE ENVIRONMENTAL CONSERVATION LAW; AND (II) FOR ELIGIBLE PROJECTS, THE SAME MEANING AS DEFINED IN SECTION ONE THOUSAND ONE HUNDRED SIXTY OF THE PUBLIC HEALTH LAW. (C) "MUNICIPALITY" SHALL MEAN ANY COUNTY, CITY, TOWN, VILLAGE, DISTRICT CORPORATION, COUNTY OR TOWN IMPROVEMENT DISTRICT, SCHOOL DISTRICT, INDIAN NATION OR TRIBE RECOGNIZED BY THE STATE OR THE UNITED STATES WITH A RESERVATION WHOLLY OR PARTLY WITHIN THE BOUNDARIES OF NEW A. 3008--B 46 YORK STATE, ANY PUBLIC BENEFIT CORPORATION OR PUBLIC AUTHORITY ESTAB- LISHED PURSUANT TO THE LAWS OF NEW YORK OR ANY AGENCY OF NEW YORK STATE WHICH IS EMPOWERED TO CONSTRUCT AND OPERATE AN INTERMUNICIPAL WATER QUALITY INFRASTRUCTURE PROJECT, OR ANY TWO OR MORE OF THE FOREGOING WHICH ARE ACTING JOINTLY IN CONNECTION WITH AN INTERMUNICIPAL WATER QUALITY INFRASTRUCTURE PROJECT. 2. (A) THE ENVIRONMENTAL FACILITIES CORPORATION SHALL UNDERTAKE AND PROVIDE STATE FINANCIAL ASSISTANCE PAYMENTS, FROM FUNDS APPROPRIATED FOR SUCH PURPOSE, TO MUNICIPALITIES IN SUPPORT OF INTERMUNICIPAL WATER QUAL- ITY INFRASTRUCTURE PROJECTS PROVIDED, HOWEVER, IN ANY SUCH YEAR THAT FUNDS ARE APPROPRIATED FOR SUCH PURPOSE, EACH MUNICIPALITY PARTICIPATING IN SUCH INTERMUNICIPAL AGREEMENT SHALL EACH RECEIVE AN AWARD OF UP TO FIVE MILLION DOLLARS OF APPROPRIATED FUNDS; PROVIDED THAT SUCH MONIES SHALL NOT EXCEED SEVENTY-FIVE PERCENT OF THE TOTAL PROJECT COST; AND PROVIDED FURTHER THAT THE TOTAL STATE FINANCIAL ASSISTANCE PAYMENT FOR THE PROJECT DOES NOT REPRESENT A DISPROPORTIONATE SHARE OF THE TOTAL AMOUNT OF AVAILABLE FUNDING IN ANY GIVEN YEAR. (B) INTERMUNICIPAL WATER QUALITY INFRASTRUCTURE PROJECTS SHALL SERVE MULTIPLE MUNICIPALITIES AND MAY INCLUDE A SHARED WATER QUALITY INFRAS- TRUCTURE PROJECT OR INTERCONNECTION OF MULTIPLE MUNICIPAL WATER QUALITY INFRASTRUCTURE PROJECTS AND SHALL BE AWARDED ONLY TO WATER QUALITY INFRASTRUCTURE PROJECTS FOR: (I) REPLACEMENT OR REPAIR OF INFRASTRUCTURE; OR (II) COMPLIANCE WITH ENVIRONMENTAL AND PUBLIC HEALTH LAWS AND REGU- LATIONS RELATED TO WATER QUALITY. (C) ANY STATE FINANCIAL ASSISTANCE PAYMENT AWARDED PURSUANT TO THIS SECTION SHALL NOT EXCEED SEVENTY-FIVE PERCENT OF THE PROJECT COST. (D) COOPERATING MUNICIPALITIES MAY MAKE AN APPLICATION FOR AN INTERMU- NICIPAL WATER INFRASTRUCTURE GRANT, IN A MANNER, FORM AND TIMEFRAME AND CONTAINING SUCH INFORMATION AS THE ENVIRONMENTAL FACILITIES CORPORATION MAY REQUIRE PROVIDED HOWEVER, SUCH REQUIREMENTS SHALL NOT INCLUDE A REQUIREMENT FOR PRIOR LISTING ON THE INTENDED USE PLAN. (E) COOPERATING MUNICIPALITIES SHALL NOT BE REQUIRED TO ACCEPT ENVI- RONMENTAL FACILITIES CORPORATION LOAN FINANCING IN ORDER TO OBTAIN A STATE FINANCIAL ASSISTANCE PAYMENT PURSUANT TO THIS SECTION IF IT CAN PROVIDE PROOF OF HAVING OBTAINED SIMILARLY LOW COST FINANCING OR OTHER FUNDING FROM ANOTHER SOURCE. (F) IN AWARDING SUCH STATE INTERMUNICIPAL WATER INFRASTRUCTURE GRANTS, THE ENVIRONMENTAL FACILITIES CORPORATION SHALL CONSIDER AND GIVE PREFER- ENCE TO MUNICIPALITIES THAT MEET THE HARDSHIP CRITERIA ESTABLISHED BY THE ENVIRONMENTAL FACILITIES CORPORATION PURSUANT TO SECTION TWELVE HUNDRED EIGHTY-FIVE-M OF THIS ARTICLE AND PROJECTS THAT RESULT IN THE GREATEST WATER QUALITY IMPROVEMENT OR GREATEST REDUCTION IN SERIOUS RISK TO PUBLIC HEALTH. FOR THE PURPOSES OF THIS SECTION, THE HARDSHIP CRITE- RIA OF SECTION TWELVE HUNDRED EIGHTY-FIVE-M OF THIS ARTICLE SHALL ALSO APPLY TO SEWAGE TREATMENT WORKS DEFINED IN SECTION 17-1903 OF THE ENVI- RONMENTAL CONSERVATION LAW. 3. INTERMUNICIPAL WATER QUALITY INFRASTRUCTURE PROJECTS FINANCED WITH STATE FINANCIAL ASSISTANCE MADE AVAILABLE PURSUANT TO THIS SECTION SHALL BE SUBJECT TO THE REQUIREMENTS OF ARTICLE EIGHT OF THE LABOR LAW, THE REQUIREMENTS OF ARTICLE SEVENTEEN-B OF THE EXECUTIVE LAW AND THE REQUIREMENTS AND PROVISIONS OF ALL APPLICABLE MINORITY- AND WOMEN-OWNED BUSINESS MANDATES INCLUDING, BUT NOT LIMITED TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. § 8. Article 27 of the environmental conservation law is amended by adding a new title 31 to read as follows: A. 3008--B 47 TITLE 31 CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES SECTION 27-3101. DEFINITIONS. 27-3103. IDENTIFICATION OF SITES. 27-3105. REGISTRY OF SITES. 27-3107. USE AND REPORTING OF CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE RESPONSE ACCOUNT. 27-3109. REGULATIONS. 27-3111. MUNICIPAL GRANTS. § 27-3101. DEFINITIONS. AS USED IN THIS TITLE, THE FOLLOWING TERMS SHALL MEAN: 1. "CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE" MEANS A LOCATION WHERE SOLID WASTE IS OR HAS BEEN INTENTIONALLY PLACED, OTHER THAN A SOLID WASTE MANAGEMENT FACILITY CURRENTLY OPERATING UNDER A PERMIT PURSUANT TO THIS TITLE, THAT IS (A) A SITE THAT HAS CEASED ACCEPTING SOLID WASTE AND HAS DOCUMENTATION THAT CLOSURE WAS CONDUCTED IN ACCORDANCE WITH APPLICA- BLE STATUTES, REGULATIONS AND LOCAL ORDINANCES IN EFFECT AT THE TIME; (B) A SITE WHERE DISPOSAL OF SOLID WASTE WAS NEVER LEGALLY PERMITTED; OR (C) A SITE THAT HAS CEASED ACCEPTING SOLID WASTE BUT HAS NOT CLOSED IN COMPLIANCE WITH APPLICABLE STATUTES, REGULATIONS AND LOCAL ORDINANCES IN EFFECT AT THE TIME. 2. "SOLID WASTE MANAGEMENT FACILITY" MEANS ANY FACILITY EMPLOYED BEYOND THE INITIAL SOLID WASTE COLLECTION PROCESS INCLUDING, BUT NOT LIMITED TO, TRANSFER STATIONS, BALING FACILITIES, RAIL HAUL OR BARGE HAUL FACILITIES, PROCESSING SYSTEMS, INCLUDING RESOURCE RECOVERY FACILI- TIES OR OTHER FACILITIES FOR REDUCING SOLID WASTE VOLUME, SANITARY LAND- FILLS, FACILITIES FOR THE DISPOSAL OF CONSTRUCTION AND DEMOLITION DEBRIS, PLANTS AND FACILITIES FOR COMPACTING, COMPOSTING OR PYROLIZATION OF SOLID WASTES, INCINERATORS AND OTHER SOLID WASTE DISPOSAL, REDUCTION OR CONVERSION FACILITIES. § 27-3103. IDENTIFICATION OF SITES. 1. FOR A PERIOD OF ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION, EACH COUNTY SHOULD, FOR THE PURPOSE OF LOCATING CLOSED, ILLEGAL OR ABAN- DONED DISPOSAL SITES, SURVEY ITS JURISDICTION TO DETERMINE THE EXISTENCE AND LOCATION OF CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES AND SUBMIT A REPORT TO THE DEPARTMENT DESCRIBING THE LOCATION OF EACH SUCH SUSPECTED SITE AND THE REASONS FOR SUCH SUSPICION. 2. EACH COUNTY SHOULD REVIEW THE INFORMATION CONCERNING SUCH COUNTY IN THE REGISTRY ESTABLISHED PURSUANT TO SECTION 27-3105 OF THIS TITLE PROVIDE THE DEPARTMENT WITH ANY INFORMATION WHICH MIGHT CORRECT OR SUPPLEMENT THE INFORMATION IN SUCH REGISTRY WITH RESPECT TO SUSPECTED CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES WITHIN THE JURISDICTION OF SUCH COUNTY. 3. NOTHING CONTAINED WITHIN THIS SECTION SHALL (A) PRECLUDE A COUNTY FROM COOPERATING WITH LOCAL JURISDICTIONS, REGIONAL ORGANIZATIONS OR STATE AGENCIES TO COMPLETE SUCH SURVEY UNDER SUBDIVISIONS ONE AND TWO OF THIS SECTION OR (B) REDUCE THE POWERS OR RESPONSIBILITIES OF ANY COUNTY, OTHER LOCAL JURISDICTION, REGIONAL ORGANIZATION OR STATE AGENCY TO IDEN- TIFY, INVESTIGATE, ASSESS OR MONITOR ANY CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE. 4. FOR PURPOSES OF THIS SECTION, "COUNTY" SHALL INCLUDE EACH CITY INCORPORATING WITHIN ITS BOUNDARY ONE OR MORE COUNTIES BUT SHALL NOT INCLUDE THOSE COUNTIES INCORPORATED WITHIN A CITY. § 27-3105. REGISTRY OF SITES. 1. THE DEPARTMENT SHALL MAINTAIN AND MAKE AVAILABLE FOR PUBLIC INSPECTION, AT EACH OF ITS REGIONAL OFFICES AND REGIONAL SUB-OFFICES, AT A. 3008--B 48 THE OFFICE OF THE COUNTY CLERK OR REGISTER FOR EACH COUNTY AND AT THE OFFICE OF THE TOWN CLERK FOR EACH TOWN IN SUFFOLK AND NASSAU COUNTIES, AND ON ITS HOMEPAGE ON THE INTERNET, A REGISTRY OF ANY CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES IN SUCH REGION OR, WITH RESPECT TO THE OFFICE OF THE COUNTY CLERK OR REGISTER, IN SUCH COUNTY. THE DEPARTMENT SHALL PROVIDE A WRITTEN COPY UPON REQUESTS BY ANY PERSON. THE DEPARTMENT SHALL TAKE ALL NECESSARY ACTION TO ENSURE THAT THE REGISTRY PROVIDES A COMPLETE AND UP-TO-DATE LISTING OF ALL SUCH SITES WITHIN THE REGION. THE DEPARTMENT SHALL, ON OR BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN, AND ANNUALLY THEREAFTER, TRANSMIT THE UPDATED REGISTRY TO THE LEGISLATURE AND THE GOVERNOR. A NOTICE OF THE AVAILABILITY OF THE UPDATED REGISTRY SHALL BE SENT TO THE DEPARTMENT OF HEALTH AND THE CHIEF EXECUTIVE OFFI- CER OF EVERY COUNTY. UPON IDENTIFICATION OF A CLOSED, ILLEGAL OR ABAN- DONED DISPOSAL SITE NOT INCLUDED IN THE REGISTRY FOR THE IMMEDIATELY PRECEDING YEAR, THE DEPARTMENT SHALL NOTIFY IN WRITING THE CHIEF EXECU- TIVE OFFICER OF EACH COUNTY, CITY, TOWN AND VILLAGE AND THE PUBLIC WATER SUPPLIER WHICH SERVICES THE AREA IN WHICH SUCH SITE IS LOCATED THAT SUCH SITE HAS BEEN SO IDENTIFIED. FOR THE PURPOSES OF THIS SECTION, "WATER SUPPLIER" SHALL MEAN ANY PUBLIC WATER SYSTEM AS SUCH TERM IS DEFINED FOR THE PURPOSES OF THE SANITARY CODE OF THE STATE OF NEW YORK AS AUTHORIZED BY SECTION TWO HUNDRED TWENTY-FIVE OF THE PUBLIC HEALTH LAW. SUCH REGIS- TRY SHALL INCLUDE BUT NEED NOT BE LIMITED TO THOSE ITEMS AMONG THE FOLLOWING WHICH THE COMMISSIONER DETERMINES TO BE NECESSARY: A. A DESCRIPTION OF THE SITES CONSISTING OF: (I) A GENERAL DESCRIPTION OF THE SITE, WHICH SHALL INCLUDE THE NAME, IF ANY, OF THE SITE, THE ADDRESS OF THE SITE, THE TYPE AND QUANTITY OF THE KNOWN TYPES OF WASTE DISPOSED OF AT THE SITE AND THE NAME OF THE CURRENT OWNERS OF THE SITE; (II) AN ASSESSMENT BY THE DEPARTMENT OF ANY SIGNIFICANT ENVIRONMENTAL PROBLEMS AT AND NEAR THE SITE; (III) AN ASSESSMENT PREPARED BY THE DEPARTMENT OF HEALTH OF ANY SERI- OUS HEALTH PROBLEMS IN THE IMMEDIATE VICINITY OF THE SITE AND ANY HEALTH PROBLEMS DEEMED BY THE DEPARTMENT OF HEALTH TO BE RELATED TO CONDITIONS AT THE SITE; (IV) THE STATUS OF ANY TESTING, MONITORING OR REMEDIAL ACTIONS IN PROGRESS OR RECOMMENDED BY THE DEPARTMENT; (V) THE STATUS OF ANY PENDING LEGAL ACTIONS AND ANY FEDERAL, STATE OR LOCAL GOVERNMENT PERMITS OR APPROVALS CONCERNING THE SITE; AND (VI) AN ASSESSMENT OF THE RELATIVE PRIORITY OF THE NEED FOR ACTION AT EACH SITE TO REMEDY ENVIRONMENTAL AND HEALTH PROBLEMS RESULTING FROM THE PRESENCE OF WASTES AT SUCH SITE; B. ADDRESS AND SITE BOUNDARIES INCLUDING TAX MAP PARCEL NUMBERS OR SECTION, BLOCK AND LOT NUMBERS; C. TIME PERIOD OF USE FOR DISPOSAL OF WASTE; D. NAME OF THE CURRENT OWNER AND OPERATOR AND NAMES OF ANY PAST AND REPORTED OWNERS AND OPERATORS DURING THE TIME PERIOD OF USE FOR WASTE DISPOSAL; E. NAMES OF PERSONS RESPONSIBLE FOR THE GENERATION AND TRANSPORTATION OF WASTE DISPOSED OF; F. TYPE AND QUANTITY OF KNOWN TYPES OF WASTE DISPOSED OF; G. MANNER OF DISPOSAL OF SUCH WASTE; H. NATURE OF SOILS AT THE SITE; I. DEPTH OF WATER TABLE AT THE SITE; J. LOCATION, NATURE AND SIZE OF AQUIFERS AT THE SITE; K. DIRECTION OF PRESENT AND HISTORIC GROUNDWATER FLOWS AT THE SITE; A. 3008--B 49 L. LOCATION, NATURE AND SIZE OF ALL SURFACE WATERS AT AND NEAR THE SITE; M. LEVELS OF CONTAMINANTS, IF ANY, IN GROUNDWATER, SURFACE WATER, AIR AND SOILS AT AND NEAR THE SITE RESULTING FROM WASTES DISPOSED OF AT THE SITE OR FROM ANY OTHER CAUSE AND AREAS KNOWN TO BE DIRECTLY AFFECTED OR CONTAMINATED BY WASTES FROM THE SITE; N. AS DETERMINED BY THE DEPARTMENT OF HEALTH, CURRENT QUALITY OF ALL DRINKING WATER DRAWN FROM OR DISTRIBUTED THROUGH THE AREA IN WHICH THE SITE IS LOCATED WHEN THE DEPARTMENT OF HEALTH DETERMINES THAT WATER QUALITY MAY HAVE BEEN AFFECTED BY THE SITE IN QUESTION AND ANY KNOWN CHANGE IN THE QUALITY OF SUCH DRINKING WATER OVER TIME; O. PROXIMITY OF THE SITE TO PRIVATE RESIDENCES, PUBLIC BUILDINGS OR PROPERTY, SCHOOL FACILITIES, PLACES OF WORK OR OTHER AREAS WHERE INDI- VIDUALS MAY BE PRESENT; AND P. THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE PUBLIC WATER SUPPLIER WHICH SERVICES THE AREA IN WHICH SUCH SITE IS LOCATED. 2. A. THE DEPARTMENT SHALL CONDUCT INVESTIGATIONS OF THE SITES LISTED IN THE REGISTRY AND SHALL INVESTIGATE AREAS OR SITES WHICH IT HAS REASON TO BELIEVE SHOULD BE INCLUDED IN THE REGISTRY. THE PURPOSE OF THESE INVESTIGATIONS SHALL BE TO DEVELOP THE INFORMATION REQUIRED BY SUBDIVI- SION ONE OF THIS SECTION TO BE INCLUDED IN THE REGISTRY. B. THE DEPARTMENT SHALL, AS PART OF THE REGISTRY, ASSESS AND, BASED UPON NEW INFORMATION RECEIVED, REASSESS BY MARCH THIRTY-FIRST OF EACH YEAR, IN COOPERATION WITH THE DEPARTMENT OF HEALTH, THE RELATIVE NEED FOR ACTION AT EACH SITE TO REMEDY ENVIRONMENTAL AND HEALTH PROBLEMS RESULTING FROM SUCH SITES; PROVIDED, HOWEVER, THAT IF AT THE TIME OF SUCH ASSESSMENT OR REASSESSMENT, THE DEPARTMENT HAS NOT PLACED A SITE IN CLASSIFICATION 1 OR 2, AS DESCRIBED IN SUBPARAGRAPHS ONE AND TWO OF THIS PARAGRAPH, AND SUCH SITE IS THE SUBJECT OF NEGOTIATIONS FOR, OR IMPLE- MENTATION OF, A BROWNFIELD SITE CLEANUP AGREEMENT PURSUANT TO TITLE FOURTEEN OF THIS ARTICLE, OBLIGATING THE PERSON SUBJECT TO SUCH AGREE- MENT TO, AT A MINIMUM, ELIMINATE OR MITIGATE ALL SIGNIFICANT THREATS TO THE PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO SUCH AGREEMENT, THE DEPARTMENT SHALL DEFER ITS ASSESSMENT OR REASSESSMENT DURING THE PERIOD SUCH PERSON IS ENGAGED IN GOOD FAITH NEGOTIATIONS TO ENTER INTO SUCH AN AGREEMENT AND, FOLLOWING ITS EXECUTION, IS IN COMPLIANCE WITH THE TERMS OF SUCH AGREEMENT, AND SHALL ASSESS OR REASSESS SUCH SITE UPON COMPLETION OF REMEDIATION TO THE DEPARTMENT'S SATISFACTION. IN MAKING ITS ASSESSMENTS, THE DEPARTMENT SHALL PLACE EVERY SITE IN ONE OF THE FOLLOWING CLASSIFICATIONS: (1) CAUSING OR PRESENTING AN IMMINENT DANGER OF CAUSING IRREVERSIBLE OR IRREPARABLE DAMAGE TO THE PUBLIC HEALTH OR ENVIRONMENT--IMMEDIATE ACTION REQUIRED; (2) SIGNIFICANT THREAT TO THE PUBLIC HEALTH OR ENVIRONMENT--ACTION REQUIRED; (3) DOES NOT PRESENT A SIGNIFICANT THREAT TO THE PUBLIC HEALTH OR ENVIRONMENT--ACTION MAY BE DEFERRED; (4) SITE PROPERLY CLOSED--REQUIRES CONTINUED MANAGEMENT; (5) SITE PROPERLY CLOSED, NO EVIDENCE OF PRESENT OR POTENTIAL ADVERSE IMPACT--NO FURTHER ACTION REQUIRED. C. (1) ANY OWNER OR OPERATOR OF A SITE LISTED PURSUANT TO THIS SECTION MAY PETITION THE COMMISSIONER FOR DELETION OF SUCH SITE, MODIFICATION OF THE SITE CLASSIFICATION, OR MODIFICATION OF ANY INFORMATION REGARDING SUCH SITE BY SUBMITTING A WRITTEN STATEMENT IN SUCH FORM AS THE COMMIS- SIONER MAY REQUIRE SETTING FORTH THE GROUNDS OF THE PETITION. A. 3008--B 50 (2) WITHIN NINETY DAYS AFTER THE SUBMITTAL OF SUCH PETITION, THE COMMISSIONER MAY CONVENE AN ADMINISTRATIVE HEARING TO DETERMINE WHETHER A PARTICULAR SITE SHOULD BE DELETED FROM THE REGISTRY, RECEIVE A MODI- FIED SITE CLASSIFICATION OR WHETHER ANY INFORMATION REGARDING THE SITE SHOULD BE MODIFIED. IN ANY SUCH HEARING THE BURDEN OF PROOF SHALL BE ON THE PETITIONER. NO LESS THAN THIRTY DAYS PRIOR TO THE HEARING THE COMMISSIONER SHALL CAUSE A NOTICE OF HEARING TO BE PUBLISHED IN THE NEXT AVAILABLE ENVIRONMENTAL NOTICE BULLETIN AND IN A NEWSPAPER OF GENERAL CIRCULATION IN THE COUNTY IN WHICH THE SITE IS LOCATED. THE COMMISSIONER SHALL ALSO NOTIFY IN WRITING ANY OWNER OR OPERATOR OF THE SITE NO LESS THAN THIRTY DAYS PRIOR TO THE HEARING. THE COST OF ANY SUCH HEARING, INCLUDING THE COST OF ANY PUBLIC NOTIFICATION, SHALL BE AT THE PETITIONER'S EXPENSE. (3) NO LATER THAN THIRTY DAYS FOLLOWING RECEIPT OF THE COMPLETE RECORD AS THAT TERM IS DEFINED IN THE STATE ADMINISTRATIVE PROCEDURE ACT, OR FOLLOWING THE DECISION NOT TO HOLD A HEARING THE COMMISSIONER SHALL PROVIDE THE OWNER OR OPERATOR WITH A WRITTEN DETERMINATION ACCOMPANIED BY REASON THEREFOR REGARDING THE DELETION OF SUCH SITE, MODIFICATION OF THE SITE CLASSIFICATION OR MODIFICATION OF ANY INFORMATION REGARDING SUCH SITE. ANY FINAL DECISION RENDERED BY THE COMMISSIONER SHALL BE REVIEWABLE UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. (4) THE COMMISSIONER MAY NOT DELETE ANY SITE FROM THE REGISTRY WITHOUT PROVIDING PUBLIC NOTICE NO LESS THAN SIXTY DAYS PRIOR TO THE PROPOSED DELETION. SUCH NOTICE OF DELETION SHALL BE PUBLISHED IN THE NEXT AVAIL- ABLE ENVIRONMENTAL NOTICE BULLETIN AND IN A NEWSPAPER OF GENERAL CIRCU- LATION IN THE COUNTY IN WHICH THE SITE IS LOCATED. THE COMMISSIONER SHALL ALSO NOTIFY IN WRITING ANY OWNER OR OPERATOR OF THE SITE, IF APPLICABLE, NO LESS THAN SIXTY DAYS PRIOR TO THE PROPOSED DELETION. THE COMMISSIONER SHALL PROVIDE A THIRTY-DAY PERIOD FOR SUBMISSION OF WRITTEN COMMENTS AND MAY PROVIDE AN OPPORTUNITY FOR SUBMISSION OF ORAL COMMENTS AT A PUBLIC MEETING AT OR NEAR THE SITE. THE COMMISSIONER SHALL SUMMA- RIZE ANY COMMENTS RECEIVED AND MAKE THE SUMMARY AVAILABLE TO THE PUBLIC. THE COMMISSIONER MAY CONVENE AN ADMINISTRATIVE HEARING TO DETERMINE WHETHER A PARTICULAR SITE SHOULD BE DELETED FROM THE REGISTRY, RECEIVE A MODIFIED SITE CLASSIFICATION OR WHETHER ANY INFORMATION REGARDING THE SITE SHOULD BE MODIFIED. (5) THE DEPARTMENT SHALL NOTIFY, AS SOON AS POSSIBLE AND WITHIN AVAIL- ABLE RESOURCES ALL PUBLIC REPOSITORIES OF THE REGISTRY OF ANY MODIFICA- TIONS OR DELETIONS TO SUCH REGISTRY. THE DEPARTMENT SHALL ALSO NOTE ANY SUCH DELETIONS OR MODIFICATIONS IN THE NEXT ANNUAL REPORT AND PUBLICA- TION OF THE REGISTRY. (6) THE DEPARTMENT SHALL, WITHIN TEN DAYS OF ANY DETERMINATION NOTIFY THE LOCAL GOVERNMENTS OF JURISDICTION WHENEVER A CHANGE IS MADE IN THE REGISTRY PURSUANT TO THIS SUBDIVISION. D. WITHIN SEVEN MONTHS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION THE DEPARTMENT SHALL NOTIFY BY CERTIFIED MAIL THE OWNER OF ALL OR ANY PART OF EACH SITE OR AREA INCLUDED IN THE REGISTRY, OF THE INCLUSION OF THE SITE OR AREA BY MAILING NOTICE TO SUCH OWNER AT THE OWNER'S LAST KNOWN ADDRESS. THEREAFTER, FIFTEEN DAYS BEFORE ANY SITE OR AREA IS ADDED TO THE REGISTRY, THE DEPARTMENT SHALL NOTIFY IN WRITING BY CERTIFIED MAIL THE OWNER OF ALL OR ANY PART OF SUCH SITE OR AREA OF THE INCLUSION OF SUCH SITE OR AREA BY MAILING NOTICE TO EACH SUCH OWNER AT THE OWNER'S LAST KNOWN ADDRESS. E. THE DEPARTMENT SHALL, IN CONSULTATION WITH THE DEPARTMENT OF HEALTH, EVALUATE EXISTING SITE EVALUATION SYSTEMS AND SHALL DEVELOP A A. 3008--B 51 SYSTEM TO SELECT AND PRIORITIZE SITES FOR REMEDIAL ACTION. SUCH SYSTEM SHALL INCORPORATE ENVIRONMENTAL, NATURAL RESOURCE AND PUBLIC HEALTH CONCERNS. F. THE DEPARTMENT SHALL DEVELOP A SITE STATUS REPORTING SYSTEM AND UTILIZE SUCH SYSTEM TO ENSURE THAT THE REGISTRY REQUIRED BY SUBDIVISION ONE OF THIS SECTION PROVIDES A COMPLETE AND UP-TO-DATE LISTING OF ALL SITES IN EACH REGION. 3. THE DEPARTMENT SHALL, AS SOON AS POSSIBLE BUT IN NO EVENT LATER THAN JANUARY FIRST, TWO THOUSAND NINETEEN, AND ANNUALLY THEREAFTER PREPARE AND SUBMIT IN WRITING A "STATE CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE REMEDIAL PLAN," HEREINAFTER REFERRED TO AS "THE PLAN" TO THE GOVERNOR AND LEGISLATURE. IN PREPARING, COMPILING AND UPDATING THE PLAN, THE DEPARTMENT SHALL: A. CONDUCT OR CAUSE TO BE CONDUCTED FIELD INVESTIGATIONS OF HIGH PRIORITY SITES LISTED IN THE REGISTRY FOR THE PURPOSE OF FURTHER DEFIN- ING NECESSARY REMEDIAL ACTION. TO THE MAXIMUM EXTENT PRACTICABLE, THE DEPARTMENT SHALL UTILIZE EXISTING INFORMATION INCLUDING, BUT NOT LIMITED TO, SUBSURFACE BORINGS AND ANY ANALYSES OR TESTS OF SAMPLES TAKEN FROM SUCH SITES BY OWNERS OR OPERATORS, OTHER RESPONSIBLE PERSONS AND ANY FEDERAL OR NON-FEDERAL AGENCIES. B. MAKE ANY SUBSURFACE BORINGS AND ANY ANALYSES OR TESTS OF SAMPLES TAKEN AS MAY BE NECESSARY OR DESIRABLE TO EFFECTUATE THE FIELD INVESTI- GATIONS OF SITES AS REQUIRED UNDER THIS SECTION SUBJECT TO THE REQUIRE- MENTS OF THIS TITLE. C. MAKE ANY RECORD SEARCHES OR DOCUMENT REVIEWS AS MAY BE NECESSARY OR DESIRABLE TO EFFECTUATE THE PURPOSES OF THIS SECTION SUBJECT TO THE REQUIREMENTS OF THIS TITLE. D. CONSIDER THE EFFECTS ON THE HEALTH, ENVIRONMENT AND ECONOMY OF THE STATE WHEN ASSESSING THE RELATIVE PRIORITY OF SITES AS REQUIRED BY THIS SECTION, ESPECIALLY ANY ACTUAL OR SIGNIFICANT THREAT OF DIRECT HUMAN CONTACT OR CONTAMINATION OF GROUNDWATER OR DRINKING WATER. E. DETAIL THE RECOMMENDED STRATEGY, METHODS AND TIME FRAME BY WHICH REMEDIAL ACTION AT SITES SHALL BE CARRIED OUT, EXCEPT THAT NO INFORMA- TION OR WORK PRODUCT ASSOCIATED WITH ACTUAL OR PENDING LITIGATION SHALL BE DIVULGED UNLESS OTHERWISE REQUIRED BY LAW. F. ESTIMATE, WITH REASONABLE SPECIFICITY, BASED UPON THE FIELD INVES- TIGATIONS, ASSESSMENTS, ANALYSES, DOCUMENT REVIEWS AND OTHER APPROPRIATE DATA GATHERING, THE COSTS OF REMEDIAL ACTION FOR SITES INCLUDED IN THE PLAN, CONSIDERING THE APPROPRIATE METHODS AND TECHNIQUES AS CURRENTLY EXIST IN THE FIELD OF WASTE MANAGEMENT AND ANY SUCH ESTIMATES OR RECOM- MENDATIONS SHALL REFLECT SUCH COSTS AS ARE REASONABLY NECESSARY TO CONTAIN, ALLEVIATE OR END THE THREAT TO LIFE OR HEALTH OR TO THE ENVI- RONMENT. 4. ON OR BEFORE JULY FIRST, TWO THOUSAND TWENTY AND JULY FIRST OF EACH SUCCEEDING YEAR, THE DEPARTMENT SHALL PREPARE A STATUS REPORT ON THE IMPLEMENTATION OF THE PLAN, AND AN UPDATE OF THE POLICIES, PROGRAM OBJECTIVES, METHODS AND STRATEGIES AS OUTLINED IN THE PLAN WHICH GUIDE THE OVERALL CLOSED, ILLEGAL OR ABANDONED DISPOSAL WASTE SITE REMEDIATION PROGRAM. SUCH STATUS REPORT SHALL REFLECT INFORMATION AVAILABLE TO THE DEPARTMENT AS OF MARCH THIRTY-FIRST OF EACH YEAR, AND SHALL INCLUDE AN ACCOUNTING OF ALL MONIES EXPENDED OR ENCUMBERED FROM THE CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE RESPONSE ACCOUNT DURING THE PRECEDING FISCAL YEAR, SUCH ACCOUNTING TO SEPARATELY LIST: A. MONIES EXPENDED OR ENCUMBERED FOR THE PURPOSE OF CONDUCTING SITE INVESTIGATIONS; A. 3008--B 52 B. MONIES EXPENDED OR ENCUMBERED FOR THE PURPOSE OF CONDUCTING REMEDI- AL INVESTIGATIONS AND FEASIBILITY STUDIES; C. MONIES EXPENDED OR ENCUMBERED FOR THE PURPOSE OF CONDUCTING REMEDI- AL DESIGN STUDIES; D. MONIES EXPENDED OR ENCUMBERED FOR THE PURPOSE OF CONDUCTING REMEDI- AL CONSTRUCTION ACTIVITIES; E. MONIES EXPENDED OR ENCUMBERED FOR OPERATION, MAINTENANCE, AND MONI- TORING ACTIVITIES; F. MONIES EXPENDED OR ENCUMBERED FOR INTERIM REMEDIAL MEASURES; G. MONIES EXPENDED OR ENCUMBERED FOR ADMINISTRATIVE PERSONNEL COSTS ASSOCIATED WITH ACTIVITIES CONDUCTED AT CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES; H. MONIES EXPENDED OR ENCUMBERED FOR OVERSIGHT ACTIVITIES; I. MONIES EXPENDED OR ENCUMBERED IN STAND-BY CONTRACTS ENTERED INTO PURSUANT TO SECTION 3-0309 OF THIS CHAPTER AND THE PURPOSES FOR WHICH THESE STAND-BY CONTRACTS WERE ENTERED INTO; AND J. AN ACCOUNTING OF PAYMENTS RECEIVED AND PAYMENTS OBLIGATED TO BE RECEIVED PURSUANT TO THIS TITLE, AND A REPORT OF THE DEPARTMENT'S ATTEMPTS TO SECURE SUCH OBLIGATIONS. § 27-3107. USE AND REPORTING OF CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE RESPONSE ACCOUNT. THE CLOSED, ILLEGAL OR ABANDONED DISPOSAL RESPONSE ACCOUNT ESTABLISHED PURSUANT TO SUBDIVISION ONE OF SECTION NINETY-SEVEN-B OF THE STATE FINANCE LAW SHALL BE MADE AVAILABLE, PURSUANT TO APPROPRIATION, TO THE DEPARTMENT FOR THE FOLLOWING PURPOSES OF THIS TITLE: 1. ENUMERATION AND ASSESSMENT OF CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES; 2. INVESTIGATION AND ENVIRONMENTAL CHARACTERIZATION OF CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES, INCLUDING ENVIRONMENTAL SAMPLING; AND 3. MITIGATION AND CLEANUP OF CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITES. § 27-3109. REGULATIONS. THE DEPARTMENT SHALL IMPLEMENT RULES AND REGULATIONS NECESSARY AND APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS TITLE AND SHALL AT A MINI- MUM INCLUDE SUCH PROVISIONS FOR REQUISITE DUE PROCESS AND MEANINGFUL PUBLIC PARTICIPATION AS ARE APPROPRIATE TO ANY ACTION UNDERTAKEN PURSU- ANT TO THIS TITLE, TAKING INTO CONSIDERATION THE NATURE AND DEGREE OF ANY PUBLIC HEALTH IMPACTS AND THE URGENCY OF ANY NEED FOR INVESTIGATION OR REMEDIATION OF CONTAMINATION. § 27-3111. MUNICIPAL GRANTS. WHEN A MUNICIPALITY DEVELOPS AND IMPLEMENTS PURSUANT TO AN AGREEMENT WITH THE DEPARTMENT A CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE REMEDI- AL PROGRAM AS APPROVED BY THE DEPARTMENT FOR A SITE WHICH IS OWNED OR HAS BEEN OPERATED BY SUCH MUNICIPALITY OR WHEN THE DEPARTMENT, PURSUANT TO AN AGREEMENT WITH A MUNICIPALITY, DEVELOPS AND IMPLEMENTS SUCH A REMEDIAL PROGRAM, THE COMMISSIONER SHALL, IN THE NAME OF THE STATE, AGREE IN SUCH AGREEMENT TO PROVIDE FROM THE CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE RESPONSE ACCOUNT FUND, WITHIN THE LIMITATIONS OF APPROPRI- ATIONS THEREFOR, SEVENTY-FIVE PERCENT OF THE ELIGIBLE DESIGN AND CONSTRUCTION COSTS OF SUCH REMEDIAL PROGRAM FOR WHICH SUCH MUNICIPALITY IS LIABLE SOLELY BECAUSE OF ITS OWNERSHIP AND/OR OPERATION OF SUCH SITE AND WHICH ARE NOT RECOVERED FROM OR REIMBURSED OR PAID BY A RESPONSIBLE PARTY OR THE FEDERAL GOVERNMENT. § 9. Section 3 of part G of chapter 60 of the laws of 2015, constitut- ing the New York State water infrastructure act of 2015, is amended by adding a new subdivision 6 to read as follows: A. 3008--B 53 6. WATER QUALITY INFRASTRUCTURE PROJECTS FINANCED WITH STATE ASSIST- ANCE MADE AVAILABLE PURSUANT TO THIS SECTION SHALL BE SUBJECT TO THE REQUIREMENTS OF ARTICLE EIGHT OF THE LABOR LAW, THE REQUIREMENTS OF ARTICLE SEVENTEEN-B OF THE EXECUTIVE LAW, AND THE REQUIREMENTS AND PROVISIONS OF ALL APPLICABLE MINORITY- AND WOMEN-OWNED BUSINESS MANDATES INCLUDING, BUT NOT LIMITED TO ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. § 10. Subdivision 9 of section 97-b of the state finance law is REPEALED. § 11. The opening paragraph, and paragraphs i and j of subdivision 4 of section 27-1305 of the environmental conservation law, as amended by section 3 of part E of chapter 1 of the laws of 2003, are amended to read as follows: On or before July first, nineteen hundred eighty-six and July first of each succeeding year, the department shall prepare a status report on the implementation of the plan, and an update of the policies, program objectives, methods and strategies as outlined in the plan which guide the overall inactive hazardous waste site remediation program AND THE CLOSED, ILLEGAL OR ABANDONED DISPOSAL RESPONSE SITE AND DRINKING WATER CONTAMINATION RESPONSE PROGRAMS. Such status report shall reflect infor- mation available to the department as of March thirty-first of each year, and shall include an accounting of all [monies] MONEYS expended or encumbered from the environmental quality bond act of nineteen hundred eighty-six or the hazardous waste remedial fund during the preceding fiscal year, such accounting to separately list: i. [monies] MONEYS expended or encumbered in stand-by contracts entered into pursuant to section 3-0309 of this chapter and the purposes for which these stand-by contracts were entered into; [and] j. MONEYS EXPENDED OR ENCUMBERED PURSUANT TO TITLE TWELVE OF THIS ARTICLE; K. MONEYS EXPENDED OR ENCUMBERED PURSUANT TO TITLE THIRTY-ONE OF THIS ARTICLE; AND L. an accounting of payments received and payments obligated to be received pursuant to this title AND TITLE TWELVE OF THIS ARTICLE, and a report of the department's attempts to secure such obligations. § 12. Subdivisions 1, 2 and 6 and the opening paragraph and paragraphs (i) and (j) of subdivision 3 of section 97-b of the state finance law, subdivision 1 and the opening paragraph of subdivision 3, as amended and paragraph (j) of subdivision 3 as added by section 4 of part I of chap- ter 1 of the laws of 2003, subdivision 2 as amended by section 5 of part X of chapter 58 of the laws of 2015, paragraph (i) of subdivision 3 as amended by section 1 of part R of chapter 59 of the laws of 2007, subdi- vision 6 as amended by chapter 38 of the laws of 1985, are amended and a new paragraph (k) is added to subdivision 3 to read as follows: 1. There is hereby established in the custody of the state comptroller a nonlapsing revolving fund to be known as the "hazardous waste remedial fund", which shall consist of a "site investigation and construction account", an "industry fee transfer account", an "environmental restora- tion project account", "hazardous waste cleanup account", [and] a "hazardous waste remediation oversight and assistance account", "CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE ACCOUNT" AND A "DRINKING WATER CONTAMINATION RESPONSE ACCOUNT". 2. Such fund shall consist of all of the following: (a) moneys appropriated for transfer to the fund's site investigation and construction account; (b) all fines and other sums accumulated in the fund prior to April first, nineteen hundred eighty-eight pursuant to section 71-2725 of the environmental conservation law for deposit in the A. 3008--B 54 fund's site investigation and construction account; (c) all moneys collected or received by the department of taxation and finance pursuant to section 27-0923 of the environmental conservation law for deposit in the fund's industry fee transfer account; (d) all moneys paid into the fund pursuant to section 72-0201 of the environmental conservation law which shall be deposited in the fund's industry fee transfer account; (e) all moneys paid into the fund pursuant to paragraph (b) of subdivi- sion one of section one hundred eighty-six of the navigation law which shall be deposited in the fund's industry fee transfer account; (f) all monies recovered under sections 56-0503, 56-0505 and 56-0507 of the environmental conservation law into the fund's environmental restoration project account; (g) all fees paid into the fund pursuant to section 72-0402 of the environmental conservation law which shall be deposited in the fund's industry fee transfer account; (h) payments received for all state costs incurred in negotiating and overseeing the implementa- tion of brownfield site cleanup agreements pursuant to title fourteen of article twenty-seven of the environmental conservation law shall be deposited in the hazardous waste remediation oversight and assistance account; (I) ALL MONEYS RECOVERED PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW INTO THE FUND'S DRINKING WATER CONTAMINATION RESPONSE ACCOUNT; and [(i)] (J) other moneys credited or transferred thereto from any other fund or source for deposit in the fund's site investigation and construction account. Moneys of the hazardous waste remedial fund, except monies in the industry fee transfer account, THE DRINKING WATER CONTAMINATION RESPONSE ACCOUNT AND THE CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE ACCOUNT, when allocated, shall be available to the departments of environmental conservation, health and law for the following purposes: (i) with respect to moneys in the hazardous waste remediation over- sight and assistance account, non-bondable costs associated with hazard- ous waste remediation projects. Such costs shall be limited to agency staff costs associated with the administration of state assistance for brownfield opportunity areas pursuant to section nine hundred seventy-r of the general municipal law, agency staff costs associated with the administration of technical assistance grants pursuant to titles thir- teen and fourteen of article twenty-seven of the environmental conserva- tion law, and costs of the department of environmental conservation related to the geographic information system required by section 3-0315 of the environmental conservation law; [and] (j) with respect to moneys in the hazardous waste remediation over- sight and assistance account, technical assistance grants pursuant to titles thirteen and fourteen of article twenty-seven of the environ- mental conservation law[.]; AND (K) NO FUNDS SHALL BE AVAILABLE FROM THE HAZARDOUS WASTE REMEDIAL FUND FOR TITLE 12 OR TITLE 31 OF ARTICLE 27 OF THE ENVIRONMENTAL CONSERVATION LAW, EXCEPT PURSUANT TO SUBDIVISIONS SIXTEEN AND SEVENTEEN OF THIS SECTION. 6. The commissioner of the department of environmental conservation shall make all reasonable efforts to recover the full amount of any funds expended from the fund pursuant to paragraph (a) of subdivision three AND SUBDIVISION SIXTEEN of this section through litigation or cooperative agreements with responsible persons. Any and all moneys recovered or reimbursed pursuant to this section through voluntary agreements or court orders shall be deposited with the comptroller and credited to the account of such fund from which such expenditures were made. A. 3008--B 55 § 13. Section 97-b of the state finance law is amended by adding two new subdivisions 16 and 17 to read as follows: 16. THE DRINKING WATER CONTAMINATION RESPONSE ACCOUNT, ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, IS FOR PURPOSES PURSUANT TO TITLE TWELVE OF ARTICLE TWENTY-SEVEN OF THE ENVIRONMENTAL CONSERVATION LAW. 17. THE CLOSED, ILLEGAL OR ABANDONED DISPOSAL SITE ACCOUNT, ESTAB- LISHED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, IS FOR PURPOSES PURSUANT TO TITLE THIRTY-ONE OF ARTICLE TWENTY-SEVEN OF THE ENVIRON- MENTAL CONSERVATION LAW. § 14. Subdivision 4 of section 11-b of the soil and water conservation districts law, as amended by chapter 538 of the laws of 1996, is amended to read as follows: 4. Eligible costs that may be funded pursuant to this section are architectural and engineering services, plans and specifications, including watershed based or individual agricultural nonpoint source pollution assessments, consultant and legal services, CONSERVATION EASE- MENTS SPECIFIC TO TITLE THIRTY-THREE OF ARTICLE FIFTEEN OF THE ENVIRON- MENTAL CONSERVATION LAW and other direct expenses related to project implementation. § 15. If any clause, sentence, paragraph, 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 ther- eof, but shall be confined in its operation to the clause, sentence, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. § 16. This act shall take effect immediately. PART JJ Section 1. Paragraph (a) of subdivision 6 of section 92-s of the state finance law, as amended by chapter 432 of the laws of 1997, is amended to read as follows: (a) All moneys heretofore and hereafter deposited in the environmental protection transfer account shall be transferred by the comptroller to the solid waste account, the parks, recreation and historic preservation account, THE CLIMATE CHANGE MITIGATION AND ADAPTATION ACCOUNT or the open space account upon the request of the director of the budget. § 2. Subdivision 5 of section 27-1012 of the environmental conserva- tion law, as amended by section 6 of part F of chapter 58 of the laws of 2013, is amended to read as follows: 5. All monies collected or received by the department of taxation and finance pursuant to this title shall be deposited to the credit of the comptroller with such responsible banks, banking houses or trust compa- nies as may be designated by the comptroller. Such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected, the comptroller shall retain the amount determined by the commissioner of taxation and finance to be necessary for refunds out of which the comptroller must pay any refunds to which a deposit initiator may be entitled. After reserving the amount to pay refunds, the comptroller must, by the tenth day of each month, pay into the state treasury to the credit of the general fund the revenue deposited under this subdivision during the preceding calendar month and remaining to the comptroller's credit on the last day of that preceding month; provided, however, that, beginning April first, A. 3008--B 56 two thousand thirteen, and all fiscal years thereafter, [fifteen] TWEN- TY-THREE million dollars plus all funds received from the payments due each fiscal year pursuant to subdivision four of this section in excess of THE GREATER OF the amount received from April first, two thousand twelve through March thirty-first, two thousand thirteen OR ONE HUNDRED TWENTY-TWO MILLION TWO HUNDRED THOUSAND DOLLARS, shall be deposited to the credit of the environmental protection fund established pursuant to section ninety-two-s of the state finance law. § 2-a. Subdivision 3 of section 92-s of the state finance law, as amended by section 11 of part F of chapter 58 of the laws of 2013, is amended to read as follows: 3. Such fund shall consist of the amount of revenue collected within the state from the amount of revenue, interest and penalties deposited pursuant to section fourteen hundred twenty-one of the tax law, the amount of fees and penalties received from easements or leases pursuant to subdivision fourteen of section seventy-five of the public lands law and the money received as annual service charges pursuant to section four hundred [four-l] FOUR-N of the vehicle and traffic law, all moneys required to be deposited therein from the contingency reserve fund pursuant to section two hundred ninety-four of chapter fifty-seven of the laws of nineteen hundred ninety-three, all moneys required to be deposited pursuant to section thirteen of chapter six hundred ten of the laws of nineteen hundred ninety-three, repayments of loans made pursuant to section 54-0511 of the environmental conservation law, all moneys to be deposited from the Northville settlement pursuant to section one hundred twenty-four of chapter three hundred nine of the laws of nine- teen hundred ninety-six, provided however, that such moneys shall only be used for the cost of the purchase of private lands in the core area of the central Suffolk pine barrens pursuant to a consent order with the Northville industries signed on October thirteenth, nineteen hundred ninety-four and the related resource restoration and replacement plan, the amount of penalties required to be deposited therein by section 71-2724 of the environmental conservation law, all moneys required to be deposited pursuant to article thirty-three of the environmental conser- vation law, all fees collected pursuant to subdivision eight of section 70-0117 of the environmental conservation law, all moneys collected pursuant to title thirty-three of article fifteen of the environmental conservation law, beginning with the fiscal year commencing on April first, two thousand thirteen, and all fiscal years thereafter, [fifteen] TWENTY-THREE million dollars plus all funds received by the state each fiscal year in excess of THE GREATER OF the amount received from April first, two thousand twelve through March thirty-first, two thousand thirteen OR ONE HUNDRED TWENTY-TWO MILLION TWO HUNDRED THOUSAND DOLLARS, from the payments collected pursuant to subdivision four of section 27-1012 of the environmental conservation law and all funds collected pursuant to section 27-1015 of the environmental conservation law, provided such funds shall not be less than four million dollars for the fiscal year commencing April first, two thousand thirteen, and not less than eight million dollars for all fiscal years thereafter and all other moneys credited or transferred thereto from any other fund or source pursuant to law. All such revenue shall be initially deposited into the environmental protection fund, for application as provided in subdivi- sion five of this section. § 2-b. Section 12 of part F of chapter 58 of the laws of 2013 amending the environmental conservation law and the state finance law relating to A. 3008--B 57 the "Cleaner, Greener NY Act of 2013", as amended by section 1 of part DD of chapter 58 of the laws of 2015, is amended to read as follows: § 12. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013; provided, however, that the amendments to subdivision 5-a of section 27-1015 of the environmental conservation law, as added by section nine of this act, shall expire and be deemed repealed on April 1, [2017] 2019. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART KK Section 1. Approximately 40 percent of the food produced in the United States today goes uneaten. Much of this organic waste is disposed of in solid waste landfills, where its decomposition accounts for over 15 percent of our nation's emissions of methane, a potent greenhouse gas. Meanwhile, an estimated 2.8 million New Yorkers are facing hunger and food insecurity. This legislation is designed to address these multiple challenges by: encouraging the prevention of food waste generation by commercial generators and residents; directing the recovery of excess edible food from high-volume commercial food waste generators; and ensuring that a significant portion of inedible food waste from large volume food waste generators is managed in a sustainable manner, and does not end up being sent to landfills or incinerators. § 2. Article 27 of the environmental conservation law is amended by adding a new title 22 to read as follows: TITLE 22 FOOD DONATION AND FOOD SCRAPS RECYCLING SECTION 27-2201. DEFINITIONS. 27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES. 27-2205. WASTE TRANSPORTER RESPONSIBILITIES. 27-2207. TRANSFER STATION. 27-2209. FOOD SCRAPS DISPOSAL PROHIBITION. 27-2211. DEPARTMENT RESPONSIBILITIES. 27-2213. REGULATIONS. 27-2215. EXCLUSIONS. 27-2217. ANNUAL REPORT. 27-2219. SEVERABILITY. § 27-2201. DEFINITIONS. 1. "DESIGNATED FOOD SCRAPS GENERATOR" MEANS A PERSON WHO GENERATES AT A SINGLE LOCATION AN ANNUAL AVERAGE OF TWO TONS PER WEEK OR MORE OF FOOD SCRAPS BASED ON A METHODOLOGY ESTABLISHED BY THE DEPARTMENT PURSUANT TO REGULATIONS, INCLUDING, SUPERMARKETS, RESTAURANTS, HIGHER EDUCATIONAL INSTITUTIONS, HOTELS, FOOD PROCESSORS, CORRECTIONAL FACILITIES, SPORTS OR ENTERTAINMENT VENUES AND HEALTH CARE FACILITIES. FOR A LOCATION WITH MULTIPLE INDEPENDENT FOOD SERVICE BUSINESSES, SUCH AS A MALL OR COLLEGE CAMPUS, THE ENTITY RESPONSIBLE FOR CONTRACTING FOR SOLID WASTE HAULING SERVICES IS RESPONSIBLE FOR MANAGING FOOD SCRAPS FROM THE INDEPENDENT BUSINESSES. 2. "EXCESS FOOD" MEANS EDIBLE FOOD THAT IS NOT SOLD OR USED BY ITS GENERATOR. 3. "FOOD SCRAPS" MEANS INEDIBLE FOOD, TRIMMINGS FROM THE PREPARATION OF FOOD, FOOD-SOILED PAPER, AND EDIBLE FOOD THAT IS NOT DONATED. FOOD SCRAPS SHALL NOT INCLUDE ANY FOOD IDENTIFIED IN REGULATIONS PROMULGATED BY THE DEPARTMENT IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS OR ANY FOOD WHICH IS SUBJECT TO A RECALL OR SEIZURE DUE TO THE A. 3008--B 58 PRESENCE OF PATHOGENS, INCLUDING BUT NOT LIMITED TO: LISTERIA MONOCYTO- GENES, CONFIRMED CLOSTRIDIUM BOTULINUM, E. COLI 0157:H7 AND ALL SALMO- NELLA IN READY-TO-EAT FOODS. 4. "ORGANICS RECYCLER" MEANS A FACILITY, PERMITTED BY THE DEPARTMENT, THAT RECYCLES FOOD SCRAPS THROUGH USE AS ANIMAL FEED OR A FEED INGREDI- ENT, RENDERING, LAND APPLICATION, COMPOSTING, AEROBIC DIGESTION, ANAERO- BIC DIGESTION, OR ETHANOL PRODUCTION. ANIMAL SCRAPS, FOOD SOILED PAPER, AND POST-CONSUMER FOOD SCRAPS ARE PROHIBITED FOR USE AS ANIMAL FEED OR AS A FEED INGREDIENT. THE PRODUCT CREATED FROM FOOD SCRAPS BY A COMPOST- ING OR DIGESTION FACILITY, OR OTHER TREATMENT SYSTEM, MUST BE USED IN A BENEFICIAL MANNER AS A SOIL AMENDMENT AND SHALL NOT BE DISPOSED OF. 5. "PERSON" MEANS ANY BUSINESS ENTITY, PARTNERSHIP, COMPANY, CORPO- RATION, NOT-FOR-PROFIT CORPORATION, ASSOCIATION, GOVERNMENTAL ENTITY, PUBLIC BENEFIT CORPORATION, PUBLIC AUTHORITY, FIRM, ORGANIZATION OR ANY OTHER GROUP OF INDIVIDUALS. 6. "SINGLE LOCATION" MEANS CONTIGUOUS PROPERTY UNDER COMMON OWNERSHIP, WHICH MAY INCLUDE ONE OR MORE BUILDINGS. 7. "INCINERATOR" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION 72-0401 OF THIS CHAPTER. 8. "LANDFILL" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION 72-0401 OF THIS CHAPTER. 9. "TRANSFER STATION" MEANS A SOLID WASTE MANAGEMENT FACILITY, WHETHER OWNED OR OPERATED BY A PRIVATE OR PUBLIC ENTITY, OTHER THAN A RECYCLA- BLES HANDLING AND RECOVERY FACILITY, USED OIL FACILITY, OR A CONSTRUCTION AND DEMOLITION DEBRIS PROCESSING FACILITY, WHERE SOLID WASTE IS RECEIVED FOR THE PURPOSE OF SUBSEQUENT TRANSFER TO ANOTHER SOLID WASTE MANAGEMENT FACILITY FOR PROCESSING, TREATING, DISPOSAL, RECOVERY, OR FURTHER TRANSFER. § 27-2203. DESIGNATED FOOD SCRAPS GENERATOR RESPONSIBILITIES. 1. EFFECTIVE JANUARY FIRST, TWO THOUSAND TWENTY-ONE: (A) ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SEPARATE THEIR EXCESS FOOD FOR DONATION FOR HUMAN CONSUMPTION TO THE MAXIMUM EXTENT PRACTICA- BLE, AND IN ACCORDANCE WITH APPLICABLE LAWS, RULES AND REGULATIONS RELATED TO FOOD DONATION; AND (B) EXCEPT AS PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION, EACH DESIGNATED FOOD SCRAPS GENERATOR THAT IS WITHIN FIFTEEN MILES OF AN ORGANICS RECYCLER, TO THE EXTENT THAT THE RECYCLER HAS CAPACITY TO ACCEPT ALL OF SUCH GENERATOR'S FOOD SCRAPS BASED ON THE DEPARTMENT'S YEARLY ESTIMATE OF AN ORGANIC RECYCLERS' CAPACITY PURSUANT TO SECTION 27-2211 OF THIS TITLE, SHALL: (I) SEPARATE ITS REMAINING FOOD SCRAPS FROM OTHER SOLID WASTE; (II) ENSURE PROPER STORAGE FOR FOOD SCRAPS ON SITE WHICH SHALL PRECLUDE SUCH MATERIALS FROM BECOMING ODOROUS OR ATTRACTING VECTORS, SUCH AS A CONTAINER THAT HAS A LID AND A LATCH THAT KEEPS THE LID CLOSED AND IS RESISTANT TO TAMPERING BY RODENTS OR OTHER WILDLIFE AND HAS SUFFICIENT CAPACITY; (III) HAVE INFORMATION AVAILABLE AND PROVIDE TRAINING FOR EMPLOYEES CONCERNING THE PROPER METHODS TO SEPARATE AND STORE FOOD SCRAPS; AND (IV) OBTAIN A TRANSPORTER THAT WILL DELIVER FOOD SCRAPS TO AN ORGANICS RECYCLER, SELF-HAUL ITS FOOD SCRAPS TO AN ORGANICS RECYCLER, OR PROVIDE FOR ORGANICS RECYCLING ON-SITE VIA IN VESSEL COMPOSTING, AEROBIC OR ANAEROBIC DIGESTION OR ANY OTHER METHOD OF PROCESSING ORGANIC WASTE THAT THE DEPARTMENT APPROVES BY REGULATION, FOR SOME OR ALL OF THE FOOD WASTE IT GENERATES ON ITS PREMISES, PROVIDED THAT THE REMAINDER IS DELIVERED TO AN ORGANICS RECYCLER. A. 3008--B 59 (C) THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION SHALL NOT APPLY TO ANY DESIGNATED FOOD SCRAPS GENERATOR THAT HAS ALL OF ITS SOLID WASTE PROCESSED IN A MIXED SOLID WASTE COMPOSTING OR MIXED SOLID WASTE ANAEROBIC DIGESTION FACILITY. 2. ALL DESIGNATED FOOD SCRAPS GENERATORS SHALL SUBMIT AN ANNUAL REPORT TO THE DEPARTMENT ON OR BEFORE MARCH FIRST, TWO THOUSAND TWENTY-TWO, AND ANNUALLY THEREAFTER, IN AN ELECTRONIC FORMAT. THE ANNUAL REPORT MUST SUMMARIZE THE AMOUNT OF EXCESS FOOD DONATED, THE AMOUNT OF FOOD SCRAPS RECYCLED, THE ORGANICS RECYCLER OR RECYCLERS AND ASSOCIATED TRANSPORTERS USED, AND ANY OTHER INFORMATION AS REQUIRED BY THE DEPARTMENT. 3. A DESIGNATED FOOD SCRAPS GENERATOR MAY PETITION THE DEPARTMENT FOR A TEMPORARY WAIVER FROM SOME OR ALL OF THE REQUIREMENTS OF THIS TITLE. THE PETITION MUST INCLUDE EVIDENCE OF UNDUE HARDSHIP BASED ON: (A) THE DESIGNATED FOOD SCRAPS GENERATOR DOES NOT MEET THE TWO TONS PER WEEK THRESHOLD; (B) THE COST OF PROCESSING ORGANIC WASTE IS NOT REASONABLY COMPETITIVE WITH THE COST OF DISPOSING OF WASTE BY LANDFILL; (C) THE ORGANICS RECYCLER DOES NOT HAVE SUFFICIENT CAPACITY, DESPITE THE DEPARTMENT'S CALCULATION; OR (D) THE UNIQUE CIRCUMSTANCES OF THE GENERATOR. A WAIVER SHALL BE NO LONGER THAN ONE YEAR IN DURATION PROVIDED, HOWEV- ER, THE DEPARTMENT MAY RENEW SUCH WAIVER. § 27-2205. WASTE TRANSPORTER RESPONSIBILITIES. 1. ANY WASTE TRANSPORTER THAT COLLECTS FOOD SCRAPS FOR RECYCLING FROM A DESIGNATED FOOD SCRAPS GENERATOR SHALL: (A) DELIVER FOOD SCRAPS TO A TRANSFER STATION THAT WILL DELIVER SUCH FOOD SCRAPS TO AN ORGANICS RECYCLER UNLESS SUCH GENERATOR HAS RECEIVED A TEMPORARY WAIVER UNDER SUBDIVISION THREE OF SECTION 27-2203 OF THIS TITLE; OR (B) DELIVER SUCH FOOD SCRAPS DIRECTLY TO AN ORGANICS RECYCLER. 2. ANY WASTE TRANSPORTER THAT COLLECTS FOOD SCRAPS FROM A DESIGNATED FOOD SCRAPS GENERATOR SHALL TAKE ALL REASONABLE PRECAUTIONS TO NOT DELIVER THOSE FOOD SCRAPS TO AN INCINERATOR OR A LANDFILL NOR COMMINGLE THE MATERIAL WITH ANY OTHER SOLID WASTE UNLESS SUCH COMMINGLED WASTE CAN BE PROCESSED BY AN ORGANICS RECYCLER OR UNLESS SUCH GENERATOR HAS RECEIVED A TEMPORARY WAIVER UNDER SUBDIVISION THREE OF SECTION 27-2203 OF THIS TITLE. § 27-2207. TRANSFER STATION. ANY TRANSFER STATION THAT RECEIVES FOOD SCRAPS FROM A DESIGNATED FOOD SCRAPS GENERATOR MUST ENSURE THAT THE FOOD SCRAPS ARE TAKEN TO AN ORGAN- ICS RECYCLER UNLESS SUCH GENERATOR HAS RECEIVED A TEMPORARY WAIVER UNDER SUBDIVISION THREE OF SECTION 27-2203 OF THIS TITLE. A TRANSFER STATION SHALL TAKE ALL REASONABLE PRECAUTIONS TO NOT COMMINGLE THE MATERIAL WITH ANY OTHER SOLID WASTE UNLESS SUCH COMMINGLED WASTE CAN BE PROCESSED BY AN ORGANICS RECYCLER. § 27-2209. FOOD SCRAPS DISPOSAL PROHIBITION. INCINERATORS AND LANDFILLS SHALL TAKE ALL REASONABLE PRECAUTIONS TO NOT ACCEPT FOOD SCRAPS FROM DESIGNATED FOOD SCRAPS GENERATORS REQUIRED TO SEND THEIR FOOD SCRAPS TO AN ORGANICS RECYCLER AS OUTLINED UNDER SECTION 27-2203 OF THIS TITLE, AFTER JANUARY FIRST, TWO THOUSAND TWEN- TY-ONE, UNLESS THE DESIGNATED FOOD SCRAPS GENERATOR HAS RECEIVED A TEMPORARY WAIVER UNDER SUBDIVISION THREE OF SECTION 27-2203 OF THIS TITLE. § 27-2211. DEPARTMENT RESPONSIBILITIES. 1. THE DEPARTMENT SHALL, FOLLOWING PUBLIC HEARINGS AFTER PROMULGATING REGULATIONS, PUBLISH ON ITS WEBSITE: (A) THE METHODOLOGY THE DEPARTMENT A. 3008--B 60 WILL USE TO DETERMINE WHO IS A DESIGNATED FOOD SCRAP GENERATOR; (B) THE WAIVER PROCESS; (C) PROCEDURES TO MINIMIZE ODORS AND VECTORS; AND (D) A LIST OF ALL DESIGNATED FOOD SCRAPS GENERATORS, ORGANICS RECYCLERS, AND ALL WASTE TRANSPORTERS THAT MANAGE SOURCE-SEPARATED ORGANICS. 2. NO LATER THAN JUNE FIRST, TWO THOUSAND TWENTY AND ANNUALLY THERE- AFTER, THE DEPARTMENT SHALL ASSESS THE CAPACITY OF EACH ORGANIC RECYCLER AND NOTIFY DESIGNATED FOOD SCRAPS GENERATORS IF THEY ARE REQUIRED TO COMPLY WITH THE PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE. 3. THE DEPARTMENT SHALL DEVELOP AND MAKE AVAILABLE EDUCATIONAL MATERI- ALS TO ASSIST DESIGNATED FOOD SCRAPS GENERATORS WITH COMPLIANCE WITH THIS TITLE. THE DEPARTMENT SHALL ALSO DEVELOP EDUCATION MATERIALS ON FOOD WASTE MINIMIZATION AND ENCOURAGE MUNICIPALITIES TO DISSEMINATE THESE MATERIALS BOTH ON THEIR MUNICIPAL WEBSITES AND IN ANY SUCH FUTURE MAILINGS TO THEIR RESIDENTS AS THEY MAY DISTRIBUTE. 4. THE DEPARTMENT SHALL REGULATE ORGANICS RECYCLERS TO ENSURE THAT THEIR ACTIVITIES DO NOT IMPAIR WATER QUALITY OR OTHERWISE HARM HUMAN HEALTH AND THE ENVIRONMENT. § 27-2213. REGULATIONS. THE DEPARTMENT SHALL PROMULGATE RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS TITLE INCLUDING HOW DESIGNATED FOOD SCRAPS GENERATORS SHALL COMPLY WITH THE PROVISIONS OF PARAGRAPH (A) AND SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION 27-2203 OF THIS TITLE. § 27-2215. EXCLUSIONS. 1. THIS TITLE SHALL NOT APPLY TO ANY DESIGNATED FOOD SCRAPS GENERATORS LOCATED IN A CITY WITH A POPULATION OF ONE MILLION OR MORE WHICH HAS A LOCAL LAW, ORDINANCE OR REGULATION IN PLACE WHICH REQUIRES THE DIVERSION OF EXCESS FOOD AND FOOD SCRAPS FROM DISPOSAL. 2. THIS TITLE DOES NOT APPLY TO HOSPITALS, ELEMENTARY AND SECONDARY SCHOOLS. § 27-2217. ANNUAL REPORT. NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-TWO, AND ON AN ANNUAL BASIS THEREAFTER, THE DEPARTMENT SHALL SUBMIT AN ANNUAL REPORT TO THE GOVERNOR AND LEGISLATURE DESCRIBING THE OPERATION OF THE FOOD DONATION AND FOOD SCRAPS RECYCLING PROGRAM INCLUDING AMOUNT OF EXCESS FOOD DONATED, AMOUNT OF FOOD SCRAPS RECYCLED, SAMPLE EDUCATIONAL MATERIALS, AND NUMBER OF WAIVERS PROVIDED. § 27-2219. SEVERABILITY. THE PROVISIONS OF THIS TITLE SHALL BE SEVERABLE AND IF ANY PORTION THEREOF OR THE APPLICABILITY THEREOF TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID, THE REMAINDER OF THIS TITLE AND THE APPLICATION THEREOF SHALL NOT BE AFFECTED THEREBY. § 3. This act shall take effect immediately. PART LL Intentionally Omitted PART MM Section 1. Expenditures of moneys by the New York state energy research and development authority for services and expenses of the energy research, development and demonstration program, including grants, the energy policy and planning program, the zero emissions vehi- cle and electric vehicle rebate program, and the Fuel NY program shall A. 3008--B 61 be subject to the provisions of this section. Notwithstanding the provisions of subdivision 4-a of section 18-a of the public service law, all moneys committed or expended in an amount not to exceed $19,700,000 shall be reimbursed by assessment against gas corporations, as defined in subdivision 11 of section 2 of the public service law and electric corporations as defined in subdivision 13 of section 2 of the public service law, where such gas corporations and electric corporations have gross revenues from intrastate utility operations in excess of $500,000 in the preceding calendar year, and the total amount which may be charged to any gas corporation and any electric corporation shall not exceed one cent per one thousand cubic feet of gas sold and .010 cent per kilowatt-hour of electricity sold by such corporations in their intrastate utility operations in calendar year 2015. Such amounts shall be excluded from the general assessment provisions of subdivision 2 of section 18-a of the public service law. The chair of the public service commission shall bill such gas and/or electric corporations for such amounts on or before August 10, 2017 and such amounts shall be paid to the New York state energy research and development authority on or before September 10, 2017. Upon receipt, the New York state energy research and development authority shall deposit such funds in the ener- gy research and development operating fund established pursuant to section 1859 of the public authorities law. The New York state energy research and development authority is authorized and directed to: (1) transfer $1 million to the state general fund for services and expenses of the department of environmental conservation and to transfer $750,000 to the University of Rochester laboratory for laser energetics from the funds received; and (2) commencing in 2017, provide to the chair of the public service commission and the director of the budget and the chairs and secretaries of the legislative fiscal committees, on or before August first of each year, an itemized record, certified by the presi- dent and chief executive officer of the authority, or his or her desig- nee, detailing any and all expenditures and commitments ascribable to moneys received as a result of this assessment by the chair of the department of public service pursuant to section 18-a of the public service law. This itemized record shall include an itemized breakdown of the programs being funded by this section and the amount committed to each program. The authority shall not commit for any expenditure, any moneys derived from the assessment provided for in this section, until the chair of such authority shall have submitted, and the director of the budget shall have approved, a comprehensive financial plan encom- passing all moneys available to and all anticipated commitments and expenditures by such authority from any source for the operations of such authority. Copies of the approved comprehensive financial plan shall be immediately submitted by the chair to the chairs and secre- taries of the legislative fiscal committees. Any such amount not committed by such authority to contracts or contracts to be awarded or otherwise expended by the authority during the fiscal year shall be refunded by such authority on a pro-rata basis to such gas and/or elec- tric corporations, in a manner to be determined by the department of public service. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART NN A. 3008--B 62 Section 1. Subdivision 18-a of section 1261 of the public authorities law is REPEALED. § 2. This act shall take effect immediately. PART OO Section 1. The public authorities law is amended by adding a new section 569-e to read as follows: § 569-E. PROHIBITION ON CERTAIN LIGHTING. NO ORNAMENTAL ROADWAY LIGHT- ING, AS SUCH TERM IS DEFINED BY SECTION ONE HUNDRED FORTY-THREE OF THE PUBLIC BUILDINGS LAW, SHALL BE INSTALLED OR OPERATED ON ANY BRIDGE OR TUNNEL OF THE AUTHORITY. § 2. This act shall take effect immediately. PART PP Section 1. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 32-a to read as follows: § 32-A. SPECIAL PROVISIONS RELATING TO ECONOMIC DEVELOPMENT ENTITIES. (1) FOR THE PURPOSES OF THIS SECTION, AN "ECONOMIC DEVELOPMENT ENTITY" SHALL MEAN ANY ENTITY CREATED BY THE EXECUTIVE BRANCH, INCLUDING THE EXECUTIVE CHAMBER OF THE GOVERNOR AND LIEUTENANT GOVERNOR, AND ANY STATE AGENCY WHOSE FUNCTION INCLUDES PROVIDING ADVICE, RECOMMENDATIONS OR DETERMINATIONS TO OR ON BEHALF OF THE EXECUTIVE BRANCH OR ANY STATE AGENCY, AS DEFINED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION SEVEN- TY-THREE-A OF THE PUBLIC OFFICERS LAW, ON THE ALLOCATION OR DISBURSEMENT OF STATE OR FEDERAL MONIES OR TAX CREDITS AND/OR BENEFITS. (2) (A) THE PROVISIONS OF ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW APPLICABLE TO PUBLIC BODIES SHALL APPLY TO AN ECONOMIC DEVELOPMENT ENTI- TY. (B) THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW APPLICA- BLE TO AGENCIES SHALL APPLY TO AN ECONOMIC DEVELOPMENT ENTITY. IN ADDI- TION TO THE REQUIREMENTS OF SUBDIVISION THREE OF SECTION EIGHTY-SEVEN OF THE PUBLIC OFFICERS LAW, AN ECONOMIC DEVELOPMENT ENTITY SHALL MAINTAIN AND MAKE AVAILABLE FOR PUBLIC INSPECTION AND COPYING ANY AND ALL PROPOSALS SUBMITTED TO IT THROUGH A CENTRALIZED APPLICATION PROCESS, INCLUDING THE CONSOLIDATED FUNDING APPLICATIONS PROCESS, EXCEPT THAT AN ECONOMIC DEVELOPMENT ENTITY MAY REDACT OR WITHHOLD PORTIONS OF A PROPOSAL IF SUCH PORTION WOULD BE EXEMPT FROM DISCLOSURE PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS LAW. (C) FOR THE PURPOSE OF SECTION SEVENTY-THREE-A OF THE PUBLIC OFFICERS LAW, ANY MEMBER OF AN ECONOMIC DEVELOPMENT ENTITY SHALL BE DEEMED A STATE OFFICER OR EMPLOYEE AND SHALL BE DEEMED A POLICY MAKER AND SHALL FILE AN ANNUAL STATEMENT OF FINANCIAL DISCLOSURE SET FORTH IN SUBDIVI- SION THREE OF SECTION SEVENTY-THREE-A OF THE PUBLIC OFFICERS LAW. (D) THE PROVISIONS OF SECTION SEVENTY-FOUR OF THE PUBLIC OFFICERS LAW APPLICABLE TO AN OFFICER OR EMPLOYEE OF A STATE AGENCY SHALL APPLY TO ANY MEMBER OF AN ECONOMIC DEVELOPMENT ENTITY. § 2. This act shall take effect immediately; provided, however, that those incumbents who have not filed a disclosure form for the calendar year 2016 shall have thirty days from the effective date of this act to file such form with the joint commission on public ethics. PART QQ A. 3008--B 63 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 52 to read as follows: § 52. REPORTING. (1) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "ECONOMIC DEVELOPMENT BENEFITS" SHALL MEAN THE AVAILABLE STATE OR FEDERAL RESOURCES INCLUDING BUT NOT LIMITED TO STATE GRANTS, LOANS, LOAN GUARANTEES, SURETY BONDING GUARANTEES, LOAN INTEREST SUBSIDIES, AND/OR SUBSIDIES, AND TAX CREDITS AND/OR BENEFITS ALLOCATED THROUGH THE CORPO- RATION; AND (B) "QUALIFIED PARTICIPANT" SHALL MEAN AN INDIVIDUAL, BUSINESS, OR ANY OTHER ENTITY THAT HAS APPLIED FOR AND RECEIVED APPROVAL FOR AND/OR IS THE BENEFICIARY OF, ANY ECONOMIC DEVELOPMENT BENEFITS UNDER ANY ECONOMIC DEVELOPMENT PROGRAM OVERSEEN BY THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION OR ECONOMIC DEVELOPMENT BENEFITS THAT WERE ORIGINALLY ALLO- CATED TO THE CORPORATION OR THAT FLOW THROUGH THE CORPORATION. (2) REPORT. COMMENCING ON JUNE FIRST, TWO THOUSAND SEVENTEEN AND ANNU- ALLY THEREAFTER, A QUALIFIED PARTICIPANT SHALL PROVIDE A REPORT TO THE CORPORATION FOR THE PRIOR STATE FISCAL YEAR IN THE FORM PRESCRIBED HERE- UNDER WITH REGARD TO PROJECTED AND ACTUAL JOBS CREATED AND RETAINED IN CONNECTION WITH ANY RELATED ECONOMIC DEVELOPMENT BENEFITS. TO THE EXTENT THAT A QUALIFIED PARTICIPANT IS REQUIRED TO REPORT THE SAME AND/OR SIMI- LAR INFORMATION AS REQUIRED HEREUNDER, THE PRESIDENT OF THE EMPIRE STATE DEVELOPMENT CORPORATION MAY DEEM SUCH QUALIFIED PARTICIPANT TO BE IN COMPLIANCE WITH THE REQUIREMENTS OF THIS SECTION UPON SUCH REPORTING. THE REPORT SHALL CONTAIN FOR THE PRIOR STATE FISCAL YEAR, THE FOLLOWING INFORMATION: (A) THE QUALIFIED PARTICIPANT'S NAME AND LOCATION; (B) THE TIME SPAN OVER WHICH THE QUALIFIED PARTICIPANT IS TO OR HAS RECEIVED ECONOMIC DEVELOPMENT BENEFITS; (C) THE TYPE OF SUCH ECONOMIC DEVELOPMENT BENEFITS PROVIDED TO THE QUALIFIED PARTICIPANT, INCLUDING THE NAME OF THE PROGRAM OR PROGRAMS THROUGH WHICH ECONOMIC DEVELOPMENT BENEFITS ARE PROVIDED; (D) THE TOTAL NUMBER OF EMPLOYEES AT ALL SITES COVERED BY THE PROJECT AT THE TIME OF THE PROJECT AGREEMENT INCLUDING THE NUMBER OF PERMANENT FULL-TIME JOBS, THE NUMBER OF PERMANENT PART-TIME JOBS, THE NUMBER OF FULL-TIME EQUIVALENTS, AND THE NUMBER OF CONTRACT EMPLOYEES; (E) THE NUMBER OF JOBS THAT THE QUALIFIED PARTICIPANT RECEIVING BENE- FITS IS CONTRACTUALLY OBLIGATED TO RETAIN AND CREATE OVER THE LIFE OF THE PROJECT, EXCEPT THAT SUCH INFORMATION SHALL BE REPORTED ON AN ANNUAL BASIS FOR PROJECT AGREEMENTS CONTAINING ANNUAL JOB RETENTION OR CREATION REQUIREMENTS, AND FOR EACH REPORTING YEAR, THE BASE EMPLOYMENT LEVEL THE ENTITY RECEIVING BENEFITS AGREES TO RETAIN OVER THE LIFE OF THE PROJECT, ANY JOB CREATION SCHEDULED TO TAKE PLACE AS A RESULT OF THE PROJECT AND WHERE APPLICABLE, ANY JOB CREATION TARGETS FOR THE CURRENT REPORTING YEAR; (F) THE AMOUNT OF ECONOMIC DEVELOPMENT BENEFITS RECEIVED FROM THE CORPORATION AND ANY OTHER STATE ENTITY DURING THE YEAR COVERED BY THE REPORT, THE AMOUNT OF ECONOMIC DEVELOPMENT BENEFITS RECEIVED SINCE THE BEGINNING OF THE PROJECT PERIOD, AND THE PRESENT VALUE OF THE FURTHER ECONOMIC DEVELOPMENT BENEFITS ESTIMATED TO BE GIVEN FOR THE DURATION OF THE PROJECT PERIOD; (G) FOR THE CURRENT REPORTING YEAR, THE TOTAL ACTUAL NUMBER OF EMPLOY- EES AT ALL SITES COVERED BY THE PROJECT, INCLUDING THE NUMBER OF PERMA- NENT FULL-TIME JOBS, THE NUMBER OF PERMANENT PART-TIME JOBS, THE NUMBER A. 3008--B 64 OF CONTRACT JOBS, THE NUMBER OF JOBS FILLED BY MINORITIES OR WOMEN, AND SALARIES FOR ALL EMPLOYEES; (H) WHETHER THE EMPLOYER OFFERS HEALTH BENEFITS TO ALL FULL-TIME EMPLOYEES AND TO ALL PART-TIME EMPLOYEES; AND (I) A STATEMENT OF COMPLIANCE INDICATING WHETHER, DURING THE CURRENT REPORTING YEAR, THE CORPORATION HAS REDUCED, CANCELLED OR RECAPTURED ECONOMIC DEVELOPMENT BENEFITS FOR SUCH QUALIFIED PARTICIPANT, AND, IF SO, THE TOTAL AMOUNT OF THE REDUCTION, CANCELLATION OR RECAPTURE, AND ANY PENALTY ASSESSED AND THE REASONS THEREFOR. (3) SEARCHABLE STATE SUBSIDY AND BENEFITS DATABASE. NOTWITHSTANDING ANY LAWS TO THE CONTRARY, THE CORPORATION, IN COOPERATION WITH THE COMMISSIONER OF ECONOMIC DEVELOPMENT, SHALL CREATE OR MODIFY AN EXISTING SEARCHABLE DATABASE FOR THE CONSOLIDATION AND PUBLIC REPORTING OF INFOR- MATION COLLECTED THROUGH THE REPORTING REQUIREMENT AS DEFINED IN SUBDI- VISION TWO OF THIS SECTION. BEGINNING ON OCTOBER FIRST, TWO THOUSAND SEVENTEEN, THE CORPORATION SHALL MAKE ALL REPORTED DATA ON THE SEARCHA- BLE DATABASE AVAILABLE TO THE PUBLIC ON ITS WEBSITE. SUCH DATABASE SHALL BE UPDATED ON A QUARTERLY BASIS WITH QUALIFIED PARTICIPANTS ADDED TO ANY PROGRAMS AND ANY NEW DATA PROVIDED BY EXISTING QUALIFIED PARTICIPANTS. (4) CERTIFICATION REGARDING REPORTING. THE CORPORATION SHALL CERTIFY TO THE NEW YORK STATE AUTHORITIES BUDGET OFFICE AND POST TO ITS WEBSITE THAT IT HAS FULFILLED ALL OF ITS REPORTING REQUIREMENTS AS REQUIRED BY LAW, RULES, REGULATIONS, OR EXECUTIVE ORDERS. THE CORPORATION SHALL PROVIDE A LIST OF ALL REPORTS, THE DUE DATES OF SUCH REPORTS, AND CERTI- FY TO THE NEW YORK STATE AUTHORITIES BUDGET OFFICE THAT EACH REPORT HAS BEEN SUBMITTED TO THE INDIVIDUAL, OFFICE, OR ENTITY AS PRESCRIBED BY APPLICABLE LAWS, RULES, AND REGULATIONS. (5) OVERSIGHT. (A) THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL MAINTAIN FILES ON ALL APPLICANTS AND QUALIFIED PARTICIPANTS THAT HAVE REQUESTED OR RECEIVED ECONOMIC DEVELOPMENT BENEFITS THROUGH A PROJECT, PROGRAM OR FUND ADMINISTERED, COORDINATED, OR UTILIZED BY SUCH CORPO- RATION, INCLUDING PROJECTS SUBMITTED THROUGH A CONSOLIDATED FUNDING APPLICATION. SUCH FILES MUST INCLUDE THE SPECIFIC, OBJECTIVE, AND QUAN- TIFIABLE CRITERIA FOR SCORING APPLICATIONS SUBMITTED FOR CONSIDERATION FOR ECONOMIC DEVELOPMENT BENEFITS. SUCH CORPORATION SHALL MAKE ALL SUCH FILES AVAILABLE FOR INSPECTION AND AUDITING BY THE OFFICE OF THE STATE COMPTROLLER. (B) THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL PROVIDE WRITTEN NOTICE THIRTY DAYS PRIOR TO THE ANNOUNCEMENT OF ALL AWARDS FOR ECONOMIC BENEFIT TO THE CHAIR OF THE SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. SUCH NOTICE MUST INCLUDE THE INTENT TO DISTRIBUTE SUCH FUNDS FOR A PROJECT, PROGRAM OR FUND ADMINIS- TERED, COORDINATED, OR UTILIZED BY SUCH CORPORATION. SUCH NOTICE SHALL INCLUDE, BUT NOT BE LIMITED TO, THE METHODOLOGY USED IN DETERMINING THE AVAILABILITY OF FUNDING RESOURCES FOR PROJECTS, INFORMATION ON THE CRITERIA USED TO EVALUATE PROJECTS, ANY PROJECT SPECIFIC DESCRIPTIONS OR REQUIREMENTS FOR RECEIVING SUCH FUNDS, ANY PROJECT SPECIFIC PLAN FOR THE DISTRIBUTION AND DISBURSEMENT OF SUCH FUNDS, AND THE AVAILABILITY AND AMOUNT OF FEDERAL OR PRIVATE SECTOR MATCHING FUNDS. THE COMMISSIONER SHALL PROVIDE WRITTEN NOTICE WHEN A PREVIOUSLY APPROVED PROJECT WITH ALLOCATED FUNDS WILL NO LONGER GO FORWARD, INCLUDING THE NECESSARY REPORTING REQUIREMENTS FOR ANY SUBSTITUTE PROJECTS. WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION, THE COMMIS- SIONER SHALL PROVIDE A WRITTEN REPORT TO THE CHAIR OF THE SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE ON ALL AWARDS MADE PURSUANT TO THIS SECTION PRIOR TO THE EFFECTIVE DATE OF THIS A. 3008--B 65 SUBDIVISION, INCLUDING ALL INFORMATION THAT IS REQUIRED TO BE INCLUDED IN THE NOTICE REQUIREMENTS OF THIS SUBDIVISION. § 2. Section 100 of the economic development law is amended by adding a new subdivision 18-j to read as follows: 18-J. TO ESTABLISH, IN COOPERATION WITH THE URBAN DEVELOPMENT CORPO- RATION AND OTHER STATE ENTITIES, AND IN A MANNER CONSISTENT WITH THE PROVISIONS OF SECTION FIFTY-TWO OF THE URBAN DEVELOPMENT CORPORATION ACT: (A) REPORTING REQUIREMENTS OF ALL QUALIFIED PARTICIPANTS DEFINED AS THOSE WHO RECEIVE ECONOMIC DEVELOPMENT BENEFITS THROUGH A PROJECT, PROGRAM OR FUND ADMINISTERED, COORDINATED, OR UTILIZED BY THE DEPARTMENT OR IN CONJUNCTION WITH THE URBAN DEVELOPMENT CORPORATION; AND (B) A SEARCHABLE SUBSIDY DATABASE THAT CONSOLIDATES INFORMATION COLLECTED THROUGH REPORTING REQUIREMENTS. § 3. This act shall take effect immediately. PART RR Section 1. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 52 to read as follows: § 52. SMALL BUSINESS INNOVATION RESEARCH (SBIR)/SMALL BUSINESS TECH- NOLOGY TRANSFER (STTR) TECHNICAL ASSISTANCE PROGRAM. 1. THE SMALL BUSI- NESS INNOVATION RESEARCH/SMALL BUSINESS TECHNOLOGY TRANSFER TECHNICAL ASSISTANCE PROGRAM, HEREAFTER REFERRED TO AS "THE PROGRAM", IS HEREBY CREATED IN THE CORPORATION FOR THE PURPOSES OF PROVIDING FUNDS TO ELIGI- BLE ENTITIES TO PROVIDE TECHNICAL ASSISTANCE TO SMALL BUSINESSES OF ONE HUNDRED EMPLOYEES OR LESS AND LOCATED IN NEW YORK STATE IN COMPETING SUCCESSFULLY FOR GRANTS MADE AVAILABLE THROUGH PHASE I OF THE FEDERAL SMALL BUSINESS INNOVATION RESEARCH PROGRAM AS ENACTED PURSUANT TO THE SMALL BUSINESS INNOVATION DEVELOPMENT ACT OF 1982, AND THE SMALL BUSI- NESS TECHNOLOGY TRANSFER ACT OF 1982, SO AS TO INCREASE THE NUMBER OF PHASE I SBIR AND STTR AWARD WINNERS WITHIN THE STATE. 2. TECHNICAL ASSISTANCE SERVICES UNDER THIS SECTION MAY INCLUDE, BUT ARE NOT LIMITED TO: (A) OUTREACH TO SMALL BUSINESSES TO PROMOTE AWARENESS OF SBIR/STTR PROGRAM SOLICITATIONS; (B) COUNSELING TO DETERMINE THE ABILITY OF A BUSINESS TO PURSUE SBIR/STTR PHASE I FUNDING, THE TECHNOLOGY MATCH WITH THE FEDERAL AGENCY SOLICITATION TO BE PURSUED, THE QUALIFICATIONS OF PERSONNEL INVOLVED IN THE PROPOSED PROJECT, AND THE LEVEL OF SUPPORT NEEDED FROM THE TECHNICAL ASSISTANCE PROGRAM TO PRODUCE A COMPETITIVE APPLICATION; AND (C) PROPOSAL PREPARATION ASSISTANCE INCLUDING GRANT WRITING, TECHNOLO- GY EVALUATION, AND GENERAL PROPOSAL EVALUATION. 3. IN DETERMINING WHETHER TO PROVIDE TECHNICAL ASSISTANCE AUTHORIZED PURSUANT TO THIS SECTION TO A SMALL BUSINESS, ELIGIBLE ENTITIES SHALL CONSIDER THE PROBABILITY OF SUCH BUSINESS COMMERCIALIZING ANY INNO- VATIONS RESULTING FROM RESEARCH FUNDED BY AN SBIR OR STTR AWARD IN NEW YORK STATE. 4. ELIGIBLE ENTITIES. (A) ENTITIES THAT ARE ELIGIBLE TO RECEIVE FUNDS UNDER THIS SECTION SHALL HAVE DEMONSTRABLE EXPERIENCE AND SUCCESS IN PROVIDING TECHNICAL ASSISTANCE AUTHORIZED PURSUANT TO THIS SECTION, AND AS DETERMINED BY THE CORPORATION, AND SHALL INCLUDE: (I) CENTERS FOR ADVANCED TECHNOLOGY ESTABLISHED PURSUANT TO SECTION THIRTY-ONE HUNDRED TWO-B OF THE PUBLIC AUTHORITIES LAW; A. 3008--B 66 (II) TECHNOLOGY DEVELOPMENT CORPORATIONS ESTABLISHED PURSUANT TO SECTION THIRTY-ONE HUNDRED TWO-D OF THE PUBLIC AUTHORITIES LAW; (III) STATE UNIVERSITY OF NEW YORK ENGINEERING SCHOOLS THAT ADMINISTER THE STRATEGIC PARTNERSHIP FOR INDUSTRIAL RESURGENCE PROGRAM; AND (IV) CENTERS OF EXCELLENCE ESTABLISHED PURSUANT TO SECTION 3 OF PART T OF CHAPTER 84 OF THE LAWS OF 2002 AND SECTION FOUR HUNDRED TEN OF THE ECONOMIC DEVELOPMENT LAW. (B) PREFERENCE FOR RECEIVING FUNDS UNDER THIS SECTION SHALL BE GIVEN TO ENTITIES THAT PARTNER WITH OTHER ELIGIBLE ENTITIES TO PROVIDE THE FULL RANGE OF TECHNICAL ASSISTANCE SERVICES AS SPECIFIED IN SUBDIVISION TWO OF THIS SECTION. (C) ENTITIES RECEIVING FUNDS UNDER THIS SECTION SHALL MATCH SUCH FUNDS ON A ONE-TO-ONE BASIS. SUCH MATCH SHALL CONSIST OF ACTUAL CASH, SALA- RIES, STAFF TIME, OR EXPENSES DIRECTLY ATTRIBUTABLE TO THE PURPOSES OF THIS SECTION. OVERHEAD COSTS MAY NOT BE INCLUDED IN THE MATCH. 5. USE OF FUNDS. (A) FUNDS CAN BE USED FOR COSTS RELATED TO CONDUCTING OUTREACH TO SMALL BUSINESSES TO PROMOTE AWARENESS OF SBIR/STTR PROGRAM SOLICITATIONS, GRANT PREPARATION AND REVIEW, AND PRINTING COSTS AND SUPPLIES ASSOCIATED WITH THE SUBMISSION OF GRANTS. (B) FROM SUCH FUNDS AS MAY BE APPROPRIATED FOR THIS PURPOSE BY THE LEGISLATURE, THE CORPORATION SHALL MAKE COMPETITIVE AWARDS ANNUALLY IN AMOUNTS OF UP TO TWO HUNDRED THOUSAND DOLLARS TO PROVIDERS OF ASSISTANCE PURSUANT TO THIS SECTION. 6. REPORTING REQUIREMENTS. (A) ENTITIES RECEIVING FUNDS SHALL ANNUALLY PROVIDE TO THE CORPORATION DETAILS ON THE FOLLOWING: (I) DESCRIPTION OF SMALL BUSINESSES SERVED, INCLUDING TECHNOLOGY FOCUS, BUSINESS SIZE AND LOCATION; (II) SBIR AND STTR GRANTS APPLIED FOR AND RECEIVED AS A RESULT OF ASSISTANCE PROVIDED; AND (III) ANY OTHER INFORMATION DEEMED APPROPRIATE BY THE CORPORATION. (B) THE CORPORATION SHALL INCLUDE THE INFORMATION PROVIDED PURSUANT TO SUBDIVISION FIVE OF THIS SECTION IN THE ANNUAL REPORT FILED PURSUANT TO SECTION FOUR HUNDRED FOUR OF THE ECONOMIC DEVELOPMENT LAW. (C) ON OR BEFORE FEBRUARY FIRST, TWO THOUSAND EIGHTEEN, THE CORPO- RATION SHALL EVALUATE THE EFFECTIVENESS OF THE SBIR/STTR TECHNICAL ASSISTANCE PROGRAM AND REPORT SUCH FINDINGS TO THE GOVERNOR AND LEGISLA- TURE. THE CORPORATION SHALL ALSO MAKE RECOMMENDATIONS AS TO THE APPRO- PRIATENESS OF EXPANDING THE PROGRAM TO PROVIDE ASSISTANCE TO SBIR/STTR PHASE II APPLICANTS. § 2. Section 3102-c of the public authorities law is REPEALED. § 3. This act shall take effect immediately. PART SS Section 1. Section 1 of subpart H of part C of chapter 20 of the laws of 2015, appropriating money for certain municipal corporations and school districts, as added by section 1 of part BB of chapter 58 of the laws of 2016, is amended to read as follows: Section 1. Contingent upon available funding, and not to exceed $30,000,000, moneys from the urban development corporation shall be available for a local government entity, which for the purposes of this section shall mean a county, city, town, village, school district or special district, where (i) on or after June 25, 2015, an electric generating facility located within such local government entity has ceased operations, and (ii) the closing of such facility has caused a reduction in the real property tax collections or payments in lieu of A. 3008--B 67 taxes of at least twenty percent owed by such electric generating facil- ity. Such moneys attributable to the cessation of operations, shall be paid annually on a first come, first served basis by the urban develop- ment corporation to such local government entity within a reasonable time upon confirmation from the state office of real property tax services or the local industrial development authority established pursuant to titles eleven and fifteen of article eight of the public authorities law, or the local industrial development agency established pursuant to article eighteen-A of the general municipal law that such cessation has resulted in a reduction in the real property tax collections or payments in lieu of taxes, provided, however, that the urban development corporation shall not provide assistance to such local government entity for more than [five] SEVEN years, and shall [not] award [in the first year more than eighty percent of] PAYMENTS REFLECT- ING the loss of revenues due to the cessation of operations[.] AS FOLLOWS: AWARD YEAR MAXIMUM POTENTIAL AWARD 1 NO MORE THAN EIGHTY PERCENT OF LOSS OF REVENUES 2 NO MORE THAN SEVENTY PERCENT OF LOSS OF REVENUES 3 NO MORE THAN SIXTY PERCENT OF LOSS OF REVENUES 4 NO MORE THAN FIFTY PERCENT OF LOSS OF REVENUES 5 NO MORE THAN FORTY PERCENT OF LOSS OF REVENUES 6 NO MORE THAN THIRTY PERCENT OF LOSS OF REVENUES 7 NO MORE THAN TWENTY PERCENT OF LOSS OF REVENUES A local government entity shall be eligible for only one payment of funds hereunder per year. A local government entity may seek assistance under the electric generation facility cessation mitigation fund once a generator has submitted its notice to the federally designated electric bulk system operator (BSO) serving the state of New York of its intent to retire the facility or of its intent to voluntarily remove the facil- ity from service subject to any return-to-service provisions of any tariff, and that the facility also is ineligible to participate in the markets operated by the BSO. The date of submission of a local govern- ment entity's application for assistance shall establish the order in which assistance is paid to program applicants, except that in no event shall assistance be paid to a local government entity until such time that an electric generating facility has retired or become ineligible to participate in the markets operated by the BSO. For purposes of this section, any local government entity seeking assistance under the elec- tric generation facility cessation mitigation fund must submit an attes- tation to the department of public service that a facility is no longer producing electricity and is no longer participating in markets operated by the BSO. After receipt of such attestation, the department of public service shall confirm such information with the BSO. In the case that the BSO confirms to the department of public service that the facility is no longer producing electricity and participating in markets operated by such BSO, it shall be deemed that the electric generating facility located within the local government entity has ceased operation. The department of public service shall provide such confirmation to the urban development corporation upon receipt. The determination of the amount of such annual payment shall be determined by the president of the urban development corporation based on the amount of the differen- tial between the annual real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties, A. 3008--B 68 during the last year of operations and the current real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties. The total amount awarded from this program shall not exceed $30,000,000. § 2. This act shall take effect immediately; provided, however, that the amendments to subpart H of part C of chapter 20 of the laws of 2015 made by section one of this act shall not affect the repeal of such subpart and shall be deemed repealed therewith. PART TT Section 1. Declaration of legislative intent and findings. The legis- lature finds and declares that it is in the public interest of the state of New York for architectural paint producers to finance and manage an environmentally sound, cost-effective architectural paint stewardship program, undertaking responsibility for the development and implementa- tion of strategies to reduce the generation of post-consumer architec- tural paint, promote the reuse of post-consumer architectural paint and collect, transport and process post-consumer architectural paint for end-of-product-life management, including reuse and recycling. § 2. Article 27 of the environmental conservation law is amended by adding a new title 20 to read as follows: TITLE 20 PAINT STEWARDSHIP PROGRAM SECTION 27-2001. SHORT TITLE. 27-2003. DECLARATION OF POLICY. 27-2005. DEFINITIONS. 27-2007. PRODUCER COLLECTION. 27-2009. PRODUCER REGISTRATION AND RESPONSIBILITIES. 27-2011. RETAILER REQUIREMENTS. 27-2013. DEPARTMENT RESPONSIBILITIES. 27-2015. REPORTING REQUIREMENTS. 27-2017. COLLECTIVE PARTICIPATION. § 27-2001. SHORT TITLE. THIS TITLE SHALL BE KNOWN AS AND MAY BE CITED AS THE "NEW YORK STATE PAINT STEWARDSHIP PROGRAM". § 27-2003. DECLARATION OF POLICY. IT IS HEREBY DECLARED TO BE THE PUBLIC POLICY OF THE STATE OF NEW YORK TO PROMOTE THE DEVELOPMENT AND IMPLEMENTATION OF STRATEGIES TO REDUCE THE GENERATION OF POST-CONSUMER ARCHITECTURAL PAINT, TO ENCOURAGE THE REUSE OF POST-CONSUMER ARCHITECTURAL PAINT, AND TO MAXIMIZE THE COLLECTION, TRANSPORT, AND PROCESS OF POST-CONSUMER ARCHITECTURAL PAINT FOR END-OF-PRODUCT-LIFE MANAGEMENT. § 27-2005. DEFINITIONS. WHEN USED IN THIS TITLE: 1. "ARCHITECTURAL PAINT" MEANS INTERIOR AND EXTERIOR ARCHITECTURAL COATINGS SOLD IN CONTAINERS OF FIVE GALLONS OR LESS. ARCHITECTURAL PAINT DOES NOT MEAN INDUSTRIAL, ORIGINAL EQUIPMENT OR SPECIALTY COATINGS. 2. "CONSUMER" MEANS A PERSON LOCATED IN THE STATE WHO OWNS OR USES ARCHITECTURAL PAINT, INCLUDING BUT NOT LIMITED TO AN INDIVIDUAL, A BUSI- NESS, CORPORATION, LIMITED PARTNERSHIP, NOT-FOR-PROFIT ORGANIZATION, OR GOVERNMENTAL ENTITY, BUT DOES NOT INCLUDE AN ENTITY INVOLVED IN A WHOLE- SALE TRANSACTION BETWEEN A DISTRIBUTOR AND RETAILER. 3. "DISTRIBUTOR" MEANS A COMPANY THAT HAS A CONTRACTUAL RELATIONSHIP WITH ONE OR MORE PRODUCERS TO MARKET AND SELL ARCHITECTURAL PAINT TO RETAILERS IN THIS STATE. A. 3008--B 69 4. "POST-CONSUMER ARCHITECTURAL PAINT" MEANS ARCHITECTURAL PAINT NOT USED AND NO LONGER WANTED BY ITS PURCHASER. 5. "PRODUCER" MEANS A PERSON THAT MANUFACTURES ARCHITECTURAL PAINT THAT IS SOLD OR OFFERED FOR SALE IN THIS STATE. 6. "RECYCLING" MEANS ANY PROCESS BY WHICH DISCARDED PRODUCTS, COMPO- NENTS AND BY-PRODUCTS ARE TRANSFORMED INTO NEW USABLE OR MARKETABLE MATERIALS IN A MANNER IN WHICH THE PRODUCTS MAY LOSE THEIR ORIGINAL COMPOSITION. RECYCLING DOES NOT INCLUDE ENERGY RECOVERY OR ENERGY GENER- ATION BY MEANS OF COMBUSTING DISCARDED PRODUCTS, COMPONENTS AND BY-PRO- DUCTS WITH OR WITHOUT OTHER WASTE PRODUCTS FROM POST-CONSUMER ARCHITEC- TURAL PAINT. 7. "RETAILER" MEANS ANY PERSON THAT SELLS OR OFFERS FOR SALE ARCHITEC- TURAL PAINT AT RETAIL IN THIS STATE. 8. "REUSE" MEANS THE RETURN OF A PRODUCT INTO THE ECONOMIC STREAM FOR USE IN THE SAME KIND OF APPLICATION INTENDED FOR THE USE OF THE PRODUCT, WITHOUT A CHANGE IN THE PRODUCT'S ORIGINAL COMPOSITION. 9. "SELL" OR "SALE" MEANS ANY TRANSFER OF TITLE FOR CONSIDERATION, INCLUDING REMOTE SALES CONDUCTED THROUGH SALES OUTLETS, CATALOGS OR THE INTERNET OR THROUGH ANY OTHER SIMILAR ELECTRONIC MEANS. § 27-2007. PRODUCER COLLECTION. BEGINNING DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN, A PRODUCER SHALL ACCEPT FOR DISPOSAL AND RECYCLING OR REUSE POST-CONSUMER ARCHITEC- TURAL PAINT. § 27-2009. PRODUCER REGISTRATION AND RESPONSIBILITIES. 1. A PRODUCER SHALL INDIVIDUALLY OR COOPERATIVELY WITH ONE OR MORE OTHER PRODUCERS, SUBMIT A REGISTRATION TO THE DEPARTMENT BY JULY FIRST, TWO THOUSAND EIGHTEEN, ALONG WITH A REGISTRATION FEE OF FIVE THOUSAND DOLLARS. SUCH REGISTRATION SHALL INCLUDE: (A) THE PRODUCER'S NAME, ADDRESS, AND TELEPHONE NUMBER; (B) THE NAME AND TITLE OF AN OFFICER, DIRECTOR, OR OTHER INDIVIDUAL DESIGNATED AS THE PRODUCER'S CONTACT FOR PURPOSES OF THIS TITLE; (C) A LIST IDENTIFYING THE PRODUCER'S BRANDS; (D) A GENERAL DESCRIPTION OF THE MANNER IN WHICH THE PRODUCER WILL COMPLY WITH SECTION 27-2007 OF THIS TITLE, INCLUDING SPECIFIC INFORMA- TION ON THE PRODUCER'S ARCHITECTURAL PAINT ACCEPTANCE PROGRAM IN THE STATE, INTENDED TREATMENT, STORAGE, TRANSPORTATION AND DISPOSAL OPTIONS AND A CURRENT LIST OF LOCATIONS WITHIN THE STATE WHERE CONSUMERS MAY RETURN ARCHITECTURAL PAINT; (E) TARGETED ANNUAL COLLECTION RATES; (F) EDUCATIONAL AND OUTREACH PROGRAM THAT WILL BE IMPLEMENTED TO INFORM CONSUMERS AND RETAILERS OF THE PROGRAM AND HOW TO PARTICIPATE; AND (G) ANY OTHER INFORMATION AS THE DEPARTMENT MAY REQUIRE. 2. A PRODUCER'S REGISTRATION SHALL BE UPDATED WITHIN THIRTY DAYS OF ANY MATERIAL CHANGE TO THE INFORMATION REQUIRED BY THE REGISTRATION. 3. ANY PERSON WHO BECOMES A PRODUCER ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN SHALL REGISTER WITH THE DEPARTMENT PRIOR TO SELLING OR OFFERING FOR SALE IN THE STATE ANY ARCHITECTURAL PAINT, AND MUST COMPLY WITH THE REQUIREMENTS OF THIS TITLE. 4. NO LATER THAN JANUARY FIRST, TWO THOUSAND NINETEEN, A PRODUCER SHALL NOT SELL OR OFFER FOR SALE ARCHITECTURAL PAINT IN THE STATE UNLESS THE PRODUCER HAS REGISTERED WITH THE DEPARTMENT AND MAINTAINS AN ARCHI- TECTURAL PAINT ACCEPTANCE PROGRAM THROUGH WHICH THE PRODUCER, EITHER DIRECTLY OR THROUGH AN AGENT OR DESIGNEE, ACCEPTS ARCHITECTURAL PAINT FROM CONSUMERS IN THE STATE FOR DISPOSAL, REUSE OR RECYCLING. THE PRODUCER SHALL ENSURE THAT RETAILERS ARE NOTIFIED OF SUCH REGISTRATION. A. 3008--B 70 THE PRODUCER SHALL NOT IMPOSE A FEE ON CONSUMERS FOR THE COLLECTION, HANDLING AND RECYCLING OR REUSE OF ARCHITECTURAL PAINT. 5. THE ARCHITECTURAL PAINT ACCEPTANCE PROGRAM SHALL INCLUDE, AT A MINIMUM: (A) COLLECTION, DISPOSAL AND RECYCLING OR REUSE OF ARCHITECTURAL PAINT PRODUCED BY THE PRODUCER AND OFFERED FOR RETURN BY ANY CONSUMER IN THIS STATE, FREE OF COST AND IN A MANNER CONVENIENT TO CONSUMERS. THE FOLLOW- ING ACCEPTANCE METHODS SHALL BE CONSIDERED REASONABLY CONVENIENT: (I) COLLECTION OR ACCEPTANCE EVENTS CONDUCTED BY THE PRODUCER OR THE PRODUC- ER'S AGENT OR DESIGNEE, INCLUDING EVENTS CONDUCTED THROUGH LOCAL GOVERN- MENTS OR PRIVATE PARTIES; (II) FIXED ACCEPTANCE LOCATIONS SUCH AS DEDI- CATED ACCEPTANCE SITES OPERATED BY THE PRODUCER OR ITS AGENT OR DESIGNEE; (III) AGREEMENTS WITH LOCAL GOVERNMENTS, RETAIL STORES, SALES OUTLETS AND NOT-FOR-PROFIT ORGANIZATIONS WHICH HAVE AGREED TO PROVIDE FACILITIES FOR THE COLLECTION OF ARCHITECTURAL PAINT; (IV) COMMUNITY COLLECTION EVENTS; AND (V) ANY COMBINATION OF THESE OR OTHER ACCEPTANCE METHODS WHICH EFFECTIVELY PROVIDE FOR THE ACCEPTANCE OF ARCHITECTURAL PAINT FOR RECYCLING OR REUSE THROUGH MEANS THAT ARE AVAILABLE AND REASONABLY CONVENIENT TO CONSUMERS IN THE STATE. AT A MINIMUM, THE PRODUCER SHALL ENSURE THAT ALL COUNTIES OF THE STATE AND ALL MUNICI- PALITIES WHICH HAVE A POPULATION OF TEN THOUSAND OR GREATER HAVE AT LEAST ONE PERMANENT COLLECTION SITE AND ONE ADDITIONAL PERMANENT COLLECTION SITE FOR EVERY THIRTY THOUSAND PEOPLE LOCATED IN THOSE AREAS, UNLESS OTHERWISE APPROVED BY THE DEPARTMENT, OR UNLESS THE PRODUCER IS A SMALL BUSINESS TAXPAYER AS DEFINED IN PARAGRAPH (F) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THE TAX LAW. SUCH PRODUCERS SHALL CONDUCT NO LESS THAN ONE COLLECTION EVENT ANNUALLY. THE DEPARTMENT MAY ESTAB- LISH ADDITIONAL REQUIREMENTS TO ENSURE CONVENIENT COLLECTION FROM CONSUMERS; (B) A PUBLIC EDUCATION PROGRAM TO INFORM CONSUMERS ABOUT THE PRODUC- ER'S ARCHITECTURAL PAINT ACCEPTANCE PROGRAM, INCLUDING AT A MINIMUM AN INTERNET WEBSITE AND A TOLL-FREE TELEPHONE NUMBER AND WRITTEN INFORMA- TION INCLUDED IN THE PACKAGE FOR, OR AT THE TIME OF SALE OF, ARCHITEC- TURAL PAINT THAT PROVIDES SUFFICIENT INFORMATION TO ALLOW A CONSUMER OF ARCHITECTURAL PAINT TO LEARN HOW TO RETURN SUCH PAINT FOR DISPOSAL, RECYCLING OR REUSE; AND (C) ANY OTHER INFORMATION AS REQUIRED BY THE DEPARTMENT IN ACCORDANCE WITH REGULATIONS PROMULGATED PURSUANT TO THIS ARTICLE. 6. A PRODUCER SHALL MAINTAIN RECORDS DEMONSTRATING COMPLIANCE WITH THE PROVISIONS OF THIS TITLE AND MAKE THEM AVAILABLE FOR AUDIT AND INSPECTION BY THE DEPARTMENT FOR A PERIOD OF THREE YEARS. 7. A PRODUCER MAY SATISFY THE ARCHITECTURAL PAINT COLLECTION REQUIRE- MENTS OF THIS SECTION BY AGREEING TO PARTICIPATE IN A COLLECTIVE ARCHI- TECTURAL PAINT ACCEPTANCE PROGRAM WITH OTHER PRODUCERS. ANY SUCH COLLEC- TIVE ARCHITECTURAL PAINT ACCEPTANCE PROGRAM SHALL MEET THE SAME REQUIREMENTS AS AN INDIVIDUAL PRODUCER. ANY ARCHITECTURAL ACCEPTANCE PROGRAM SHALL INCLUDE A LIST OF PRODUCERS THAT ARE PARTICIPATING IN SUCH PROGRAM ALONG WITH OTHER IDENTIFYING INFORMATION AS MAY BE REQUIRED BY THE DEPARTMENT. SUCH PROGRAM SHALL SUBMIT A REGISTRATION TO THE DEPART- MENT ALONG WITH A REGISTRATION FEE OF TEN THOUSAND DOLLARS. 8. A PRODUCER SHALL BE RESPONSIBLE FOR ALL COSTS ASSOCIATED WITH THE IMPLEMENTATION OF THE ARCHITECTURAL PAINT ACCEPTANCE PROGRAM. § 27-2011. RETAILER REQUIREMENTS. 1. AT THE LOCATION OF SALE OF ARCHITECTURAL PAINT, A RETAILER SHALL PROVIDE PURCHASERS OF ARCHITECTURAL PAINT WITH INFORMATION ABOUT OPPOR- A. 3008--B 71 TUNITIES FOR THE RETURN OF ARCHITECTURAL PAINT THAT HAS BEEN PROVIDED TO THE RETAILER BY A PRODUCER. 2. NO LATER THAN JULY FIRST, TWO THOUSAND NINETEEN NO RETAILER SHALL SELL OR OFFER FOR SALE IN THE STATE ANY ARCHITECTURAL PAINT UNLESS THE PRODUCER AND THE PRODUCER'S BRANDS ARE REGISTERED WITH THE DEPARTMENT PURSUANT TO SECTION 27-2009 OF THIS TITLE. § 27-2013. DEPARTMENT RESPONSIBILITIES. 1. THE DEPARTMENT SHALL PROMULGATE ALL NECESSARY RULES AND REGULATIONS INCLUDING, BUT NOT LIMITED TO, STANDARDS FOR REUSE. 2. THE DEPARTMENT SHALL (A) MAINTAIN A LIST OF PRODUCERS WHO ARE REGISTERED PURSUANT TO SECTION 27-2009 OF THIS TITLE, (B) MAINTAIN A LIST OF EACH SUCH PRODUCER'S BRANDS, AND (C) POST SUCH LISTS ON THE DEPARTMENT'S WEBSITE. § 27-2015. REPORTING REQUIREMENTS. 1. BEGINNING MARCH FIRST, TWO THOUSAND TWENTY, FOR THE PREVIOUS CALEN- DAR YEAR AND ANNUALLY THEREAFTER, A PRODUCER THAT OFFERS ARCHITECTURAL PAINT FOR SALE IN THIS STATE SHALL SUBMIT A REPORT TO THE DEPARTMENT ON A FORM PRESCRIBED BY THE DEPARTMENT THAT INCLUDES THE FOLLOWING: (A) THE QUANTITY OF ARCHITECTURAL PAINT COLLECTED FOR DISPOSAL, RECY- CLING OR REUSE IN THIS STATE DURING THE PRECEDING CALENDAR YEAR AND THE METHODS USED TO ACCEPT SUCH PAINT AND THE APPROXIMATE WEIGHT AND VOLUME OF ARCHITECTURAL PAINT ACCEPTED BY EACH METHOD USED TO THE EXTENT KNOWN; (B) INFORMATION DETAILING THE ACCEPTANCE METHODS MADE AVAILABLE TO CONSUMERS; (C) A BRIEF DESCRIPTION OF ITS PUBLIC EDUCATION PROGRAM AND SAMPLES OF ANY MATERIALS, THE NUMBER OF VISITS TO THE INTERNET WEBSITE AND CALLS TO THE TOLL-FREE TELEPHONE NUMBER PROVIDED BY THE PRODUCER AS REQUIRED BY SECTION 27-2009 OF THIS TITLE; (D) ANY OTHER INFORMATION AS REQUIRED BY THE DEPARTMENT; AND (E) A SIGNATURE BY AN OFFICER, DIRECTOR, OR OTHER INDIVIDUAL AFFIRMING THE ACCURACY OF THE REPORT. 2. THE REPORT SHALL BE ACCOMPANIED BY AN ANNUAL REPORTING FEE OF THREE THOUSAND DOLLARS. 3. THE DEPARTMENT SHALL SUBMIT A REPORT REGARDING THE IMPLEMENTATION OF THIS TITLE IN THIS STATE TO THE GOVERNOR AND LEGISLATURE BY APRIL FIRST, TWO THOUSAND TWENTY AND EVERY TWO YEARS THEREAFTER. THE REPORT MUST INCLUDE, AT A MINIMUM, AN EVALUATION OF: (A) THE ARCHITECTURAL PAINT STREAM IN THE STATE; (B) DISPOSAL, RECYCLING AND REUSE RATES IN THE STATE FOR ARCHITECTURAL PAINT; (C) A DISCUSSION OF COMPLIANCE AND ENFORCEMENT RELATED TO THE REQUIRE- MENTS OF THIS TITLE; AND (D) RECOMMENDATIONS FOR ANY CHANGES TO THIS TITLE. § 27-2017. COLLECTIVE PARTICIPATION. A PRODUCER MAY SATISFY THE REQUIREMENTS OF THIS ARTICLE BY AGREEING TO PARTICIPATE IN A COLLECTIVE ACCEPTANCE PROGRAM WITH ANY OTHER PRODUCER OR PRODUCERS. ANY SUCH COLLECTIVE ACCEPTANCE PROGRAM MUST MEET THE SAME REQUIREMENTS AS AN INDIVIDUAL PRODUCER. ANY COLLECTIVE ACCEPTANCE PROGRAM MUST INCLUDE A LIST OF PRODUCERS THAT ARE PARTICIPATING IN SUCH PROGRAM ALONG WITH OTHER IDENTIFYING INFORMATION AS MAY BE REQUIRED BY THE DEPARTMENT. SUCH PROGRAM SHALL SUBMIT A REGISTRATION TO THE DEPART- MENT ALONG WITH A REGISTRATION FEE OF TEN THOUSAND DOLLARS. § 3. This act shall take effect immediately. PART UU A. 3008--B 72 Section 1. Article 54 of the environmental conservation law is amended by adding a new title 17 to read as follows: TITLE 17 NEW YORK STATE ENVIRONMENTAL JUSTICE ACT AND GRANTS SECTION 54-1701. DEFINITIONS. 54-1702. IMPLEMENTATION OF ENVIRONMENTAL JUSTICE POLICIES. 54-1703. ENVIRONMENTAL JUSTICE TASK FORCE. 54-1705. ENVIRONMENTAL JUSTICE GRANTS. § 54-1701. DEFINITIONS. FOR PURPOSES OF THIS TITLE "ENVIRONMENTAL JUSTICE" MEANS THE FAIR TREATMENT OF PEOPLE OF ALL RACES, CULTURES AND INCOMES IN THE DEVELOP- MENT, ADOPTION, IMPLEMENTATION AND ENFORCEMENT OF ENVIRONMENTAL LAWS AND POLICIES. § 54-1702. IMPLEMENTATION OF ENVIRONMENTAL JUSTICE POLICIES. 1. ALL STATE AGENCIES, BOARDS, COMMISSIONS AND OTHER BODIES INVOLVED IN DECISIONS THAT MAY AFFECT ENVIRONMENTAL QUALITY SHALL ADOPT AND IMPLEMENT ENVIRONMENTAL JUSTICE POLICIES PROVIDING MEANINGFUL OPPORTU- NITIES FOR INVOLVEMENT TO ALL PEOPLE, REGARDLESS OF RACE, COLOR, ETHNIC- ITY, RELIGION, INCOME OR EDUCATION LEVEL. 2. ALL STATE PROGRAMS AND POLICIES DESIGNED TO PROTECT THE ENVIRONMENT SHALL BE REVIEWED PERIODICALLY TO ENSURE THAT PROGRAM IMPLEMENTATION AND DISSEMINATION OF INFORMATION MEET THE NEEDS OF LOW-INCOME AND MINORITY COMMUNITIES, AND SEEK TO ADDRESS DISPROPORTIONATE EXPOSURE TO ENVIRON- MENTAL HAZARDS. 3. THE DEPARTMENT WILL USE AVAILABLE ENVIRONMENTAL AND PUBLIC HEALTH DATA TO IDENTIFY EXISTING AND PROPOSED INDUSTRIAL AND COMMERCIAL FACILI- TIES AND AREAS IN COMMUNITIES OF COLOR AND LOW-INCOME COMMUNITIES FOR WHICH COMPLIANCE, ENFORCEMENT, REMEDIATION, SITING AND PERMITTING STRAT- EGIES WILL BE TARGETED TO ADDRESS IMPACTS FROM THESE FACILITIES. 4. THE DEPARTMENT SHALL CREATE AN ENVIRONMENTAL JUSTICE ADVISORY COUN- CIL TO ADVISE THE DEPARTMENT AND THE ENVIRONMENTAL JUSTICE TASK FORCE ON ENVIRONMENTAL JUSTICE ISSUES. THE COUNCIL SHALL CONSIST OF FIFTEEN INDI- VIDUALS AND WILL MEET AT LEAST QUARTERLY. THE COUNCIL SHALL ANNUALLY SELECT A CHAIRPERSON FROM ITS MEMBERSHIP AND SHALL HAVE A COMPOSITION OF ONE-THIRD MEMBERSHIP FROM GRASSROOTS OR FAITH-BASED COMMUNITY ORGANIZA- TIONS, WITH ADDITIONAL MEMBERSHIP TO INCLUDE REPRESENTATIVES FROM THE FOLLOWING COMMUNITIES: ACADEMIC PUBLIC HEALTH, STATEWIDE ENVIRONMENTAL, CIVIL RIGHTS AND PUBLIC HEALTH ORGANIZATIONS, LARGE AND SMALL BUSINESS AND INDUSTRY, MUNICIPAL AND COUNTY OFFICIALS, AND ORGANIZED LABOR. § 54-1703. ENVIRONMENTAL JUSTICE TASK FORCE. 1. THE COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF HEALTH, OR THEIR APPOINTED DESIGNEES, SHALL CONVENE A MULTI-AGENCY TASK FORCE, TO BE NAMED THE ENVIRONMENTAL JUSTICE TASK FORCE. THIS TASK FORCE WILL INCLUDE SENIOR MANAGEMENT DESIGNEES FROM THE GOVERNOR COUNSEL'S OFFICE, THE ATTORNEY GENERAL'S OFFICE, THE DEPARTMENTS OF HEALTH, AGRICULTURE AND MARKETS, TRANSPORTATION, AND EDUCATION. THE TASK FORCE SHALL BE AN ADVISORY BODY, THE PURPOSE OF WHICH IS TO MAKE RECOMMENDATIONS TO STATE AGENCY HEADS REGARDING ACTIONS TO BE TAKEN TO ADDRESS ENVIRONMENTAL JUSTICE ISSUES CONSISTENT WITH EACH AGENCY'S EXISTING STATUTORY AND REGULATORY AUTHORITY. THE TASK FORCE IS AUTHORIZED TO CONSULT WITH, AND EXPAND ITS MEMBERSHIP TO, OTHER STATE AGENCIES AS NEEDED TO ADDRESS CONCERNS RAISED IN AFFECTED COMMUNITIES. 2. ANY COMMUNITY MAY FILE A PETITION WITH THE TASK FORCE THAT ASSERTS THAT RESIDENTS AND WORKERS IN THE COMMUNITY ARE SUBJECT TO DISPROPOR- TIONATE ADVERSE EXPOSURE TO ENVIRONMENTAL HEALTH RISKS, OR DISPROPOR- A. 3008--B 73 TIONATE ADVERSE EFFECTS RESULTING FROM THE IMPLEMENTATION OF LAWS AFFECTING PUBLIC HEALTH OR THE ENVIRONMENT. 3. THE TASK FORCE SHALL IDENTIFY A SET OF COMMUNITIES FROM THE PETITIONS FILED, BASED ON SELECTION CRITERIA DEVELOPED BY THE TASK FORCE, INCLUDING CONSIDERATION OF STATE AGENCY RESOURCE CONSTRAINTS. THE TASK FORCE SHALL MEET DIRECTLY WITH THE SELECTED COMMUNITIES TO UNDER- STAND THEIR CONCERNS. 4. THE TASK FORCE SHALL DEVELOP AN ACTION PLAN FOR EACH OF THE SELECTED COMMUNITIES AFTER CONSULTATION WITH THE CITIZENS, AS WELL AS LOCAL AND COUNTY GOVERNMENT AS RELEVANT, THAT WILL ADDRESS ENVIRONMENTAL FACTORS THAT AFFECT COMMUNITY HEALTH. THE ACTION PLAN SHALL CLEARLY DELINEATE THE STEPS THAT WILL BE TAKEN IN EACH OF THE SELECTED COMMUNI- TIES TO REDUCE EXISTING ENVIRONMENTAL BURDENS AND AVOID OR REDUCE THE IMPOSITION OF ADDITIONAL ENVIRONMENTAL BURDENS THROUGH ALLOCATIONS OF RESOURCES, EXERCISE OF REGULATORY DISCRETION, AND DEVELOPMENT OF NEW STANDARDS AND PROTECTIONS. THE ACTION PLAN, WHICH SHALL BE DEVELOPED IN CONSULTATION WITH THE ENVIRONMENTAL JUSTICE ADVISORY COUNCIL, WILL SPEC- IFY COMMUNITY DELIVERABLES, A TIMEFRAME FOR IMPLEMENTATION, AND THE JUSTIFICATION AND AVAILABILITY OF FINANCIAL AND OTHER RESOURCES TO IMPLEMENT THE PLAN. THE TASK FORCE SHALL PRESENT THE ACTION PLAN TO THE RELEVANT DEPARTMENTS, RECOMMENDING ITS IMPLEMENTATION. 5. THE TASK FORCE SHALL MONITOR THE IMPLEMENTATION OF EACH ACTION PLAN IN THE SELECTED COMMUNITIES, AND SHALL MAKE RECOMMENDATIONS TO STATE AGENCIES AS NECESSARY TO FACILITATE IMPLEMENTATION OF THE ACTION PLANS. AGENCIES SHALL IMPLEMENT THE STRATEGY TO THE FULLEST EXTENT PRACTICABLE IN LIGHT OF STATUTORY AND RESOURCE CONSTRAINTS. § 54-1705. ENVIRONMENTAL JUSTICE GRANTS. 1. FOR THE PURPOSE OF THIS SECTION, ENVIRONMENTAL JUSTICE PROJECTS SHALL TAKE PLACE IN ENVIRONMENTAL JUSTICE, INNER CITY, AND UNDERSERVED AREAS AND MEAN: (A) IMPROVEMENTS TO ENVIRONMENTAL QUALITY; (B) PROJECTS THAT ADDRESS EXPOSURE TO MULTIPLE HARMS AND RISKS, INCLUDING LEAD EXPOSURE; (C) ENVIRONMENTAL JOB TRAINING; (D) STUDIES, INCLUDING AIR MONITORING, TO INVESTIGATE THE ENVIRONMENT, OR RELATED PUBLIC HEALTH ISSUES OF THE COMMUNITY; AND, (E) RESEARCH THAT WILL BE USED TO EXPAND THE KNOWLEDGE OR UNDERSTAND- ING OF THE AFFECTED COMMUNITY, INCLUDING WAYS TO IMPROVE RESILIENCY PROVIDED THAT THE RESULTS OF ANY SUCH INVESTIGATION SHALL BE DISSEM- INATED TO THE MEMBERS OF THE AFFECTED COMMUNITY. 2. THE COMMISSIONER, AFTER CONSULTATION WITH THE ENVIRONMENTAL JUSTICE ADVISORY COUNCIL, AND A NOT-FOR-PROFIT CORPORATION MAY ENTER INTO A CONTRACT FOR THE UNDERTAKING BY THE NOT-FOR-PROFIT CORPORATION OF AN ENVIRONMENTAL JUSTICE PROJECT. SUCH PROJECT SHALL BE RECOMMENDED TO THE COMMISSIONER BY THE GOVERNING BODY OF A NOT-FOR-PROFIT CORPORATION WHICH DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH PROJECTS ADDRESS THE ENVIRONMENTAL AND/OR RELATED PUBLIC HEALTH ISSUES OF THE RESIDENTS OF THE AFFECTED COMMUNITY. UPON APPROVAL BY THE COMMISSIONER, SUCH PROJECT SHALL BE UNDERTAKEN PURSUANT TO THE PROVISIONS OF THIS TITLE AND ANY OTHER APPLICABLE PROVISION OF LAW. 3. THE COMMISSIONER, AFTER CONSULTATION WITH THE ENVIRONMENTAL JUSTICE ADVISORY COUNCIL, AND A MUNICIPALITY MAY ENTER INTO A CONTRACT FOR THE UNDERTAKING BY THE MUNICIPALITY OF AN ENVIRONMENTAL JUSTICE PROJECT. SUCH PROJECT SHALL BE RECOMMENDED TO THE COMMISSIONER BY THE GOVERNING BODY OF A MUNICIPALITY WHICH DEMONSTRATES TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH PROJECTS ADDRESS THE ENVIRONMENTAL AND/OR RELATED A. 3008--B 74 PUBLIC HEALTH ISSUES OF THE RESIDENTS OF THE AFFECTED COMMUNITY. UPON APPROVAL BY THE COMMISSIONER, SUCH PROJECT SHALL BE UNDERTAKEN PURSUANT TO THE PROVISIONS OF THIS TITLE AND ANY OTHER APPLICABLE PROVISION OF LAW. § 2. This act shall take effect July 1, 2018; provided however, that the environmental justice task force and the environmental justice advi- sory council shall be established and operating by October 1, 2018. PART VV Section 1. Indian Point closure task force. 1. (a) There is hereby established, within the department of public service, an Indian Point closure task force ("task force") whose members shall be appointed as follows: (i) The chairperson of the public service commission or his or her designee; (ii) The commissioner of environmental conservation or his or her designee; (iii) The secretary of state or his or her designee; (iv) The commissioner of taxation and finance or his or her designee; (v) The commissioner of labor or his or her designee; (vi) The commissioner of economic development or his or her designee; (vii) The commissioner of the division of homeland security and emer- gency services or his or her designee; (viii) The president of the New York energy research and development authority or his or her designee; (ix) The chairperson of the New York power authority or his or her designee; (x) The mayor of the village of Buchanan or his or her designee; (xi) The superintendent of the Hendrick Hudson school district or his or her designee; (xii) The supervisor of the town of Cortlandt or his or her designee; (xiii) One member to be appointed by the temporary president of the senate; (xiv) One member to be appointed by the speaker of the assembly; (xv) One member, to be appointed by the governor, upon the recommenda- tion of the speaker of the assembly, shall be a representative of a labor union whose members are employed at the Indian Point nuclear generating facility; (xvi) One member, to be appointed by the governor, upon the recommen- dation of the temporary president of the senate, shall be a represen- tative of a labor union whose members are employed at the Indian Point nuclear generating facility through contracted service providers; (xvii) One member, to be appointed by the governor, shall be a repre- sentative of a labor union whose members are public employees in the impacted geographical region; and (xviii) The chairperson of the task force may appoint local elected officials and municipal officers, as defined by section 800 of the general municipal law, from the impacted geographical region. (b) The members appointed to the task force established by the gover- nor prior to the effective date of this act shall: (i) satisfy the initial appointment requirements of subparagraphs (i) through (xiv) of paragraph a of this subdivision; and (ii) be ex-officio members of the task force established pursuant to this section. A. 3008--B 75 (c) Local elected officials and municipal officers from the impacted geographical region may petition the chairperson for membership on the task force. 2. Task force members shall receive no compensation for their services but may be reimbursed for actual and necessary expenses incurred in the performance of their duties. 3. The chairperson of the task force shall be the chairperson of the public service commission or his or her designee. The task force shall meet no less than three times each year. 4. Vacancies for task force members appointed pursuant to subpara- graphs (i) through (xvii) of paragraph a of subdivision one of this section shall be filled in the manner provided for in the initial appointment. 5. The task force shall be authorized to hold public hearings and meetings to enable it to accomplish its duties. 6. The task force may consult with any organization, educational institution, other governmental entity or agency or person including, but not limited to, the nuclear regulatory commission and the New York independent system operator, in the development of its report required by subdivision nine of this section. 7. The department of public service shall provide the task force with such facilities, assistance and data as will enable the task force to carry out its powers and duties. Additionally, all other agencies of the state or subdivisions thereof may, at the request of the chair- person, provide the task force with such facilities, assistance, and data as will enable the task force to carry out its powers and duties. 8. The purpose of the task force shall be to assess the impacts of the Indian Point nuclear generating facility closure on the state and local municipalities and evaluate ways of addressing and mitigating antic- ipated impacts, including, but not limited to those on electric reli- ability and rates, real property tax collections or payments in lieu of taxes, public safety, labor and the future use of the land where the facility is located. 9. No later than February 15, 2018, and annually thereafter, the task force shall submit to the governor, the temporary president of the senate, the speaker of the assembly, the chair of the senate committee on energy and telecommunications and the chair of the assembly committee on energy, a report containing the following: a. an assessment of: (i) anticipated impacts related to the closure, including, but not limited to impacts on real property tax collections or payments in lieu of taxes, electric reliability and rates, public safety, labor, and the future use of the land where the facility is located; (ii) all sources and potential sources of generating capacity, includ- ing transmission upgrades, energy efficiency, fossil fuel derived ener- gy, and renewable energy; (iii) workforce retention; and (iv) programs implemented to retrain persons employed at the Indian Point nuclear generating facility, such analysis, shall include the number of retraining programs, the content of the retraining programs, the employment outcomes of individuals retrained, and any other informa- tion deemed appropriate by the task force; b. an assessment of compliance with: i. any and all federal, state and local laws, regulations and rules related to the closure and decommissioning of a nuclear generating facility; A. 3008--B 76 ii. the agreement related to Indian Point entered into by the state of New York on January 9, 2017, including: 1. the cessation of operations of nuclear generating units by April 30, 2020 and April 30, 2021; 2. the submission of all required notices, concurrences, certif- ications, and permits; and 3. any other requirement of such agreement; and iii. any other agreements regarding the closure and decommissioning of the Indian Point nuclear generating facility; c. a listing of any enforcement actions initiated for any actual or alleged condition at the nuclear generating facility; d. a review of impacts resulting from the closure and decommissioning of any nuclear generating facility in the surrounding region; e. recommendations for the projects to be selected pursuant to the community fund established in the agreement related to Indian Point entered into by the state of New York on January 9, 2017, and an assess- ment of the progress and effectiveness of projects selected; f. recommendations related to short term and long term programs the state of New York could establish to provide support and guidance to the affected local municipalities, and the implementation of such programs; and g. any information or data the task force deems appropriate. § 2. This act shall take effect immediately and shall expire and be deemed repealed April 1, 2027. PART WW Section 1. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 52 to read as follows: § 52. STRATEGIC INVESTMENT IN WORKFORCE DEVELOPMENT. 1. PURSUANT TO THIS SECTION THERE IS HEREBY ESTABLISHED WITHIN THE CORPORATION, THE STRATEGIC INVESTMENT IN WORKFORCE DEVELOPMENT PROGRAM TO IDENTIFY AND ADDRESS WORKFORCE NEEDS THROUGHOUT THE STATE. THE CORPORATION SHALL COLLABORATE WITH THE DEPARTMENT OF LABOR, THE DEPARTMENT OF ECONOMIC DEVELOPMENT, THE STATE UNIVERSITY OF NEW YORK, THE CITY UNIVERSITY OF NEW YORK, AND THE STATE EDUCATION DEPARTMENT TO PROVIDE SUPPORT TO ELIGIBLE APPLICANTS WITHIN AMOUNTS AVAILABLE FOR THE STRATEGIC INVEST- MENTS IN WORKFORCE DEVELOPMENT PROGRAM AND SHALL IDENTIFY THE TRAINING NEEDS OF EMPLOYERS, EMPLOYEES AND PROSPECTIVE EMPLOYEES; IDENTIFY AREAS OF THE STATE OR SPECIFIC INDUSTRIES WHERE A SHORTAGE OF A SKILLED WORK- FORCE IS IMPACTING THE ABILITY OF THOSE AREAS OF THE STATE OR INDUSTRIES TO REMAIN COMPETITIVE AND INNOVATIVE; IDENTIFY METHODS AND MODELS TO TRAIN AND EMPLOY YOUTH WORKERS; AND IDENTIFY WAYS TO SERVE PROSPECTIVE EMPLOYEES THAT ARE CURRENTLY UNEMPLOYED OR UNDEREMPLOYED. THE STRATEGIC INVESTMENT IN WORKFORCE DEVELOPMENT PROGRAM SHALL UTILIZE THE INFORMA- TION GATHERED TO TARGET WORKFORCE TRAINING ACTIVITIES, EMPLOYMENT CREDENTIALS OR CERTIFICATE OPPORTUNITIES, AND SKILL DEVELOPMENT PROGRAMS TO MEET THE IDENTIFIED NEEDS AND TO PROVIDE NECESSARY TRAINING AND SKILL DEVELOPMENT TO YOUTH AND INDIVIDUALS WHO ARE UNEMPLOYED OR UNDEREM- PLOYED. 2. ELIGIBLE APPLICANTS SHALL INCLUDE AN EMPLOYER OR CONSORTIUM OF EMPLOYERS IN CONJUNCTION WITH A LABOR ORGANIZATION, A NOT-FOR-PROFIT, AN EDUCATIONAL ENTITY OR A PROGRAM OR NETWORK THAT PROVIDES TRAINING AND SKILL DEVELOPMENT FOR YOUTH OR INDIVIDUALS WHO ARE UNEMPLOYED OR UNDER- EMPLOYED. AN ENTITY THAT WORKS DIRECTLY WITH EMPLOYERS TO PROVIDE A. 3008--B 77 TRAINING OR RETRAINING, PARTICULARLY IN HIGH-SKILL OCCUPATIONS OR INDUS- TRIES, OR AN ENTITY THAT SEEKS TO PROMOTE AND FOSTER ECONOMIC DEVELOP- MENT AND JOB GROWTH SHALL ALSO BE CONSIDERED AN ELIGIBLE APPLICANT. ELIGIBLE APPLICANTS SHALL DEMONSTRATE A RELATIONSHIP WITH EDUCATIONAL PROGRAMS OR ENTITIES THAT ADDRESS THE NEEDS OF EMPLOYERS, EMPLOYEES OR PROSPECTIVE EMPLOYEES, PARTICULARLY YOUTH, UNSKILLED WORKERS, UNEMPLOYED INDIVIDUALS OR UNDEREMPLOYED WORKERS. 3. (A) ASSISTANCE PROVIDED BY THE CORPORATION TO ELIGIBLE APPLICANTS, MAY BE USED FOR THE COSTS ASSOCIATED WITH STRATEGIC WORKFORCE DEVELOP- MENT TRAINING AND SKILLS DEVELOPMENT. SUCH COSTS MAY INCLUDE, BUT IS NOT LIMITED TO, CLASSROOM TRAINING, ON THE JOB TRAINING, CURRICULUM DEVELOP- MENT, AND TRAINING MATERIALS ASSOCIATED WITH ON THE JOB TRAINING, SKILLS UPGRADING, SKILLS RETRAINING, AND BASIC SKILLS TRAINING THAT LEADS TO OBTAINING APPROPRIATE CERTIFICATIONS OR DEGREES FROM ACCREDITED INSTI- TUTIONS; AND (B) THE CORPORATION SHALL ENSURE THAT NOT LESS THAN TWENTY PERCENT OF THE PROGRAM FUNDS ARE USED IN SUPPORT OF PROJECTS THAT ASSIST SMALL BUSINESSES AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW AND MINORITY- AND WOMEN-OWNED BUSINESS ENTERPRISES. 4. (A) THE CORPORATION SHALL REPORT TO THE LEGISLATURE BY JUNE THIRTI- ETH, TWO THOUSAND EIGHTEEN AND ANNUALLY THEREAFTER, IDENTIFYING THE ENTITIES RECEIVING ASSISTANCE, THE TYPE OF ASSISTANCE PROVIDED, THE NUMBER OF INDIVIDUALS TRAINED AND NEWLY HIRED INCLUDING THOSE WHO WERE PREVIOUSLY UNEMPLOYED, UNDEREMPLOYED OR ECONOMICALLY DISADVANTAGED, AND THE NUMBER OF CERTIFICATIONS OR DEGREES CONFERRED FROM ACCREDITED INSTI- TUTIONS. (B) THE CORPORATION SHALL ALSO PROVIDE FOR AN INDEPENDENT EVALUATION OF THE PROGRAM ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND NINETEEN, AND EVERY THREE YEARS THEREAFTER. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART XX Section 1. Legislative findings and declaration. The legislature here- by enacts the "New York state climate and community protection act" and finds and declares that: 1. Climate change is adversely affecting economic well-being, public health, natural resources, and the environment of New York. The adverse impacts of climate change include: a. an increase in the severity and frequency of extreme weather events, such as storms, flooding, and heat waves, which can cause direct injury or death, property damage, and ecological damage (e.g., through the release of hazardous substances into the environment); b. rising sea levels, which exacerbate damage from storm surges and flooding, contribute to coastal erosion and saltwater intrusion, and inundate low-lying areas, leading to the displacement of or damage to coastal habitat, property, and infrastructure; c. a decline in freshwater and saltwater fish populations; d. increased average temperatures, which increase the demand for air conditioning and refrigeration among residents and businesses; e. exacerbation of air pollution; and f. an increase in the incidences of infectious diseases, asthma attacks, heart attacks, and other negative health outcomes. These impacts are having a detrimental effect on some of New York's largest industries, including agriculture, commercial shipping, forestry, tour- A. 3008--B 78 ism, and recreational and commercial fishing. These impacts also place additional strain on the physical infrastructure that delivers critical services to the citizens of New York, including the state's energy, transportation, stormwater, and wastewater infrastructure. 2. The severity of current climate change and the threat of additional and more severe change will be affected by the actions undertaken by New York and other jurisdictions to reduce greenhouse gas emissions. Accord- ing to the U.S. Global Change Research Program (USGCRP) and the Inter- governmental Panel on Climate Change (IPCC), substantial reductions in greenhouse gas emissions will be required by mid-century in order to limit global warming to no more than 2°C and ideally 1.5°C, and thus minimize the risk of severe impacts from climate change. Specifically, industrialized countries must reduce their greenhouse gas emissions by at least 80% below 1990 levels by 2050 in order to stabilize carbon dioxide equivalent concentrations at 450 parts per million--the level required to stay within the 2°C target. 3. Action undertaken by New York to reduce greenhouse emissions will have an impact on global greenhouse gas emissions and the rate of climate change. In addition, such action will encourage other jurisdic- tions to implement complementary greenhouse gas reduction strategies and provide an example of how such strategies can be implemented. It will also advance the development of green technologies and sustainable prac- tices within the private sector, which can have far-reaching impacts such as a reduction in the cost of renewable energy components, and the creation of jobs and tax revenues in New York. 4. It shall therefore be a goal of the state of New York to reduce greenhouse gas emissions from all anthropogenic sources 100% over 1990 levels by the year 2050, with an incremental target of at least a 50 percent reduction in climate pollution by the year 2030, in line with USGCRP and IPCC projections of what is necessary to avoid the most severe impacts of climate change. 5. Although substantial emissions reductions are necessary to avoid the most severe impacts of climate change, complementary adaptation measures will also be needed to address those risks that cannot be avoided. Some of the impacts of climate change are already observable in New York state and the northeastern United States. Annual average temperatures are on the rise, winter snow cover is decreasing, heat waves and precipitation are intensifying, and sea levels along New York's coastline are approximately one foot higher than they were in 1900. New York has also experienced an increasing number of extreme and unusual weather events, like Hurricanes Irene and Lee and the unprecedented Superstorm Sandy in 2012, which caused at least 53 deaths and $32 billion in damage in New York state. 6. New York should therefore minimize the risks associated with climate change through a combination of measures to reduce statewide greenhouse gas emissions and improve the resiliency of the state with respect to the impacts and risks of climate change that cannot be avoided. 7. Climate change especially heightens the vulnerability of disadvan- taged communities, which bear environmental and socioeconomic burdens as well as legacies of racial and ethnic discrimination. Actions undertaken by New York state to mitigate greenhouse gas emissions should prioritize the safety and health of disadvantaged communities, control potential regressive impacts of future climate change mitigation and adaptation policies on these communities, and prioritize the allocation of public investments in these areas. A. 3008--B 79 8. Creating good jobs and a thriving economy is a core concern of New York state. Shaping the ongoing transition in our energy sector to ensure that it creates good jobs and protects workers and communities that may lose employment in the current transition must be key concerns of our climate policy. Setting clear standards for job quality and training standards encourages not only high-quality work but positive economic impacts. 9. Workers are at the front lines of climate change. Construction workers and building service workers were some of the first workers dedicated to cleaning up damage inflicted by recent storms. These work- ers were often operating in unsafe and toxic environments, cleaning up mold, and working in unstable buildings. In order to protect the health and welfare of these workers, it is in the interest of the state of New York to establish safe and healthy working conditions and proper train- ing for workers involved in climate change related activities. In addi- tion, much of the infrastructure work preparing our state for additional climate change events must happen quickly and efficiently. It is in the interest of the state to ensure labor harmony and promote efficient performance of work on climate change related work sites by requiring workers to be well-trained and adequately compensated. 10. Ensuring career opportunities are created and shared geograph- ically and demographically is necessary to ensure increased access to good jobs for marginalized communities while making the same neighbor- hoods more resilient. Climate change has a disproportionate impact on low-income people, women, and workers. It is in the interest of the state of New York to protect and promote the interests of these groups against the impacts of climate change and severe weather events and to advance our equity goals by ensuring quality employment opportunities in safe working environments. 11. The complexity of the ongoing energy transition, the uneven distribution of economic opportunity, and the disproportionate cumula- tive economic and environmental burdens on communities mean that there is a strong state interest in setting a floor statewide for labor stand- ards, but allowing and encouraging individual agencies and local govern- ments to raise standards. 12. By exercising a global leadership role on greenhouse gas miti- gation and climate change adaptation, New York will position its econo- my, technology centers, financial institutions, and businesses to bene- fit from national and international efforts to address climate change. New York state has already demonstrated leadership in this area by undertaking efforts such as: a. executive order no. 24 (2009), establishing a goal to reduce green- house gas emissions 80% by the year 2050, creating a climate action council, and calling for preparation of a climate action plan; b. chapter 433 of the laws of 2009, establishing a state energy plan- ning board and requiring the board to adopt a state energy plan; c. chapter 388 of the laws of 2011, directing the department of envi- ronmental conservation to promulgate rules and regulations limiting emissions of carbon dioxide by newly constructed major generating facil- ities; d. the adoption of a state energy plan establishing clean energy goals for the year 2030 aimed at reducing greenhouse gas emission levels by 40% from 1990 levels, producing 50% of electricity from renewable sourc- es, and increasing energy efficiency from 2012 levels by 23%; e. collaboration with other states on the Regional Greenhouse Gas Initiative, and the development of a regional low carbon fuel standard; A. 3008--B 80 f. creation of new offices and task forces to address climate change, including the New York state office of climate change, the renewable energy task force, and the sea level rise task force; and g. the enactment of the Community Risk and Resiliency Act (CRRA), which requires agencies to consider sea level rise and other climate-re- lated events when implementing certain state programs. This legislation will build upon these past developments by creating a comprehensive regulatory program to reduce greenhouse gas emissions that corresponds with the targets established in executive order no. 24, the state energy plan, and USGCRP and IPCC projections. § 2. The environmental conservation law is amended by adding a new article 75 to read as follows: ARTICLE 75 CLIMATE CHANGE SECTION 75-0101. DEFINITIONS. 75-0103. NEW YORK STATE CLIMATE ACTION COUNCIL. 75-0105. GREENHOUSE GAS REPORTING. 75-0107. STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS. 75-0109. SCOPING PLAN FOR STATEWIDE GREENHOUSE GAS EMISSIONS REDUCTIONS. 75-0111. PROMULGATION OF REGULATIONS TO ACHIEVE STATEWIDE GREEN- HOUSE GAS EMISSIONS REDUCTIONS. 75-0113. DISADVANTAGED COMMUNITIES WORKING GROUP. 75-0115. IMPLEMENTATION REPORTING. § 75-0101. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "ALLOWANCE" MEANS AN AUTHORIZATION TO EMIT, DURING A SPECIFIED YEAR, UP TO ONE TON OF CARBON DIOXIDE EQUIVALENT. 2. "ALTERNATIVE COMPLIANCE MECHANISM" MEANS AN ACTION UNDERTAKEN BY A GREENHOUSE GAS EMISSION SOURCE THAT ACHIEVES THE EQUIVALENT REDUCTION OF GREENHOUSE GAS EMISSIONS OVER THE SAME TIME PERIOD AS A DIRECT EMISSION REDUCTION, AND THAT IS APPROVED BY THE DEPARTMENT. SUCH MECHANISMS MAY INCLUDE BUT ARE NOT LIMITED TO A FLEXIBLE COMPLIANCE SCHEDULE, ALTERNA- TIVE CONTROL TECHNOLOGY, A PROCESS CHANGE, OR A PRODUCT SUBSTITUTION. 3. "CARBON DIOXIDE EQUIVALENT" MEANS THE AMOUNT OF CARBON DIOXIDE BY MASS THAT WOULD PRODUCE THE SAME GLOBAL WARMING IMPACT AS A GIVEN MASS OF ANOTHER GREENHOUSE GAS OVER AN INTEGRATED TWENTY-YEAR TIME FRAME AFTER EMISSION, BASED ON THE BEST AVAILABLE SCIENCE. 4. "CO-POLLUTANTS" MEANS HAZARDOUS AIR POLLUTANTS PRODUCED BY GREEN- HOUSE GAS EMISSIONS SOURCES. 5. "COUNCIL" MEANS THE NEW YORK STATE CLIMATE ACTION COUNCIL ESTAB- LISHED PURSUANT TO SECTION 75-0103 OF THIS ARTICLE. 6. "DIRECT EMISSION REDUCTION" MEANS A GREENHOUSE GAS EMISSION REDUCTION ACTION MADE BY A GREENHOUSE GAS EMISSION SOURCE AT THE SOURCE. 7. "DISADVANTAGED COMMUNITIES" MEANS COMMUNITIES THAT BEAR BURDENS OF NEGATIVE PUBLIC HEALTH EFFECTS, ENVIRONMENTAL POLLUTION, IMPACTS OF CLIMATE CHANGE, AND POSSESS CERTAIN SOCIOECONOMIC CRITERIA, AS IDENTI- FIED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE. 8. "EMISSIONS REDUCTION MEASURES" MEANS PROGRAMS, MEASURES, STANDARDS, AND ALTERNATIVE COMPLIANCE MECHANISMS AUTHORIZED PURSUANT TO THIS CHAP- TER, APPLICABLE TO SOURCES OR CATEGORIES OF SOURCES, THAT ARE DESIGNED TO REDUCE EMISSIONS OF GREENHOUSE GASES. 9. "GREENHOUSE GAS" MEANS CARBON DIOXIDE, METHANE, NITROUS OXIDE, HYDROFLUOROCARBONS, PERFLUOROCARBONS, SULFUR HEXAFLUORIDE, AND ANY OTHER A. 3008--B 81 SUBSTANCE EMITTED INTO THE AIR THAT MAY BE REASONABLY ANTICIPATED TO CAUSE OR CONTRIBUTE TO ANTHROPOGENIC CLIMATE CHANGE. 10. "GREENHOUSE GAS EMISSION LIMIT" MEANS AN AUTHORIZATION, DURING A SPECIFIED YEAR, TO EMIT UP TO A LEVEL OF GREENHOUSE GASES SPECIFIED BY THE DEPARTMENT, EXPRESSED IN TONS OF CARBON DIOXIDE EQUIVALENT. 11. "GREENHOUSE GAS EMISSION SOURCE" OR "SOURCE" MEANS ANY SOURCE OR CATEGORY OF SOURCES OF GREENHOUSE GAS EMISSIONS, DETERMINED BY THE DEPARTMENT TO BE CAPABLE OF BEING MONITORED FOR COMPLIANCE. 12. "LEAKAGE" MEANS A REDUCTION IN EMISSIONS OF GREENHOUSE GASES WITH- IN THE STATE THAT IS OFFSET BY AN INCREASE IN EMISSIONS OF GREENHOUSE GASES OUTSIDE OF THE STATE. 13. "MAJOR GREENHOUSE GAS EMISSION SOURCE" OR "MAJOR SOURCE" MEANS ANY SOURCE WHOSE EMISSIONS ARE AT A LEVEL OF SIGNIFICANCE, AS DETERMINED BY THE DEPARTMENT, THAT ITS PARTICIPATION IN THE PROGRAM ESTABLISHED UNDER THIS ARTICLE WILL ENABLE THE DEPARTMENT TO EFFECTIVELY REDUCE GREENHOUSE GAS EMISSIONS AND MONITOR COMPLIANCE WITH THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS AS ESTABLISHED IN SECTION 75-0107 OF THIS ARTICLE. SUCH SOURCES SHALL INCLUDE, AT MINIMUM: A. MANUFACTURERS, PRODUCERS, AND/OR DISTRIBUTORS OF FOSSIL FUELS, INCLUDING BUT NOT LIMITED TO OIL REFINERIES, OIL STORAGE FACILITIES, NATURAL GAS STORAGE FACILITIES, COMPRESSOR STATIONS, NATURAL GAS METER- ING AND REGULATOR STATIONS, AND NATURAL GAS PIPELINES; B. ANY ELECTRIC GENERATING FACILITY OF 25 MEGAWATTS OR MORE THAT BURNS FOSSIL FUELS; C. ANY STATIONARY SOURCE OF GREENHOUSE GAS EMISSIONS THAT EMITS 25,000 METRIC TONS OR MORE OF CARBON DIOXIDE EQUIVALENT PER YEAR; D. ANY OTHER SOURCE, CAPABLE OF BEING MEASURED, THAT THE DEPARTMENT DEEMS TO BE A MAJOR CONTRIBUTOR TO GREENHOUSE GAS EMISSIONS IN THIS STATE. 14. "MARKET-BASED COMPLIANCE MECHANISM" MEANS ANY OF THE FOLLOWING: A. A PRICE ON GREENHOUSE GAS EMISSIONS FROM REGULATED SOURCES, EXPRESSED AS A FEE PER TON OF CARBON DIOXIDE EQUIVALENT RELEASED IN A GIVEN YEAR. B. A SYSTEM OF MARKET-BASED DECLINING ANNUAL AGGREGATE EMISSIONS LIMI- TATIONS FOR SOURCES OR CATEGORIES OF SOURCES THAT EMIT GREENHOUSE GASES. C. GREENHOUSE GAS EMISSIONS EXCHANGES, BANKING, CREDITS, AND OTHER TRANSACTIONS, GOVERNED BY RULES AND REGULATIONS ESTABLISHED BY THE DEPARTMENT, FOLLOWING APPROVAL BY THE LEGISLATURE AND AFTER NO LESS THAN TWO PUBLIC HEARINGS, THAT RESULT IN THE SAME GREENHOUSE GAS EMISSION REDUCTION, OVER THE SAME TIME PERIOD, AS DIRECT COMPLIANCE WITH A GREEN- HOUSE GAS EMISSION LIMIT OR EMISSION REDUCTION MEASURE ADOPTED BY THE DEPARTMENT PURSUANT TO THIS ARTICLE. 15. "STATEWIDE GREENHOUSE GAS EMISSIONS" MEANS THE TOTAL ANNUAL EMIS- SIONS OF GREENHOUSE GASES IN THE STATE, INCLUDING, BUT NOT LIMITED TO, ALL EMISSIONS OF GREENHOUSE GASES FROM THE GENERATION OF ELECTRICITY DELIVERED TO AND CONSUMED IN NEW YORK, ACCOUNTING FOR TRANSMISSION AND DISTRIBUTION LINE LOSSES, WHETHER THE ELECTRICITY IS GENERATED IN STATE OR IMPORTED. STATEWIDE EMISSIONS SHALL BE EXPRESSED IN TONS OF CARBON DIOXIDE EQUIVALENTS. 16. "STATEWIDE GREENHOUSE GAS EMISSIONS LIMIT" OR "STATEWIDE EMISSIONS LIMIT" MEANS THE MAXIMUM ALLOWABLE LEVEL OF STATEWIDE GREENHOUSE GAS EMISSIONS IN A SPECIFIED YEAR, AS DETERMINED BY THE DEPARTMENT PURSUANT TO THIS ARTICLE. 17. "ENVIRONMENTAL JUSTICE ADVISORY GROUP" SHALL MEAN THE PERMANENT ENVIRONMENTAL JUSTICE ADVISORY GROUP ESTABLISHED BY A CHAPTER OF THE LAWS OF TWO THOUSAND SIXTEEN AMENDING THE ENVIRONMENTAL CONSERVATION LAW A. 3008--B 82 RELATING TO ESTABLISHING A PERMANENT ENVIRONMENTAL JUSTICE ADVISORY GROUP AND AN ENVIRONMENTAL JUSTICE INTERAGENCY COORDINATING COUNCIL, AS PROPOSED IN LEGISLATIVE BILLS NUMBERS S.1525 AND A.3063, RELATING TO ESTABLISHING A PERMANENT ENVIRONMENTAL JUSTICE ADVISORY GROUP AND AN ENVIRONMENTAL JUSTICE INTERAGENCY COORDINATING COUNCIL. § 75-0103. NEW YORK STATE CLIMATE ACTION COUNCIL. 1. THERE IS HEREBY ESTABLISHED, WITHIN THE DEPARTMENT, THE NEW YORK STATE CLIMATE ACTION COUNCIL ("COUNCIL") WHICH SHALL CONSIST OF THE FOLLOWING TWENTY-THREE MEMBERS: A. THE COMMISSIONERS OF TRANSPORTATION, HEALTH, ECONOMIC DEVELOPMENT, AGRICULTURE AND MARKETS, HOUSING AND COMMUNITY RENEWAL, GENERAL SERVICES, LABOR, ENVIRONMENTAL CONSERVATION, HOMELAND SECURITY AND EMER- GENCY SERVICES, THE SUPERINTENDENT OF FINANCIAL SERVICES, THE PRESIDENTS OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT; NEW YORK POWER AUTHORITY; LONG ISLAND POWER AUTHORITY; NEW YORK POWER AUTHORITY AND DORMITORY OF THE STATE OF NEW YORK, OR THEIR DESIGNEE. B. TWO MEMBERS APPOINTED BY THE GOVERNOR; C. TWO MEMBERS TO BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE; D. TWO MEMBERS TO BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY; E. ONE MEMBER TO BE APPOINTED BY THE MINORITY LEADER OF THE SENATE; AND F. ONE MEMBER TO BE APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY. 2. THE AT LARGE MEMBERS SHALL INCLUDE AT ALL TIMES INDIVIDUALS WITH EXPERTISE IN ENVIRONMENTAL ISSUES RELATED TO CLIMATE CHANGE, ENVIRON- MENTAL JUSTICE, LABOR, AND REGULATED INDUSTRIES. 3. COUNCIL MEMBERS SHALL RECEIVE NO COMPENSATION FOR THEIR SERVICES BUT SHALL BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES. 4. THE CHAIRPERSON OF THE COUNCIL SHALL BE THE COMMISSIONER OF ENVI- RONMENTAL CONSERVATION OR HIS OR HER DESIGNEE. 5. A MAJORITY OF THE MEMBERS OF THE COUNCIL SHALL CONSTITUTE A QUORUM. 6. ANY VACANCIES ON THE COUNCIL SHALL BE FILLED IN THE MANNER PROVIDED FOR IN THE INITIAL APPOINTMENT. 7. THE COUNCIL SHALL BE AUTHORIZED TO CONVENE ADVISORY PANELS TO ASSIST OR ADVISE IT IN AREAS REQUIRING SPECIAL EXPERTISE OR KNOWLEDGE. 8. THE DEPARTMENT SHALL PROVIDE THE COUNCIL WITH SUCH FACILITIES, ASSISTANCE AND DATA AS WILL ENABLE THE COUNCIL TO CARRY OUT ITS POWERS AND DUTIES. ADDITIONALLY, ALL OTHER AGENCIES OF THE STATE OR SUBDIVI- SIONS THEREOF MAY, AT THE REQUEST OF THE CHAIRPERSON, PROVIDE THE COUN- CIL WITH SUCH FACILITIES, ASSISTANCE, AND DATA AS WILL ENABLE THE COUN- CIL TO CARRY OUT ITS POWERS AND DUTIES. 9. THE COUNCIL SHALL CONSULT WITH THE DISADVANTAGED COMMUNITIES WORK- ING GROUP ESTABLISHED IN SECTION 75-0113 OF THIS ARTICLE, THE DEPARTMENT OF STATE UTILITY INTERVENTION UNIT, AND THE FEDERALLY DESIGNATED ELEC- TRIC BULK SYSTEM OPERATOR. 10. THE COUNCIL SHALL ADVISE THE DEPARTMENT ON: A. THE DEVELOPMENT OF STATEWIDE GREENHOUSE GAS EMISSIONS LIMIT RULES AND REGULATIONS, PURSUANT TO SECTION 75-0107 OF THIS ARTICLE, AND REDUCED GREENHOUSE GAS EMISSIONS REGULATIONS, PURSUANT TO SECTION 75-0111 OF THIS ARTICLE. B. THE PREPARATION OF A SCOPING PLAN FOR REDUCING GREENHOUSE GAS EMIS- SIONS, PURSUANT TO THE PROCEDURES SET FORTH IN SECTION 75-0109 OF THIS ARTICLE. § 75-0105. GREENHOUSE GAS REPORTING. A. 3008--B 83 1. NO LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE DEPARTMENT SHALL, AFTER AT LEAST TWO PUBLIC HEARINGS, PROMULGATE RULES AND REGULATIONS REQUIRING ANNUAL GREENHOUSE GAS EMISSIONS REPORT- ING FROM MAJOR GREENHOUSE GAS EMISSION SOURCES. THE REGULATIONS SHALL: A. ESTABLISH A GREENHOUSE GAS EMISSIONS REGISTRY AND REPORTING SYSTEM FOR GREENHOUSE GAS EMISSION SOURCES, WHICH INCLUDES GREENHOUSE GAS EMIS- SIONS FROM ALL MAJOR GREENHOUSE GAS EMISSION SOURCES, EXPRESSED IN TONS OF CARBON DIOXIDE EQUIVALENTS; B. ACCOUNT FOR BOTH DIRECT AND INDIRECT GREENHOUSE GAS EMISSIONS, INCLUDING EMISSIONS FROM ALL ELECTRICITY CONSUMED IN THE STATE, REGARD- LESS OF WHETHER SUCH ELECTRICITY WAS GENERATED WITHIN THE STATE OR IMPORTED FROM OUTSIDE THE STATE, AND ACCOUNTING FOR TRANSMISSION AND DISTRIBUTION LINE LOSSES; C. ENSURE RIGOROUS AND CONSISTENT ACCOUNTING OF EMISSIONS AND PROVIDE REPORTING TOOLS AND FORMATS TO ENSURE COLLECTION OF NECESSARY DATA; AND D. ENSURE THAT GREENHOUSE GAS EMISSION SOURCES MAINTAIN COMPREHENSIVE RECORDS OF ANY GREENHOUSE GAS EMISSIONS REPORTED FOR AT LEAST FIVE YEARS. 2. THE DEPARTMENT SHALL: A. REVIEW AND UPDATE EMISSION REPORTING REQUIREMENTS AT LEAST EVERY FIVE YEARS; B. MAKE REASONABLE EFFORTS TO MAKE ITS REPORTING REGULATIONS CONSIST- ENT WITH INTERNATIONAL, FEDERAL, AND OTHER STATES' GREENHOUSE GAS EMIS- SIONS REPORTING PROGRAMS; AND C. PROVIDE COMPLIANCE ASSISTANCE TO SMALL BUSINESSES PURSUANT TO THE PROVISIONS OF SECTIONS 19-0313 AND 19-0315 OF THIS CHAPTER. 3. NO LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, AND EACH YEAR THEREAFTER, THE DEPARTMENT SHALL ISSUE A REPORT ON: A. THE ANNUAL GREENHOUSE GAS EMISSIONS FROM ALL MAJOR GREENHOUSE GAS EMISSION SOURCES, INCLUDING THE RELATIVE CONTRIBUTION OF EACH MAJOR GREENHOUSE GAS EMISSION SOURCE TO THE STATEWIDE GREENHOUSE GAS EMIS- SIONS; AND B. THE PROGRESS MADE BY THE DEPARTMENT IN ACHIEVING THE REQUIREMENTS OF THIS SECTION. § 75-0107. STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS. 1. NO LATER THAN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE DEPARTMENT SHALL DETERMINE WHAT THE STATEWIDE GREENHOUSE GAS EMIS- SIONS LEVEL WAS IN 1990, AND, PURSUANT TO RULES AND REGULATIONS PROMUL- GATED AFTER AT LEAST ONE PUBLIC HEARING, ESTABLISH A STATEWIDE GREEN- HOUSE GAS EMISSIONS LIMIT AS A PERCENTAGE OF 1990 EMISSIONS, FOR THE FOLLOWING YEARS AS FOLLOWS: A. 2020: 100% OF 1990 EMISSIONS. B. 2025: 75% OF 1990 EMISSIONS. C. 2030: 50% OF 1990 EMISSIONS. D. 2035: 40% OF 1990 EMISSIONS. E. 2040: 30% OF 1990 EMISSIONS. F. 2045: 20% OF 1990 EMISSIONS. G. 2050: 0% OF 1990 EMISSIONS. 2. IN ORDER TO ENSURE THE MOST ACCURATE DETERMINATION FEASIBLE, THE DEPARTMENT SHALL UTILIZE THE BEST AVAILABLE SCIENTIFIC, TECHNOLOGICAL, AND ECONOMIC INFORMATION ON GREENHOUSE GAS EMISSIONS AND CONSULT WITH THE COUNCIL, STAKEHOLDERS, AND THE PUBLIC IN ORDER TO ENSURE THAT ALL EMISSIONS ARE ACCURATELY REFLECTED IN ITS DETERMINATION OF 1990 EMIS- SIONS LEVELS. § 75-0109. SCOPING PLAN FOR STATEWIDE GREENHOUSE GAS EMISSIONS REDUCTIONS. A. 3008--B 84 1. ON OR BEFORE TWO YEARS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE DEPARTMENT SHALL PREPARE AND APPROVE A SCOPING PLAN OUTLINING THE DEPARTMENT'S RECOMMENDATIONS FOR ATTAINING THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS IN ACCORDANCE WITH THE SCHEDULE ESTABLISHED IN SECTION 75-0107 OF THIS ARTICLE. 2. THE DRAFT SCOPING PLAN SHALL BE DEVELOPED IN CONSULTATION WITH THE COUNCIL, ENVIRONMENTAL JUSTICE ADVISORY GROUP, AND THE DISADVANTAGED COMMUNITIES WORKING GROUP ESTABLISHED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE AND OTHER STAKEHOLDERS. A. THE DEPARTMENT AND THE COUNCIL SHALL HOLD AT LEAST SIX REGIONAL PUBLIC COMMENT HEARINGS ON THE DRAFT SCOPING PLAN, INCLUDING THREE MEET- INGS IN THE UPSTATE REGION AND THREE MEETINGS IN THE DOWNSTATE REGION, AND SHALL ALLOW AT LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF PUBLIC COMMENT. B. THE DEPARTMENT SHALL PROVIDE MEANINGFUL OPPORTUNITIES FOR PUBLIC COMMENT FROM ALL PERSONS WHO WILL BE IMPACTED BY THE PLAN, INCLUDING PERSONS LIVING IN DISADVANTAGED COMMUNITIES AS IDENTIFIED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE. C. ON OR BEFORE THIRTY MONTHS OF THE EFFECTIVE DATE OF THIS ARTICLE, THE DEPARTMENT SHALL SUBMIT THE FINAL SCOPING PLAN TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE AND POST SUCH PLAN ON ITS WEBSITE. 3. THE SCOPING PLAN SHALL IDENTIFY AND MAKE RECOMMENDATIONS ON REGULA- TORY MEASURES AND OTHER STATE ACTIONS THAT WILL ENSURE THE ATTAINMENT OF THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS ESTABLISHED PURSUANT TO SECTION 75-0107 OF THIS ARTICLE. THE MEASURES AND ACTIONS CONSIDERED IN SUCH SCOPING PLAN SHALL AT A MINIMUM INCLUDE: A. PERFORMANCE-BASED STANDARDS FOR SOURCES OF GREENHOUSE GAS EMIS- SIONS, INCLUDING BUT NOT LIMITED TO SOURCES IN THE TRANSPORTATION, BUILDING, INDUSTRIAL, COMMERCIAL, AND AGRICULTURAL SECTORS. B. MARKET-BASED MECHANISMS TO REDUCE STATEWIDE GREENHOUSE GAS EMIS- SIONS OR EMISSIONS FROM A PARTICULAR SOURCE CATEGORY, INCLUDING AN EXAM- INATION OF: THE IMPOSITION OF FEES PER UNIT OF CARBON DIOXIDE EQUIVALENT EMITTED AND THE IMPOSITION OF EMISSIONS CAPS ACCOMPANIED BY A SYSTEM OF TRADABLE EMISSION ALLOWANCES. C. MEASURES TO REDUCE EMISSIONS FROM THE ELECTRICITY SECTOR BY DISPLACING FOSSIL-FUEL FIRED ELECTRICITY WITH RENEWABLE ELECTRICITY OR ENERGY EFFICIENCY. D. LAND-USE AND TRANSPORTATION PLANNING MEASURES AIMED AT REDUCING GREENHOUSE GAS EMISSIONS FROM MOTOR VEHICLES. E. MEASURES TO ACHIEVE LONG-TERM CARBON SEQUESTRATION AND/OR PROMOTE BEST MANAGEMENT PRACTICES IN LAND USE, AGRICULTURE AND FORESTRY. F. VERIFIABLE, ENFORCEABLE AND VOLUNTARY EMISSIONS REDUCTION MEASURES. 4. IN DEVELOPING SUCH PLAN THE DEPARTMENT SHALL: A. CONSIDER ALL RELEVANT INFORMATION PERTAINING TO GREENHOUSE GAS EMISSIONS REDUCTION PROGRAMS IN OTHER STATES, REGIONS, LOCALITIES, AND NATIONS. B. EVALUATE, USING THE BEST AVAILABLE ECONOMIC MODELS, EMISSION ESTI- MATION TECHNIQUES AND OTHER SCIENTIFIC METHODS, THE TOTAL POTENTIAL COSTS AND POTENTIAL ECONOMIC AND NON-ECONOMIC BENEFITS OF THE PLAN FOR REDUCING GREENHOUSE GASES, AND MAKE SUCH EVALUATION PUBLICLY AVAILABLE. IN CONDUCTING THIS EVALUATION, THE DEPARTMENT SHALL QUANTIFY: I. THE ECONOMIC AND SOCIAL BENEFITS OF GREENHOUSE GAS EMISSIONS REDUCTIONS, TAKING INTO ACCOUNT THE FEDERAL SOCIAL COST OF CARBON, ANY OTHER TOOLS THAT THE DEPARTMENT DEEMS USEFUL AND PERTINENT FOR THIS ANALYSIS, AND ANY ENVIRONMENTAL, ECONOMIC AND PUBLIC HEALTH CO-BENEFITS A. 3008--B 85 (SUCH AS THE REDUCTION OF CO-POLLUTANTS AND THE DIVERSIFICATION OF ENER- GY SOURCES); AND II. THE COSTS OF IMPLEMENTING PROPOSED EMISSIONS REDUCTION MEASURES, AND THE EMISSIONS REDUCTIONS THAT THE DEPARTMENT ANTICIPATES ACHIEVING THROUGH THESE MEASURES. C. TAKE INTO ACCOUNT THE RELATIVE CONTRIBUTION OF EACH SOURCE OR SOURCE CATEGORY TO STATEWIDE GREENHOUSE GAS EMISSIONS, AND THE POTENTIAL FOR ADVERSE EFFECTS ON SMALL BUSINESSES, AND RECOMMEND A DE MINIMIS THRESHOLD OF GREENHOUSE GAS EMISSIONS BELOW WHICH EMISSION REDUCTION REQUIREMENTS WILL NOT APPLY. D. IDENTIFY MEASURES TO MAXIMIZE REDUCTIONS OF BOTH GREENHOUSE GAS EMISSIONS AND CO-POLLUTANTS IN DISADVANTAGED COMMUNITIES AS IDENTIFIED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE. 5. THE DEPARTMENT SHALL UPDATE ITS PLAN FOR ACHIEVING THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS AT LEAST ONCE EVERY FIVE YEARS AND SHALL MAKE SUCH UPDATES AVAILABLE TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE AND POST SUCH UPDATES ON ITS WEBSITE. § 75-0111. PROMULGATION OF REGULATIONS TO ACHIEVE STATEWIDE GREENHOUSE GAS EMISSIONS REDUCTIONS. 1. NO LATER THAN THREE YEARS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE DEPARTMENT, AFTER PUBLIC WORKSHOPS AND CONSULTATION WITH THE COUN- CIL, THE ENVIRONMENTAL JUSTICE ADVISORY GROUP, AND THE DISADVANTAGED COMMUNITIES WORKING GROUP ESTABLISHED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE, REPRESENTATIVES OF REGULATED ENTITIES, COMMUNITY ORGANIZA- TIONS, ENVIRONMENTAL GROUPS, HEALTH PROFESSIONALS, LABOR UNIONS, MUNICI- PAL CORPORATIONS, TRADE ASSOCIATIONS AND OTHER STAKEHOLDERS, SHALL, AFTER NO LESS THAN TWO PUBLIC HEARINGS, PROMULGATE RULES AND REGULATIONS TO ENSURE COMPLIANCE WITH THE STATEWIDE EMISSIONS REDUCTION LIMITS. 2. THE REGULATIONS PROMULGATED BY THE DEPARTMENT PURSUANT TO THIS SECTION SHALL: A. ENSURE THAT THE AGGREGATE EMISSIONS OF GREENHOUSE GASES FROM MAJOR AND MINOR SOURCES WILL NOT EXCEED THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS ESTABLISHED IN SECTION 75-0107 OF THIS ARTICLE. B. INCLUDE LEGALLY ENFORCEABLE EMISSIONS LIMITS, PERFORMANCE STAND- ARDS, OR OTHER REQUIREMENTS TO CONTROL EMISSIONS FROM MAJOR SOURCES. C. INCLUDE MEASURES TO REDUCE EMISSIONS FROM MINOR SOURCES THAT HAVE A CUMULATIVELY SIGNIFICANT IMPACT ON STATEWIDE GREENHOUSE GAS EMISSIONS, SUCH AS MOTOR VEHICLES AND ELECTRIC GENERATING FACILITIES OF LESS THAN 25 MEGAWATTS. 3. IN PROMULGATING THESE REGULATIONS, THE DEPARTMENT SHALL: A. DESIGN AND IMPLEMENT ALL REGULATIONS IN A MANNER THAT SEEKS TO BE EQUITABLE, TO MINIMIZE COSTS AND TO MAXIMIZE THE TOTAL BENEFITS TO NEW YORK, AND ENCOURAGES EARLY ACTION TO REDUCE GREENHOUSE GAS EMISSIONS. B. ENSURE THAT GREENHOUSE GAS EMISSIONS REDUCTIONS ACHIEVED ARE REAL, PERMANENT, QUANTIFIABLE, VERIFIABLE, AND ENFORCEABLE BY THE DEPARTMENT. C. ENSURE THAT ACTIVITIES UNDERTAKEN TO COMPLY WITH THE REGULATIONS DO NOT RESULT IN A NET INCREASE IN CO-POLLUTANT EMISSIONS OR OTHERWISE DISPROPORTIONATELY BURDEN DISADVANTAGED COMMUNITIES AS IDENTIFIED PURSU- ANT TO SECTION 75-0113 OF THIS ARTICLE. D. PRIORITIZE MEASURES TO MAXIMIZE NET REDUCTIONS OF GREENHOUSE GAS EMISSIONS AND CO-POLLUTANTS IN DISADVANTAGED COMMUNITIES AS IDENTIFIED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE AND ENCOURAGE EARLY ACTION TO REDUCE GREENHOUSE GAS EMISSIONS AND CO-POLLUTANTS. E. MINIMIZE LEAKAGE. 4. MARKET-BASED COMPLIANCE MECHANISMS. A. 3008--B 86 A. THE DEPARTMENT MAY, WITH THE APPROVAL OF THE LEGISLATURE, INCLUDE IN THE REGULATIONS PROVISIONS FOR THE USE OF MARKET-BASED COMPLIANCE MECHANISMS TO COMPLY WITH THE REGULATIONS. B. PRIOR TO THE INCLUSION OF ANY MARKET-BASED COMPLIANCE MECHANISM IN THE REGULATIONS, TO THE EXTENT FEASIBLE AND IN THE FURTHERANCE OF ACHIEVING THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMIT, THE DEPARTMENT SHALL DO ALL OF THE FOLLOWING: I. CONSIDER THE POTENTIAL FOR DIRECT, INDIRECT, AND CUMULATIVE EMIS- SION IMPACTS FROM THESE MECHANISMS, INCLUDING LOCALIZED IMPACTS IN DISADVANTAGED COMMUNITIES AS IDENTIFIED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE; II. DESIGN ANY MARKET-BASED COMPLIANCE MECHANISM TO PREVENT ANY INCREASE IN THE EMISSIONS OF TOXIC AIR CONTAMINANTS OR CO-POLLUTANTS; AND III. MAXIMIZE ADDITIONAL ENVIRONMENTAL, PUBLIC HEALTH, AND ECONOMIC BENEFITS FOR THE STATE OF NEW YORK AND FOR DISADVANTAGED COMMUNITIES IDENTIFIED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE, AS APPROPRIATE. C. SUCH REGULATIONS SHALL INCLUDE PROVISIONS GOVERNING HOW MARKET- BASED COMPLIANCE MECHANISMS MAY BE USED BY REGULATED ENTITIES SUBJECT TO GREENHOUSE GAS EMISSIONS LIMITS AND MANDATORY EMISSION REPORTING REQUIREMENTS TO ACHIEVE COMPLIANCE WITH THEIR GREENHOUSE GAS EMISSIONS LIMITS. D. THE DEPARTMENT SHALL ENSURE THAT FORTY PERCENT OF ANY FUNDS COLLECTED PURSUANT TO ANY MARKET-BASED COMPLIANCE REGULATIONS PROMULGAT- ED UNDER THIS SECTION AS A RESULT OF LEGISLATIVE AUTHORIZATION, AND FUNDS AUTHORIZED BY THE PUBLIC SERVICE COMMISSION TO BE COLLECTED SOLELY FOR AND DIRECTED TO THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY ARE INVESTED IN A MANNER WHICH WILL BENEFIT DISADVANTAGED COMMUNITIES, IDENTIFIED PURSUANT TO SECTION 75-0113 OF THIS ARTICLE, CONSISTENT WITH THE PURPOSES OF THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, INCREASED ACCESS TO RENEWABLE ENERGY, ENERGY EFFICIENCY, WEATHERIZA- TION, ZERO- AND LOW-EMISSION TRANSPORTATION, AND ADAPTATION OPPORTU- NITIES. THE DEPARTMENT SHALL CONSULT WITH THE DISADVANTAGED COMMUNITIES WORKING GROUP IN DEVELOPING AND CARRYING OUT SUCH INVESTMENTS. § 75-0113. DISADVANTAGED COMMUNITIES WORKING GROUP. 1. THERE IS HEREBY CREATED WITHIN THE DEPARTMENT, NO LATER THAN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, A "DISADVANTAGED COMMU- NITIES WORKING GROUP." SUCH WORKING GROUP WILL BE COMPRISED OF REPRESEN- TATIVES FROM: ENVIRONMENTAL JUSTICE COMMUNITIES, THE DEPARTMENT, THE DEPARTMENT OF HEALTH AND THE DEPARTMENT OF LABOR. A. ENVIRONMENTAL JUSTICE COMMUNITY REPRESENTATIVES SHALL BE MEMBERS OF COMMUNITIES OF COLOR, LOW-INCOME COMMUNITIES, AND COMMUNITIES BEARING DISPROPORTIONATE POLLUTION AND CLIMATE CHANGE BURDENS, OR SHALL BE REPRESENTATIVES OF COMMUNITY-BASED ORGANIZATIONS WITH EXPERIENCE AND A HISTORY OF ADVOCACY ON ENVIRONMENTAL JUSTICE ISSUES, AND SHALL INCLUDE AT LEAST THREE REPRESENTATIVES FROM NEW YORK CITY COMMUNITIES, THREE REPRESENTATIVES FROM RURAL COMMUNITIES, AND THREE REPRESENTATIVES FROM UPSTATE URBAN COMMUNITIES. B. THE WORKING GROUP, IN COOPERATION WITH THE DEPARTMENT, THE DEPART- MENTS OF HEALTH AND LABOR, AND THE ENVIRONMENTAL JUSTICE ADVISORY GROUP, WILL ESTABLISH CRITERIA TO IDENTIFY DISADVANTAGED COMMUNITIES FOR THE PURPOSES OF CO-POLLUTANT REDUCTIONS, GREENHOUSE GAS EMISSIONS REDUCTIONS, REGULATORY IMPACT STATEMENTS, AND THE ALLOCATION OF INVEST- MENTS RELATED TO THIS ARTICLE. A. 3008--B 87 C. DISADVANTAGED COMMUNITIES SHALL BE IDENTIFIED BASED ON GEOGRAPHIC, PUBLIC HEALTH, ENVIRONMENTAL HAZARD, AND SOCIOECONOMIC CRITERIA, WHICH SHALL INCLUDE BUT ARE NOT LIMITED TO: (1) AREAS BURDENED BY CUMULATIVE ENVIRONMENTAL POLLUTION AND OTHER HAZARDS THAT CAN LEAD TO NEGATIVE PUBLIC HEALTH EFFECTS; (2) AREAS WITH CONCENTRATIONS OF PEOPLE THAT ARE OF LOW INCOME, HIGH UNEMPLOYMENT, HIGH RENT BURDEN, LOW LEVELS OF HOME OWNERSHIP, LOW LEVELS OF EDUCATIONAL ATTAINMENT, OR MEMBERS OF GROUPS THAT HAVE HISTORICALLY EXPERIENCED DISCRIMINATION ON THE BASIS OF RACE OR ETHNICITY; AND (3) AREAS VULNERABLE TO THE IMPACTS OF CLIMATE CHANGE SUCH AS FLOOD- ING, STORM SURGES, AND URBAN HEAT ISLAND EFFECTS. 2. BEFORE FINALIZING THE CRITERIA FOR IDENTIFYING DISADVANTAGED COMMU- NITIES AND IDENTIFYING DISADVANTAGED COMMUNITIES PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE DEPARTMENT SHALL PUBLISH DRAFT CRITERIA AND A DRAFT LIST OF DISADVANTAGED COMMUNITIES AND MAKE SUCH INFORMATION AVAIL- ABLE ON ITS WEBSITE. A. THE DEPARTMENT SHALL HOLD AT LEAST SIX REGIONAL PUBLIC HEARINGS ON THE DRAFT CRITERIA AND THE DRAFT LIST OF DISADVANTAGED COMMUNITIES, INCLUDING THREE MEETINGS IN THE UPSTATE REGION AND THREE MEETINGS IN THE DOWNSTATE REGION, AND SHALL ALLOW AT LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF PUBLIC COMMENT. B. THE DEPARTMENT SHALL ALSO ENSURE THAT THERE ARE MEANINGFUL OPPORTU- NITIES FOR PUBLIC COMMENT FOR ALL PERSONS WHO WILL BE IMPACTED BY THE CRITERIA, INCLUDING PERSONS LIVING IN AREAS THAT MAY BE IDENTIFIED AS DISADVANTAGED COMMUNITIES UNDER THE PROPOSED CRITERIA. 3. THE GROUP WILL MEET NO LESS THAN ANNUALLY TO REVIEW THE CRITERIA AND METHODS USED TO IDENTIFY DISADVANTAGED COMMUNITIES AND MAY MODIFY SUCH METHODS TO INCORPORATE NEW DATA AND SCIENTIFIC FINDINGS. THE DISAD- VANTAGED COMMUNITIES WORKING GROUP SHALL REVIEW IDENTITIES OF DISADVAN- TAGED COMMUNITIES AND MODIFY SUCH IDENTITIES AS NEEDED. § 75-0115. IMPLEMENTATION REPORTING. 1. THE DEPARTMENT SHALL, NOT LESS THAN EVERY FOUR YEARS, PUBLISH A REPORT WHICH SHALL INCLUDE RECOMMENDATIONS REGARDING THE IMPLEMENTATION OF GREENHOUSE GAS REDUCTION MEASURES. 2. THE REPORT SHALL, AT MINIMUM, INCLUDE: A. WHETHER THE STATE IS ON TRACK TO MEET THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS ESTABLISHED IN SECTION 75-0107 OF THIS ARTICLE. B. AN ASSESSMENT OF EXISTING REGULATIONS AND WHETHER MODIFICATIONS ARE NEEDED TO ENSURE FULFILLMENT OF THE STATEWIDE GREENHOUSE GAS EMISSIONS LIMITS. C. AN OVERVIEW OF SOCIAL BENEFITS FROM THE REGULATIONS OR OTHER MEAS- URES, INCLUDING REDUCTIONS IN GREENHOUSE GAS EMISSIONS AND COPOLLUTANTS, DIVERSIFICATION OF ENERGY SOURCES, AND OTHER BENEFITS TO THE ECONOMY, ENVIRONMENT, AND PUBLIC HEALTH, INCLUDING WOMEN'S HEALTH. D. AN OVERVIEW OF COMPLIANCE COSTS FOR REGULATED ENTITIES AND FOR THE DEPARTMENT AND OTHER STATE AGENCIES. E. WHETHER REGULATIONS OR OTHER GREENHOUSE GAS REDUCTION MEASURES UNDERTAKEN ARE EQUITABLE, MINIMIZE COSTS AND MAXIMIZE THE TOTAL BENEFITS TO THE STATE, AND ENCOURAGE EARLY ACTION. F. WHETHER ACTIVITIES UNDERTAKEN TO COMPLY WITH STATE REGULATIONS DISPROPORTIONATELY BURDEN DISADVANTAGED COMMUNITIES AS IDENTIFIED PURSU- ANT TO SECTION 75-0113 OF THIS ARTICLE. G. AN ASSESSMENT OF LOCAL BENEFITS AND IMPACTS OF ANY REDUCTIONS IN COPOLLUTANTS RELATED TO REDUCTIONS IN STATEWIDE AND LOCAL GREENHOUSE GAS EMISSIONS. A. 3008--B 88 H. AN ASSESSMENT OF DISADVANTAGED COMMUNITIES' ACCESS TO OR COMMUNITY OWNERSHIP OF THE SERVICES AND COMMODITIES IDENTIFIED IN SECTION EIGHT OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SIXTEEN WHICH ADDED THIS ARTI- CLE. I. WHETHER ENTITIES THAT HAVE VOLUNTARILY REDUCED THEIR GREENHOUSE GAS EMISSIONS PRIOR TO THE IMPLEMENTATION OF THIS ARTICLE RECEIVE APPROPRI- ATE CREDIT FOR EARLY VOLUNTARY REDUCTIONS. J. RECOMMENDATIONS FOR FUTURE REGULATORY AND POLICY ACTION. 3. IN PREPARING THIS REPORT, THE DEPARTMENT SHALL, AT A MINIMUM, CONSULT WITH THE COUNCIL, AND THE DISADVANTAGED COMMUNITY WORK GROUP ESTABLISHED IN SECTION 75-0113 OF THIS ARTICLE. 4. THE REPORT SHALL BE PUBLISHED AND POSTED ON THE DEPARTMENT'S WEBSITE. § 3. Subdivision 1 of section 54-1523 of the environmental conserva- tion law is amended by adding a new paragraph h to read as follows: H. TO ESTABLISH AND IMPLEMENT EASILY-REPLICATED RENEWABLE ENERGY PROJECTS, INCLUDING SOLAR ARRAYS, HEAT PUMPS AND WIND TURBINES IN PUBLIC LOW-INCOME HOUSING IN SUBURBAN, URBAN AND RURAL AREAS. § 4. The public service law is amended by adding a new section 66-o to read as follows: § 66-O. ESTABLISHMENT OF A RENEWABLE ENERGY PROGRAM. 1. AS USED IN THIS SECTION: (A) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN INVESTOR-OWNED UTILITY THAT DISTRIBUTES ELECTRICITY WITHIN THIS STATE; (B) "PREVAILING RATE OF WAGES" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED IN PARAGRAPH A OF SUBDIVISION FIVE OF SECTION TWO HUNDRED TWENTY OF THE LABOR LAW; AND (C) "RENEWABLE ENERGY SYSTEMS" MEANS SYSTEMS THAT GENERATE ELECTRICITY OR THERMAL ENERGY THROUGH USE OF THE FOLLOWING TECHNOLOGIES: SOLAR THER- MAL, PHOTOVOLTAICS, WIND, HYDROELECTRIC, GEOTHERMAL ELECTRIC, GEOTHERMAL GROUND SOURCE HEAT, TIDAL ENERGY, WAVE ENERGY, OCEAN THERMAL, OFFSHORE WIND AND FUEL CELLS WHICH DO NOT UTILIZE A FOSSIL FUEL RESOURCE IN THE PROCESS OF GENERATING ELECTRICITY. 2. NO LATER THAN JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE COMMISSION SHALL ESTABLISH A PROGRAM TO REQUIRE THAT A MINIMUM OF FIFTY PERCENT OF THE STATEWIDE ELECTRIC CAPACITY SERVED BY ELECTRIC DISTRIBUTION COMPA- NIES REGULATED BY THE COMMISSION IN TWO THOUSAND THIRTY SHALL BE GENER- ATED BY RENEWABLE ENERGY SYSTEMS. (A) THE PROGRAM SHALL ACHIEVE THE FOLLOWING INCREMENTAL MINIMUM PERCENTAGE CAPACITY LEVELS OF RENEWABLE ENERGY SYSTEMS WITHIN THE AREAS SERVED BY THE ELECTRIC DISTRIBUTION COMPANIES REGULATED BY THE COMMIS- SION: (I) TWENTY-SEVEN PERCENT BY TWO THOUSAND EIGHTEEN; (II) THIRTY PERCENT BY TWO THOUSAND TWENTY; (III) FORTY PERCENT BY TWO THOUSAND TWENTY-FIVE; AND (IV) FIFTY PERCENT BY TWO THOUSAND THIRTY. (B) THE MINIMUM PERCENTAGE CAPACITY LEVELS ESTABLISHED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE ACHIEVED THROUGH MINIMUM PROPORTIONAL OBLIGATIONS ON EACH ELECTRIC DISTRIBUTION COMPANY BASED ON THE TOTAL ANNUAL KILOWATT HOURS DISTRIBUTED AS DETERMINED BY THE COMMIS- SION, PROVIDED THAT THE COMMISSION MAY REQUIRE ELECTRIC DISTRIBUTION CORPORATIONS TO ACHIEVE DIFFERENT PROPORTIONAL SHARES. (C) THE PROGRAM ESTABLISHED BY THE COMMISSION SHALL BE DESIGNED TO: (I) BE COST-EFFECTIVE; (II) ENCOURAGE THE DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS AT THE BULK ELECTRIC SYSTEM LEVEL AND BEHIND-THE-METER; (III) ALLOW FOR DIVERSITY IN THE SIZE AND GEOGRAPHIC LOCATION OF RENEWABLE A. 3008--B 89 ENERGY SYSTEMS; (IV) ENABLE THE PARTICIPATION OF RESIDENTIAL AND NON-RE- SIDENTIAL CUSTOMERS, INCLUDING SPECIAL CONSIDERATION TO LOW-TO-MODERATE INCOME CUSTOMERS; (V) ENSURE THAT RENEWABLE ENERGY SYSTEMS WILL BE STRA- TEGICALLY LOCATED TO MINIMIZE PEAK LOAD IN CONSTRAINED AREAS; (VI) SUPPORT ELECTRIC SYSTEM RELIABILITY AND SECURITY; AND (VII) ACHIEVE ANY OTHER OBJECTIVES THE COMMISSION MAY ESTABLISH. (D) IN DEVELOPING INCENTIVES FOR THE PROGRAM, THE COMMISSION SHALL CONSIDER THE VALUE OF RENEWABLE ENERGY SYSTEM COMPONENTS MANUFACTURED AND ASSEMBLED WITHIN THE STATE AND ANY OTHER CONSIDERATIONS DEEMED APPROPRIATE BY THE COMMISSION. (E) THE COMMISSION SHALL ORDER EACH ELECTRIC DISTRIBUTION COMPANY TO FILE A PROGRAM PLAN BY JUNE FIRST, TWO THOUSAND EIGHTEEN, FOR THE PURPOSE OF FULFILLING ITS OBLIGATIONS ESTABLISHED PURSUANT TO THIS SUBDIVISION. THE COMMISSION SHALL APPROVE EACH SUCH PLAN, OR MAY MODIFY IT AS IT DEEMS APPROPRIATE, IF THE COMMISSION FINDS THAT THE PLAN WOULD RESULT IN ACHIEVEMENT OF THE COMPANY'S OBLIGATIONS, ENHANCES PROGRAM EFFICIENCY, AND MAXIMIZES RATEPAYER VALUE. NOTHING IN THIS SECTION SHALL BE CONSTRUED AS LIMITING THE ELECTRIC DISTRIBUTION COMPANIES' ABILITY TO PROPOSE, OR THE COMMISSION'S ABILITY TO APPROVE, A JOINT PROGRAM PLAN FOR ONE OR MORE ELECTRIC DISTRIBUTION COMPANIES. 3. NO LATER THAN JULY FIRST, TWO THOUSAND EIGHTEEN, AND EVERY TWO YEARS THEREAFTER, THE COMMISSION SHALL, AFTER NOTICE AND PROVISION FOR THE OPPORTUNITY TO COMMENT, ISSUE A COMPREHENSIVE REVIEW OF THE PROGRAM ESTABLISHED PURSUANT TO THIS SECTION. THE COMMISSION SHALL DETERMINE, AMONG OTHER MATTERS: (A) PROGRESS OF EACH ELECTRIC DISTRIBUTION COMPANY IN MEETING ITS OBLIGATIONS ESTABLISHED PURSUANT TO SUBDIVISION TWO OF THIS SECTION AND PROGRESS IN MEETING THE OVERALL ANNUAL TARGETS FOR DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS; (B) THE REASONABLENESS OF EACH ELECTRIC DISTRIBUTION COMPANY'S OBLIGATIONS; (C) DISTRIBUTION OF SYSTEMS BY SIZE AND LOAD ZONE; AND (D) ANNUAL INCENTIVE COMMITMENTS AND EXPENDI- TURES. THE COMMISSION SHALL EVALUATE THE REASONABLENESS OF THE FUTURE ANNUAL TARGETS ESTABLISHED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION AND DETERMINE WHETHER THE ANNUAL TARGETS SHOULD BE ACCELERATED, INCREASED OR EXTENDED. THE COMMISSION SHALL ALSO REVIEW THE INCENTIVE STRUCTURES AND ELECTRIC DISTRIBUTION COMPANIES' PROGRAM PLANS AND MAKE ADJUSTMENTS AS NECESSARY IN A MANNER THAT IS COST-EFFECTIVE. 4. THE COMMISSION MAY SUSPEND OR TERMINATE THE PROGRAM ESTABLISHED UNDER THIS SECTION OR SUSPEND AN ELECTRIC DISTRIBUTION COMPANY'S OBLI- GATIONS UNDER SUCH PROGRAM PROVIDED THAT THE COMMISSION, AFTER CONDUCT- ING A HEARING AS PROVIDED IN SECTION TWENTY OF THIS CHAPTER, MAKES A FINDING THAT THE PROGRAM IMPEDES THE PROVISION OF SAFE AND ADEQUATE ELECTRIC SERVICE OR THAT THERE IS A SIGNIFICANT INCREASE IN ARREARS OR UTILITY SERVICE DISCONNECTIONS THAT THE COMMISSION DETERMINES IS RELATED TO THE PROGRAM. 5. EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION, NOT OTHERWISE REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE PREVAILING RATE OF WAGES PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY EMPLOYEES UNDER CONTRACT FOR THE DEVELOPMENT OF RENEWABLE ENERGY SYSTEMS RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE, A WAGE OF NOT LESS THAN THE PREVAILING RATE OF WAGES FOR SUCH WORK IN THE LOCALITY WHERE SUCH INSTALLATION OCCURS. THIS REQUIREMENT SHALL BE IN EFFECT FOR THE DURA- TION OF THE RECEIPT BY THE CONTRACTOR OF THE INCENTIVES ESTABLISHED PURSUANT TO THIS SECTION AND IN NO EVENT SHALL SUCH REQUIREMENT EXTEND BEYOND THE AVAILABILITY OF SUCH INCENTIVES. EVERY CONTRACTOR SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION SHALL MAINTAIN PAYROLL RECORDS IN ACCORDANCE WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW. A. 3008--B 90 § 5. Section 1005 of the public authorities law is amended by adding a new subdivision 26 to read as follows: 26. A. FOR THE PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) "PREVAILING RATE OF WAGES" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED IN PARAGRAPH A OF SUBDIVISION FIVE OF SECTION TWO HUNDRED TWENTY OF THE LABOR LAW; AND (2) "RENEWABLE ENERGY SYSTEMS" MEANS SYSTEMS THAT GENERATE ELECTRICITY OR THERMAL ENERGY THROUGH USE OF THE FOLLOWING TECHNOLOGIES: SOLAR THER- MAL, PHOTOVOLTAICS, WIND, HYDROELECTRIC, GEOTHERMAL ELECTRIC, GEOTHERMAL GROUND SOURCE HEAT, TIDAL ENERGY, WAVE ENERGY, OCEAN THERMAL, OFFSHORE WIND AND FUEL CELLS WHICH DO NOT UTILIZE A FOSSIL FUEL RESOURCE IN THE PROCESS OF GENERATING ELECTRICITY. B. AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, NO LATER THAN JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE AUTHORITY SHALL ESTABLISH A PROGRAM TO REQUIRE THAT A MINIMUM OF FIFTY PERCENT OF THE ELECTRIC CAPACITY SERVED BY THE AUTHORITY IN TWO THOUSAND THIRTY SHALL BE GENER- ATED BY RENEWABLE ENERGY SYSTEMS. THE PROPOSED PROGRAM SHALL FIRST BE MADE AVAILABLE TO THE PUBLIC, WITH NOTICE AND OPPORTUNITY FOR COMMENT, BEFORE FINAL ADOPTION BY THE AUTHORITY'S BOARD OF TRUSTEES. (1) THE PROGRAM SHALL ACHIEVE THE FOLLOWING INCREMENTAL MINIMUM PERCENTAGE CAPACITY LEVELS OF RENEWABLE ENERGY SYSTEMS: (I) TWENTY-SEVEN PERCENT BY TWO THOUSAND EIGHTEEN; (II) THIRTY PERCENT BY TWO THOUSAND TWENTY; (III) FORTY PERCENT BY TWO THOUSAND TWENTY-FIVE; AND (IV) FIFTY PERCENT BY TWO THOUSAND THIRTY. (2) THE PROGRAM ESTABLISHED BY THE AUTHORITY SHALL BE DESIGNED TO: (I) BE COST-EFFECTIVE; (II) ENCOURAGE THE DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS AT THE BULK ELECTRIC SYSTEM LEVEL AND BEHIND-THE-METER; (III) ALLOW FOR DIVERSITY IN THE SIZE AND GEOGRAPHIC LOCATION OF RENEWABLE ENERGY SYSTEMS; (IV) ENABLE THE PARTICIPATION OF RESIDENTIAL AND NON-RE- SIDENTIAL CUSTOMERS, INCLUDING SPECIAL CONSIDERATION TO LOW-TO-MODERATE INCOME CUSTOMERS; (V) ENSURE THAT RENEWABLE ENERGY SYSTEMS WILL BE STRA- TEGICALLY LOCATED TO MINIMIZE PEAK LOAD IN CONSTRAINED AREAS; (VI) SUPPORT ELECTRIC SYSTEM RELIABILITY AND SECURITY; AND (VII) ACHIEVE ANY OTHER OBJECTIVES THE AUTHORITY MAY ESTABLISH. C. IN DEVELOPING INCENTIVES FOR THE PROGRAM, THE AUTHORITY SHALL CONSIDER THE VALUE OF RENEWABLE ENERGY SYSTEM COMPONENTS MANUFACTURED AND ASSEMBLED WITHIN THE STATE AND ANY OTHER CONSIDERATIONS DEEMED APPROPRIATE BY THE AUTHORITY. D. NO LATER THAN JULY FIRST, TWO THOUSAND EIGHTEEN, AND EVERY TWO YEARS THEREAFTER, THE AUTHORITY SHALL, AFTER NOTICE AND PROVISION FOR THE OPPORTUNITY TO COMMENT, ISSUE A COMPREHENSIVE REVIEW OF THE PROGRAM ESTABLISHED PURSUANT TO THIS SUBDIVISION. THE AUTHORITY SHALL DETERMINE, AMONG OTHER MATTERS: (1) PROGRESS IN MEETING ITS MINIMUM CAPACITY LEVELS FOR DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS; (2) DISTRIBUTION OF SYSTEMS BY SIZE, AND LOAD ZONE; AND (3) ANNUAL INCENTIVE COMMITMENTS AND EXPEND- ITURES. THE AUTHORITY SHALL EVALUATE THE REASONABLENESS OF THE FUTURE MINIMUM CAPACITY LEVELS ESTABLISHED PURSUANT TO SUBPARAGRAPH ONE OF PARAGRAPH B OF THIS SUBDIVISION AND DETERMINE WHETHER THE MINIMUM CAPAC- ITY LEVELS SHOULD BE ACCELERATED, INCREASED OR EXTENDED. THE AUTHORITY SHALL ALSO REVIEW THE INCENTIVE STRUCTURES AND MAKE ADJUSTMENTS AS NECESSARY IN A MANNER THAT IS COST-EFFECTIVE. E. THE AUTHORITY MAY SUSPEND OR TERMINATE THE PROGRAM ESTABLISHED UNDER THIS SECTION AFTER A FINDING THAT THE PROGRAM IMPEDES THE AUTHORI- A. 3008--B 91 TY'S DUTY TO OBTAIN AND MAINTAIN A CONTINUOUS AND ADEQUATE SUPPLY OF DEPENDABLE ELECTRIC POWER AND ENERGY. F. EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SUBDIVISION, NOT OTHER- WISE REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE PREVAILING RATE OF WAGES PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY EMPLOYEES UNDER CONTRACT FOR THE DEVELOPMENT OF RENEWABLE ENERGY SYSTEMS RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE A WAGE OF NOT LESS THAN THE PREVAIL- ING RATE OF WAGES FOR SUCH WORK IN THE LOCALITY WHERE SUCH INSTALLATION OCCURS. THIS REQUIREMENT SHALL BE IN EFFECT FOR THE DURATION OF THE RECEIPT BY THE CONTRACTOR OF THE INCENTIVES ESTABLISHED PURSUANT TO THIS SUBDIVISION AND IN NO EVENT SHALL SUCH REQUIREMENT EXTEND BEYOND THE AVAILABILITY OF SUCH INCENTIVES. EVERY CONTRACTOR SUBJECT TO THE PROVISIONS OF THIS PARAGRAPH SHALL MAINTAIN PAYROLL RECORDS IN ACCORD- ANCE WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW. § 6. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities law, as renumbered by chapter 388 of the laws of 2011, are renumbered sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added to read as follows: § 1020-II. ESTABLISHMENT OF A RENEWABLE ENERGY PROGRAM. 1. AS USED IN THIS SECTION: (A) "PREVAILING RATE OF WAGES" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED IN PARAGRAPH A OF SUBDIVISION FIVE OF SECTION TWO HUNDRED TWENTY OF THE LABOR LAW; AND (B) "RENEWABLE ENERGY SYSTEMS" MEANS SYSTEMS THAT GENERATE ELECTRICITY OR THERMAL ENERGY THROUGH USE OF THE FOLLOWING TECHNOLOGIES: SOLAR THER- MAL, PHOTOVOLTAICS, WIND, HYDROELECTRIC, GEOTHERMAL ELECTRIC, GEOTHERMAL GROUND SOURCE HEAT, TIDAL ENERGY, WAVE ENERGY, OCEAN THERMAL, OFFSHORE WIND AND FUEL CELLS WHICH DO NOT UTILIZE A FOSSIL FUEL RESOURCE IN THE PROCESS OF GENERATING ELECTRICITY. 2. NO LATER THAN JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE AUTHORITY SHALL ESTABLISH A PROGRAM TO REQUIRE THAT A MINIMUM OF FIFTY PERCENT OF THE ELECTRIC CAPACITY SERVED BY THE AUTHORITY IN TWO THOUSAND THIRTY SHALL BE GENERATED BY RENEWABLE ENERGY SYSTEMS. THE PROPOSED PROGRAM SHALL FIRST BE MADE AVAILABLE TO THE PUBLIC, WITH NOTICE AND OPPORTUNITY FOR COMMENT, BEFORE FINAL ADOPTION BY THE BOARD. (A) THE PROGRAM SHALL ACHIEVE THE FOLLOWING INCREMENTAL MINIMUM PERCENTAGE CAPACITY LEVELS OF RENEWABLE ENERGY SYSTEMS: (I) TWENTY-SEVEN PERCENT BY TWO THOUSAND EIGHTEEN; (II) THIRTY PERCENT BY TWO THOUSAND TWENTY; (III) FORTY PERCENT BY TWO THOUSAND TWENTY-FIVE; AND (IV) FIFTY PERCENT BY TWO THOUSAND THIRTY. (B) THE PROGRAM ESTABLISHED BY THE AUTHORITY SHALL BE DESIGNED TO: (I) BE COST-EFFECTIVE; (II) ENCOURAGE THE DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS AT THE BULK ELECTRIC SYSTEM LEVEL AND BEHIND-THE-METER; (III) ALLOW FOR DIVERSITY IN THE SIZE AND GEOGRAPHIC LOCATION OF RENEWABLE ENERGY SYSTEMS; (IV) ENABLE THE PARTICIPATION OF RESIDENTIAL AND NON-RE- SIDENTIAL CUSTOMERS, INCLUDING SPECIAL CONSIDERATION TO LOW-TO-MODERATE INCOME CUSTOMERS; (V) ENSURE THAT RENEWABLE ENERGY SYSTEMS WILL BE STRA- TEGICALLY LOCATED TO MINIMIZE PEAK LOAD IN CONSTRAINED AREAS; (VI) SUPPORT ELECTRIC SYSTEM RELIABILITY AND SECURITY; AND (VII) ACHIEVE ANY OTHER OBJECTIVES THE AUTHORITY MAY ESTABLISH. (C) IN DEVELOPING INCENTIVES FOR THE PROGRAM, THE AUTHORITY SHALL CONSIDER THE VALUE OF RENEWABLE ENERGY SYSTEM COMPONENTS MANUFACTURED AND ASSEMBLED WITHIN THE STATE AND ANY OTHER CONSIDERATIONS DEEMED APPROPRIATE BY THE AUTHORITY. A. 3008--B 92 3. NO LATER THAN JULY FIRST, TWO THOUSAND EIGHTEEN, AND EVERY TWO YEARS THEREAFTER, THE AUTHORITY SHALL, AFTER NOTICE AND PROVISION FOR THE OPPORTUNITY TO COMMENT, ISSUE A COMPREHENSIVE REVIEW OF THE PROGRAM ESTABLISHED PURSUANT TO THIS SECTION. THE AUTHORITY SHALL DETERMINE, AMONG OTHER MATTERS: (A) PROGRESS IN MEETING ITS MINIMUM CAPACITY LEVELS FOR DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS; (B) DISTRIBUTION OF SYSTEMS BY SIZE AND LOAD ZONE; AND (C) ANNUAL INCENTIVE COMMITMENTS AND EXPENDI- TURES. THE AUTHORITY SHALL EVALUATE THE REASONABLENESS OF THE FUTURE MINIMUM CAPACITY LEVELS ESTABLISHED PURSUANT TO PARAGRAPH (A) OF SUBDI- VISION TWO OF THIS SECTION AND DETERMINE WHETHER THE MINIMUM CAPACITY LEVELS SHOULD BE ACCELERATED, INCREASED OR EXTENDED. THE AUTHORITY SHALL ALSO REVIEW THE INCENTIVE STRUCTURES AND MAKE ADJUSTMENTS AS NECESSARY IN A MANNER THAT IS COST-EFFECTIVE. 4. THE AUTHORITY MAY SUSPEND OR TERMINATE THE PROGRAM ESTABLISHED UNDER THIS SECTION AFTER A FINDING THAT THERE IS A SIGNIFICANT INCREASE IN ARREARS OR UTILITY SERVICE DISCONNECTIONS THAT THE AUTHORITY DETER- MINES IS RELATED TO THE PROGRAM OR THAT THE PROGRAM IMPEDES THE AUTHORI- TY'S DUTY TO OBTAIN AND MAINTAIN A CONTINUOUS AND ADEQUATE SUPPLY OF DEPENDABLE ELECTRIC POWER AND ENERGY. 5. EVERY CONTRACTOR EMPLOYED PURSUANT TO THIS SECTION, NOT OTHERWISE REQUIRED TO PAY LABORERS, WORKERS OR MECHANICS THE PREVAILING RATE OF WAGES PURSUANT TO ARTICLE EIGHT OF THE LABOR LAW, SHALL PAY EMPLOYEES UNDER CONTRACT FOR THE DEVELOPMENT OF RENEWABLE ENERGY SYSTEMS RATED AT TWO HUNDRED FIFTY KILOWATTS OR MORE, A WAGE OF NOT LESS THAN THE PREVAILING RATE OF WAGES FOR SUCH WORK IN THE LOCALITY WHERE SUCH INSTALLATION OCCURS. THIS REQUIREMENT SHALL BE IN EFFECT FOR THE DURA- TION OF THE RECEIPT BY THE CONTRACTOR OF THE INCENTIVES ESTABLISHED PURSUANT TO THIS SECTION AND IN NO EVENT SHALL SUCH REQUIREMENT EXTEND BEYOND THE AVAILABILITY OF SUCH INCENTIVES. EVERY CONTRACTOR SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION SHALL MAINTAIN PAYROLL RECORDS IN ACCORDANCE WITH SECTION TWO HUNDRED TWENTY OF THE LABOR LAW. § 7. The labor law is amended by adding a new article 8-B to read as follows: ARTICLE 8-B LABOR AND JOB STANDARDS AND WORKER PROTECTION SECTION 228. LABOR AND JOB STANDARDS AND WORKER PROTECTION. § 228. LABOR AND JOB STANDARDS AND WORKER PROTECTION. 1. ALL STATE AGENCIES INVOLVED IN IMPLEMENTING THE NEW YORK STATE CLIMATE AND COMMU- NITY PROTECTION ACT SHALL ASSESS AND IMPLEMENT STRATEGIES TO INCREASE EMPLOYMENT OPPORTUNITIES AND IMPROVE JOB QUALITY. WITHIN ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, ALL STATE AGENCIES, OFFICES, AUTHORITIES, AND DIVISIONS SHALL REPORT TO THE LEGISLATURE ON: A. STEPS THEY WILL TAKE TO ENSURE COMPLIANCE WITH THIS SECTION; AND B. REGULATIONS NECESSARY TO ENSURE THAT THEY PRIORITIZE THE STATEWIDE GOAL OF CREATING GOOD JOBS AND INCREASING EMPLOYMENT OPPORTUNITIES. 2. IN CONSIDERING AND ISSUING PERMITS, LICENSES, REGULATIONS, CONTRACTS, AND OTHER ADMINISTRATIVE APPROVALS AND DECISIONS PURSUANT TO THE NEW YORK STATE CLIMATE AND COMMUNITY PROTECTION ACT, ALL STATE AGEN- CIES, OFFICES, AUTHORITIES, AND DIVISIONS SHALL APPLY THE FOLLOWING LABOR, TRAINING, AND JOB QUALITY STANDARDS TO THE FOLLOWING PROJECT TYPES: PUBLIC WORK; PROJECTS IN RECEIPT OF MORE THAN ONE HUNDRED THOU- SAND DOLLARS IN TOTAL FINANCIAL ASSISTANCE; OR TO PROJECTS WITH A TOTAL VALUE OF MORE THAN TEN MILLION DOLLARS; AND PRIVATELY-FINANCED PROJECTS ON PUBLIC PROPERTY. A. THE PAYMENT OF NO LESS THAN PREVAILING WAGES FOR ALL EMPLOYEES IN CONSTRUCTION AND BUILDING, CONSISTENT WITH ARTICLE EIGHT OF THE THIS A. 3008--B 93 CHAPTER, AND BUILDING SERVICES, CONSISTENT WITH ARTICLE NINE OF THIS CHAPTER; B. THE INCLUSION OF CONTRACT LANGUAGE REQUIRING CONTRACTORS TO ESTAB- LISH LABOR HARMONY POLICIES; DISPUTE RESOLUTION MECHANISMS; PREVAILING WAGE COMPLIANCE; SAFETY POLICIES; WORKERS COMPENSATION INSURANCE (INCLUDING REVIEW OF CONTRACTOR EXPERIENCE RATING AND OTHER FACTORS); AND APPRENTICESHIP PROGRAM APPROPRIATE FOR CRAFTS EMPLOYED. PROCUREMENT RULES SHOULD ENCOURAGE BUNDLING OF SMALL CONTRACTS AND PROJECTS TO IMPROVE THE EFFICIENCY OF COMPLIANCE; C. APPRENTICESHIP UTILIZATION: I. THAT ALL CONTRACTORS AND SUBCONTRACTORS, INCLUDING THOSE THAT PARTICIPATE IN POWER PURCHASE AGREEMENTS, ENERGY PERFORMANCE CONTRACTS, OR OTHER SIMILAR PROGRAMS, PARTICIPATE IN APPRENTICESHIP PROGRAMS IN THE TRADES IN WHICH THEY ARE PERFORMING WORK; II. MAXIMUM USE OF APPRENTICES AS PER DEPARTMENT OF LABOR APPROVED RATIOS; III. ENCOURAGEMENT OF AFFILIATED PRE-APPRENTICE DIRECT ENTRY PROGRAMS, INCLUDING BUT NOT LIMITED TO EJM CONSTRUCTION SKILLS; NYC HELMETS TO HARDHATS, AND NONTRADITIONAL EMPLOYMENT FOR WOMEN (NEW) FOR THE RECRUIT- MENT OF LOCAL AND/OR DISADVANTAGED WORKERS; IV. EXISTING WORKFORCE DEVELOPMENT PROGRAMS, INCLUDING THOSE AT THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SHOULD BE MADE TO CONFORM TO THESE STANDARDS. 3. THE COMMISSIONER, THE FISCAL OFFICER AND OTHER RELEVANT AGENCIES SHALL PROMULGATE SUCH REGULATIONS AS ARE NECESSARY TO IMPLEMENT AND ADMINISTER COMPLIANCE WITH THE PROVISIONS OF THIS SECTION. THE DEPART- MENT AND THE FISCAL OFFICER SHALL COORDINATE WITH ORGANIZED LABOR AND LOCAL AND COUNTY LEVEL GOVERNMENTS TO IMPLEMENT A SYSTEM TO TRACK COMPLIANCE, ACCEPT REPORTS OF NON-COMPLIANCE FOR ENFORCEMENT ACTION, AND REPORT ANNUALLY ON THE ADOPTION OF THESE STANDARDS TO THE LEGISLATURE STARTING ONE YEAR FROM THE EFFECTIVE DATE OF THIS SECTION. A. FOR THE PURPOSES OF THIS SECTION, "FISCAL OFFICER" SHALL MEAN THE INDUSTRIAL COMMISSIONER, EXCEPT FOR CONSTRUCTION AND BUILDING SERVICE WORK PERFORMED BY OR ON BEHALF OF A CITY, IN WHICH CASE "FISCAL OFFICER" SHALL MEAN THE COMPTROLLER OR OTHER ANALOGOUS OFFICER OF SUCH CITY. B. THE PROVISIONS OF THE CONTRACT BY THE RECIPIENT OF FINANCIAL ASSISTANCE PERTAINING TO PREVAILING WAGES ARE TO BE CONSIDERED A CONTRACT FOR THE BENEFIT OF CONSTRUCTION AND BUILDING SERVICE WORKERS, UPON WHICH SUCH WORKERS SHALL HAVE THE RIGHT TO MAINTAIN ACTION FOR THE DIFFERENCE BETWEEN THE PREVAILING WAGE RATE OF PAY, BENEFITS, AND PAID LEAVE AND THE RATES OF PAY, BENEFITS, AND PAID LEAVE ACTUALLY RECEIVED BY THEM, AND INCLUDING ATTORNEY'S FEES. C. I. WHERE A RECIPIENT OF FINANCIAL ASSISTANCE CONTRACTS BUILDING SERVICE WORK TO A BUILDING SERVICE CONTRACTOR, THE CONTRACTOR IS HELD TO THE SAME OBLIGATIONS WITH RESPECT TO PREVAILING WAGES AS THE RECIPIENT. THE RECIPIENT MUST INCLUDE TERMS ESTABLISHING THIS OBLIGATION WITHIN ANY CONTRACT SIGNED WITH A CONTRACTOR. II. WHERE A RECIPIENT OF FINANCIAL ASSISTANCE CONTRACTS FOR CONSTRUCTION, EXCAVATION, DEMOLITION, REHABILITATION, REPAIR, RENO- VATION, ALTERATION OR IMPROVEMENT TO A SUBCONTRACTOR, THE SUBCONTRACTOR IS HELD TO THE SAME OBLIGATIONS WITH RESPECT TO PREVAILING WAGES AS THE RECIPIENT. THE RECIPIENT MUST INCLUDE TERMS ESTABLISHING THIS OBLIGATION WITHIN ANY CONTRACT SIGNED WITH A SUBCONTRACTOR. 4. FOR THE PURPOSES OF THIS SECTION "FINANCIAL ASSISTANCE" MEANS ANY PROVISION OF PUBLIC FUNDS TO ANY PERSON, INDIVIDUAL, PROPRIETORSHIP, PARTNERSHIP, JOINT VENTURE, CORPORATION, LIMITED LIABILITY COMPANY, A. 3008--B 94 TRUST, ASSOCIATION, ORGANIZATION, OR OTHER ENTITY THAT RECEIVES FINAN- CIAL ASSISTANCE, OR ANY ASSIGNEE OR SUCCESSOR IN INTEREST OF REAL PROP- ERTY IMPROVED OR DEVELOPED WITH FINANCIAL ASSISTANCE, FOR ECONOMIC DEVELOPMENT WITHIN THE STATE, INCLUDING BUT NOT LIMITED TO CASH PAYMENTS OR GRANTS, BOND FINANCING, TAX ABATEMENTS OR EXEMPTIONS, INCLUDING BUT NOT LIMITED TO ABATEMENTS OR EXEMPTIONS FROM REAL PROPERTY, MORTGAGE RECORDING, SALES, AND USE TAXES, OR THE DIFFERENCE BETWEEN ANY PAYMENTS IN LIEU OF TAXES AND THE AMOUNT OF REAL PROPERTY OR OTHER TAXES THAT WOULD HAVE BEEN DUE IF THE PROPERTY WERE NOT EXEMPTED FROM SUCH TAXES, TAX INCREMENT FINANCING, FILING FEE WAIVERS, ENERGY COST REDUCTIONS, ENVIRONMENTAL REMEDIATION COSTS, WRITE-DOWNS IN THE MARKET VALUE OF BUILDINGS OR LAND, OR THE COST OF CAPITAL IMPROVEMENTS RELATED TO REAL PROPERTY FOR WHICH THE STATE WOULD NOT PAY ABSENT THE DEVELOPMENT PROJECT, AND INCLUDES BOTH DISCRETIONARY AND AS OF RIGHT ASSISTANCE. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO PROJECTS RECEIVING MORE THAN ONE HUNDRED THOUSAND DOLLARS IN TOTAL FINANCIAL ASSISTANCE, OR TO PROJECTS WITH A TOTAL PROJECT VALUE OF MORE THAN TEN MILLION DOLLARS. 5. THE COMMISSIONER SHALL EVALUATE WHETHER THERE ARE ADDITIONAL STAND- ARDS THAT COULD BE APPLIED TO INCREASE WAGE AND BENEFIT STANDARDS OR TO ENCOURAGE A SAFE, WELL-TRAINED, AND ADEQUATELY COMPENSATED WORKFORCE. 6. NOTHING SET FORTH IN THIS SECTION SHALL BE CONSTRUED TO IMPEDE, INFRINGE, OR DIMINISH THE RIGHTS AND BENEFITS WHICH ACCRUE TO EMPLOYEES THROUGH BONA FIDE COLLECTIVE BARGAINING AGREEMENTS, OR OTHERWISE DIMIN- ISH THE INTEGRITY OF THE EXISTING COLLECTIVE BARGAINING RELATIONSHIP. 7. NOTHING SET FORTH IN THIS SECTION SHALL PRECLUDE A LOCAL GOVERNMENT FROM SETTING ADDITIONAL STANDARDS THAT EXPAND ON THESE STATE-WIDE STAND- ARDS. § 8. Report on barriers to, and opportunities for, community ownership of services and commodities in disadvantaged communities. 1. On or before two years of the effective date of this act, the department of environmental conservation, with input from relevant state agencies, the environmental justice advisory group as defined in section 75-0101 of the environmental conservation law, the disadvantaged communities work- ing group as defined in section 75-0113 of the environmental conserva- tion law and Climate Action Council established in article 75 of the environmental conservation law, and following at least two public hear- ings, shall prepare a report on barriers to, and opportunities for, access to or community ownership of the following services and commod- ities in disadvantaged communities as identified in article 75 of the environmental conservation law: a. Distributed renewable energy generation. b. Energy efficiency and weatherization investments. c. Zero-emission and low-emission transportation options. d. Adaptation measures to improve the resilience of homes and local infrastructure to the impacts of climate change including but not limit- ed to microgrids. e. Other services and infrastructure that can reduce the risks associ- ated with climate-related hazards, including but not limited to: i. Shelters and cool rooms during extreme heat events; ii. Shelters during flooding events; and iii. Medical treatment for asthma and other conditions that could be exacerbated by climate-related events. 2. The report, which shall be submitted to the governor, the speaker of the assembly and the temporary president of the senate and posted on the department of environmental conservation website, shall include A. 3008--B 95 recommendations on how to increase access to the services and commod- ities. 3. The department of environmental conservation shall amend the scop- ing plan for statewide greenhouse gas emissions reductions in accordance with the recommendations included in the report. § 9. Climate change actions by state agencies. 1. All state agencies shall assess and implement strategies to reduce their greenhouse gas emissions. 2. In considering and issuing permits, licenses, and other administra- tive approvals and decisions, including but not limited to the execution of grants, loans, and contracts, all state agencies, offices, authori- ties, and divisions shall consider whether such decisions are inconsist- ent with or will interfere with the attainment of the statewide green- house gas emissions limits established in article 75 of the environmental conservation law. Where such decisions are deemed to be inconsistent with or will interfere with the attainment of the statewide greenhouse gas emissions limits, each agency, office, authority, or division shall, provide a detailed statement of justification as to why such limits/criteria may not be met, and, to the maximum extent practi- cable, identify alternatives or greenhouse gas mitigation measures to be required where such project is located. 3. In considering and issuing permits, licenses, and other administra- tive approvals and decisions, including but not limited to the execution of grants, loans, and contracts, pursuant to article 75 of the environ- mental conservation law, all state agencies, offices, authorities, and divisions shall not disproportionately burden disadvantaged communities as identified pursuant to subdivision 7 of section 75-0101 of the envi- ronmental conservation law. All state agencies, offices, authorities, and divisions shall also prioritize reductions of greenhouse gas emis- sions and co-pollutants in disadvantaged communities as identified pursuant to such subdivision 7 of section 75-0101 of the environmental conservation law. § 10. Authorization for other state agencies to promulgate greenhouse gas emissions regulations. 1. The public service commission, the New York State energy research and development authority, the department of health, the department of transportation, the department of state, the department of economic development, the department of agriculture and markets, the department of financial services, the office of general services, the division of housing and community renewal, the public utility authorities established pursuant to titles 1, 1-A, 1-B, 11, 11-A, 11-B, 11-C and 11-D of article 5 of the public authorities law and any other state agency may promulgate regulations to contribute to achieving the statewide greenhouse gas emissions limits established in article 75 of the environmental conservation law. Provided, however, any such regulations shall not limit the department of environmental conser- vation's authority to regulate and control greenhouse gas emissions pursuant to article 75 of the environmental conservation law. § 11. Chapter 355 of the laws of 2014, constituting the "community risk and resiliency act", is amended by adding two new sections 17-a and 17-b to read as follows: § 17-A. THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL TAKE ACTIONS TO PROMOTE ADAPTATION AND RESILIENCE, INCLUDING: (A) ACTIONS TO HELP STATE AGENCIES AND OTHER ENTITIES ASSESS THE REASONABLY FORESEEABLE RISKS OF CLIMATE CHANGE ON ANY PROPOSED PROJECTS, TAKING INTO ACCOUNT ISSUES SUCH AS: SEA LEVEL RISE, TROPICAL AND EXTRA- TROPICAL CYCLONES, STORM SURGES, FLOODING, WIND, CHANGES IN AVERAGE AND A. 3008--B 96 PEAK TEMPERATURES, CHANGES IN AVERAGE AND PEAK PRECIPITATION, PUBLIC HEALTH IMPACTS, AND IMPACTS ON SPECIES AND OTHER NATURAL RESOURCES. (B) THE MOST SIGNIFICANT CLIMATE-RELATED RISKS, TAKING INTO ACCOUNT THE PROBABILITY OF OCCURRENCE, THE MAGNITUDE OF THE POTENTIAL HARM, AND THE UNCERTAINTY OF THE RISK. (C) MEASURES THAT COULD MITIGATE SIGNIFICANT CLIMATE-RELATED RISKS, AS WELL AS A COST-BENEFIT ANALYSIS AND IMPLEMENTATION OF SUCH MEASURES. § 17-B. MAJOR PERMITS FOR THE REGULATORY PROGRAMS OF SUBDIVISION THREE OF SECTION 70-0107 OF THE ENVIRONMENTAL CONSERVATION LAW SHALL REQUIRE APPLICANTS TO DEMONSTRATE THAT FUTURE PHYSICAL CLIMATE RISK HAS BEEN CONSIDERED. IN REVIEWING SUCH INFORMATION THE DEPARTMENT MAY REQUIRE THE APPLICANT TO MITIGATE SIGNIFICANT RISKS TO PUBLIC INFRASTRUCTURE AND/OR SERVICES, PRIVATE PROPERTY NOT OWNED BY THE APPLICANT, ADVERSE IMPACTS ON DISADVANTAGED COMMUNITIES, AND/OR NATURAL RESOURCES IN THE VICINITY OF THE PROJECT. § 12. Nothing in this act shall limit the existing authority of a state entity to adopt and implement greenhouse gas emissions reduction measures. § 13. Nothing in this act shall relieve any person, entity, or public agency of compliance with other applicable federal, state, or local laws or regulations, including state air and water quality requirements, and other requirements for protecting public health or the environment. § 14. Severability. If any word, phrase, clause, sentence, paragraph, section, or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgement shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the word, phrase, clause, sentence, paragraph, section, or part ther- eof directly involved in the controversy in which such judgement shall have been rendered. § 15. This act shall take effect on the same date and in the same manner as a chapter of the laws of 2017, amending the environmental conservation law, relating to establishing a permanent environmental justice advisory group and an environmental justice interagency coordi- nating council, as proposed in legislative bills numbers A.2234 and S.3110, takes effect; provided further, the provisions of section seven of this act shall take effect on the one hundred eightieth day after it shall have become a law and shall apply to any grants, loans, and contracts and financial assistance awarded or renewed on or after such effective date. PART YY Section 1. Section 33-0705 of the environmental conservation law, as amended by section 1 of part H of chapter 57 of the laws of 2014, is amended to read as follows: § 33-0705. Fee for registration. The applicant for registration shall pay a fee as follows: a. On or before July 1, [2017] 2020, six hundred dollars for each pesticide proposed to be registered, provided that the applicant has submitted to the department proof in the form of a federal income tax return for the previous year showing gross annual sales, for federal income tax purposes, of three million five hundred thousand dollars or less; b. On or before July 1, [2017] 2020, for all others, six hundred twen- ty dollars for each pesticide proposed to be registered; A. 3008--B 97 c. After July 1, [2017] 2020, fifty dollars for each pesticide proposed to be registered. § 2. Section 9 of chapter 67 of the laws of 1992, amending the envi- ronmental conservation law relating to pesticide product registration timetables and fees, as amended by section 2 of part H of chapter 57 of the laws of 2014, is amended to read as follows: § 9. This act shall take effect April 1, 1992 provided, however, that section three of this act shall take effect July 1, 1993 and shall expire and be deemed repealed on July 1, [2017] 2020. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART ZZ Section 1. 1. The metropolitan transportation authority (MTA) shall produce an alternatives analysis for the construction of a light rail system along the west shore of Staten Island. The MTA shall submit such analysis, no later than June 30, 2017, to the governor, the temporary president of the senate and the speaker of the assembly. 2. For purposes of this act, the term "metropolitan transportation authority" or "MTA" shall mean the corporation created by section 1263 of the public authorities law. § 2. This act shall take effect immediately. PART AAA Section 1. 1. The metropolitan transportation authority (MTA) shall develop and implement a toll rebate plan for the Cross Bay Veterans Memorial Bridge. The toll rebate shall fully reimburse any toll paid by any student, parent or guardian of a student attending school in commu- nity school district 27 who utilizes the Cross Bay Veterans Memorial Bridge for purposes of transporting students to and from school. The toll rebate shall fully reimburse any toll paid by any employee of a school in community school district 27 who utilizes the Cross Bay Veter- ans Memorial Bridge for purposes of employment in said school district. 2. For purposes of this act, the term "metropolitan transportation authority" or "MTA" shall mean the corporation created by section 1263 of the public authorities law. § 2. This act shall take effect on the ninetieth day after it shall have become a law. PART BBB Section 1. 1. Notwithstanding any other law, rule, regulation or order, no zero-emission credits shall be purchased nor shall any costs associated with such credits be recovered or transferred by any entity subject to the order of the New York public service commission, issued August 1, 2016 in cases 15-E-0302 and 16-E-0270, establishing a zero-em- ission credit ("ZEC") requirement, until the interim chairperson or chairperson of the New York public service commission and the president of the New York state energy research and development authority appear before a joint public hearing of the senate and assembly to testify and answer questions related to, but not limited to, the following: (a) the public purpose for the ZEC, including, but not limited, to the impacts on local economies; A. 3008--B 98 (b) the methodology used to determine the necessity and pricing of the ZEC; (c) the determination to allow load serving entities to recover ZEC costs from all ratepayers; (d) the disproportionate impact of the ZEC on low and fixed income ratepayers; (e) all benefits, financial and otherwise, received by the Fitzpa- trick, Ginna and Nine Mile Point generating facilities in association with reforming the energy vision program; (f) the consumer cost of the ZEC, throughout the compliance period of twelve years; (g) all burdens, financial and mechanical, imposed on load serving entities and ratepayers; (h) a description of the steps taken to promote public participation and transparency prior to the approval of the order; and (i) the reasons for the proportional share purchase requirements for load serving entities. 2. Such interim chairperson or chairperson and president shall be required to appear before such joint public hearing of the senate and assembly held pursuant to subdivision one of this section no later than thirty days after the effective date of this act. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through BBB of this act shall be as specifically set forth in the last section of such Parts.
2017-A3008C (ACTIVE) - Details
- See Senate Version of this Bill:
- S2008
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3008C (ACTIVE) - Summary
Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year; increases certain motor vehicle transaction fees (Part A); relates to divisible load permits; provides that after December thirty-first, two thousand sixteen, no more than twenty-seven thousand power units shall be issued annual permits by the department of motor vehicles for any twelve-month period (Part B)
2017-A3008C (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 2008--C A. 3008--C S E N A T E - A S S E M B L Y January 23, 2017 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee AN ACT to amend chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increasing certain motor vehi- cle transaction fees, in relation to the disposition of revenues (Part A); to amend the vehicle and traffic law, in relation to divisible load permits (Part B); intentionally omitted (Part C); to amend the vehicle and traffic law, in relation to compliance with new federal regulations (Part D); to amend the vehicle and traffic law, in relation to reciprocal agreements concerning suspension or revocation of registration of a motor vehicle for violations of toll collection regulations (Part E); intentionally omitted (Part F); intentionally omitted (Part G); to amend the vehicle and traffic law, in relation to the waiver of non-driver identification card fees for crime victims (Part H); to amend the vehicle and traffic law, in relation to the reinstatement fee for non-residents (Part I); intentionally omitted (Part J); intentionally omitted (Part K); intentionally omitted (Part L); to amend the New York state urban development corporation act, in relation to extending certain provisions relating to the empire state economic development fund (Part M); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD12573-07-7 S. 2008--C 2 A. 3008--C corporation to make loans, in relation to the effectiveness thereof (Part N); intentionally omitted (Part O); intentionally omitted (Part P); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corpo- rations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part Q); inten- tionally omitted (Part R); to amend the real property law, in relation to streamlining the licensing process for real estate professionals (Part S); to amend the environmental conservation law and the execu- tive law, in relation to local waterfront revitalization (Part T); intentionally omitted (Part U); authorizing utility and cable tele- vision assessments to provide funds to the department of health from cable television assessment revenues and to the departments of agri- culture and markets, environmental conservation, office of parks, recreation and historic preservation, and state from utility assess- ment revenues; and providing for the repeal of such provisions upon expiration thereof (Part V); to amend chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormi- tory authority to enter into certain design and construction manage- ment agreements, in relation to extending the effectiveness of such authorization (Part W); intentionally omitted (Part X); intentionally omitted (Part Y); intentionally omitted (Part Z); intentionally omit- ted (Part AA); intentionally omitted (Part BB); intentionally omitted (Part CC); intentionally omitted (Part DD); intentionally omitted (Part EE); to amend the real property actions and proceedings law and the civil practice law and rules, in relation to reverse mortgages (Part FF); intentionally omitted (Part GG); to amend the navigation law, in relation to establishing the New York environmental protection and spill remediation account (Part HH); intentionally omitted (Part II); to amend the state finance law and the environmental conservation law, in relation to environmental protection fund deposits and trans- fers; and to amend part F of chapter 58 of the laws of 2013 amending the environmental conservation law and the state finance law relating to the "Cleaner, Greener NY Act of 2013", in relation to extending the effectiveness thereof (Part JJ); intentionally omitted (Part KK); to amend the public authorities law and the public officers law, in relation to the sharing of employees, services and resources by the power authority of the state of New York, canal corporation and department of transportation (Part LL); to authorize the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, and Fuel NY programs, as well as the department of environmental conservation's climate change program and the department of agriculture and markets' Fuel NY program, from an assessment on gas and electric corporations (Part MM); to amend chapter 495 of the laws of 2004 amending the insurance law and the public health law relating to the New York state health insurance continuation assistance demonstration project, in relation to the effectiveness thereof (Part NN); to amend the agricul- ture and markets law, in relation to increasing the number of sites authorized for the growing or cultivating of industrial hemp as part of agricultural pilot programs (Part OO); to amend the public authori- ties law, in relation to the definition of transportation purpose (Part PP); to amend subpart H of part C of chapter 20 of the laws of 2015, appropriating money for certain municipal corporations and school districts, in relation to funding to local government entities S. 2008--C 3 A. 3008--C from the urban development corporation (Part QQ); establishing the Indian Point closure task force and providing for the repeal of such provisions upon expiration thereof (Part RR); to amend the environ- mental conservation law, in relation to pesticide registration time frames and fees; and to amend chapter 67 of the laws of 1992, amending the environmental conservation law relating to pesticide product registration timetables and fees, in relation to the effectiveness thereof (Part SS); to amend the New York state urban development corporation act, in relation to the life sciences initiatives program (Part TT); and to amend the environmental conservation law, in relation to retrofit technology for diesel-fueled vehicles (Part UU) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2017-2018 state fiscal year. Each component is wholly contained within a Part identified as Parts A through UU. 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. Section 13 of part U1 of chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increas- ing certain motor vehicle transaction fees, as amended by section 1 of part A of chapter 58 of the laws of 2015, is amended to read as follows: § 13. This act shall take effect immediately; provided however that sections one through seven of this act, the amendments to subdivision 2 of section 205 of the tax law made by section eight of this act, and section nine of this act shall expire and be deemed repealed on April 1, 2020; [provided further, however, that the amendments to subdivision 3 of section 205 of the tax law made by section eight of this act shall expire and be deemed repealed on March 31, 2018;] provided further, however, that the provisions of section eleven of this act shall take effect April 1, 2004 and shall expire and be deemed repealed on April 1, 2020. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART B Section 1. The sixth undesignated paragraph of paragraph (f) of subdi- vision 15 of section 385 of the vehicle and traffic law, as amended by section 4 of part C of chapter 59 of the laws of 2004, is amended to read as follows: Until June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand power units shall be issued annual permits by the department for any twelve-month period in accordance with this para- S. 2008--C 4 A. 3008--C graph. After June thirtieth, nineteen hundred ninety-four, no more than sixteen thousand five hundred power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, nineteen hundred ninety-five, no more than seventeen thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand three, no more than twenty-one thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty- first, two thousand five, no more than twenty-two thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand six, no more than twenty-three thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand seven, no more than twenty-four thousand power units shall be issued annual permits by the department for any twelve-month period. After December thirty-first, two thousand eight, no more than twenty- five thousand power units shall be issued annual permits by the depart- ment for any twelve-month period. AFTER DECEMBER THIRTY-FIRST, TWO THOU- SAND SIXTEEN, NO MORE THAN TWENTY-SEVEN THOUSAND POWER UNITS SHALL BE ISSUED ANNUAL PERMITS BY THE DEPARTMENT FOR ANY TWELVE-MONTH PERIOD. § 2. This act shall take effect immediately. PART C Intentionally Omitted PART D Section 1. Intentionally omitted. § 2. Subparagraphs 5 and 6 of paragraph (b) of subdivision 4 of section 385 of the vehicle and traffic law, subparagraph 5 as amended by chapter 669 of the laws of 2005, and subparagraph 6 as amended by chap- ter 26 of the laws of 2002, are amended and a new subparagraph 7 is added to read as follows: 5. A vehicle or combination of vehicles which is disabled and unable to proceed under its own power and is being towed for a distance not in excess of ten miles for the purpose of repairs or removal from the high- way, except that the distance to the nearest exit of a controlled-access highway shall not be considered in determining such ten mile distance; [and] 6. Stinger-steered automobile transporters or stinger-steered boat transporters, while operating on qualifying and access highways. [Such vehicles] STINGER-STEERED BOAT TRANSPORTERS shall not, however, exceed seventy-five feet exclusive of an overhang of not more than three feet on the front and four feet on the rear of the vehicle[.] AND STINGER- STEERED AUTOMOBILE TRANSPORTERS SHALL NOT EXCEED EIGHTY FEET EXCLUSIVE OF AN OVERHANG OF NOT MORE THAN FOUR FEET ON THE FRONT AND SIX FEET ON THE REAR OF THE VEHICLE; AND 7. A COMBINATION OF VEHICLES OPERATING ON ANY QUALIFYING OR ACCESS HIGHWAYS CONSISTING OF A POWER UNIT AND TWO TRAILERS OR SEMITRAILERS WITH A TOTAL WEIGHT THAT SHALL NOT EXCEED TWENTY-SIX THOUSAND POUNDS WHEN THE OVERALL LENGTH IS GREATER THAN SIXTY-FIVE FEET BUT SHALL NOT EXCEED EIGHTY-TWO FEET IN WHICH THE TRAILERS OR SEMITRAILERS CARRY NO PROPERTY AND CONSTITUTE INVENTORY PROPERTY OF A MANUFACTURER, DISTRIBU- TOR, OR DEALER OF SUCH TRAILERS OR SEMITRAILERS. S. 2008--C 5 A. 3008--C § 3. Paragraph (c) of subdivision 4 of section 385 of the vehicle and traffic law, as amended by chapter 26 of the laws of 2002, is amended to read as follows: (c) Notwithstanding the provisions of paragraph (a) of this subdivi- sion, an overhang of not more than three feet on the front and four feet on the rear of an automobile transporter or AN OVERHANG OF NOT MORE THAN FOUR FEET ON THE FRONT AND SIX FEET ON THE REAR OF A stinger-steered automobile transporter or AN OVERHANG OF NOT MORE THAN THREE FEET ON THE FRONT AND FOUR FEET ON THE REAR OF a boat transporter or stinger-steered boat transporter shall be permitted. § 4. Subdivision 10 of section 385 of the vehicle and traffic law, as amended by chapter 1008 of the laws of 1983, is amended to read as follows: 10. A single vehicle or a combination of vehicles having three axles or more and equipped with pneumatic tires, when loaded, may have a total weight on all axles not to exceed thirty-four thousand pounds, plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rear- most axle. Axles to be counted as provided in subdivision five of this section. In no case, however, shall the total weight exceed eighty thou- sand pounds EXCEPT FOR A VEHICLE IF OPERATED BY AN ENGINE FUELED PRIMA- RILY BY NATURAL GAS WHICH MAY HAVE A MAXIMUM GROSS WEIGHT OF UP TO EIGHTY-TWO THOUSAND POUNDS. For any vehicle or combination of vehicles having a total gross weight less than seventy-one thousand pounds, the higher of the following shall apply: (a) the total weight on all axles shall not exceed thirty-four thou- sand pounds plus one thousand pounds for each foot and major fraction of a foot of the distance from the center of the foremost axle to the center of the rearmost axle, or (b) the overall gross weight on a group of two or more consecutive axles shall not exceed the weight produced by application of the follow- ing formula: W = 500 ((LxN)/(N-1) + (12xN)+36) where W equals overall gross weight on any group of two or more consec- utive axles to the nearest five hundred pounds, L equals distance in feet from the center of the foremost axle to the center of the rearmost axle of any group of two or more consecutive axles, and N equals number of axles in group under consideration, except that two consecutive sets of tandem axles may carry a gross load of thirty-four thousand pounds each providing the overall distance between the first and last axles of such consecutive sets of tandem axles is thirty-six feet or more. For any vehicle or combination of vehicles having a total gross weight of seventy-one thousand pounds or greater, paragraph (b) shall apply to determine maximum gross weight which is permitted hereunder. § 5. Section 385 of the vehicle and traffic law is amended by adding a new subdivision 24 to read as follows: 24. THE PROVISIONS OF SUBDIVISIONS SIX, SEVEN, EIGHT, NINE, TEN, ELEV- EN AND TWELVE OF THIS SECTION SHALL NOT APPLY TO ANY TOW TRUCK THAT IS TRANSPORTING A DISABLED VEHICLE FROM THE PLACE WHERE SUCH VEHICLE BECAME DISABLED TO THE NEAREST APPROPRIATE REPAIR FACILITY AND HAS A GROSS VEHICLE WEIGHT THAT IS EQUAL TO OR EXCEEDS THE GROSS VEHICLE WEIGHT OF THE DISABLED VEHICLE BEING TRANSPORTED. § 6. Intentionally omitted. § 7. This act shall take effect immediately. PART E S. 2008--C 6 A. 3008--C Section 1. The vehicle and traffic law is amended by adding a new section 518 to read as follows: § 518. RECIPROCAL AGREEMENTS CONCERNING SUSPENSION OR REVOCATION OF REGISTRATION OF A MOTOR VEHICLE FOR VIOLATIONS OF TOLL COLLECTION REGU- LATIONS. A. THE COMMISSIONER MAY EXECUTE A RECIPROCAL COMPACT OR AGREE- MENT REGARDING TOLL COLLECTION VIOLATIONS WITH THE MOTOR VEHICLE ADMIN- ISTRATOR OR OTHER AUTHORIZED OFFICIAL OF ANOTHER STATE NOT INCONSISTENT WITH THE PROVISIONS OF THIS CHAPTER. SUCH COMPACT OR AGREEMENT SHALL PROVIDE THAT IF A REGISTRATION OF A MOTOR VEHICLE WOULD BE SUSPENDED OR REVOKED PURSUANT TO PARAGRAPH D OF SUBDIVISION THREE OF SECTION FIVE HUNDRED TEN OF THIS CHAPTER, OR PURSUANT TO A COMPARABLE LAW OR REGU- LATION OF ANOTHER STATE, BECAUSE A REGISTRANT OF SUCH MOTOR VEHICLE FAILED TO PAY TOLLS AND RELATED FEES, OR HAVE SUCH TOLLS OR FEES DISMISSED OR TRANSFERRED, THEN THE STATE ISSUING THE REGISTRATION SHALL LIKEWISE SUSPEND OR REVOKE THE REGISTRATION OR BAR RENEWAL OF SUCH REGISTRATION, UNTIL SUCH REGISTRANT HAS PAID SUCH TOLLS AND FEES OR COMPLIED WITH THE RULES AND REGULATIONS OF THE TOLLING AUTHORITY THAT IMPOSED SUCH TOLLS AND FEES. SUCH COMPACT OR AGREEMENT SHALL ALSO PROVIDE THAT NO SUCH ACTION BY A STATE AGAINST A MOTOR VEHICLE REGISTRA- TION SHALL BE TAKEN PURSUANT TO SUCH COMPACT OR AGREEMENT UNLESS THE TOLLING AUTHORITY IN THE OTHER STATE PROVIDES NOTICE, DUE PROCESS, AN OPPORTUNITY TO BE HEARD AND APPEAL PROTECTIONS FOR REGISTRANTS OF MOTOR VEHICLES, AND ALLOWS MOTOR VEHICLE REGISTRANTS IN THIS STATE TO PRESENT EVIDENCE BY MAIL, TELEPHONE, ELECTRONIC MEANS OR OTHER MEANS TO INVOKE RIGHTS OF DUE PROCESS WITHOUT HAVING TO APPEAR PERSONALLY IN THE JURIS- DICTION WHERE THE VIOLATIONS OCCURRED. B. SUCH COMPACT OR AGREEMENT SHALL ALSO PROVIDE SUCH TERMS AND PROCE- DURES AS ARE NECESSARY AND PROPER TO FACILITATE ITS ADMINISTRATION. ANY SUCH COMPACT OR AGREEMENT SHALL SPECIFY THE VIOLATIONS SUBJECT TO THE COMPACT OR AGREEMENT, AND SHALL INCLUDE A DETERMINATION OF COMPARABLE VIOLATIONS IN EACH STATE IF ANY SUCH VIOLATIONS ARE OF A SUBSTANTIALLY SIMILAR NATURE BUT ARE NOT DENOMINATED OR DESCRIBED IN PRECISELY THE SAME WORDS IN EACH PARTY STATE. C. THE WORD "STATE" WHEN USED IN THIS SECTION SHALL MEAN ANY STATE, TERRITORY, A POSSESSION OF THE UNITED STATES, THE DISTRICT OF COLUMBIA OR ANY PROVINCE OF CANADA. § 2. (a) The commissioner of motor vehicles shall, in consultation with the thruway authority, the triborough bridge and tunnel authority, the port authority of New York and New Jersey, and every other public authority which operates a toll highway, bridge and/or tunnel facility in the state of New York, submit a report to the governor, the temporary president of the senate, the speaker of the assembly, the chairs of the senate and assembly transportation committees, and the chairs of the senate and assembly corporations, authorities and commissions committee on reciprocal compacts and agreements entered into pursuant to section 518 of the vehicle and traffic law. Such report shall identify each state with which the commissioner has entered such a reciprocal compact or agreement. Such report shall also include, but not be limited to, the following information: I. The total number of registration suspensions requested, on a quar- terly basis, by other states for registrants of the state of New York, and the total number of registration suspensions requested and imposed, on a quarterly basis, by the state of New York for non-New York regis- trants; II. The number of releases of New York state registrants for toll violations in other states; S. 2008--C 7 A. 3008--C III. The total number of active registration suspensions, on a quar- terly basis, on registrants of the state of New York by other states, and the total number of registration suspensions, on a quarterly basis, on non-residents by the state of New York; IV. The number of suspensions requested due to tolls and related fees imposed by each tolling authority; V. The total number of hearings requested, the total number of hear- ings sustained and the total number not sustained; and, VI. For each tolling authority within the state of New York, the total amount of tolls, and the total amount of related fees, both imposed upon and collected from non-residents. (b) For purposes of this section, the term "state" shall have the same meaning as such term is defined in subdivision c of section 518 of the vehicle and traffic law. § 3. This act shall take effect immediately. PART F Intentionally Omitted PART G Intentionally Omitted PART H Section 1. Section 491 of the vehicle and traffic law is amended by adding a new subdivision 3 to read as follows: 3. WAIVER OF FEE. THE COMMISSIONER MAY WAIVE THE PAYMENT OF FEES REQUIRED BY SUBDIVISION TWO OF THIS SECTION IF THE APPLICANT IS A VICTIM OF A CRIME AND THE IDENTIFICATION CARD APPLIED FOR IS A REPLACEMENT FOR ONE THAT WAS LOST OR DESTROYED AS A RESULT OF THE CRIME. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART I Section 1. Paragraph (i) of subdivision 2 of section 503 of the vehi- cle and traffic law, as amended by chapter 55 of the laws of 1992, is amended to read as follows: (i) A non-resident whose driving privileges have been revoked pursuant to sections five hundred ten, eleven hundred ninety-three and eleven hundred ninety-four of this chapter shall, upon application for rein- statement of such driving privileges, pay to the commissioner of motor vehicles a fee of [twenty-five] ONE HUNDRED dollars. WHEN THE BASIS FOR THE REVOCATION IS A FINDING OF DRIVING AFTER HAVING CONSUMED ALCOHOL PURSUANT TO THE PROVISIONS OF SECTION ELEVEN HUNDRED NINETY-TWO-A OF THIS CHAPTER, THE FEE TO BE PAID TO THE COMMISSIONER SHALL BE ONE HUNDRED DOLLARS. Such fee is not refundable and shall not be returned to the applicant regardless of the action the commissioner may take on such person's application for reinstatement of such driving privileges. § 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. PART J S. 2008--C 8 A. 3008--C Intentionally Omitted PART K Intentionally Omitted PART L Intentionally Omitted PART M Section 1. Subdivision 3 of section 16-m of section 1 of chapter 174 of the laws of 1968 constituting the New York state urban development corporation act, as amended by section 1 of part F of chapter 58 of the laws of 2016, is amended to read as follows: 3. The provisions of this section shall expire, notwithstanding any inconsistent provision of subdivision 4 of section 469 of chapter 309 of the laws of 1996 or of any other law, on July 1, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after July 1, 2017. PART N Section 1. Section 2 of chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, as amended by section 1 of part G of chapter 58 of the laws of 2016, is amended to read as follows: § 2. This act shall take effect immediately provided, however, that section one of this act shall expire on July 1, [2017] 2018, at which time the provisions of subdivision 26 of section 5 of the New York state urban development corporation act shall be deemed repealed; provided, however, that neither the expiration nor the repeal of such subdivision as provided for herein shall be deemed to affect or impair in any manner any loan made pursuant to the authority of such subdivision prior to such expiration and repeal. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART O Intentionally Omitted PART P Intentionally Omitted PART Q Section 1. Section 2 of chapter 21 of the laws of 2003, amending the executive law relating to permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, as amended by section 1 of part M of chapter 58 of the laws of 2016, is amended to read as follows: S. 2008--C 9 A. 3008--C § 2. This act shall take effect immediately, provided however, that section one of this act shall be deemed to have been in full force and effect on and after April 1, 2003 and shall expire March 31, [2017] 2018. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after March 31, 2017. PART R Intentionally Omitted PART S Section 1. Subdivision 1 of section 441-b of the real property law, as amended by chapter 324 of the laws of 1998, is amended to read as follows: 1. The fee for a license issued or reissued under the provisions of this article entitling a person, co-partnership, limited liability company or corporation to act as a real estate broker shall be [one hundred fifty] ONE HUNDRED FIFTY-FIVE dollars. The fee for a license issued or reissued under the provisions of this article entitling a person to act as a real estate salesman shall be [fifty] FIFTY-FIVE dollars. Notwithstanding the provisions of subdivision seven of section four hundred forty-one-a of this article, after January first, nineteen hundred eighty-six, the secretary of state shall assign staggered expi- ration dates for outstanding licenses that have been previously renewed on October thirty-first of each year from the assigned date unless renewed. If the assigned date results in a term that exceeds twenty-four months, the applicant shall pay an additional prorated adjustment together with the regular renewal fee. The secretary of state shall assign dates to existing licenses in a manner which shall result in a term of not less than two years. § 2. This act shall take effect immediately. PART T Section 1. Subdivision 2 of section 54-1101 of the environmental conservation law, as amended by section 4 of part U of chapter 58 of the laws of 2016, is amended to read as follows: 2. State assistance payments and/or technical assistance, as defined in section nine hundred seventeen of the executive law, shall not exceed [fifty] SEVENTY-FIVE percent of the cost of the program PROVIDED, HOWEV- ER, IN ENVIRONMENTAL JUSTICE COMMUNITIES, SUCH ASSISTANCE PAYMENTS AND/OR TECHNICAL ASSISTANCE SHALL NOT EXCEED EIGHTY-FIVE PERCENT OF THE COST OF THE PROGRAM. For the purpose of determining the amount of state assistance payments, costs shall not be more than the amount set forth in the application for state assistance payments approved by the secre- tary. The state assistance payments shall be paid on audit and warrant of the state comptroller on a certificate of availability of the direc- tor of the budget. § 2. The opening paragraph and paragraph a of subdivision 1 of section 918 of the executive law, as added by chapter 840 of the laws of 1981, are amended to read as follows: The secretary may enter into a contract or contracts for grants OR PAYMENTS to be made, within the limits of any appropriations therefor, for the following: S. 2008--C 10 A. 3008--C a. To any local governments, or to two or more local governments, for projects approved by the secretary which lead to preparation of a water- front revitalization program; provided, however, that such grants OR PAYMENTS shall not exceed [fifty] SEVENTY-FIVE percent of the approved cost of such projects PROVIDED, HOWEVER, IN ENVIRONMENTAL JUSTICE COMMU- NITIES, SUCH ASSISTANCE PAYMENTS AND/OR TECHNICAL ASSISTANCE SHALL NOT EXCEED EIGHTY-FIVE PERCENT OF THE COST OF THE PROGRAM; § 3. This act shall take effect immediately. PART U Intentionally Omitted PART V Section 1. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of agriculture and markets from the special revenue funds-other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the department of agriculture and markets' participation in general ratemaking proceedings pursuant to section 65 of the public service law or certif- ication proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the department of agriculture and markets shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 2. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of state from the special revenue funds- other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the activities of the department of state's utility intervention unit pursuant to subdivision 4 of section 94-a of the executive law, including, but not limited to participation in general ratemaking proceedings pursuant to section 65 of the public service law or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the secretary of state shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 3. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the office of parks, recreation and historic preservation from the special revenue funds-other/state operations, miscellaneous special revenue fund-339, public service account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the office of S. 2008--C 11 A. 3008--C parks, recreation and historic preservation's participation in general ratemaking proceedings pursuant to section 65 of the public service law or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the office of parks, recreation and historic preservation shall submit an accounting of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 4. Expenditures of moneys appropriated in a chapter of the laws of 2017 to the department of environmental conservation from the special revenue funds-other/state operations, environmental conservation special revenue fund-301, utility environmental regulation account shall be subject to the provisions of this section. Notwithstanding any other provision of law to the contrary, direct and indirect expenses relating to the department of environmental conservation's participation in state energy policy proceedings, or certification proceedings pursuant to article 7 or 10 of the public service law, shall be deemed expenses of the department of public service within the meaning of section 18-a of the public service law. No later than August 15, 2018, the commissioner of the department of environmental conservation shall submit an account- ing of such expenses, including, but not limited to, expenses in the 2017 -- 2018 fiscal year for personal and non-personal services and fringe benefits, to the chair of the public service commission for the chair's review pursuant to the provisions of section 18-a of the public service law. § 5. Notwithstanding any other law, rule or regulation to the contra- ry, expenses of the department of health public service education program incurred pursuant to appropriations from the cable television account of the state miscellaneous special revenue funds shall be deemed expenses of the department of public service. No later than August 15, 2018, the commissioner of the department of health shall submit an accounting of expenses in the 2017 -- 2018 fiscal year to the chair of the public service commission for the chair's review pursuant to the provisions of section 217 of the public service law. § 6. Any expense deemed to be expenses of the department of public service pursuant to sections one through four of this act shall not be recovered through assessments imposed upon telephone corporations as defined in subdivision 17 of section 2 of the public service law. § 7. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017 and shall be deemed repealed April 1, 2018. PART W Section 1. Section 2 of Part BB of chapter 58 of the laws of 2012, amending the public authorities law relating to authorizing the dormito- ry authority to enter into certain design and construction management agreements, as amended by section 1 of part S of chapter 58 of the laws of 2015, is amended to read as follows: § 2. This act shall take effect immediately and shall expire and be deemed repealed April 1, [2017] 2019. § 2. Within 90 days of the effective date of this act, the dormitory authority of the state of New York shall provide a report providing S. 2008--C 12 A. 3008--C information regarding any project undertaken pursuant to a design and construction management agreement, as authorized by part BB of chapter 58 of the laws of 2012, between the dormitory authority of the state of New York and the department of environmental conservation and/or the office of parks, recreation and historic preservation to the governor, the temporary president of the senate and speaker of the assembly. Such report shall include but not be limited to a description of each such project, the project identification number of each such project, if applicable, the projected date of completion, the status of the project, the total cost or projected cost of each such project, and the location, including the names of any county, town, village or city, where each such project is located or proposed. In addition, such a report shall be provided to the aforementioned parties by the first day of March of each year that the authority to enter into such agreements pursuant to part BB of chapter 58 of the laws of 2012 is in effect. § 3. This act shall take effect immediately and shall be deemed to have been in effect on and after April 1, 2017. PART X Intentionally Omitted PART Y Intentionally Omitted PART Z Intentionally Omitted PART AA Intentionally Omitted PART BB Intentionally Omitted PART CC Intentionally Omitted PART DD Intentionally Omitted PART EE Intentionally Omitted PART FF Section 1. Paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, as amended by section 7 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: S. 2008--C 13 A. 3008--C (b) (1) "Home loan" means a home loan, including an open-end credit plan, [other than a reverse mortgage transaction,] in which: (i) The principal amount of the loan at origination did not exceed the conforming loan size that was in existence at the time of origination for a comparable dwelling as established by the FEDERAL HOUSING ADMINIS- TRATION OR federal national mortgage association; (ii) The borrower is a natural person; (iii) The debt is incurred by the borrower primarily for personal, family, or household purposes; (iv) The loan is secured by a mortgage or deed of trust on real estate upon which there is located or there is to be located a structure or structures intended principally for occupancy of from one to four fami- lies which is or will be occupied by the borrower as the borrower's principal dwelling; and (v) The property is located in this state. (2) A HOME LOAN SHALL INCLUDE A LOAN SECURED BY A REVERSE MORTGAGE THAT MEETS THE REQUIREMENTS OF CLAUSES (I) THROUGH (V) OF SUBPARAGRAPH ONE OF THIS PARAGRAPH. § 2. Subdivision (a) of rule 3408 of the civil practice law and rules, as amended by section 2 of part Q of chapter 73 of the laws of 2016, is amended to read as follows: (a) [In] 1. EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS SUBDIVISION, IN any residential foreclosure action involving a home loan as such term is defined in section thirteen hundred four of the real property actions and proceedings law, in which the defendant is a resident of the proper- ty subject to foreclosure, plaintiff shall file proof of service within twenty days of such service, however service is made, and the court shall hold a mandatory conference within sixty days after the date when proof of service upon such defendant is filed with the county clerk, or on such adjourned date as has been agreed to by the parties, for the purpose of holding settlement discussions pertaining to the relative rights and obligations of the parties under the mortgage loan documents, including, but not limited to: [1.] (I) determining whether the parties can reach a mutually agreeable resolution to help the defendant avoid losing his or her home, and evaluating the potential for a resolution in which payment schedules or amounts may be modified or other workout options may be agreed to, including, but not limited to, a loan modifi- cation, short sale, deed in lieu of foreclosure, or any other loss miti- gation option; or [2.] (II) whatever other purposes the court deems appropriate. 2. (I) PARAGRAPH ONE OF THIS SUBDIVISION SHALL NOT APPLY TO A HOME LOAN SECURED BY A REVERSE MORTGAGE WHERE THE DEFAULT WAS TRIGGERED BY THE DEATH OF THE LAST SURVIVING BORROWER UNLESS: (A) THE LAST SURVIVING BORROWER'S SPOUSE, IF ANY, IS A RESIDENT OF THE PROPERTY SUBJECT TO FORECLOSURE; OR (B) THE LAST SURVIVING BORROWER'S SUCCESSOR IN INTEREST, WHO, BY BEQUEST OR THROUGH INTESTACY, OWNS, OR HAS A CLAIM TO THE OWNERSHIP OF THE PROPERTY SUBJECT TO FORECLOSURE, AND WHO WAS A RESIDENT OF SUCH PROPERTY AT THE TIME OF THE DEATH OF SUCH LAST SURVIVING BORROWER. (II) THE SUPERINTENDENT OF FINANCIAL SERVICES MAY PROMULGATE SUCH RULES AND REGULATIONS AS HE OR SHE SHALL DEEM NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS PARAGRAPH. § 3. This act shall take effect immediately; provided, however, that: (a) the amendments to paragraph (b) of subdivision 6 of section 1304 of the real property actions and proceedings law, made by section one of S. 2008--C 14 A. 3008--C this act, shall take effect on the same date and in the same manner as section 7 of part Q of chapter 73 of the laws of 2016 takes effect; and (b) the amendments to subdivision (a) of rule 3408 of the civil prac- tice law and rules, made by section two of this act, shall be subject to the expiration and reversion of such subdivision pursuant to subdivision e of section 25 of chapter 507 of the laws of 2009, as amended. PART GG Intentionally Omitted PART HH Section 1. Paragraph (a) of subdivision 2 of section 179 of the navi- gation law, as amended by section 2 of part X of chapter 58 of the laws of 2015, is amended to read as follows: (a) An account which shall be credited with all license fees and penalties collected pursuant to paragraph (b) of subdivision one and paragraph (a) of subdivision four of section one hundred seventy-four of this article EXCEPT AS PROVIDED IN SECTION ONE HUNDRED SEVENTY-NINE-A OF THIS ARTICLE, the portion of the surcharge collected pursuant to para- graph (d) of subdivision four of section one hundred seventy-four of this article, penalties collected pursuant to paragraph (b) of subdivi- sion four of section one hundred seventy-four-a of this article, money collected pursuant to section one hundred eighty-seven of this article, all penalties collected pursuant to section one hundred ninety-two of this article, and registration fees collected pursuant to subdivision two of section 17-1009 of the environmental conservation law. § 2. The navigation law is amended by adding a new section 179-a to read as follows: § 179-A. NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT. 1. THERE IS HEREBY CREATED AN ACCOUNT WITHIN THE MISCELLANEOUS CAPITAL PROJECTS FUND, THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT. THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT SHALL CONSIST OF LICENSE FEES RECEIVED BY THE STATE PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE, IN AN AMOUNT EQUAL TO EXPENDITURES MADE FROM THIS ACCOUNT. 2. THESE MONEYS, AFTER APPROPRIATION BY THE LEGISLATURE, AND WITHIN THE AMOUNTS SET FORTH AND FOR THE SEVERAL PURPOSES SPECIFIED, SHALL BE AVAILABLE TO REIMBURSE THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR EXPENDITURES ASSOCIATED WITH THE PURPOSES OF COSTS INCURRED UNDER THIS ARTICLE, INCLUDING CLEANUP AND REMOVAL OF PETROLEUM SPILLS, AND OTHER CAPITAL, INVESTIGATION, MAINTENANCE AND REMEDIATION COSTS. 3. ALL PAYMENTS MADE FROM THE NEW YORK ENVIRONMENTAL PROTECTION AND SPILL REMEDIATION ACCOUNT SHALL BE MADE BY THE ADMINISTRATOR UPON CERTIFICATION BY THE COMMISSIONER. 4. SPENDING PURSUANT TO THIS SECTION SHALL BE INCLUDED IN THE ANNUAL REPORT REQUIRED BY SECTION ONE HUNDRED NINETY-SIX OF THIS ARTICLE. § 3. Subdivision 3 of section 176 of the navigation law, as added by chapter 845 of the laws of 1977, is amended to read as follows: 3. Any unexplained discharge of petroleum within state jurisdiction or discharge of petroleum occurring in waters beyond state jurisdiction that for any reason penetrates within state jurisdiction shall be removed by or under the direction of the department. Except for those expenses incurred by the party causing such discharge, any expenses incurred in the removal of discharges shall be paid promptly from the S. 2008--C 15 A. 3008--C New York environmental protection and spill compensation fund pursuant to [section] SECTIONS one hundred and eighty-six AND ONE HUNDRED SEVEN- TY-NINE-A of this article and any reimbursements due such fund shall be collected in accordance with the provisions of section one hundred and eighty-seven of this article. § 4. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART II Intentionally Omitted PART JJ Section 1. Paragraph (a) of subdivision 6 of section 92-s of the state finance law, as amended by chapter 432 of the laws of 1997, is amended to read as follows: (a) All moneys heretofore and hereafter deposited in the environmental protection transfer account shall be transferred by the comptroller to the solid waste account, the parks, recreation and historic preservation account, THE CLIMATE CHANGE MITIGATION AND ADAPTATION ACCOUNT or the open space account upon the request of the director of the budget. § 2. Subdivision 5 of section 27-1012 of the environmental conserva- tion law, as amended by section 6 of part F of chapter 58 of the laws of 2013, is amended to read as follows: 5. All [monies] MONEYS collected or received by the department of taxation and finance pursuant to this title shall be deposited to the credit of the comptroller with such responsible banks, banking houses or trust companies as may be designated by the comptroller. Such deposits shall be kept separate and apart from all other moneys in the possession of the comptroller. The comptroller shall require adequate security from all such depositories. Of the total revenue collected, the comptroller shall retain the amount determined by the commissioner of taxation and finance to be necessary for refunds out of which the comptroller must pay any refunds to which a deposit initiator may be entitled. After reserving the amount to pay refunds, the comptroller must, by the tenth day of each month, pay into the state treasury to the credit of the general fund the revenue deposited under this subdivision during the preceding calendar month and remaining to the comptroller's credit on the last day of that preceding month; provided, however, that, beginning April first, two thousand thirteen, NINETEEN MILLION DOLLARS, and all fiscal years thereafter, [fifteen] TWENTY-THREE million dollars plus all funds received from the payments due each fiscal year pursuant to subdi- vision four of this section in excess of THE GREATER OF the amount received from April first, two thousand twelve through March thirty- first, two thousand thirteen OR ONE HUNDRED TWENTY-TWO MILLION TWO HUNDRED THOUSAND DOLLARS, shall be deposited to the credit of the envi- ronmental protection fund established pursuant to section ninety-two-s of the state finance law. § 2-a. Subdivision 3 of section 92-s of the state finance law, as amended by section 11 of part F of chapter 58 of the laws of 2013, is amended to read as follows: 3. Such fund shall consist of the amount of revenue collected within the state from the amount of revenue, interest and penalties deposited pursuant to section fourteen hundred twenty-one of the tax law, the amount of fees and penalties received from easements or leases pursuant S. 2008--C 16 A. 3008--C to subdivision fourteen of section seventy-five of the public lands law and the money received as annual service charges pursuant to section four hundred [four-l] FOUR-N of the vehicle and traffic law, all moneys required to be deposited therein from the contingency reserve fund pursuant to section two hundred ninety-four of chapter fifty-seven of the laws of nineteen hundred ninety-three, all moneys required to be deposited pursuant to section thirteen of chapter six hundred ten of the laws of nineteen hundred ninety-three, repayments of loans made pursuant to section 54-0511 of the environmental conservation law, all moneys to be deposited from the Northville settlement pursuant to section one hundred twenty-four of chapter three hundred nine of the laws of nine- teen hundred ninety-six, provided however, that such moneys shall only be used for the cost of the purchase of private lands in the core area of the central Suffolk pine barrens pursuant to a consent order with the Northville industries signed on October thirteenth, nineteen hundred ninety-four and the related resource restoration and replacement plan, the amount of penalties required to be deposited therein by section 71-2724 of the environmental conservation law, all moneys required to be deposited pursuant to article thirty-three of the environmental conser- vation law, all fees collected pursuant to subdivision eight of section 70-0117 of the environmental conservation law, all moneys collected pursuant to title thirty-three of article fifteen of the environmental conservation law, beginning with the fiscal year commencing on April first, two thousand thirteen, NINETEEN MILLION DOLLARS, and all fiscal years thereafter, [fifteen] TWENTY-THREE million dollars plus all funds received by the state each fiscal year in excess of THE GREATER OF the amount received from April first, two thousand twelve through March thirty-first, two thousand thirteen OR ONE HUNDRED TWENTY-TWO MILLION TWO HUNDRED THOUSAND DOLLARS, from the payments collected pursuant to subdivision four of section 27-1012 of the environmental conservation law and all funds collected pursuant to section 27-1015 of the environ- mental conservation law, provided such funds shall not be less than four million dollars for the fiscal year commencing April first, two thousand thirteen, and not less than eight million dollars for all fiscal years thereafter and all other moneys credited or transferred thereto from any other fund or source pursuant to law. All such revenue shall be initial- ly deposited into the environmental protection fund, for application as provided in subdivision five of this section. § 2-b. Section 12 of part F of chapter 58 of the laws of 2013 amending the environmental conservation law and the state finance law relating to the "Cleaner, Greener NY Act of 2013", as amended by section 1 of part DD of chapter 58 of the laws of 2015, is amended to read as follows: § 12. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2013; provided, however, that the amendments to subdivision 5-a of section 27-1015 of the environmental conservation law, as added by section nine of this act, shall expire and be deemed repealed on April 1, [2017] 2019. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART KK Intentionally Omitted PART LL S. 2008--C 17 A. 3008--C Section 1. The public authorities law is amended by adding a new section 1005-d to read as follows: § 1005-D. SHARING EMPLOYEES, SERVICES AND RESOURCES; INDEMNITY AND DEFENSE. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS THE CONTEXT INDICATES ANOTHER MEANING OR INTENT: (A) "DEPARTMENT" MEANS THE DEPARTMENT OF TRANSPORTATION. 2. A SHARED SERVICES AGREEMENT MAY BE EXECUTED BETWEEN THE DEPARTMENT AND THE AUTHORITY, CANAL CORPORATION, OR BOTH OF THEM, ONLY FOR AN EMER- GENCY SITUATION OR EXTREME WEATHER CONDITIONS, TO SHARE EMPLOYEES, SERVICES OR RESOURCES AS DEEMED APPROPRIATE INCLUDING, BUT NOT LIMITED TO, FOR THE PERFORMANCE OF WORK AND ACTIVITIES BY THE DEPARTMENT ON THE FACILITIES AND PROPERTY UNDER THE JURISDICTION OF THE AUTHORITY OR CANAL CORPORATION, AND FOR THE PERFORMANCE OF WORK AND ACTIVITIES BY THE AUTHORITY OR CANAL CORPORATION ON THE FACILITIES AND PROPERTY UNDER THE JURISDICTION OF THE DEPARTMENT. SUCH AGREEMENT OR ANY PROJECT UNDERTAKEN PURSUANT TO SUCH AN AGREEMENT SHALL NOT BE DEEMED TO IMPAIR THE RIGHTS OF BONDHOLDERS AND MAY PROVIDE FOR, BUT NOT BE LIMITED TO, THE MANAGE- MENT, SUPERVISION AND DIRECTION OF SUCH EMPLOYEES' PERFORMANCE OF SUCH SERVICES. SUCH AGREEMENT SHALL PROVIDE THAT THE TERM SHALL NOT BE LONG- ER THAN TEN DAYS. ALL SHARED EMPLOYEES SHALL REMAIN EMPLOYEES OF THEIR RESPECTIVE EMPLOYERS AND ALL APPLICABLE COLLECTIVELY BARGAINED AGREE- MENTS SHALL REMAIN IN EFFECT FOR THE ENTIRE LENGTH OF THE SHARED SERVICES AGREEMENT. FURTHER, SUCH SHARED SERVICES AGREEMENT SHALL NOT AMEND, REPEAL OR REPLACE THE TERMS OF ANY AGREEMENT THAT IS COLLECTIVELY NEGOTIATED BETWEEN AN EMPLOYER AND AN EMPLOYEE ORGANIZATION, INCLUDING AN AGREEMENT OR INTEREST ARBITRATION AWARD MADE PURSUANT TO ARTICLE FOURTEEN OF THE CIVIL SERVICE LAW. 3. THE AUTHORITY SHALL DEFEND ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT, USING THE FORCES OF THE DEPARTMENT OF LAW PURSUANT TO SUBDIVISION ELEVEN OF THIS SECTION IN ANY ACTION, PROCEEDING, CLAIM, DEMAND OR THE PROSECUTION OF ANY APPEAL ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT IN THE PERFORMANCE OF THE FUNCTIONS OF THE AUTHORITY OR CANAL CORPORATION PURSUANT TO A SHARED SERVICES AGREEMENT. 4. DEFENSE PURSUANT TO SUBDIVISION THREE OF THIS SECTION SHALL BE CONDITIONED UPON THE FULL COOPERATION OF THE DEPARTMENT. 5. THE AUTHORITY SHALL INDEMNIFY AND HOLD HARMLESS ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT IN THE AMOUNT OF ANY JUDGMENT OBTAINED AGAINST THE DEPARTMENT OR IN THE AMOUNT OF ANY SETTLEMENT THE DEPARTMENT ENTERS INTO WITH THE CONSENT OF THE AUTHORITY FOR ANY AND ALL CLAIMS, DAMAGES OR LIABILITIES ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT OF THE AUTHORITY OR CANAL CORPORATION PURSUANT TO A SHARED SERVICES AGREEMENT; PROVIDED, HOWEVER, THAT THE ACT OR OMISSION FROM WHICH SUCH JUDGMENT OR SETTLEMENT AROSE OCCURRED WHILE THE AUTHORI- TY OR CANAL CORPORATION WAS ACTING WITHIN THE SCOPE OF ITS FUNCTIONS PURSUANT TO A SHARED SERVICES AGREEMENT. NO SUCH SETTLEMENT OF ANY SUCH ACTION, PROCEEDING, CLAIM OR DEMAND SHALL BE MADE WITHOUT THE APPROVAL OF THE AUTHORITY'S BOARD OF TRUSTEES OR ITS DESIGNEE. 6. ANY CLAIM OR PROCEEDING COMMENCED AGAINST ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION THAT ARISES PURSUANT TO ANY SHARED SERVICES AGREEMENT SHALL NOT BE CONSTRUED IN ANY WAY TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY IMMUNITY AVAIL- ABLE TO OR CONFERRED UPON ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION, OR TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY RIGHT TO DEFENSE AND INDEMNIFICATION PROVIDED FOR ANY GOVERNMENTAL OFFICER OR EMPLOYEE BY, IN ACCORDANCE WITH, OR BY S. 2008--C 18 A. 3008--C REASON OF, ANY OTHER PROVISION OF STATE OR FEDERAL STATUTORY OR COMMON LAW. 7. (A) THE STATE SHALL DEFEND ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY AND CANAL CORPORATION USING THE FORCES OF THE DEPARTMENT OF LAW IN ANY ACTION, PROCEEDING, CLAIM, DEMAND OR THE PROSECUTION OF ANY APPEAL ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT IN THE PERFORMANCE OF THE FUNCTIONS OF THE DEPARTMENT PURSUANT TO A SHARED SERVICES AGREEMENT. (B) DEFENSE PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE CONDITIONED UPON THE FULL COOPERATION OF THE AUTHORITY AND CANAL CORPO- RATION. (C) THE STATE SHALL INDEMNIFY AND HOLD HARMLESS ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE AUTHORITY OR CANAL CORPORATION IN THE AMOUNT OF ANY JUDGMENT OBTAINED AGAINST THE AUTHORITY OR CANAL CORPORATION IN THE AMOUNT OF ANY SETTLEMENT THE AUTHORITY OR CANAL CORPORATION ENTERS INTO WITH THE CONSENT OF THE STATE FOR ANY AND ALL CLAIMS, DAMAGES OR LIABILITIES ARISING FROM OR OCCASIONED BY THE ACTS OR OMISSIONS TO ACT ON BEHALF OF THE DEPARTMENT PURSUANT TO A SHARED SERVICES AGREEMENT, PROVIDED, HOWEVER, THAT THE ACT OR OMISSION FROM WHICH SUCH JUDGMENT OR SETTLEMENT AROSE OCCURRED WHILE THE DEPARTMENT WAS ACTING WITHIN THE SCOPE OF ITS FUNCTIONS PURSUANT TO A SHARED SERVICES AGREEMENT. ANY SUCH SETTLEMENT SHALL BE EXECUTED PURSUANT TO SECTION TWENTY-A OF THE COURT OF CLAIMS ACT. (D) ANY CLAIM OR PROCEEDING COMMENCED AGAINST ANY UNIT, ENTITY, OFFI- CER OR EMPLOYEE OF THE DEPARTMENT PURSUANT TO ANY SHARED SERVICES AGREE- MENT SHALL NOT BE CONSTRUED IN ANY WAY TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY IMMUNITY AVAILABLE TO OR CONFERRED UPON ANY UNIT, ENTITY, OFFICER OR EMPLOYEE OF THE DEPARTMENT, OR TO IMPAIR, ALTER, LIMIT, MODIFY, ABROGATE OR RESTRICT ANY RIGHT TO DEFENSE AND INDEMNIFICATION PROVIDED FOR ANY GOVERNMENTAL OFFICER OR EMPLOYEE BY, IN ACCORDANCE WITH, OR BY REASON OF, ANY OTHER PROVISION OF STATE OR FEDER- AL STATUTORY OR COMMON LAW. (E) ANY PAYMENT MADE PURSUANT TO THIS SUBDIVISION OR ANY MONIES PAID FOR A CLAIM AGAINST OR SETTLEMENT WITH THE DEPARTMENT, AUTHORITY OR CANAL CORPORATION PURSUANT TO THIS SUBDIVISION AND PURSUANT TO A SHARED SERVICES AGREEMENT SHALL BE PAID FROM APPROPRIATIONS FOR PAYMENT BY THE STATE PURSUANT TO THE COURT OF CLAIMS ACT. 8. THIS SECTION SHALL NOT IN ANY WAY AFFECT THE OBLIGATION OF ANY CLAIMANT TO GIVE NOTICE TO THE STATE, AUTHORITY, OR CANAL CORPORATION UNDER SECTION TEN AND SECTION ELEVEN OF THE COURT OF CLAIMS ACT OR ANY OTHER PROVISION OF LAW PROVIDED, HOWEVER, THAT NOTICE SERVED UPON THE STATE, AUTHORITY, OR CANAL CORPORATION WHO IS A PARTY TO THE SHARED SERVICES AGREEMENT SHALL BE VALID NOTICE ON ALL PARTIES TO THE AGREE- MENT, WHEN SUCH CLAIM ARISES OUT OF SUCH SHARED SERVICES AGREEMENT. THE STATE, AUTHORITY AND CANAL CORPORATION SHALL NOTIFY EACH OTHER WHEN THEY RECEIVE A NOTICE OF CLAIM, NOTICE OF INTENTION TO MAKE A CLAIM OR A CLAIM ARISING OUT OF SUCH AGREEMENT. 9. THE PROVISIONS OF THIS SECTION SHALL NOT BE CONSTRUED TO IMPAIR, ALTER, LIMIT OR MODIFY THE RIGHTS AND OBLIGATIONS OF ANY INSURER UNDER ANY INSURANCE AGREEMENT. 10. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHEN EMPLOYED PURSUANT TO A SHARED SERVICES AGREEMENT, EMPLOYEES OF THE AUTHORITY, CANAL CORPO- RATION AND DEPARTMENT SHALL BE DEEMED EMPLOYEES OF ALL SUCH ENTITIES AND THE STATE FOR PURPOSES OF THE WORKERS' COMPENSATION LAW. 11. AT THE REQUEST OF THE AUTHORITY OR CANAL CORPORATION, SERVICES AND ASSISTANCE AND LEGAL SERVICES FOR THE AUTHORITY OR CANAL CORPORATION S. 2008--C 19 A. 3008--C SHALL BE PERFORMED BY FORCES OR OFFICERS OF THE DEPARTMENT AND THE DEPARTMENT OF LAW RESPECTIVELY, AND ALL OTHER STATE OFFICERS, DEPART- MENTS, BOARDS, DIVISIONS AND COMMISSIONS SHALL RENDER SERVICES WITHIN THEIR RESPECTIVE FUNCTIONS. § 2. Subdivision 1 of section 17 of the public officers law is amended by adding a new paragraph (z) to read as follows: (Z) FOR PURPOSES OF THIS SECTION, THE TERM "EMPLOYEE" SHALL INCLUDE MEMBERS OF THE GOVERNING BOARD, OFFICERS AND EMPLOYEES OF THE NEW YORK STATE CANAL CORPORATION. § 3. This act, being necessary for the prosperity of the state and its inhabitants, shall be liberally construed to effect the purposes and secure the beneficial intents hereof. § 4. If any provision of any section of this act or the application thereof to any person or circumstance shall be adjudged invalid by a court of competent jurisdiction, such order or judgment shall be confined in its operation to the controversy in which it was rendered, and shall not affect or invalidate the remainder of any provision of any section of this act or the application thereof to any other person or circumstance and to this end the provisions of each section of this act are hereby declared to be severable. § 5. This act shall take effect immediately. PART MM Section 1. Expenditures of moneys by the New York state energy research and development authority for services and expenses of the energy research, development and demonstration program, including grants, the energy policy and planning program, the zero emissions vehi- cle and electric vehicle rebate program, and the Fuel NY program shall be subject to the provisions of this section. Notwithstanding the provisions of subdivision 4-a of section 18-a of the public service law, all moneys committed or expended in an amount not to exceed $19,700,000 shall be reimbursed by assessment against gas corporations, as defined in subdivision 11 of section 2 of the public service law and electric corporations as defined in subdivision 13 of section 2 of the public service law, where such gas corporations and electric corporations have gross revenues from intrastate utility operations in excess of $500,000 in the preceding calendar year, and the total amount which may be charged to any gas corporation and any electric corporation shall not exceed one cent per one thousand cubic feet of gas sold and .010 cent per kilowatt-hour of electricity sold by such corporations in their intrastate utility operations in calendar year 2015. Such amounts shall be excluded from the general assessment provisions of subdivision 2 of section 18-a of the public service law. The chair of the public service commission shall bill such gas and/or electric corporations for such amounts on or before August 10, 2017 and such amounts shall be paid to the New York state energy research and development authority on or before September 10, 2017. Upon receipt, the New York state energy research and development authority shall deposit such funds in the ener- gy research and development operating fund established pursuant to section 1859 of the public authorities law. The New York state energy research and development authority is authorized and directed to: (1) transfer $1 million to the state general fund for services and expenses of the department of environmental conservation, $150,000 to the state general fund for services and expenses of the department of agriculture and markets, and $825,000 to the University of Rochester laboratory for S. 2008--C 20 A. 3008--C laser energetics from the funds received; and (2) commencing in 2016, provide to the chair of the public service commission and the director of the budget and the chairs and secretaries of the legislative fiscal committees, on or before August first of each year, an itemized record, certified by the president and chief executive officer of the authority, or his or her designee, detailing any and all expenditures and commit- ments ascribable to moneys received as a result of this assessment by the chair of the department of public service pursuant to section 18-a of the public service law. This itemized record shall include an item- ized breakdown of the programs being funded by this section and the amount committed to each program. The authority shall not commit for any expenditure, any moneys derived from the assessment provided for in this section, until the chair of such authority shall have submitted, and the director of the budget shall have approved, a comprehensive financial plan encompassing all moneys available to and all anticipated commitments and expenditures by such authority from any source for the operations of such authority. Copies of the approved comprehensive financial plan shall be immediately submitted by the chair to the chairs and secretaries of the legislative fiscal committees. Any such amount not committed by such authority to contracts or contracts to be awarded or otherwise expended by the authority during the fiscal year shall be refunded by such authority on a pro-rata basis to such gas and/or elec- tric corporations, in a manner to be determined by the department of public service, and any refund amounts must be explicitly lined out in the itemized record described above. § 2. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART NN Section 1. Section 4 of chapter 495 of the laws of 2004, amending the insurance law and the public health law relating to the New York state health insurance continuation assistance demonstration project, as amended by section 1 of part AA of chapter 54 of the laws of 2016, is amended to read as follows: § 4. This act shall take effect on the sixtieth day after it shall have become a law; provided, however, that this act shall remain in effect until July 1, [2017] 2018 when upon such date the provisions of this act shall expire and be deemed repealed; provided, further, that a displaced worker shall be eligible for continuation assistance retroac- tive to July 1, 2004. § 2. This act shall take effect immediately. PART OO Section 1. Section 506 of the agriculture and markets law, as amended by chapter 256 of the laws of 2016, is amended to read as follows: § 506. Growth, sale, distribution, transportation and processing of industrial hemp and products derived from such hemp permitted. Notwith- standing any provision of law to the contrary, industrial hemp and products derived from such hemp are agricultural products which may be grown, produced and possessed in the state, and sold, distributed, transported or processed either in or out of state as part of agricul- tural pilot programs pursuant to authorization under federal law and the provisions of this article. S. 2008--C 21 A. 3008--C Notwithstanding any provision of law to the contrary restricting the growing or cultivating, sale, distribution, transportation or processing of industrial hemp and products derived from such hemp, and subject to authorization under federal law, the commissioner may authorize [no more than ten sites for] the growing or cultivating of industrial hemp as part of agricultural pilot programs conducted by the department and/or an institution of higher education to study the growth and cultivation, sale, distribution, transportation and processing of such hemp and products derived from such hemp provided that the sites and programs used for growing or cultivating industrial hemp are certified by, and registered with, the department. § 2. This act shall take effect on the thirtieth day after it shall have become a law. PART PP Section 1. Subdivision 18-a of section 1261 of the public authorities law, as added by section 1 of part PP of chapter 54 of the laws of 2016, is amended to read as follows: 18-a. "Transportation purpose" shall mean a purpose that directly [or indirectly] supports [all or any of] the missions or purposes of the authority, any of its subsidiaries, New York city transit authority or its subsidiary, including the realization of revenues [available for the costs and expenses of all or any transportation facilities] DERIVED FROM PROPERTY THAT IS, OR IS TO BE USED AS, A TRANSPORTATION FACILITY. § 2. This act shall take effect immediately. PART QQ Section 1. Sections 1 and 2 of subpart H of part C of chapter 20 of the laws of 2015, appropriating money for certain municipal corporations and school districts, as added by section 1 of part BB of chapter 58 of the laws of 2016, is amended to read as follows: Section 1. Contingent upon available funding, and not to exceed [$30,000,000] $45,000,000 moneys from the urban development corporation shall be available for a local government entity, which for the purposes of this section shall mean a county, city, town, village, school district or special district, where (i) on or after June 25, 2015, an electric generating facility located within such local government entity has ceased operations, and (ii) the closing of such facility has caused a reduction in the real property tax collections or payments in lieu of taxes of at least twenty percent owed by such electric generating facil- ity. Such moneys attributable to the cessation of operations, shall be paid annually on a first come, first served basis by the urban develop- ment corporation to such local government entity within a reasonable time upon confirmation from the state office of real property tax services or the local industrial development authority established pursuant to titles eleven and fifteen of article eight of the public authorities law, or the local industrial development agency established pursuant to article eighteen-A of the general municipal law that such cessation has resulted in a reduction in the real property tax collections or payments in lieu of taxes, provided, however, that the urban development corporation shall not provide assistance to such local government entity for more than [five] SEVEN years, and shall [not] award [in the first year more than eighty percent of] PAYMENTS REFLECT- S. 2008--C 22 A. 3008--C ING the loss of revenues due to the cessation of operations[.] AS FOLLOWS: AWARD YEAR MAXIMUM POTENTIAL AWARD 1 NO MORE THAN EIGHTY PERCENT OF LOSS OF REVENUES 2 NO MORE THAN SEVENTY PERCENT OF LOSS OF REVENUES 3 NO MORE THAN SIXTY PERCENT OF LOSS OF REVENUES 4 NO MORE THAN FIFTY PERCENT OF LOSS OF REVENUES 5 NO MORE THAN FORTY PERCENT OF LOSS OF REVENUES 6 NO MORE THAN THIRTY PERCENT OF LOSS OF REVENUES 7 NO MORE THAN TWENTY PERCENT OF LOSS OF REVENUES A local government entity shall be eligible for only one payment of funds hereunder per year. A local government entity may seek assistance under the electric generation facility cessation mitigation fund once a generator has submitted its notice to the federally designated electric bulk system operator (BSO) serving the state of New York of its intent to retire the facility or of its intent to voluntarily remove the facil- ity from service subject to any return-to-service provisions of any tariff, and that the facility also is ineligible to participate in the markets operated by the BSO. The date of submission of a local govern- ment entity's application for assistance shall establish the order in which assistance is paid to program applicants, except that in no event shall assistance be paid to a local government entity until such time that an electric generating facility has retired or become ineligible to participate in the markets operated by the BSO. For purposes of this section, any local government entity seeking assistance under the elec- tric generation facility cessation mitigation fund must submit an attes- tation to the department of public service that a facility is no longer producing electricity and is no longer participating in markets operated by the BSO. After receipt of such attestation, the department of public service shall confirm such information with the BSO. In the case that the BSO confirms to the department of public service that the facility is no longer producing electricity and participating in markets operated by such BSO, it shall be deemed that the electric generating facility located within the local government entity has ceased operation. The department of public service shall provide such confirmation to the urban development corporation upon receipt. The determination of the amount of such annual payment shall be determined by the president of the urban development corporation based on the amount of the differen- tial between the annual real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties, during the last year of operations and the current real property taxes and payments in lieu of taxes imposed upon the facility, exclusive of interest and penalties. The total amount awarded from this program shall not exceed [$30,000,000] $45,000,000. § 2. Notwithstanding any provision of law, rule, or regulation to the contrary the New York state energy research and development authority (authority) is authorized and directed to make a contribution to the urban development corporation for the purposes of this act, an amount not to exceed $30,000,000 for the state fiscal year commencing April 1, 2016, AND AN ADDITIONAL AMOUNT NOT TO EXCEED $15,000,000 FOR THE STATE FISCAL YEAR COMMENCING APRIL 1, 2020 from proceeds collected by the authority from the auction or sale of carbon dioxide emission allowances allocated by the department of environmental conservation. S. 2008--C 23 A. 3008--C § 2. This act shall take effect immediately provided, however, that the amendments to sections 1 and 2 of subpart H of part C of chapter 20 of the laws of 2015 made by section one of this act shall not affect the repeal of such subpart and shall be deemed repealed therewith. PART RR Section 1. Indian Point closure task force. 1. (a) On February 28, 2017, the governor announced the appointment of a task force to address the closure of the Indian Point nuclear power plant in Westchester Coun- ty and to provide guidance and support to affected local municipalities and employees (the "task force"). The task force was formed to partner with local governments to address employment and property tax impacts, develop new economic opportunities, evaluate site reuse options, and identify work force retraining programs and opportunities. The task force will also monitor the closure, and related decommissioning and site restoration issues, coordinate ongoing safety inspections and review reliability and environmental concerns, among other issues. Recognizing the importance of establishing such task force in law, there are hereby established the following provisions pertaining to member- ship, purpose, and duties of the task force. Members shall be appointed as follows: (i) At the discretion of the governor, staff of the executive chamber, including but not limited to members of the governor's offices of energy and education; (ii) The chairperson of the public service commission or his or her designee(s); (iii) The commissioner of environmental conservation or his or her designee(s); (iv) The secretary of state or his or her designee(s); (v) The commissioner of taxation and finance or his or her designee(s); (vi) The commissioner of labor or his or her designee(s); (vii) The commissioner of economic development or his or her designee(s); (viii) The commissioner of the division of homeland security and emer- gency services or his or her designee(s); (ix) The president of the New York energy research and development authority or his or her designee(s); (x) The chairperson of the New York power authority or his or her designee(s); (xi) The mayor of the village of Buchanan or his or her designee; (xii) The superintendent of the Hendrick Hudson school district or his or her designee; (xiii) The supervisor of the town of Cortlandt or his or her designee; (xiv) One member to be appointed by the temporary president of the senate from the district representing the aforementioned local govern- ments; (xv) One member to be appointed by the speaker of the assembly from the district representing the aforementioned local governments; (xvi) One member, to be appointed by the governor, shall be a repre- sentative of a labor union whose members are employed at the Indian Point nuclear generating facility; (xvii) One member, to be appointed by the governor, shall be a repre- sentative of a labor union whose members are employed at the Indian Point nuclear generating facility through contracted service providers; S. 2008--C 24 A. 3008--C (xviii) One member, to be appointed by the governor, shall be a repre- sentative of a labor organization whose members represent public employ- ees in the impacted geographical region; and (xix) The chairperson of the task force may appoint local elected officials and municipal officers, as defined by section 800 of the general municipal law, from the impacted geographical region. (b) The members appointed to the task force established by the gover- nor prior to the effective date of this act shall: (i) satisfy the initial appointment requirements of subparagraphs (i) through (xv) of paragraph a of this subdivision; and (ii) be ex-officio members of the task force established pursuant to this section. 2. Task force members shall receive no compensation for their services but may be reimbursed for actual and necessary expenses incurred in the performance of their duties. 3. The chairperson of the task force shall be the chairperson of the public service commission or his or her designee. The task force shall meet no less than three times each year. 4. Vacancies for task force members appointed pursuant to subpara- graphs (i) through (xix) of paragraph a of subdivision one of this section shall be filled in the manner provided for in the initial appointment. 5. The task force shall be authorized to hold public hearings and meetings to enable it to accomplish its duties. 6. The task force may consult with any organization, educational institution, other governmental entity or agency or person including, but not limited to, the nuclear regulatory commission and the New York independent system operator, in the development of its report required by subdivision nine of this section. 7. The department of public service and all other agencies of the state or subdivisions thereof, including public authorities and public benefit corporations acting within the scope of their statutory purpose and authority and with the appropriate consent of their respective boards or governing bodies may, at the request of the chairperson, provide the task force with such facilities, assistance, and data as will enable the task force to carry out its powers and duties. 8. The purpose of the task force shall be to assess the impacts of the Indian Point nuclear generating facility closure on the state and local municipalities and evaluate ways of addressing and mitigating antic- ipated impacts, including, but not limited to those on real property tax collections or payments in lieu of taxes, public safety, labor, and decommissioning and site restoration programs, strategies, and time- lines, as well as spend fuel storage issues. The task force will also monitor impacts on electric reliability and rates. In addition, no later than April 30, 2018, the task force shall produce a study evaluating the future reuse and reutilization options of the land where the facility is located. Such study shall consider all aspects of possible uses of the lands and buildings at such facility, together with such other and further information that the task force and the entities with which it shall consult, shall choose to include. In examining such reutilizaiton, the study shall further consider the infrastructure currently at and near such facility, the costs and meas- ures that would need to be taken by the owners of the facility, regula- tors and/or governmental bodies in order to achieve any such reutiliza- tion, and any other factors that the task force and the entities with which it shall consult, shall choose to include in its considerations. S. 2008--C 25 A. 3008--C 9. No later than April 30, 2018, and annually thereafter through 2023, the task force shall make available for public comment and than submit to the governor, the temporary president of the senate, the speaker of the assembly, the chair of the senate committee on energy and telecommu- nications and the chair of the assembly committee on energy, a report containing the following: a. an assessment of: (i) anticipated impacts related to the closure, including, but not limited to impacts on real property tax collections or payments in lieu of taxes, electric reliability and rates, public safety, labor, and the future use of the land where the facility is located; (ii) workforce retraining programs and opportunities in other energy related employment sectors for affected workers, including training in renewable energy and an evaluation of access to employment with other utilities and power plants in the state; (iii) all sources and potential sources of generating capacity, including transmission upgrades, energy efficiency, fossil fuel derived energy, and renewable energy; (iv) workforce retention; and (v) programs implemented to retrain persons employed at the Indian Point nuclear generating facility, such analysis, shall include the number of retraining programs, the content of the retraining programs, the employment outcomes of individuals retrained, and any other informa- tion deemed appropriate by the task force; b. an assessment of compliance with any and all federal, state and local laws, regulations and rules related to the closure and decommis- sioning of a nuclear generating facility; c. a listing of any enforcement actions initiated for any actual or alleged condition at the nuclear generating facility; d. recommendations for the projects to be selected pursuant to the community fund established in the agreement related to Indian Point entered into by the state of New York on January 9, 2017, and an assess- ment of the progress and effectiveness of projects selected; e. recommendations related to short term and long term programs the state of New York could establish to provide support and guidance to the affected local municipalities, and the implementation of such programs; and f. any information or data the task force deems appropriate. § 2. This act shall take effect immediately and shall expire and be deemed repealed April 1, 2024. PART SS Section 1. Section 33-0705 of the environmental conservation law, as amended by section 1 of part H of chapter 57 of the laws of 2014, is amended to read as follows: § 33-0705. Fee for registration. The applicant for registration shall pay a fee as follows: a. On or before July 1, [2017] 2020, six hundred dollars for each pesticide proposed to be registered, provided that the applicant has submitted to the department proof in the form of a federal income tax return for the previous year showing gross annual sales, for federal income tax purposes, of three million five hundred thousand dollars or less; b. On or before July 1, [2017] 2020, for all others, six hundred twen- ty dollars for each pesticide proposed to be registered; S. 2008--C 26 A. 3008--C c. After July 1, [2017] 2020, fifty dollars for each pesticide proposed to be registered. § 2. Section 9 of chapter 67 of the laws of 1992, amending the envi- ronmental conservation law relating to pesticide product registration timetables and fees, as amended by section 2 of part H of chapter 57 of the laws of 2014, is amended to read as follows: § 9. This act shall take effect April 1, 1992 provided, however, that section three of this act shall take effect July 1, 1993 and shall expire and be deemed repealed on July 1, [2017] 2020. § 3. This act shall take effect immediately and shall be deemed to have been in full force and effect on and after April 1, 2017. PART TT Section 1. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 16-aa to read as follows: § 16-AA. LIFE SCIENCES INITIATIVES PROGRAM. THE LIFE SCIENCES INITI- ATIVES PROGRAM IS HEREBY ESTABLISHED FOR THE PURPOSE OF ATTRACTING NEW LIFE SCIENCES TECHNOLOGIES, TO PROMOTE CRITICAL PUBLIC AND PRIVATE SECTOR INVESTMENT IN EMERGING LIFE SCIENCES FIELDS IN NEW YORK STATE, AND TO CREATE AND EXPAND LIFE SCIENCES RELATED BUSINESSES AND EMPLOY- MENT. 1. SUCH LIFE SCIENCES INITIATIVES PROGRAM IS DESIGNATED TO OPERATE IN AREAS IDENTIFIED BY THE CORPORATION AS HAVING SIGNIFICANT POTENTIAL FOR ECONOMIC GROWTH IN NEW YORK, OR IN WHICH THE APPLICATION OF NEW LIFE SCIENCES TECHNOLOGIES COULD SIGNIFICANTLY ENHANCE THE PRODUCTIVITY AND STABILITY OF NEW YORK BUSINESSES. 2. LIFE SCIENCES ARE DEFINED AS ADVANCED AND APPLIED SCIENCES THAT EXPAND THE UNDERSTANDING OF HUMAN PHYSIOLOGY AND HAVE THE POTENTIAL TO LEAD TO MEDICAL ADVANCES OR THERAPEUTIC APPLICATIONS INCLUDING, BUT NOT LIMITED TO, ACADEMIC MEDICAL CENTERS, AGRICULTURAL BIOTECHNOLOGY, BIOG- ENERICS, BIOINFORMATICS, BIOMEDICAL ENGINEERING, BIOPHARMACEUTICALS, BIOTECHNOLOGY, CHEMICAL SYNTHESIS, CHEMISTRY TECHNOLOGY, DIAGNOSTICS, GENOMICS, IMAGE ANALYSIS, MARINE BIOLOGY, MARINE TECHNOLOGY, MEDICAL DEVICES, NANOTECHNOLOGY, NATURAL PRODUCT PHARMACEUTICALS, PROTEOMICS, REGENERATIVE MEDICINE, RNA INTERFERENCE, STEM CELL RESEARCH, CLINICAL TRIALS, INCLUDING BUT NOT LIMITED TO NEUROLOGICAL CLINICAL TRIALS AND VETERINARY SCIENCE. 3. A LIFE SCIENCES ENTITY IS DEFINED AS A BUSINESS CORPORATION, PART- NERSHIP, FIRM, UNINCORPORATED ASSOCIATION, OR ANY OTHER ENTITY ENGAGED IN LIFE SCIENCES RESEARCH, DEVELOPMENT, MANUFACTURING OR COMMERCIALIZA- TION. 4. (A) THE CORPORATION IS AUTHORIZED, WITHIN AVAILABLE APPROPRIATIONS AND CONSISTENT WITH SUCH APPROPRIATIONS IN THE LIFE SCIENCES INITIATIVES PROGRAM TO PROVIDE FINANCIAL SUPPORT, THROUGH AN APPLICATION AND APPROVAL PROCESS AND SUCH FUNDS MAY BE USED FOR THE ADVANCEMENT AND ECONOMIC GROWTH OF LIFE SCIENCES PROGRAMS, EMPLOYMENT OF STAFF, DEVELOP- MENT AND FACILITIES OR OTHER WORKING CAPITAL THAT ARE ALIGNED WITH THE LIFE SCIENCES PROGRAM STRATEGY AND APPROVED BY THE CORPORATION. (B) A LIFE SCIENCES ENTITY MUST SUBMIT A COMPLETED APPLICATION AS PRESCRIBED BY THE CHIEF EXECUTIVE OFFICER OF THE CORPORATION. LIFE SCIENCES INITIATIVES ENTITY APPLICATIONS WILL BE ACCEPTED, REVIEWED AND APPROVED ON A ROLLING BASIS. LIFE SCIENCES INITIATIVES ENTITY APPLI- CANTS MAY INCLUDE A PROGRAM OR MULTIPLE PROGRAMS IN THEIR APPLICATION. EACH LIFE SCIENCES PROGRAM APPLICANT SHALL INCLUDE INFORMATION IN SUCH S. 2008--C 27 A. 3008--C APPLICATION RELATING TO HOW ITS LIFE SCIENCES PROGRAM INITIATIVE WILL ENHANCE AND ACCELERATE LIFE SCIENCE PROGRAMS, RESEARCH AND JOB CREATION AND RETENTION WITHIN NEW YORK. 5. THE CHIEF EXECUTIVE OFFICER OF THE CORPORATION SHALL, ON OR BEFORE OCTOBER FIRST, TWO THOUSAND EIGHTEEN AND EVERY YEAR THEREAFTER, SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY AN ANNUAL REPORT ON THE OPERATIONS AND ACCOMPLISHMENTS OF THE LIFE SCIENCES INITIATIVES PROGRAMS WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, THE ECONOMIC IMPACT OF THE ACTIVITIES UNDERTAKEN WITH STATE FUNDS, THE NUMBER AND AMOUNT OF FEDERAL FUNDS PROCURED AFTER PROGRAM APPROVAL, INCLUDING SUCH FACTORS AS JOBS CREATED AND MAINTAINED, THE AVERAGE SALARY OF THE JOBS CREATED AND AVERAGE SALARY OF JOBS RETAINED. 6. (A) THE CORPORATION SHALL BY RULE ESTABLISH CRITERIA FOR SUCH PROGRAM, SUCH CRITERIA SHALL INCLUDE DETAILED PROVISIONS FOR ELIGIBIL- ITY. (B) THE CORPORATION SHALL ISSUE GUIDELINES TO EFFECTUATE THE PURPOSE OF THIS SECTION. § 2. This act shall take effect immediately. PART UU Section 1. Subdivisions 3, 5 and 7 of section 19-0323 of the environ- mental conservation law, as amended by section 1 of part X of chapter 58 of the laws of 2016, are amended to read as follows: 3. Any diesel powered heavy duty vehicle that is owned by, operated by or on behalf of, or leased by a state agency and state and regional public authority with more than half of its governing body appointed by the governor shall utilize the best available retrofit technology for reducing the emission of pollutants. The commissioner shall promulgate regulations for the implementation of this subdivision specifying that all vehicles covered by this subdivision shall have best available retrofit technology on or before December 31, [2017] 2018. This subdivision shall not apply to any vehicle subject to a lease or public works contract entered into or renewed prior to the effective date of this section. 5. In addition to any waiver which may be issued pursuant to subdivi- sion four of this section, the department shall issue a waiver to a state agency, a state or regional public authority, or a person operat- ing any diesel-powered heavy duty vehicle on behalf of a state agency, state or regional public authority, upon a request in a form acceptable to the department for a waiver from the provisions of subdivision three of this section for a vehicle engine provided that such vehicle engine will cease to be used in the state on or before December thirty-first, two thousand [eighteen] NINETEEN. Any waiver issued pursuant to this subdivision shall expire when a state agency, a state or regional public authority, or a person operating any diesel-powered heavy duty vehicle on behalf of a state agency, state or regional public authority ceases to use the engine in the state but not later than December thirty-first, two thousand [eighteen] NINETEEN. 7. On or before January 1, 2008 and every year thereafter, the commis- sioner shall report to the governor and legislature on the use of ultra low sulfur diesel fuel. On or before January 1, [2018] 2019 and every year thereafter, the commissioner shall include in the report to the governor and legislature the use of the best available retrofit technol- ogy as required under this section. The information contained in this S. 2008--C 28 A. 3008--C report shall include, but not be limited to, for each state agency and public authority covered by this section: (a) the total number of diesel fuel-powered motor vehicles owned or operated by such agency and author- ity; (b) the number of such motor vehicles that were powered by ultra low sulfur diesel fuel; (c) the total number of diesel fuel-powered motor vehicles owned or operated by such agency and authority having a gross vehicle weight rating of more than 8,500 pounds; (d) the number of such motor vehicles that utilized the best available retrofit technolo- gy, including a breakdown by motor vehicle model, engine year and the type of technology used for each vehicle; (e) the number of such motor vehicles that are equipped with an engine certified to the applicable 2007 United States environmental protection agency standard for particu- late matter as set forth in section 86.007-11 of title 40 of the code of federal regulations or to any subsequent United States environmental protection agency standard for particulate matter that is at least as stringent; and (f) all waivers, findings, and renewals of such findings, which, for each waiver, shall include, but not be limited to, the quan- tity of diesel fuel needed to power diesel fuel-powered motor vehicles owned or operated by such agency and authority; specific information concerning the availability of ultra low sulfur diesel fuel. § 2. This act shall take effect immediately. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through UU of this act shall be as specifically set forth in the last section of such Parts.
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