The New York State Senate

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

    S. 2009                                                  A. 3009

                      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 the alcoholic beverage control law, in relation to the
  creation of a special license to sell alcoholic  beverages  at  retail
  for  consumption  off  the  premises  (Part A); to amend the alcoholic
  beverage control law, in relation to alcohol in certain motion picture
  theatres,  and  providing  for  the  expiration  and  repeal  of  such
  provisions  upon the expiration thereof (Part B); to amend the tax law
  and the administrative code of the city of New York,  in  relation  to
  the  school  tax reduction credit for residents of a city with a popu-
  lation of one million or more; and to repeal section 54-f of the state
  financial law relating thereto (Part C); to amend  the  real  property
  tax  law,  in  relation to the maximum amount of tax savings allowable
  under the STAR program (Part D); to amend the real  property  tax  law
  and  the  tax  law, in relation to making the STAR income verification
  program mandatory; and  repealing  certain  provisions  of  such  laws
  relating  thereto  (Part  E);  to  amend the real property tax law, in
  relation to authorizing partial payments of property taxes  (Part  F);
  to  amend  the  tax  law,  in relation to the STAR personal income tax
  credit (Part G); to amend the real property tax law and the  tax  law,
  in  relation  to  the  applicability of the STAR credit to cooperative
  apartment corporations; and repealing certain provisions  of  the  tax
  law  relating  thereto  (Part  H); to amend chapter 540 of the laws of
  1992, amending the real property tax  law  relating  to  oil  and  gas
  charges,  in  relation to the effectiveness thereof (Part I); to amend
  the state finance law, in relation to the  veterans'  home  assistance
  fund  (Part J); to amend the economic development law and the tax law,
  in relation to life sciences companies (Part K); to amend the economic
  development law,  in  relation  to  the  employee  training  incentive
  program  (Part  L); to amend the tax law, in relation to extending the
  empire state  film  production  credit  and  empire  state  film  post
  production credit for three years (Part M); to amend the labor law and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12574-03-7

S. 2009                             2                            A. 3009

  the  tax  law,  in relation to a program to provide tax incentives for
  employers employing at risk youth (Part N); to amend the tax  law,  in
  relation  to  extending  the  alternative  fuels  and electric vehicle
  recharging  property  credit for five years (Part O); to amend the tax
  law, in relation to the investment tax credit (Part P); to  amend  the
  tax law, in relation to the treatment of single member limited liabil-
  ity companies that are disregarded entities in determining eligibility
  for tax credits (Part Q); to amend the tax law, in relation to extend-
  ing  the  top  personal income tax rate for three years; and to repeal
  subparagraph (B) of paragraph 1 of subsection (a), subparagraph (B) of
  paragraph 1 of subsection (b) and subparagraph (B) of paragraph  1  of
  subsection  (c) of section 601 of the tax law, relating to the imposi-
  tion of tax (Part R); to amend the tax law and the administrative code
  of the city of New York, in relation to permanently extending the high
  income charitable contribution deduction limitation (Part S); to amend
  the tax law, in relation to increasing the child  and  dependent  care
  tax  credit  (Part T); to amend the tax law, in relation to the finan-
  cial institution data match system for state tax  collection  purposes
  (Part  U); to amend the civil service law and the tax law, in relation
  to tax clearances for applicants for civil  service  employment  (Part
  V); to amend chapter 266 of the laws of 1986, amending the civil prac-
  tice  law and rules and other laws relating to malpractice and profes-
  sional medical  conduct,  in  relation  to  apportioning  premium  for
  certain  policies;  to  amend part J of chapter 63 of the laws of 2001
  amending chapter 266 of the laws of 1986, amending the civil  practice
  law  and rules and other laws relating to malpractice and professional
  medical conduct, in relation to extending certain provisions  concern-
  ing  the  hospital excess liability pool; and to amend the tax law, in
  relation to  extending  certain  provisions  concerning  the  hospital
  excess  liability  pool  and requiring a tax clearance for doctors and
  dentists to be eligible for such excess coverage (Part  W);  to  amend
  chapter 59 of the laws of 2013, amending the tax law relating to serv-
  ing an income execution with respect to individual tax debtors without
  filing  a  warrant,  in  relation to making the provisions authorizing
  service of income executions on individual tax debtors without  filing
  a warrant permanent (Part X); to amend the tax law, in relation to the
  taxation  of  S corporations; and to repeal certain provisions of such
  law relating thereto (Part Y); to amend the tax law,  in  relation  to
  the  definition  of  New  York  source  income  (Part Z); to close the
  nonresident partnership asset sale loophole (Part AA);  to  amend  the
  tax  law,  in  relation  to requiring marketplace providers to collect
  sales tax (Part BB); to amend the tax law, in relation to closing  the
  existing tax loopholes for transactions between related entities under
  article  28  and  pursuant  to the authority of article 29 of such law
  (Part CC); to amend the tax law, in relation to clarifying the imposi-
  tion of sales tax on gas  service  or  electric  service  of  whatever
  nature (Part DD); to amend the tax law and the county law, in relation
  to  the  imposition  of a surcharge on prepaid wireless communications
  service and devices (Part EE); to amend the public health law and  the
  education law, in relation to tobacco products, herbal cigarettes, and
  vapor  products;  and  to amend the tax law, in relation to imposing a
  tax on vapor products (Part FF); to amend the tax law in  relation  to
  the  amount  of  untaxed cigarettes required to seize a vehicle and to
  increase the penalty for the possession or  sale  of  counterfeit  tax
  stamps  or  the device necessary to manufacture such stamps (Part GG);
  to amend the tax law, in relation to authorizing jeopardy  assessments

S. 2009                             3                            A. 3009

  on cigarette and tobacco product taxes assessed under article 20 ther-
  eof  (Part HH); to amend the tax law, in relation to the imposition of
  a tax on cigars under article 20 thereof (Part II); to amend  the  tax
  law,  in  relation  to  the definition of a conveyance for real estate
  transfer taxes (Part JJ); to amend the tax law,  in  relation  to  the
  additional  real  estate  transfer tax (Part KK); to amend the racing,
  pari-mutuel wagering and breeding law, in relation  to  modifying  the
  funding  of  and improve the operation of drug testing in horse racing
  (Part LL); to amend the racing, pari-mutuel wagering and breeding law,
  the executive law, and the general municipal law, in relation  to  the
  operation  of  charitable gaming; to amend the social services law, in
  relation  to  penalties  for  unauthorized  transactions  relating  to
  certain  public  assistance;  to  amend  the  tax  law, in relation to
  certain income derived from the conduct of certain  games  of  chance;
  and  to  repeal  certain  provisions of the executive law, the general
  municipal law and the tax law relating thereto (Part MM); to amend the
  racing, pari-mutuel wagering and breeding law, in relation to allowing
  for the reprivatization  of  NYRA,  and  under  certain  circumstances
  racing  after  sunset and a reduction in winter racing days (Part NN);
  to amend  the  racing,  pari-mutuel  wagering  and  breeding  law,  in
  relation  to licenses for simulcast facilities, sums relating to track
  simulcast, simulcast of out-of state thoroughbred races,  simulcasting
  of  races  run  by  out-of-state  harness  tracks and distributions of
  wagers; to amend chapter 281 of the laws of 1994 amending the  racing,
  pari-mutuel  wagering  and  breeding  law  and  other laws relating to
  simulcasting and chapter 346 of the laws of 1990 amending the  racing,
  pari-mutuel  wagering  and  breeding  law  and  other laws relating to
  simulcasting and the imposition  of  certain  taxes,  in  relation  to
  extending  certain  provisions thereof; and to amend the racing, pari-
  mutuel wagering and breeding law, in  relation  to  extending  certain
  provisions  thereof  (Part  OO);  to amend the tax law, in relation to
  vendor fees paid to vendor tracks (Part PP); to amend the tax law,  in
  relation  to  capital  awards to vendor tracks (Part QQ); and to amend
  the state finance law, in relation  to  the  distribution  of  certain
  gaming aid; and providing for the repeal of such provisions upon expi-
  ration thereof (Part RR)

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2017-2018
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through RR. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

S. 2009                             4                            A. 3009

  Section  1.  The alcoholic beverage control law is amended by adding a
new section 63-b to read as follows:
  §  63-B.  SPECIAL  LICENSE  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
CONSUMPTION OFF THE PREMISES.  1. ANY PERSON WITH  A  WRITTEN  AGREEMENT
WITH  THE  DEPARTMENT OF AGRICULTURE AND MARKETS TO OPERATE A "TASTE NY"
STORE MAY MAKE APPLICATION TO THE AUTHORITY FOR  A  SPECIAL  LICENSE  TO
SELL  ALCOHOLIC  BEVERAGES  AT  RETAIL  FOR CONSUMPTION OFF THE LICENSED
PREMISES SUBJECT TO THE PROVISIONS OF SUCH WRITTEN AGREEMENT  AND  THOSE
SET  FORTH HEREIN. NOTWITHSTANDING ANY LAW TO THE CONTRARY, NO ALCOHOLIC
BEVERAGE SHALL BE SOLD OR TASTINGS ALLOWED ON THE THRUWAY.
  2. AN APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL  BE  IN  SUCH
FORM  AND  SHALL  CONTAIN  SUCH  INFORMATION AS SHALL BE REQUIRED BY THE
AUTHORITY AND SHALL BE ACCOMPANIED BY A CHECK OR  DRAFT  IN  THE  AMOUNT
REQUIRED BY THIS CHAPTER.
  3.  SECTION  FIFTY-FOUR  OF  THIS  CHAPTER  SHALL CONTROL SO FAR AS IS
APPLICABLE TO THE PROCEDURE IN CONNECTION WITH SUCH APPLICATION.
  4. A LICENSE UNDER THIS SECTION SHALL BE ISSUED TO ALL ELIGIBLE APPLI-
CANTS EXCEPT FOR GOOD CAUSE SHOWN, PROVIDED, HOWEVER, THAT NO MORE  THAN
TEN  SUCH  LICENSES  SHALL  BE  IN EFFECT AT ANY TIME, AND THAT ALL SUCH
LICENSES SHALL BE ISSUED IN A MANNER CONSISTENT  WITH  FEDERAL  LAW  AND
REGULATIONS.    SUCH LICENSE SHALL BE LIMITED TO THE PREMISES SUBJECT TO
THE WRITTEN AGREEMENT WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS.
  5. A LICENSE UNDER THIS SECTION SHALL NOT BE SUBJECT TO THE PROVISIONS
OF SUBDIVISIONS TWO, THREE AND SIX OF SECTION ONE HUNDRED FIVE  OF  THIS
CHAPTER.
  6.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
ISSUED  UNDER  THIS  SECTION MAY OFFER SAMPLES OF ALCOHOLIC BEVERAGES TO
CUSTOMERS TO BE CONSUMED ON THE LICENSED  PREMISES  UPON  THE  FOLLOWING
CONDITIONS:
  (A) NO FEE SHALL BE CHARGED FOR ANY SAMPLE;
  (B) EACH SAMPLE SHALL BE LIMITED;
  (I)  IN  THE CASE OF BEER, WINE PRODUCTS AND CIDER, TO THREE OUNCES OR
LESS;
  (II) IN THE CASE OF WINE, TO TWO OUNCES;
  (III) IN THE CASE OF LIQUOR, TO ONE-QUARTER OUNCE;
  (C) NO SAMPLE SHALL BE PROVIDED TO A CUSTOMER DURING THE HOURS PROHIB-
ITED BY THE PROVISIONS OF SUBDIVISION FIVE OF SECTION ONE HUNDRED SIX OF
THIS CHAPTER; AND
  (D) NO CUSTOMER MAY BE PROVIDED WITH MORE THAN THREE  SAMPLES  IN  ONE
CALENDAR DAY.
  7.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
ISSUED UNDER THIS SECTION SHALL NOT:
  (A)  OFFER  ANY  TASTINGS OF, OR SELL, ANY BEER OR CIDER EXCEPT DURING
THE HOURS IN WHICH BEER MAY BE SOLD FOR CONSUMPTION OFF THE PREMISES  IN
THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED; AND
  (B)  OFFER  ANY TASTINGS OF, OR SELL, ANY LIQUOR OR WINE EXCEPT DURING
THE HOURS IN WHICH LIQUOR AND WINE MAY BE SOLD FOR CONSUMPTION  OFF  THE
PREMISES IN THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED.
  8. IN ADDITION TO THE SALE OF ALCOHOLIC BEVERAGES, THE FOLLOWING ITEMS
MAY BE SOLD AT A PREMISES LICENSED UNDER THIS SECTION:
  (A)  NON-ALCOHOLIC  BEVERAGES  FOR CONSUMPTION OFF PREMISES, INCLUDING
BUT NOT LIMITED TO BOTTLED WATER, JUICE AND SODA BEVERAGES;
  (B) FOOD ITEMS GROWN  OR  PRODUCED  IN  THIS  STATE  NOT  SPECIFICALLY
PREPARED FOR IMMEDIATE CONSUMPTION UPON THE PREMISES; AND

S. 2009                             5                            A. 3009

  (C)  SOUVENIR  ITEMS,  WHICH  SHALL  INCLUDE,  BUT  NOT  BE LIMITED TO
ARTWORK, CRAFTS, CLOTHING, AGRICULTURAL PRODUCTS AND ANY OTHER  ARTICLES
WHICH CAN BE CONSTRUED TO PROPAGATE TOURISM WITHIN THE STATE.
  9.  A  LICENSE  ISSUED UNDER THIS SECTION SHALL BE EFFECTIVE FOR THREE
YEARS AT THREE TIMES THE ANNUAL FEE.
  § 2. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
law,  as  amended  by  section  3 of chapter 297 of the laws of 2016, is
amended to read as follows:
  3. To revoke, cancel or suspend for cause any license or permit issued
under this chapter and/or to impose a civil penalty  for  cause  against
any  holder  of a license or permit issued pursuant to this chapter. Any
civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
dollars  as  against  the holder of any retail permit issued pursuant to
sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
paragraph f of subdivision one of section ninety-nine-b of this chapter,
and  as  against  the  holder  of  any retail license issued pursuant to
sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eight-
y-one-a of this chapter, and the  sum  of  thirty  thousand  dollars  as
against the holder of a license issued pursuant to sections fifty-three,
sixty-one-a,  sixty-one-b, seventy-six, seventy-six-a, and seventy-eight
of this chapter, provided that the civil penalty against the holder of a
wholesale license issued pursuant to section fifty-three of this chapter
shall not exceed the sum of ten thousand  dollars  where  that  licensee
violates  provisions  of  this  chapter during the course of the sale of
beer at retail to a person for consumption at home, and the sum  of  one
hundred  thousand  dollars  as  against the holder of any license issued
pursuant to sections fifty-one, sixty-one, and sixty-two of  this  chap-
ter.  Any  civil penalty so imposed shall be in addition to and separate
and apart from the terms and provisions of the bond required pursuant to
section one hundred twelve of this chapter. Provided that no  appeal  is
pending on the imposition of such civil penalty, in the event such civil
penalty  imposed  by  the  division remains unpaid, in whole or in part,
more than forty-five days after written demand for payment has been sent
by first class mail to the address of the licensed premises, a notice of
impending default judgment shall be sent by  first  class  mail  to  the
licensed premises and by first class mail to the last known home address
of the person who signed the most recent license application. The notice
of  impending  default  judgment  shall  advise the licensee: (a) that a
civil penalty was imposed on the licensee; (b) the date the penalty  was
imposed;  (c)  the  amount  of  the civil penalty; (d) the amount of the
civil penalty that remains unpaid as of the date of the notice; (e)  the
violations for which the civil penalty was imposed; and (f) that a judg-
ment  by  default  will be entered in the supreme court of the county in
which the licensed premises are located, or other court of civil  juris-
diction  or  any  other  place provided for the entry of civil judgments
within the state of New York unless the division receives  full  payment
of  all civil penalties due within twenty days of the date of the notice
of impending default judgment. If  full  payment  shall  not  have  been
received  by the division within thirty days of mailing of the notice of
impending default judgment, the division shall  proceed  to  enter  with
such  court a statement of the default judgment containing the amount of
the penalty or penalties remaining due and unpaid, along with  proof  of
mailing  of the notice of impending default judgment. The filing of such
judgment shall have the full force and effect of a default judgment duly

S. 2009                             6                            A. 3009

docketed with such court pursuant to the civil practice  law  and  rules
and  shall  in  all  respects  be  governed  by  that chapter and may be
enforced in the same manner and with the same effect as that provided by
law  in respect to execution issued against property upon judgments of a
court of record. A judgment entered pursuant to this  subdivision  shall
remain  in  full  force  and  effect for eight years notwithstanding any
other provision of law.
  § 3. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
law,  as  amended  by  section  4 of chapter 297 of the laws of 2016, is
amended to read as follows:
  3. To revoke, cancel or suspend for cause any license or permit issued
under this chapter and/or to impose a civil penalty  for  cause  against
any  holder  of a license or permit issued pursuant to this chapter. Any
civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
dollars  as  against  the holder of any retail permit issued pursuant to
sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
paragraph f of subdivision one of section ninety-nine-b of this chapter,
and  as  against  the  holder  of  any retail license issued pursuant to
sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
four-b,  sixty-four-c,  seventy-six-f,  seventy-nine,  eighty-one,   and
eighty-one-a  of this chapter, and the sum of thirty thousand dollars as
against the holder of a license issued pursuant to sections fifty-three,
sixty-one-a, sixty-one-b, seventy-six, seventy-six-a  and  seventy-eight
of this chapter, provided that the civil penalty against the holder of a
wholesale license issued pursuant to section fifty-three of this chapter
shall  not  exceed  the  sum of ten thousand dollars where that licensee
violates provisions of this chapter during the course  of  the  sale  of
beer  at  retail to a person for consumption at home, and the sum of one
hundred thousand dollars as against the holder  of  any  license  issued
pursuant to sections fifty-one, sixty-one and sixty-two of this chapter.
Any  civil  penalty  so imposed shall be in addition to and separate and
apart from the terms and provisions of the  bond  required  pursuant  to
section  one  hundred twelve of this chapter. Provided that no appeal is
pending on the imposition of such civil penalty, in the event such civil
penalty imposed by the division remains unpaid, in  whole  or  in  part,
more than forty-five days after written demand for payment has been sent
by first class mail to the address of the licensed premises, a notice of
impending  default  judgment  shall  be  sent by first class mail to the
licensed premises and by first class mail to the last known home address
of the person who signed the most recent license application. The notice
of impending default judgment shall advise  the  licensee:  (a)  that  a
civil  penalty was imposed on the licensee; (b) the date the penalty was
imposed; (c) the amount of the civil penalty;  (d)  the  amount  of  the
civil  penalty that remains unpaid as of the date of the notice; (e) the
violations for which the civil penalty was imposed; and (f) that a judg-
ment by default will be entered in the supreme court of  the  county  in
which  the licensed premises are located, or other court of civil juris-
diction, or any other place provided for the entry  of  civil  judgments
within  the  state of New York unless the division receives full payment
of all civil penalties due within twenty days of the date of the  notice
of  impending  default  judgment.  If  full  payment shall not have been
received by the division within thirty days of mailing of the notice  of
impending  default  judgment,  the  division shall proceed to enter with
such court a statement of the default judgment containing the amount  of
the  penalty  or penalties remaining due and unpaid, along with proof of

S. 2009                             7                            A. 3009

mailing of the notice of impending default judgment. The filing of  such
judgment shall have the full force and effect of a default judgment duly
docketed  with  such  court pursuant to the civil practice law and rules
and  shall  in  all  respects  be  governed  by  that chapter and may be
enforced in the same manner and with the same effect as that provided by
law in respect to execution issued against property upon judgments of  a
court  of  record. A judgment entered pursuant to this subdivision shall
remain in full force and effect  for  eight  years  notwithstanding  any
other provision of law.
  §  4.  Subdivision 1 of section 56-a of the alcoholic beverage control
law, as amended by chapter 422 of the laws of 2016, is amended  to  read
as follows:
  1.  In addition to the annual fees provided for in this chapter, there
shall be paid to the authority  with  each  initial  application  for  a
license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
a filing fee of four hundred dollars; with each initial application  for
a  license  filed pursuant to section sixty-three, SIXTY-THREE-B, sixty-
four, sixty-four-a or sixty-four-b of this chapter, a filing fee of  two
hundred  dollars;  with  each  initial  application  for a license filed
pursuant to section fifty-three-a, fifty-four, fifty-five, fifty-five-a,
seventy-nine, eighty-one or eighty-one-a of this chapter, a  filing  fee
of one hundred dollars; with each initial application for a permit filed
pursuant  to section ninety-one, ninety-one-a, ninety-two, ninety-two-a,
ninety-three, ninety-three-a, if such permit is to be issued on a calen-
dar year basis, ninety-four, ninety-five, ninety-six or ninety-six-a, or
pursuant to paragraph b, c, e or j of subdivision one of  section  nine-
ty-nine-b  of  this chapter if such permit is to be issued on a calendar
year basis, or for an additional bar pursuant  to  subdivision  four  of
section one hundred of this chapter, a filing fee of twenty dollars; and
with  each application for a permit under section ninety-three-a of this
chapter, other than a permit to be issued  on  a  calendar  year  basis,
section  ninety-seven,  ninety-eight,  ninety-nine,  or ninety-nine-b of
this chapter, other than a permit to be issued pursuant to paragraph  b,
c, e or j of subdivision one of section ninety-nine-b of this chapter on
a calendar year basis, a filing fee of ten dollars.
  §  5.  Subdivision 2 of section 56-a of the alcoholic beverage control
law, as amended by chapter 422 of the laws of 2016, is amended  to  read
as follows:
  2.  In addition to the annual fees provided for in this chapter, there
shall be paid to the authority  with  each  renewal  application  for  a
license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
a filing fee of one hundred dollars; with each renewal application for a
license filed pursuant to  section  sixty-three,  SIXTY-THREE-B,  sixty-
four,  sixty-four-a  or  sixty-four-b  of  this chapter, a filing fee of
ninety dollars; with each renewal application for a license filed pursu-
ant to section seventy-nine, eighty-one or eighty-one-a of this chapter,
a filing fee of twenty-five dollars; and with each  renewal  application
for  a license or permit filed pursuant to section fifty-three-a, fifty-
four, fifty-five, fifty-five-a,  ninety-one,  ninety-one-a,  ninety-two,
ninety-two-a,  ninety-three, ninety-three-a, if such permit is issued on
a calendar year basis, ninety-four, ninety-five, ninety-six  or  ninety-
six-a  of this chapter or pursuant to paragraph b, c, e or j of subdivi-

S. 2009                             8                            A. 3009

sion one of section ninety-nine-b, if such permit is issued on a  calen-
dar  year  basis, or with each renewal application for an additional bar
pursuant to subdivision four of section one hundred of this  chapter,  a
filing fee of thirty dollars.
  §  6.  Section  66 of the alcoholic beverage control law is amended by
adding a new subdivision 11 to read as follows:
  11. THE ANNUAL FEE FOR A SPECIAL LICENSE TO SELL  ALCOHOLIC  BEVERAGES
AT  RETAIL  FOR  CONSUMPTION  OFF  THE  LICENSED  PREMISES SHALL BE FIVE
HUNDRED DOLLARS.
  §  7. Section 67 of the alcoholic beverage control law, as amended  by
section  4  of  part  Z of chapter 85 of the laws of 2002, is amended to
read as follows:
  § 67. License fees, duration  of  licenses;  fee  for  part  of  year.
Effective  April  first,  nineteen hundred eighty-three, licenses issued
pursuant to sections sixty-one, sixty-two,  sixty-three,  SIXTY-THREE-B,
sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
effective for three years at three times that annual fee[, except  that,
in implementing the purposes of this section, the liquor authority shall
schedule  the  commencement dates, duration and expiration dates thereof
to provide for an equal cycle of license renewals issued under each such
section through the course of the fiscal year. Effective December first,
nineteen hundred ninety-eight,  licenses  issued  pursuant  to  sections
sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
effective for two years at two times that annual fee,  except  that,  in
implementing  the  purposes  of this section, the liquor authority shall
schedule the commencement dates, duration and expiration  dates  thereof
to provide for an equal cycle of license renewals issued under each such
section through the course of the fiscal year. Notwithstanding the fore-
going,  commencing  on December first, nineteen hundred ninety-eight and
concluding on July thirty-first, two thousand two, a licensee  issued  a
license  pursuant to section sixty-four, sixty-four-a or sixty-four-b of
this article may elect to remit the fee for such license in equal annual
installments. Such installments shall be due on dates established by the
liquor authority and the failure of a licensee  to  have  remitted  such
annual  installments after a due date shall be a violation of this chap-
ter. For licenses issued for less than the three-year licensing  period,
the  license  fee  shall  be  levied on a pro-rated basis].   The entire
license fee shall be due and payable at the  time  of  application.  The
liquor  authority  may  make such rules as shall be appropriate to carry
out the purpose of this section.
  § 8. Subdivision 8 of section 100 of the  alcoholic  beverage  control
law,  as  added  by chapter 256 of the laws of 1978 and as renumbered by
chapter 466 of the laws of 2015, is amended to read as follows:
  8. Within ten days after filing a new application to  sell  liquor  at
retail    under    section   sixty-three,   SIXTY-THREE-B,   sixty-four,
sixty-four-a or sixty-four-b of this chapter, a notice thereof,  in  the
form  prescribed by the authority, shall be posted by the applicant in a
conspicuous place at the entrance to the proposed premises.  The  appli-
cant  shall  make  reasonable efforts to insure such notice shall remain
posted throughout the pendency of the application. The provisions hereof
shall apply only where no retail  liquor  license  has  previously  been
granted  for the proposed premise and shall, specifically, not be appli-
cable to a proposed sale of an existing business engaged in  the  retail
sale of liquor. The authority may adopt such rules it may deem necessary
to carry out the purpose of this subdivision.

S. 2009                             9                            A. 3009

  §  9.  This  act shall take effect on the thirtieth day after it shall
have become a law; provided, however, that:
  (a)  the  amendments  to  subdivision 3 of section 17 of the alcoholic
beverage control law made by section two of this act shall be subject to
the expiration and reversion of such section pursuant to  section  4  of
chapter  118  of  the  laws of 2012, as amended, when upon such date the
provisions of section three of this act shall take effect; and
  (b) if chapter 422 of the laws of 2016 shall not have taken effect  on
or  before  such date then sections four and five of this act shall take
effect on the same date and in the same manner as such  chapter  of  the
laws of 2016, takes effect.

                                 PART B

  Section  1.  Section  106  of  the  alcoholic  beverage control law is
amended by adding a new subdivision 16 to read as follows:
  16. A PERSON HOLDING A RETAIL ON-PREMISES LICENSE FOR A MOVIE THEATRE,
OTHER THAN A LICENSE FOR A MOVIE THEATRE THAT MEETS THE  DEFINITIONS  OF
RESTAURANT AND MEALS, AND WHERE ALL SEATING IS AT TABLES WHERE MEALS ARE
SERVED, SHALL:
  (A) FOR EVERY PURCHASE OF AN ALCOHOLIC BEVERAGE, REQUIRE THE PURCHASER
TO  PROVIDE  WRITTEN  EVIDENCE  OF  AGE AS SET FORTH IN PARAGRAPH (B) OF
SUBDIVISION TWO OF SECTION SIXTY-FIVE-B OF THIS CHAPTER; AND
  (B) ALLOW THE PURCHASE OF ONLY ONE ALCOHOLIC BEVERAGE PER TRANSACTION;
AND
  (C) ONLY PERMIT THE SALE OR DELIVERY OF ALCOHOLIC  BEVERAGES  DIRECTLY
TO  AN  INDIVIDUAL  HOLDING  A TICKET FOR A MOTION PICTURE WITH A MOTION
PICTURE ASSOCIATION OF AMERICA RATING OF "PG-13," "R," OR "NC-17"; AND
  (D) NOT COMMENCE THE SALE OF ALCOHOLIC BEVERAGES UNTIL ONE HOUR  PRIOR
TO  THE  START OF THE FIRST MOTION PICTURE, AND CEASE ALL SALES OF ALCO-
HOLIC BEVERAGES AFTER THE CONCLUSION OF THE FINAL MOTION PICTURE.
  § 2. Subdivision 6 of section 64-a of the alcoholic  beverage  control
law,  as  amended by chapter 475 of the laws of 2011, is amended to read
as follows:
  6. No special on-premises license shall be granted except for premises
in which the principal business shall be (a) the sale of food or  bever-
ages at retail for consumption on the premises or (b) the operation of a
legitimate  theatre, INCLUDING A MOTION PICTURE THEATRE THAT IS A BUILD-
ING OR FACILITY WHICH IS REGULARLY USED AND KEPT OPEN PRIMARILY FOR  THE
EXHIBITION  OF  MOTION  PICTURES  FOR  AT LEAST FIVE OUT OF SEVEN DAYS A
WEEK, OR ON A REGULAR SEASONAL BASIS OF  NO  LESS  THAN  SIX  CONTIGUOUS
WEEKS, TO THE GENERAL PUBLIC WHERE ALL AUDITORIUM SEATING IS PERMANENTLY
AFFIXED  TO  THE  FLOOR  AND  AT  LEAST SIXTY-FIVE PERCENT OF THE MOTION
PICTURE THEATRE'S ANNUAL GROSS REVENUES IS THE COMBINED RESULT OF ADMIS-
SION REVENUE FOR THE SHOWING OF MOTION PICTURES AND THE SALE OF FOOD AND
NON-ALCOHOLIC BEVERAGES, or such other  lawful  adult  entertainment  or
recreational  facility as the liquor authority, giving due regard to the
convenience of the public and the strict avoidance of  sales  prohibited
by  this chapter, shall by regulation classify for eligibility. [Nothing
contained in this subdivision shall be deemed to authorize the  issuance
of a license to a motion picture theatre, except those meeting the defi-
nition of restaurant and meals, and where all seating is at tables where
meals are served.]
  §  3.  Subdivision 8 of section 64-a of the alcoholic beverage control
law, as added by chapter 531 of the laws of 1964, is amended to read  as
follows:

S. 2009                            10                            A. 3009

  8. Every special on-premises licensee shall regularly keep food avail-
able  for  sale  to  its  customers for consumption on the premises. The
availability of sandwiches, soups or other foods, whether  fresh,  proc-
essed,  pre-cooked  or  frozen,  shall  be  deemed  compliance with this
requirement.    FOR MOTION PICTURE THEATRES LICENSED UNDER PARAGRAPH (B)
OF SUBDIVISION SIX OF THIS SECTION, FOOD THAT IS TYPICALLY  FOUND  IN  A
MOTION  PICTURE  THEATRE,  INCLUDING BUT NOT LIMITED TO: POPCORN, CANDY,
AND LIGHT SNACKS, SHALL BE DEEMED TO BE IN COMPLIANCE WITH THIS REQUIRE-
MENT. The licensed premises shall comply at all times with all the regu-
lations of the local department of health.  Nothing  contained  in  this
subdivision,  however,  shall  be  construed to require that any food be
sold or purchased with any liquor, nor shall  any  rule,  regulation  or
standard  be  promulgated or enforced requiring that the sale of food be
substantial or that the receipts of the business  other  than  from  the
sale  of  liquor  equal  any set percentage of total receipts from sales
made therein.
  § 4. Subdivision 9 of section 64-a of the alcoholic  beverage  control
law,  as added by chapter 531 of the laws of 1964, is amended to read as
follows:
  9.  IN THE CASE OF A MOTION PICTURE THEATRE  APPLYING  FOR  A  LICENSE
UNDER  THIS  SECTION,  ANY  MUNICIPALITY  REQUIRED  TO BE NOTIFIED UNDER
SECTION ONE HUNDRED TEN-B OF THIS CHAPTER MAY EXPRESS  AN  OPINION  WITH
RESPECT  TO WHETHER THE APPLICATION SHOULD BE APPROVED, AND SUCH OPINION
MAY BE CONSIDERED IN DETERMINING WHETHER GOOD CAUSE EXISTS TO  DENY  ANY
SUCH APPLICATION.
  10.  The liquor authority may make such rules as it deems necessary to
carry out the provisions of this section.
  § 5. This act shall take effect immediately and shall  expire  and  be
deemed repealed 3 years after such date.

                                 PART C

  Section 1. Section 54-f of the state finance law is REPEALED.
  §  2.  Subsection  (ggg)  of  section  606 of the tax law, as added by
section 1 of part E of chapter 60 of the laws of 2016, and as relettered
by section 1 of part A of chapter 73 of the laws of 2016, is amended  to
read as follows:
  (ggg) School tax reduction credit for residents of a city with a popu-
lation over one million. (1) For taxable years beginning after two thou-
sand  fifteen, a school tax reduction credit shall be allowed to a resi-
dent individual of the state  who  is  a  resident  of  a  city  with  a
population  over  one  million,  as  provided below. The credit shall be
allowed against the taxes authorized by  this  article  reduced  by  the
credits  permitted  by this article. If the credit exceeds the tax as so
reduced, the excess shall be treated as an  overpayment  of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided however, that  no  interest
will  be  paid thereon. For purposes of this subsection, no credit shall
be granted to an individual with  respect  to  whom  a  deduction  under
subsection  (c) of section one hundred fifty-one of the internal revenue
code is allowable to another taxpayer for the taxable year.
  (2) The amount of the credit under this [paragraph]  SUBSECTION  shall
be  determined  based  upon the taxpayer's income as defined in subpara-
graph (ii) of paragraph (b) of subdivision four of section four  hundred
twenty-five of the real property tax law.

S. 2009                            11                            A. 3009

  (3)  For  TAXABLE  YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE CREDIT
SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH, PROVIDED THAT FOR the
purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
of this paragraph with income of more than two  hundred  fifty  thousand
dollars shall not receive a credit.
  (A) Married individuals filing joint returns and surviving spouses. In
the  case of married individuals who make a single return jointly and of
a surviving spouse, the credit shall be one hundred twenty-five dollars.
  (B) All others. In the case of an unmarried individual, a  head  of  a
household  or  a married individual filing a separate return, the credit
shall be sixty-two dollars and fifty cents.
  (4) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN, THE CREDIT
SHALL EQUAL THE "FIXED" AMOUNT  PROVIDED  BY  PARAGRAPH  (4-A)  OF  THIS
SUBSECTION  PLUS THE "RATE REDUCTION" AMOUNT PROVIDED BY PARAGRAPH (4-B)
OF THIS SUBSECTION.
  (4-A) THE "FIXED" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS PROVIDED
IN THIS PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF  MORE  THAN
TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
  (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
THE  CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF
A SURVIVING SPOUSE, THE "FIXED"  AMOUNT  OF  THE  CREDIT  SHALL  BE  ONE
HUNDRED TWENTY-FIVE DOLLARS.
  (B)  ALL  OTHERS.  IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE  "FIXED"
AMOUNT OF THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
  (4-B) THE "RATE REDUCTION" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS
PROVIDED  IN  THIS  PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF
MORE THAN FIVE HUNDRED THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
  (A) FOR MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND FOR A
SURVIVING SPOUSE:
IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $21,600                       0.171% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT OVER $500,000     $37 PLUS 0.228% OF EXCESS OVER
                                         $21,600
OVER $500,000                              NOT APPLICABLE
  (B) FOR A HEAD OF HOUSEHOLD:
IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $14,400                       0.171% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT OVER $500,000     $25 PLUS 0.228% OF EXCESS OVER
                                         $14,400
OVER $500,000                              NOT APPLICABLE
  (C) FOR AN UNMARRIED INDIVIDUAL OR A MARRIED INDIVIDUAL FILING
A SEPARATE RETURN:
IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $12,000                       0.171% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT OVER $500,000     $21 PLUS 0.228% OF EXCESS OVER
                                         $12,000
OVER $500,000                              NOT APPLICABLE
  [(3)] (5) Part-year residents. If a taxpayer changes status during the
taxable year from resident to nonresident, or from nonresident to  resi-
dent,  the  school  tax  reduction  credit authorized by this subsection
shall be prorated according to the number of months  in  the  period  of
residence.
  §  3.  Paragraphs  1, 2 and 3 of subsection (a) of section 1304 of the
tax law, as amended by section 2 of part B of chapter 59 of the laws  of
2015, are amended to read as follows:

S. 2009                            12                            A. 3009

  (1)  Resident  married  individuals  filing joint returns and resident
surviving spouses. The tax under this section for each taxable  year  on
the  city  taxable  income of every city resident married individual who
makes a single return jointly with his or her  spouse  under  subsection
(b)  of  section  thirteen  hundred  six of this article and on the city
taxable income of every city resident surviving spouse shall  be  deter-
mined in accordance with the following tables:

  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
OVER $45,000                             OVER $21,600
OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
OVER $90,000                             OVER $45,000
OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                          OVER $90,000

(B) FOR TAXABLE YEAR BEGINNING AFTER TWO THOUSAND FOURTEEN
AND BEFORE TWO THOUSAND SEVENTEEN:
If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                             over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess
over $500,000                            over $90,000
Over $500,000                          $16,803 plus 3.4% of excess
                                         over $500,000

  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:
If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                             over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess
over $500,000                            over $90,000
Over $500,000                          $15,814 plus 3.4% of excess
                                         over $500,000

  (2) Resident heads of households. The tax under this section for  each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
OVER $30,000                             OVER $14,400
OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS

S. 2009                            13                            A. 3009

OVER $60,000                             OVER $30,000
OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                         OVER $60,000

  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                             over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                            over $60,000
Over $500,000                          $16,869 plus 3.4% of excess
                                         over $500,000

[(B)] (C) For taxable years beginning after two thousand nine and before
two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                             over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                            over $60,000
Over $500,000                          $15,876 plus 3.4% of excess
                                         Over $500,000

  (3)  Resident  unmarried  individuals,  resident  married  individuals
filing separate returns and resident estates and trusts. The  tax  under
this  section  for each taxable year on the city taxable income of every
city resident individual who is not a city resident  married  individual
who  makes  a  single  return  jointly  with  his  or  her  spouse under
subsection (b) of section thirteen hundred six of this article or a city
resident head of household or a city resident surviving spouse,  and  on
the city taxable income of every city resident estate and trust shall be
determined in accordance with the following tables:

  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
OVER $25,000                             OVER $12,000
OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
OVER $50,000                             OVER $25,000
OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                       OVER $50,000

  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SEVENTEEN:

S. 2009                            14                            A. 3009

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                             over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                          over $50,000
Over $500,000                          $16,891 plus 3.4%
                                       of excess over $500,000
  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                             over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                          over $50,000
Over $500,000                          $15,897 plus 3.4%
                                       of excess over $500,000
  § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the
administrative code of the city of New York, as amended by section 3  of
part  B  of  chapter  59  of  the  laws  of 2015, are amended to read as
follows:
  (1) Resident married individuals filing  joint  returns  and  resident
surviving  spouses.  The tax under this section for each taxable year on
the city taxable income of every city resident  married  individual  who
makes  a  single return jointly with his or her spouse under subdivision
(b) of section 11-1751 of this chapter and on the city taxable income of
every city resident surviving spouse shall be determined  in  accordance
with the following tables:

(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
OVER $45,000                           OVER $21,600
OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
OVER $90,000                           OVER $45,000
OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                       OVER $90,000
  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SEVENTEEN:

If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                            over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                            over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess

S. 2009                            15                            A. 3009

over $500,000                           over $90,000
Over $500,000                          $16,803 plus 3.4% of excess
                                        over $500,000
  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                            over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                            over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess
over $500,000                           over $90,000
Over $500,000                          $15,814 plus 3.4% of excess
                                        over $500,000

  (2) Resident heads of households. The tax under this section for  each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
OVER $30,000                           OVER $14,400
OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS
OVER $60,000                           OVER $30,000
OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                       OVER $60,000
  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                            over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                            over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                           over $60,000
Over $500,000                          $16,869 plus 3.4% of excess
                                        over $500,000

  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                            over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                            over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                           over $60,000
Over $500,000                          $15,876 plus 3.4% of excess

S. 2009                            16                            A. 3009

                                        over $500,000

  (3)  Resident  unmarried  individuals,  resident  married  individuals
filing separate returns and resident estates and trusts. The  tax  under
this  section  for each taxable year on the city taxable income of every
city resident individual who is not a married  individual  who  makes  a
single  return  jointly  with his or her spouse under subdivision (b) of
section 11-1751 of this chapter or a city resident head of  a  household
or  a  city resident surviving spouse, and on the city taxable income of
every city resident estate and trust shall be determined  in  accordance
with the following tables:

(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
OVER $25,000                            OVER $12,000
OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
OVER $50,000                            OVER $25,000
OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                        OVER $50,000
  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:
If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                            over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                            over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                           over $50,000
Over $500,000                          $16,891 plus 3.4% of excess
                                        over $500,000

  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                            over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                            over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                           over $50,000
Over $500,000                          $15,897 plus 3.4% of excess
                                        over $500,000

  § 5. Notwithstanding any provision of law to the contrary, the  method
of  determining  the  amount  to  be deducted and withheld from wages on
account of taxes imposed by or pursuant to the authority of  article  30
of  the  tax law in connection with the implementation of the provisions
of this act shall be prescribed by  the  commissioner  of  taxation  and
finance with due consideration to the effect such withholding tables and
methods would have on the receipt and amount of revenue. The commission-

S. 2009                            17                            A. 3009

er  of  taxation  and  finance  shall adjust such withholding tables and
methods in regard to taxable years beginning in 2017 and after  in  such
manner  as  to  result,  so  far  as practicable, in withholding from an
employee's  wages  an amount substantially equivalent to the tax reason-
ably estimated to be due for such taxable  years  as  a  result  of  the
provisions  of  this act. Provided, however, for tax year 2017 the with-
holding tables shall reflect  as  accurately  as  practicable  the  full
amount  of  tax  year  2017 liability so that such amount is withheld by
December 31, 2017. In carrying out his or her  duties  and  responsibil-
ities  under  this section, the commissioner of taxation and finance may
prescribe a similar procedure with respect to the taxes required  to  be
deducted  and  withheld  by  local  laws  imposing taxes pursuant to the
authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
of  any  other  law  in  relation  to  such  a procedure to the contrary
notwithstanding.
  § 6. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax shall be imposed for failure to pay  the  estimated  tax  in
subsection  (c)  of  section  685  of the tax law and subdivision (c) of
section 11-1785 of the administrative code of the city of New York  with
respect  to  any underpayment of a required installment due prior to, or
within thirty days of, the effective date of this act to the extent that
such underpayment was created or increased by  the  amendments  made  by
this  act, provided, however, that the taxpayer remits the amount of any
underpayment prior to or with his or her next  quarterly  estimated  tax
payment.
  2. The commissioner of taxation and finance shall take steps to publi-
cize  the  necessary  adjustments  to  estimated  tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
  § 7. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2017.

                                 PART D

  Section 1. Subparagraph (i) of  paragraph  (a)  of  subdivision  2  of
section  1306-a of the real property tax law, as amended by section 6 of
part N of chapter 58 of the laws of 2011, is amended to read as follows:
  (i) The tax savings for each parcel receiving the exemption authorized
by section four hundred twenty-five of this chapter shall be computed by
subtracting the amount actually  levied  against  the  parcel  from  the
amount  that  would  have been levied if not for the exemption, provided
however, that [beginning with] FOR the two thousand eleven-two  thousand
twelve THROUGH TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN school [year]
YEARS, the tax savings applicable to any "portion" (which as used herein
shall  mean  that  part  of  an  assessing  unit located within a school
district) shall not exceed the tax savings applicable to that portion in
the prior school year multiplied by one hundred two  percent,  with  the
result  rounded  to the nearest dollar; AND PROVIDED FURTHER THAT BEGIN-
NING WITH THE TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGHTEEN SCHOOL  YEAR,
THE  TAX  SAVINGS  APPLICABLE  TO  ANY  PORTION SHALL NOT EXCEED THE TAX
SAVINGS FOR THE PRIOR YEAR. The tax savings attributable  to  the  basic
and  enhanced exemptions shall be calculated separately. It shall be the
responsibility of the commissioner to calculate tax savings  limitations
for purposes of this subdivision.
  § 2. This act shall take effect immediately.

S. 2009                            18                            A. 3009

                                 PART E

  Section  1.  Subparagraph  (ii)  of  paragraph (b) of subdivision 4 of
section 425 of the real property tax law, as amended  by  section  3  of
part E of chapter 83 of the laws of 2002, is amended to read as follows:
  (ii)  The  term "income" as used herein shall mean the "adjusted gross
income" for federal income tax purposes as reported on  the  applicant's
federal  or  state income tax return for the applicable income tax year,
subject to any subsequent amendments or revisions, reduced  by  distrib-
utions,  to  the  extent  included  in  federal  adjusted  gross income,
received from an individual retirement account and an individual retire-
ment annuity; provided that if no such return was filed for the applica-
ble income tax year, "income" shall mean the adjusted gross income  that
would  have  been so reported if such a return had been filed.  PROVIDED
FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT
ROLLS TO BE COMPLETED IN TWO THOUSAND EIGHTEEN, WHERE  AN  INCOME-ELIGI-
BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX
YEAR,  THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH
SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE  DEPARTMENT  SHOWING  THE
SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE
AMOUNT  OR  AMOUNTS  THEREOF,  THAT  WOULD  HAVE BEEN REPORTED ON SUCH A
RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT  SHALL  BE  FILED  AT  SUCH
TIME,  AND  IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART-
MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX  LAW  TO
THE  SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART-
MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING  OF
SUCH STATEMENTS.
  §  2.  Subparagraph  (iv) of paragraph (b) of subdivision 4 of section
425 of the real property tax law, as amended by chapter 451 of the  laws
of 2015, is amended to read as follows:
  (iv)  (A)  Effective  with  applications for the enhanced exemption on
final assessment rolls to be completed in two thousand [three] EIGHTEEN,
the application form shall indicate that [the] ALL owners of the proper-
ty and any owners' spouses residing on the premises [may  authorize  the
assessor to] MUST have their income eligibility verified annually [ther-
eafter]  by  the [state] department [of taxation and finance, in lieu of
furnishing copies of the applicable income tax return  or  returns  with
the  application.  If the owners of the property and any owners' spouses
residing on the premises elect to participate  in  this  program,  which
shall  be  known as the STAR income verification program, they] AND must
furnish their taxpayer identification numbers  in  order  to  facilitate
matching  with records of the department. [Thereafter, their] THE income
eligibility  OF  SUCH  PERSONS  shall  be  verified  annually   by   the
department, and the assessor shall not request income documentation from
them[,  unless  such  department  advises  the assessor that they do not
satisfy the applicable income eligibility requirements, or  that  it  is
unable to determine whether they satisfy those requirements]. All APPLI-
CANTS  FOR  THE  ENHANCED  EXEMPTION  AND  ALL  assessing units shall be
required to participate in this program, WHICH SHALL  BE  KNOWN  AS  THE
STAR INCOME VERIFICATION PROGRAM.
  (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE
REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE
TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS  THAT  THE

S. 2009                            19                            A. 3009

ENHANCED  EXEMPTION  SHOULD  BE REMOVED OR DENIED WITHOUT BEING REPLACED
WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE  TO  THE
BASIC  EXEMPTION  HAS  ALSO  BEEN  EXCEEDED, HE OR SHE SHALL PROVIDE THE
PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
SIONER EVIDENCE TO THE CONTRARY. IN EITHER CASE, IF THE OWNERS  FAIL  TO
RESPOND  TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF,
OR IF THEIR RESPONSE DOES NOT SHOW TO  THE  COMMISSIONER'S  SATISFACTION
THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION-
ER  SHALL  DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL
OF THE ASSESSMENT ROLL OR  TAX  ROLL  TO  EITHER  REPLACE  THE  ENHANCED
EXEMPTION  WITH  A  BASIC  EXEMPTION,  OR TO REMOVE OR DENY THE ENHANCED
EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION,  AS  APPROPRIATE.
THE  COMMISSIONER  SHALL  FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL
ACCORDINGLY. SUCH A DIRECTIVE SHALL BE  BINDING  UPON  THE  ASSESSOR  OR
OTHER  PERSON  HAVING  CUSTODY  OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL, AND SHALL BE IMPLEMENTED BY  SUCH  PERSON  WITHOUT  THE  NEED  FOR
FURTHER DOCUMENTATION OR APPROVAL.
  (C)  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN
ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO  CONSIDER
AN  OBJECTION  TO  THE  REPLACEMENT OR REMOVAL OR DENIAL OF AN EXEMPTION
PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE  REVIEWED  IN  A
PROCEEDING  TO  REVIEW  AN  ASSESSMENT PURSUANT TO TITLE ONE OR ONE-A OF
ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION  MAY  ONLY  BE  CHALLENGED
BEFORE  THE DEPARTMENT OF TAXATION AND FINANCE. IF A TAXPAYER IS DISSAT-
ISFIED WITH THE  DEPARTMENT'S  FINAL  DETERMINATION,  THE  TAXPAYER  MAY
APPEAL  THAT  DETERMINATION  TO  THE  STATE  BOARD  OF REAL PROPERTY TAX
SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH
APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE  ISSUANCE  OF  THE
DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE STATE BOARD'S
DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO
ARTICLE  SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER
SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A
COURT ACTION, ADMINISTRATIVE PROCEEDING  OR  ANY  OTHER  FORM  OF  LEGAL
RECOURSE  AGAINST  THE  COMMISSIONER,  THE  DEPARTMENT  OF  TAXATION AND
FINANCE, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR  OR
OTHER  PERSON  HAVING  CUSTODY  OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL REGARDING SUCH ACTION.
  § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision  4  of
section 425 of the real property tax law are REPEALED.
  §  4.  Paragraphs  (b)  and (c) of subdivision 5 of section 425 of the
real property tax law are REPEALED.
  § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper-
ty tax law, as amended by section 5 of part E of chapter 83 of the  laws
of  2002  and  subparagraph (i) as further amended by subdivision (b) of
section 1 of part W of chapter 56 of the laws of  2010,  is  amended  to
read as follows:
  (d) Third party notice. (i) A senior citizen eligible for the enhanced
exemption  may  request  that  a notice be sent to an adult third party.
Such request shall be made on a form prescribed by the commissioner  and
shall  be  submitted  to the assessor of the assessing unit in which the
eligible taxpayer resides no later than  sixty  days  before  the  first
taxable  status  date to which it is to apply. Such form shall provide a
section whereby the designated third party shall consent to such  desig-
nation.  Such  request  shall be effective upon receipt by the assessor.
The assessor shall maintain a list of all eligible property  owners  who

S. 2009                            20                            A. 3009

have  requested  notices  pursuant to this paragraph AND SHALL FURNISH A
COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST.
  (ii)  [In  the case of a senior citizen who has not elected to partic-
ipate in the STAR income verification program, a notice shall be sent to
the designated third party at least thirty days prior  to  each  ensuing
taxable  status  date;  provided that no such notice need be sent in the
first year if the request was not received  by  the  assessor  at  least
sixty  days before the applicable taxable status date. Such notice shall
read substantially as follows:
  "On behalf of (identify senior citizen or citizens), you  are  advised
that  his,  her,  or  their  renewal  application  for the enhanced STAR
exemption must be filed with the assessor no later  than  (enter  date).
You  are  encouraged  to  remind  him, her, or them of that fact, and to
offer assistance if needed, although you are under no  legal  obligation
to do so. Your cooperation and assistance are greatly appreciated."
  (iii)  In  the case of a senior citizen who has elected to participate
in the STAR income verification program, a] A notice shall  be  sent  to
the  designated  third party whenever the assessor OR DEPARTMENT sends a
notice to the senior citizen  regarding  the  possible  removal  of  the
enhanced  STAR  exemption.    WHEN  THE  EXEMPTION IS SUBJECT TO REMOVAL
BECAUSE THE COMMISSIONER HAS  DETERMINED  THAT  THE  INCOME  ELIGIBILITY
REQUIREMENT  IS  NOT  SATISFIED,  SUCH NOTICE SHALL BE SENT TO THE THIRD
PARTY BY THE DEPARTMENT.  WHEN  THE  EXEMPTION  IS  SUBJECT  TO  REMOVAL
BECAUSE  THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE-
MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD  PARTY  BY
THE ASSESSOR. Such notice shall read substantially as follows:
  "On  behalf  of (identify senior citizen or citizens), you are advised
that his, her, or their enhanced STAR exemption  is  at  risk  of  being
removed.  You are encouraged to make sure that he, she or they are aware
of that fact, and to offer assistance if needed, although you are  under
no legal obligation to do so. Your cooperation and assistance are great-
ly appreciated."
  [(iv)]  (III)  The  obligation to mail such notices shall cease if the
eligible taxpayer cancels the request  or  ceases  to  qualify  for  the
enhanced STAR exemption.
  § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper-
ty tax law is REPEALED.
  §  7.  Subdivision 9-b of section 425 of the real property tax law, as
added by section 8 of part E of chapter 83 of the laws of 2002 and para-
graph (b) as amended by chapter 742 of the  laws  of  2005  and  further
amended  by  subdivision (b) of section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
  9-b. Duration of exemption; enhanced exemption. (a) [In  the  case  of
persons  who have elected to participate in the STAR income verification
program, the] THE enhanced exemption,  once  granted,  shall  remain  in
effect until discontinued in the manner provided in this section.
  (b) [In the case of persons who have not elected to participate in the
STAR income verification program, the enhanced exemption shall apply for
a  term  of  one  year. To continue receiving such enhanced exemption, a
renewal application must be filed  annually  with  the  assessor  on  or
before  the  applicable  taxable status date on a form prescribed by the
commissioner. Provided, however, that if a renewal application is not so
filed, the assessor shall discontinue the enhanced exemption  but  shall
grant  the  basic  exemption,  subject  to the provisions of subdivision
eleven of this section.

S. 2009                            21                            A. 3009

  (c) Whether or not the recipients of an enhanced STAR  exemption  have
elected to participate in the STAR income verification program, the] THE
assessor  [may  review  their]  SHALL REVIEW THE continued compliance OF
RECIPIENTS OF THE ENHANCED EXEMPTION with the applicable  ownership  and
residency  requirements  to  the same extent as if they were receiving a
basic STAR exemption.
  [(d) Notwithstanding the foregoing provisions of this subdivision, the
enhanced exemption shall be continued without a renewal  application  as
long  as  the  property continues to be eligible for the senior citizens
exemption authorized by section four hundred sixty-seven of this title.]
  § 8. Section 425 of the real property tax law is amended by  adding  a
new subdivision 14-a to read as follows:
  14-A.  IMPLEMENTATION  OF  CERTAIN  ELIGIBILITY DETERMINATIONS. WHEN A
TAXPAYER'S ELIGIBILITY FOR EXEMPTION UNDER THIS  SECTION  FOR  A  SCHOOL
YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH
(IV)  OF  PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION OR PARAGRAPH
(C) OR (D) OF SUBDIVISION FOURTEEN OF THIS  SECTION,  AND  THE  DETERMI-
NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE
BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE.
  (A)   IF  THE  DETERMINATION  RESTORES  OR  INCREASES  THE  TAXPAYER'S
EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO  REMIT
THE  EXCESS  DIRECTLY  TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION
THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL.  THE
AMOUNTS  PAYABLE  BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID
FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR  BENEFITS  TO  LATE
REGISTRANTS  PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI-
SION FOURTEEN OF THIS SECTION.  WHEN  THE  COMMISSIONER  IMPLEMENTS  THE
DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND
COUNTY  DIRECTOR  OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL
BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND  NO
REFUND  SHALL  BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER
OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL  TAXES  PAID  FOR
THAT SCHOOL YEAR.
  (B)  IF  THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S
EXEMPTION FOR THAT  SCHOOL  YEAR,  THE  COMMISSIONER  IS  AUTHORIZED  TO
COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER
WITH  INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY,
AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO  OF  THE
TAX  LAW,  AND  ANY  OTHER  RELEVANT  PROCEDURES  REFERENCED  WITHIN THE
PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE  DETER-
MINATION  IN  THIS  MANNER,  HE  OR SHE SHALL SO NOTIFY THE ASSESSOR AND
COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO  CORRECTION  SHALL
BE  MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO
CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT  SCHOOL
YEAR.
  § 9. Section 171-o of the tax law is REPEALED.
  §  10.  Subparagraph (B) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter  73  of
the laws of 2016, is amended to read as follows:
  (B)  "Affiliated  income"  shall  mean  for purposes of the basic STAR
credit, the combined income of all of  the  owners  of  the  parcel  who
resided  primarily  thereon  as  of December thirty-first of the taxable
year, and of any owners' spouses residing primarily thereon as  of  such
date,  and for purposes of the enhanced STAR credit, the combined income
of all of the owners of the parcel as of December  thirty-first  of  the
taxable  year,  and of any owners' spouses residing primarily thereon as

S. 2009                            22                            A. 3009

of such date; provided that for  both  purposes  the  income  to  be  so
combined  shall  be  the "adjusted gross income" for the taxable year as
reported for federal income tax purposes, or that would be  reported  as
adjusted gross income if a federal income tax return were required to be
filed,  reduced  by  distributions,  to  the  extent included in federal
adjusted gross income, received from an  individual  retirement  account
and  an  individual retirement annuity.   FOR TAXABLE YEARS BEGINNING ON
AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, WHERE  AN  INCOME-ELIGI-
BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
MORE  INDIVIDUALS  WHO  DID  NOT  FILE  A RETURN PURSUANT TO SECTION SIX
HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE  INCOME  TAX  YEAR,
THEN  IN  ORDER  TO  BE  ELIGIBLE  FOR  THE  CREDIT  AUTHORIZED  BY THIS
SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE  DEPART-
MENT  SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME
TAX YEAR, AND THE AMOUNT  OR  AMOUNTS  THEREOF,  THAT  WOULD  HAVE  BEEN
REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE
FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY
THE  DEPARTMENT,  AND  SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX
HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT  THAT  A  RETURN
WOULD  BE.  THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL-
ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further,  that  if  the
qualified  taxpayer was an owner of the property during the taxable year
but did not own it on December thirty-first of the  taxable  year,  then
the  determination  as  to whether the income of an individual should be
included in "affiliated income" shall be based upon the ownership and/or
residency status of that individual as of the first  day  of  the  month
during which the qualified taxpayer ceased to be an owner of the proper-
ty, rather than as of December thirty-first of the taxable year.
  §  11.  No application for an enhanced exemption on a final assessment
roll to be completed in 2018 may be approved if the applicants have  not
enrolled in the STAR income verification program established by subpara-
graph  (iv) of paragraph (b) of subdivision 4 of section 425 of the real
property tax law as amended by section two of this  act,  regardless  of
when  the  application  was filed. The assessor shall notify such appli-
cants that participation in that program has become  mandatory  for  all
applicants  and  that  their applications cannot be approved unless they
enroll therein. The commissioner of taxation and finance shall provide a
form for assessors to use, at their option, when making  this  notifica-
tion.
  § 12. This act shall take effect immediately.

                                 PART F

  Section  1.  Section  928-a  of the real property tax law, as added by
chapter 680 of the laws of 1994, subdivision 1  as  further  amended  by
subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010
and  subdivision  2  as  amended  by chapter 199 of the laws of 1997, is
amended to read as follows:
  §  928-a.  Partial  payment  of  taxes.  1.  (A)  Notwithstanding  the
provisions  of any general or special law to the contrary, [the board of
supervisors or the county legislature of any county  may  by  resolution
authorize  the  collecting  officers  in  one  or more of the classes of
municipal corporations described  herein]  EACH  COLLECTING  OFFICER  IS
HEREBY  AUTHORIZED  to  accept  from  any  taxpayer  at any time partial
payments for or on account  of  taxes,  special  ad  valorem  levies  or
special assessments [in such amount or manner and apply such payments on

S. 2009                            23                            A. 3009

account  thereof in such manner as may be prescribed by such resolution;
provided, however, that such resolution], UNLESS THE GOVERNING  BODY  OF
THE  MUNICIPAL  CORPORATION THAT EMPLOYS THE COLLECTING OFFICER HAS: (I)
PASSED A RESOLUTION DISALLOWING PARTIAL PAYMENTS OR (II) PASSED A RESOL-
UTION  LIMITING  THE  CONDITIONS  UNDER  WHICH  PARTIAL PAYMENTS WILL BE
ACCEPTED, IN WHICH CASE PARTIAL PAYMENTS SHALL BE ACCEPTED IN ACCORDANCE
WITH THE CONDITIONS SET FORTH IN THE RESOLUTION.
  (B) SUCH RESOLUTION MAY REQUIRE A SERVICE CHARGE  NOT  TO  EXCEED  TEN
DOLLARS  TO BE PAID WITH EACH PARTIAL PAYMENT. SUCH SERVICE CHARGE SHALL
BELONG TO THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER.
  (C) WHERE A STATEMENT OF TAXES CONTAINS SEPARATE CHARGES FOR  SEPARATE
PURPOSES, ANY PARTIAL PAYMENTS SHALL BE APPLIED PROPORTIONATELY THERETO.
  (D)  WHERE SCHOOL DISTRICT TAXES ARE PAYABLE TO THE COLLECTING OFFICER
OF A CITY OR TOWN THAT HAS NOT ACTED TO DISALLOW PARTIAL  PAYMENTS,  THE
GOVERNING  BODY OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION DISALLOWING
PARTIAL PAYMENTS FOR SCHOOL DISTRICT PURPOSES. IF IT HAS  NOT  DONE  SO,
THEN  THE  COLLECTING  OFFICER  SHALL  BE  AUTHORIZED  TO ACCEPT PARTIAL
PAYMENTS OF SCHOOL DISTRICT TAXES UNDER THE SAME CONDITIONS AS MAY APPLY
TO CITY OR TOWN TAXES.
  (E) ANY RESOLUTION ADOPTED PURSUANT TO THIS SECTION shall  be  adopted
AT  LEAST  SIXTY  DAYS  prior to the preparation and delivery of the tax
rolls to the appropriate collecting officers. A copy of  any  resolution
[enacting,  amending  or  repealing  any  such  partial payment program]
ADOPTED PURSUANT TO THIS SECTION, OR AMENDING OR REPEALING A  RESOLUTION
ADOPTED  PURSUANT  TO THIS SECTION, shall be filed with the commissioner
AND, IN THE CASE OF A RESOLUTION ADOPTED BY A SCHOOL DISTRICT, WITH  THE
CITY  OR TOWN CLERK, no later than thirty days after the adoption there-
of.
  2. [Such resolution shall apply to one or more of the following class-
es of municipal corporations: (a) all towns within the county;  (b)  all
cities for which the county enforces the collection of delinquent taxes;
or  (c)  all  villages  for  which the county enforces the collection of
delinquent taxes. If the resolution does not specify the class or class-
es of municipal corporations to which it applies, it shall be deemed  to
apply only to the towns in the county.
  3.]  After any partial payment authorized pursuant to this section has
been paid, interest and penalties shall be charged  against  the  unpaid
balance only. The acceptance of a partial payment by any official pursu-
ant  to  this section shall not be deemed to affect any liens and powers
of any [county]  MUNICIPAL  CORPORATION  conferred  in  any  general  or
special  act,  but such rights and powers shall remain in full force and
effect to enforce collection of the unpaid balance of such  tax  or  tax
liens together with interest, penalties and other lawful charges.
  3.  A  COLLECTING OFFICER WHO IS AUTHORIZED TO ACCEPT PARTIAL PAYMENTS
PURSUANT TO THIS SECTION MAY NOT DECLINE TO DO SO.
  4. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO AUTHORIZE A COLLECT-
ING OFFICER TO ACCEPT A PARTIAL PAYMENT AFTER THE EXPIRATION OF  HIS  OR
HER  WARRANT,  OR  AT ANY OTHER TIME THAT SUCH COLLECTING OFFICER IS NOT
AUTHORIZED TO ACCEPT TAX PAYMENTS.
  § 2. This act shall take effect immediately and  shall  apply  to  the
collection of real property taxes, special ad valorem levies and special
assessments for fiscal years beginning on and after January 1, 2019.

                                 PART G

S. 2009                            24                            A. 3009

  Section  1.  Paragraph 7 of subsection (eee) of section 606 of the tax
law, as amended by section 8 of part A of chapter  73  of  the  laws  of
2016, is amended to read as follows:
  (7)  Disclosure  of  incomes  AND  OTHER  INFORMATION.   (A) Where the
commissioner has denied a taxpayer's claim for the credit authorized  by
this  subsection  in whole or in part on the grounds that the affiliated
income of the parcel in  question  exceeds  the  applicable  limit,  the
commissioner  shall  have  the  authority to reveal to that taxpayer the
names and incomes of the other taxpayers whose incomes were included  in
the computation of such affiliated income.
  (B)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, THE NAMES
AND ADDRESSES OF INDIVIDUALS WHO HAVE APPLIED FOR OR ARE  RECEIVING  THE
CREDIT  AUTHORIZED BY THIS SUBSECTION SHALL BE PUBLIC INFORMATION TO THE
SAME EXTENT AS THE NAMES AND ADDRESSES OF INDIVIDUALS WHO  HAVE  APPLIED
FOR  OR  ARE  RECEIVING  THE  STAR  EXEMPTION AUTHORIZED BY SECTION FOUR
HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
  § 2. This act shall take effect immediately.

                                 PART H

  Section 1. Subparagraph (ii) of paragraph  (k)  of  subdivision  2  of
section  425  of  the  real property tax law, as amended by section 2 of
part A of chapter 405 of the  laws  of  1999,  is  amended  to  read  as
follows:
  (ii)  That proportion of the assessment of such real property owned by
a cooperative apartment corporation determined by  the  relationship  of
such  real  property  vested  in  such tenant-stockholder to such entire
parcel and the buildings thereon owned  by  such  cooperative  apartment
corporation in which such tenant-stockholder resides shall be subject to
exemption  from  taxation  pursuant to this section and any exemption so
granted shall be credited by the appropriate  taxing  authority  against
the assessed valuation of such real property. Upon the completion of the
final  assessment  roll,  or  as  soon thereafter as is practicable, the
assessor shall forward to the cooperative apartment corporation a state-
ment setting forth the exemption attributable to each  eligible  tenant-
stockholder.  The  reduction in real property taxes attributable to each
eligible tenant-stockholder shall be credited by the cooperative  apart-
ment  corporation  against the amount of such taxes otherwise payable by
or chargeable  to  such  tenant-stockholder.  THE  ASSESSOR  SHALL  ALSO
FORWARD TO THE COMMISSIONER, AT THE TIME AND IN THE MANNER PRESCRIBED BY
THE  COMMISSIONER,  A STATEMENT SETTING FORTH THE TAXABLE ASSESSED VALUE
ATTRIBUTABLE  TO  EACH  TENANT-STOCKHOLDER,  WITHOUT   REGARD   TO   THE
EXEMPTION,  AND  SUCH  OTHER  INFORMATION AS THE COMMISSIONER SHALL DEEM
NECESSARY TO PROPERLY CALCULATE THE STAR CREDIT AUTHORIZED BY SUBSECTION
(EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW FOR THOSE  TENANT-STOCK-
HOLDERS WHO QUALIFY FOR IT.
  §  2.  Subparagraph  (E) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter  73  of
the laws of 2016, is amended to read as follows:
  (E)  "Qualifying  taxes"  means  the  school  district taxes that were
levied upon the taxpayer's primary residence for the  associated  fiscal
year  that  were  actually paid by the taxpayer during the taxable year;
or, in the case of a city school district that  is  subject  to  article
fifty-two  of  the  education law, the combined city and school district
taxes that were levied upon the taxpayer's  primary  residence  for  the
associated  fiscal  year  that were actually paid by the taxpayer during

S. 2009                            25                            A. 3009

the taxable year. PROVIDED, HOWEVER, THAT IN THE CASE OF  A  COOPERATIVE
APARTMENT, "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WOULD
HAVE  BEEN  LEVIED UPON THE TENANT-STOCKHOLDER'S PRIMARY RESIDENCE IF IT
WERE SEPARATELY ASSESSED, AS DETERMINED BY THE COMMISSIONER BASED ON THE
STATEMENT  PROVIDED  BY  THE  ASSESSOR  PURSUANT TO SUBPARAGRAPH (II) OF
PARAGRAPH (K) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE  OF
THE  REAL  PROPERTY  TAX  LAW, OR IN THE CASE OF A COOPERATIVE APARTMENT
CORPORATION THAT IS DESCRIBED IN SUBPARAGRAPH (IV) OF PARAGRAPH  (K)  OF
SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
TAX LAW, ONE THIRD OF SUCH AMOUNT. In no case shall the term "qualifying
taxes" be construed to include penalties or interest.
  §  3.  Subparagraph  (A) of paragraph 6 of subsection (eee) of section
606 of the tax law is REPEALED.
  § 4. This act shall take effect immediately, provided that section one
of this act shall apply to final assessment rolls used  to  levy  school
taxes for school years beginning on and after July 1, 2017, and provided
further  that  sections two and three of this act shall apply to taxable
years beginning on and after January 1, 2017.

                                 PART I

  Section 1. Section 2 of chapter 540 of the laws of 1992, amending  the
real  property  tax  law  relating to oil and gas charges, as amended by
section 1 of part C of chapter 59 of the laws of  2014,  is  amended  to
read as follows:
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law as added by section one of this act shall first be  due  for  values
for assessment rolls with tentative completion dates after July 1, 1992,
and  provided  further,  that  this  act  shall remain in full force and
effect until March 31, [2018] 2021, at which time  section  593  of  the
real  property  tax  law  as  added  by section one of this act shall be
repealed.
  § 2. This act shall take effect immediately.

                                 PART J

  Section 1. Subdivision 5 of section 81 of the state  finance  law,  as
added by chapter 432 of the laws of 2016, is amended to read as follows:
  5.  Moneys  shall be payable from the fund on the audit and warrant of
the comptroller on vouchers approved and certified by  the  commissioner
of health, for veterans' homes operated by the department of health, and
by the [commissioner of education] CHANCELLOR OF THE STATE UNIVERSITY OF
NEW YORK, for the veterans' home operated by the state university of New
York.
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after November 14, 2016.

                                 PART K

  Section 1. Section 352 of the economic development law,  as  added  by
section  1 of part MM of chapter 59 of the laws of 2010, subdivisions 7,
8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19,  20  and  21  as  amended  and
subdivision 11 as added by section 1 of part K of chapter 59 of the laws
of 2015, is amended to read as follows:

S. 2009                            26                            A. 3009

  § 352. Definitions. For the purposes of this article:
  1.  "Agriculture"  means  both agricultural production (establishments
performing the complete farm or ranch operation, such as farm  owner-op-
erators,  tenant  farm  operators,  and  sharecroppers) and agricultural
support (establishments that perform one or more  activities  associated
with farm operation, such as soil preparation, planting, harvesting, and
management, on a contract or fee basis).
  2. "Back office operations" means a business function that may include
one  or  more of the following activities: customer service, information
technology and data processing, human resources, accounting and  related
administrative functions.
  3. "Benefit-cost ratio" means the following calculation: the numerator
is the sum of (i) the value of all remuneration projected to be paid for
all  net new jobs during the period of participation in the program, and
(ii) the value of capital investments to be made by the business  enter-
prise during the period of participation in the program, and the denomi-
nator  is  the amount of total tax benefits under this article that will
be used and refunded.
  4. "Certificate of eligibility"  means  the  document  issued  by  the
department  to  an  applicant  that  has  completed an application to be
admitted into the excelsior jobs program and has been accepted into  the
program  by  the  department. Possession of a certificate of eligibility
does not by itself guarantee the eligibility to claim the tax credit.
  5. "Certificate of tax credit" means the document issued to a  partic-
ipant  by  the  department,  after  the department has verified that the
participant has met all applicable eligibility criteria in this article.
The certificate shall be issued annually if such criteria are  satisfied
and  shall specify the exact amount of each of the tax credit components
under this article that a participant may  claim,  pursuant  to  section
three  hundred fifty-five of this article, and shall specify the taxable
year in which such credit may be claimed.
  6. "Distribution center" means a large scale facility involving  proc-
essing,  repackaging  and/or movement of finished or semi-finished goods
to retail locations across a multi-state area.
  7. "Entertainment company" means a corporation,  partnership,  limited
partnership,  or  other  entity principally engaged in the production or
post production of (i) motion pictures,  which  shall  include  feature-
length  films  and  television  films,  (ii) instructional videos, (iii)
televised commercial advertisements, (iv) animated  films  or  cartoons,
(v) music videos, (vi) television programs, which shall include, but not
be  limited  to,  television series, television pilots, and single tele-
vision episodes, or (vii) programs primarily intended for  radio  broad-
cast. "Entertainment company" shall not include an entity (i) principal-
ly engaged in the live performance of events, including, but not limited
to,  theatrical  productions,  concerts,  circuses, and sporting events,
(ii) principally engaged in the production of content intended primarily
for industrial, corporate or institutional end-users, (iii)  principally
engaged  in  the  production  of  fundraising films or programs, or (iv)
engaged in the production of content  for  which  records  are  required
under  section  2257  of  title 18, United States code, to be maintained
with respect to any performer in such production.
  8. "Financial services data centers  or  financial  services  customer
back  office  operations"  means  operations  that  manage  the  data or
accounts of existing customers or provide product or service information
and support to customers  of  financial  services  companies,  including
banks,  other  lenders,  securities and commodities brokers and dealers,

S. 2009                            27                            A. 3009

investment banks,  portfolio  managers,  trust  offices,  and  insurance
companies.
  9. "Investment zone" shall mean an area within the state that had been
designated under paragraph (i) of subdivision (a) and subdivision (d) of
section  nine  hundred fifty-eight of the general municipal law that was
wholly contained within up to  four  distinct  and  separate  contiguous
areas  as  of the date immediately preceding the date the designation of
such area expired pursuant to section nine  hundred  sixty-nine  of  the
general municipal law.
  10.  "LIFE  SCIENCES"  MEANS  THE  FIELDS OF BIOTECHNOLOGY, PHARMACEU-
TICALS,  BIOMEDICAL  TECHNOLOGIES,  LIFE  SYSTEMS  TECHNOLOGIES,  HEALTH
INFORMATICS, HEALTH ROBOTICS AND BIOMEDICAL DEVICES.
  11.  "LIFE SCIENCES COMPANY" MEANS A CORPORATION, PARTNERSHIP, LIMITED
PARTNERSHIP, OR OTHER ENTITY ENGAGED IN LIFE SCIENCES, AND AN  ORGANIZA-
TION  OR  INSTITUTION  THAT  DEVOTES  THE MAJORITY OF ITS EFFORTS IN THE
VARIOUS STAGES OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMER-
CIALIZATION RELATED TO LIFE SCIENCES.
  12. "Manufacturing" means the process of working  raw  materials  into
products  suitable for use or which gives new shapes, new quality or new
combinations to matter which has already gone  through  some  artificial
process  by  the  use  of machinery, tools, appliances, or other similar
equipment. "Manufacturing" does not include an operation  that  involves
only  the  assembly  of  components,  provided, however, the assembly of
motor vehicles or other high value-added products  shall  be  considered
manufacturing.
  [11.]  13.  "Music  production"  means  the  process of creating sound
recordings of at least eight minutes,  recorded  in  professional  sound
studios,  intended  for  commercial release. "Music production" does not
include recording of live concerts, or  recordings  that  are  primarily
spoken  word or wildlife or nature sounds, or produced for instructional
use or advertising or promotional purposes.
  [12.] 14. "Net new jobs" means:
  (a) jobs created in this state that (i) are new to the state,
  (ii) have not been transferred from employment with  another  business
located in this state including from a related person in this state,
  (iii)  are  either full-time wage-paying jobs or equivalent to a full-
time wage-paying job requiring at least thirty-five hours per week, and
  (iv) are filled for more than six months; or
  (b) jobs obtained by an entertainment company in this state (i)  as  a
result  of  the termination of a licensing agreement with another enter-
tainment company, (ii) that the commissioner determines to be at risk of
leaving the state as a direct result of the termination, (iii) that  are
either full-time wage-paying jobs or equivalent to a full-time wage-pay-
ing job requiring at least thirty-five hours per week, and (iv) that are
filled for more than six months.
  [13.] 15. "Participant" means a business entity that:
  (a)  has  completed  an application prescribed by the department to be
admitted into the program;
  (b) has been issued a certificate of eligibility by the department;
  (c) has demonstrated that it meets the eligibility criteria in section
three hundred fifty-three and subdivision two of section  three  hundred
fifty-four of this article; and
  (d) has been certified as a participant by the commissioner.
  [14.]  16. "Preliminary schedule of benefits" means the maximum aggre-
gate amount of each component of the tax credit that  a  participant  in
the excelsior jobs program is eligible to receive pursuant to this arti-

S. 2009                            28                            A. 3009

cle.  The schedule shall indicate the annual amount of each component of
the credit a participant may claim in each of its ten years of eligibil-
ity.    The  preliminary  schedule  of  benefits  shall be issued by the
department  when  the  department approves the application for admission
into the program. The commissioner may  amend  that  schedule,  provided
that  the  commissioner  complies  with the credit caps in section three
hundred fifty-nine of this article.
  [15.] 17. "Qualified investment" means an investment in tangible prop-
erty (including a building or a  structural  component  of  a  building)
owned by a business enterprise which:
  (a)  is depreciable pursuant to section one hundred sixty-seven of the
internal revenue code;
  (b) has a useful life of four years or more;
  (c) is acquired by purchase as defined in section one  hundred  seven-
ty-nine (d) of the internal revenue code;
  (d) has a situs in this state; and
  (e) is placed in service in the state on or after the date the certif-
icate of eligibility is issued to the business enterprise.
  [16.]  18.  "Regionally  significant project" means (a) a manufacturer
creating at least fifty net new jobs in the state and making significant
capital investment in the state; (b) a business creating at least twenty
net new jobs in agriculture in the state and making significant  capital
investment  in  the  state,  (c) a financial services firm, distribution
center, or back office operation creating at least three hundred net new
jobs in the state and  making  significant  capital  investment  in  the
state,  (d) a scientific research and development firm creating at least
twenty net new jobs in the state, and making significant capital invest-
ment in the state, (E) A LIFE SCIENCES COMPANY CREATING AT LEAST  TWENTY
NET  NEW  JOBS IN THE STATE AND MAKING SIGNIFICANT CAPITAL INVESTMENT IN
THE STATE or [(e)] (F) an entertainment company creating or obtaining at
least two hundred net new jobs in the state and making significant capi-
tal investment in the state. Other businesses creating three hundred  or
more net new jobs in the state and making significant capital investment
in  the  state  may  be  considered eligible as a regionally significant
project by the commissioner as well. The commissioner  shall  promulgate
regulations  pursuant to section three hundred fifty-six of this article
to determine what constitutes significant capital investment for each of
the project categories indicated in this subdivision and what additional
criteria a business must meet to be eligible as a regionally significant
project, including, but not limited to, whether  a  business  exports  a
substantial  portion of its products or services outside of the state or
outside of a metropolitan statistical area or county within the state.
  [17.] 19. "Related  person"  means  a  "related  person"  pursuant  to
subparagraph  (c)  of  paragraph three of subsection (b) of section four
hundred sixty-five of the internal revenue code.
  [18.] 20. "Remuneration" means wages and benefits paid to an  employee
by a participant in the excelsior jobs program.
  [19.] 21. "Research and development expenditures" mean the expenses of
the  business  enterprise that are qualified research expenses under the
federal research and development credit under section forty-one  of  the
internal  revenue  code  and are attributable to activities conducted in
the state. If the federal research and development credit  has  expired,
then the research and development expenditures shall be calculated as if
the  federal research and development credit structure and definition in
effect in federal tax year two thousand nine were still in effect.

S. 2009                            29                            A. 3009

  [20.] 22.  "Scientific  research  and  development"  means  conducting
research  and experimental development in the physical, engineering, and
life sciences, including but not limited  to  agriculture,  electronics,
environmental,  biology,  botany,  biotechnology,  computers, chemistry,
food, fisheries, forests, geology, health, mathematics, medicine, ocean-
ography,  pharmacy, physics, veterinary, and other allied subjects.  For
the purposes of this article, scientific research and  development  does
not include medical or veterinary laboratory testing facilities.
  [21.]  23. "Software development" means the creation of coded computer
instructions or production or post-production of video games, as defined
in subdivision one-a of section six hundred eleven of the general  busi-
ness law, other than those embedded and used exclusively in advertising,
promotional  websites  or  microsites,  and  also  includes new media as
defined by the commissioner in regulations.
  § 2. Subdivisions 1 and 3 of section 353 of the  economic  development
law,  as  amended  by  section  2 of part K of chapter 59 of the laws of
2015, are amended to read as follows:
  1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
  (a) as a financial services data center or a financial  services  back
office operation;
  (b) in manufacturing;
  (c) in software development and new media;
  (d) in scientific research and development;
  (e) in agriculture;
  (f)  in  the  creation  or  expansion of back office operations in the
state;
  (g) in a distribution center;
  (h) in an  industry  with  significant  potential  for  private-sector
economic  growth  and  development  in  this state as established by the
commissioner in regulations promulgated pursuant  to  this  article.  In
promulgating  such  regulations  the  commissioner shall include job and
investment criteria;
  (i) as an entertainment company; [or]
  (j) in music production; OR
  (K) AS A LIFE SCIENCES COMPANY.
  3. For the purposes of this article, in order to  participate  in  the
excelsior  jobs  program,  a  business entity operating predominantly in
manufacturing must create at least ten net new jobs; a  business  entity
operating predominately in agriculture must create at least five net new
jobs;  a  business entity operating predominantly as a financial service
data center or financial services customer back  office  operation  must
create at least fifty net new jobs; a business entity operating predomi-
nantly  in scientific research and development must create at least five
net new jobs; a business  entity  operating  predominantly  in  software
development  must  create  at least five net new jobs; a business entity
creating or expanding back office operations must create at least  fifty
net  new  jobs;  a  business  entity  operating  predominately  in music
production must create at least five net new  jobs;  a  business  entity
operating  predominantly  as  an  entertainment  company  must create or
obtain at least one hundred net new jobs; or a business entity operating
predominantly as a distribution center in the state must create at least
seventy-five net new jobs,  notwithstanding  subdivision  five  of  this
section; OR A BUSINESS ENTITY OPERATING PREDOMINATELY AS A LIFE SCIENCES
COMPANY  MUST  CREATE  AT  LEAST FIVE NET NEW JOBS; or a business entity
must be a regionally significant project as defined in this article; or

S. 2009                            30                            A. 3009

  § 3. Subdivision 4 of section 353 of the economic development law,  as
amended  by  section  1  of part C of chapter 68 of the laws of 2013, is
amended to read as follows:
  4.  A business entity operating predominantly in one of the industries
referenced in paragraphs (a) through (h) OR IN PARAGRAPH (K) of subdivi-
sion one of this section but which does not meet the job requirements of
subdivision three of this section must have at least  twenty-five  full-
time job equivalents unless such business is a business entity operating
predominantly  in manufacturing then it must have at least ten full-time
job equivalents and must demonstrate that its benefit-cost ratio  is  at
least ten to one.
  §  4. Subdivision 5 of section 354 of the economic development law, as
amended by section 2 of part O of chapter 60 of the  laws  of  2016,  is
amended to read as follows:
  5.  A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise  receives  a  certificate  of  tax
credit  or  the first taxable year listed on its preliminary schedule of
benefits, whichever is later. A participant may claim such benefits  for
the  next  nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy  the  eligi-
bility  criteria  specified in section three hundred fifty-three of this
article and subdivision two of this section in  each  of  those  taxable
years, and provided that no tax credits may be allowed for taxable years
beginning on or after January first, two thousand [twenty-seven] THIRTY.
If,  in  any given year, a participant who has satisfied the eligibility
criteria specified in section three hundred fifty-three of this  article
realizes  job  creation less than the estimated amount, the credit shall
be reduced by the proportion of actual job  creation  to  the  estimated
amount,  provided the proportion is at least seventy-five percent of the
jobs estimated.
  § 5. Section 359 of  the  economic  development  law,  as  amended  by
section  1  of  part  O of chapter 60 of the laws of 2016, is amended to
read as follows:
  § 359. Cap on tax credit. The total amount of tax  credits  listed  on
certificates  of  tax  credit issued by the commissioner for any taxable
year may not exceed the limitations set forth in this section.  One-half
of  any  amount of tax credits not awarded for a particular taxable year
in years two thousand eleven through two  thousand  twenty-four  may  be
used by the commissioner to award tax credits in another taxable year.

Credit components in the aggregate           With respect to taxable
shall not exceed:                            years beginning in:

          $ 50 million                               2011
          $ 100 million                              2012
          $ 150 million                              2013
          $ 200 million                              2014
          $ 250 million                              2015
          $ 183 million                              2016
          $ 183 million                              2017
          $ 183 million                              2018
          $ 183 million                              2019
          $ 183 million                              2020
          $ 183 million                              2021
          $ 133 million                              2022
          $ 83 million                               2023

S. 2009                            31                            A. 3009

          $ 36 million                               2024

  Twenty-five  percent  of  tax credits shall be allocated to businesses
accepted into the  program  under  subdivision  four  of  section  three
hundred  fifty-three  of  this  article  and seventy-five percent of tax
credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
  Provided, however, if by September thirtieth of a calendar  year,  the
department  has  not  allocated  the full amount of credits available in
that year to either: (i) businesses  accepted  into  the  program  under
subdivision four of section three hundred fifty-three of this article or
(ii)  businesses  accepted  into  the program under subdivision three of
section three hundred fifty-three of this article, the commissioner  may
allocate  any  remaining  tax  credits  to businesses referenced in this
paragraph as needed; provided, however, that under no circumstances  may
the  aggregate  statutory  cap  for  all  program years be exceeded. One
hundred percent of the unawarded amounts remaining at  the  end  of  two
thousand twenty-four may be allocated in subsequent years, notwithstand-
ing  the  fifty  percent  limitation  on  any amounts of tax credits not
awarded in taxable years two thousand eleven through two thousand  twen-
ty-four.  Provided,  however,  no tax credits may be allowed for taxable
years beginning on or after January first, two  thousand  [twenty-seven]
THIRTY.
  §  6.  Subdivision  (b)  of  section  31 of the tax law, as amended by
section 3 of part O of chapter 60 of the laws of  2016,  is  amended  to
read as follows:
  (b) To be eligible for the excelsior jobs program credit, the taxpayer
shall  have  been issued a "certificate of tax credit" by the department
of economic development pursuant to subdivision four  of  section  three
hundred  fifty-four  of  the economic development law, which certificate
shall set forth the amount of each credit component that may be  claimed
for  the  taxable year. A taxpayer may claim such credit for ten consec-
utive taxable years commencing  in  the  first  taxable  year  that  the
taxpayer  receives a certificate of tax credit or the first taxable year
listed on its preliminary schedule  of  benefits,  whichever  is  later,
provided  that no tax credits may be allowed for taxable years beginning
on or after January first, two  thousand  [twenty-seven]  THIRTY.    The
taxpayer shall be allowed to claim only the amount listed on the certif-
icate  of  tax  credit  for  that taxable year. Such certificate must be
attached to the taxpayer's return. No cost or expense paid  or  incurred
by  the  taxpayer shall be the basis for more than one component of this
credit or any other tax credit, except  as  provided  in  section  three
hundred fifty-five of the economic development law.
  §  7.  The  tax  law  is amended by adding a new section 43 to read as
follows:
  § 43. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVEL-
OPMENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A  TAXPAYER  THAT  IS  A
QUALIFIED  LIFE  SCIENCES  COMPANY, OR THAT IS A SOLE PROPRIETOR OF OR A
PARTNER IN A PARTNERSHIP THAT IS A QUALIFIED LIFE SCIENCES COMPANY OR  A
SHAREHOLDER  OF  A  NEW  YORK  S  CORPORATION  THAT  IS A QUALIFIED LIFE
SCIENCES COMPANY, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR  TWENTY-
TWO  OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSU-
ANT TO THE PROVISIONS REFERRED TO IN SUBDIVISION (E)  OF  THIS  SECTION,
FOR  A  PERIOD  OF FIVE YEARS, AS PROVIDED IN CLAUSE (B) OF SUBPARAGRAPH
(II) OF THIS PARAGRAPH, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION.

S. 2009                            32                            A. 3009

SUCH  CREDIT MAY BE CLAIMED IN THE TAXABLE YEAR SPECIFIED ON THE CERTIF-
ICATE OF TAX CREDIT ISSUED TO THE QUALIFIED LIFE SCIENCES COMPANY.
  (II)(A) FOR A QUALIFIED LIFE SCIENCES COMPANY THAT EMPLOYS TEN OR MORE
PERSONS DURING THE TAXABLE YEAR, THE AMOUNT OF THE CREDIT SHALL BE EQUAL
TO  FIFTEEN  PERCENT  OF SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH
AND DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.  FOR  A
QUALIFIED  LIFE  SCIENCES  COMPANY  THAT  EMPLOYS  LESS THAN TEN PERSONS
DURING THE TAXABLE YEAR, THE AMOUNT OF THE  CREDIT  SHALL  BE  EQUAL  TO
TWENTY  PERCENT  OF  SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH AND
DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.
  (B) THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
YEAR DURING WHICH THE CRITERIA SET FORTH IN THIS  PARAGRAPH  ARE  SATIS-
FIED,  AND WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING
(BUT ONLY, WITH RESPECT TO EACH OF SUCH  YEARS,  IF  SUCH  CRITERIA  ARE
SATISFIED).    SUBSEQUENT CERTIFICATIONS OF THE LIFE SCIENCES COMPANY BY
THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  PURSUANT  TO  THIS  SUBDIVISION
SHALL  NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE
OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE.
  (III) THE TOTAL  AMOUNT  OF  CREDIT  ALLOWABLE  TO  A  QUALIFIED  LIFE
SCIENCES  COMPANY, OR, IF THE LIFE SCIENCES COMPANY IS PROPERLY INCLUDED
OR REQUIRED TO BE INCLUDED IN A COMBINED REPORT, TO THE COMBINED  GROUP,
TAKEN  IN THE AGGREGATE, SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS.
IF THE LIFE SCIENCES COMPANY IS A PARTNER IN A PARTNERSHIP OR SHAREHOLD-
ER OF A NEW YORK S CORPORATION, THEN THE TOTAL AMOUNT OF  CREDIT  ALLOW-
ABLE  SHALL  BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT OF
CREDIT ALLOWABLE TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH  ENTI-
TY,  TAKEN  IN  THE  AGGREGATE,  DOES  NOT  EXCEED FIVE HUNDRED THOUSAND
DOLLARS.
  (IV) NO  RESEARCH  AND  DEVELOPMENT  EXPENDITURES  MADE  BY  THE  LIFE
SCIENCES  COMPANY  AND USED EITHER AS THE BASIS FOR THE ALLOWANCE OF THE
CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVISION OR USED IN  THE  CALCU-
LATION OF THE CREDIT PROVIDED PURSUANT TO THIS SUBDIVISION SHALL BE USED
TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER OR BE USED IN
THE CALCULATION OF ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
  (2)  MAXIMUM  AMOUNT  OF  CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX  UNDER  ARTI-
CLES  NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE
TEN MILLION DOLLARS, AND SHALL BE ALLOTTED FROM THE FUNDS AVAILABLE  FOR
TAX  CREDITS  UNDER  ARTICLE  SEVENTEEN OF THE ECONOMIC DEVELOPMENT LAW.
SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT OF
ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE
DATE OF FILING AN APPLICATION FOR ALLOCATION OF LIFE  SCIENCES  RESEARCH
AND  DEVELOPMENT TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT OF
ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE  AGGRE-
GATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDIVISION,
SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY
OF THE SUBSEQUENT YEAR.
  (B) ANGEL INVESTOR TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A TAXPAYER
THAT IS A QUALIFIED ANGEL INVESTOR, OR THAT IS A SOLE PROPRIETOR OF OR A
PARTNER  IN A PARTNERSHIP THAT IS A QUALIFIED ANGEL INVESTOR OR A SHARE-
HOLDER OF A NEW YORK S CORPORATION THAT IS A QUALIFIED  ANGEL  INVESTOR,
AND  IS  SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP-
TER, SHALL BE ALLOWED  A  CREDIT  AGAINST  SUCH  TAX,  PURSUANT  TO  THE
PROVISIONS  REFERRED TO IN SUBDIVISION (E) OF THIS SECTION, FOR A PERIOD
OF TEN YEARS, TO BE COMPUTED AS PROVIDED  IN  THIS  SUBDIVISION.    SUCH

S. 2009                            33                            A. 3009

CREDIT SHALL BE CLAIMED IN THE TAXABLE YEAR SPECIFIED ON THE CERTIFICATE
OF ANGEL INVESTMENT ISSUED TO THE QUALIFIED ANGEL INVESTOR.
  (II) THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF
EACH ANGEL INVESTMENT MADE DURING THE TAXABLE YEAR.
  (III) THE TOTAL AMOUNT OF CREDIT ALLOWABLE TO A QUALIFIED ANGEL INVES-
TOR,  OR,  IF  THE  QUALIFIED  ANGEL  INVESTOR  IS  PROPERLY INCLUDED OR
REQUIRED TO BE INCLUDED IN A COMBINED REPORT,  TO  THE  COMBINED  GROUP,
TAKEN  IN  THE  AGGREGATE,  SHALL  NOT EXCEED TWO HUNDRED FIFTY THOUSAND
DOLLARS. IF THE ANGEL INVESTOR IS A PARTNER IN A PARTNERSHIP  OR  SHARE-
HOLDER  OF  A  NEW  YORK  S CORPORATION, THEN THE TOTAL AMOUNT OF CREDIT
ALLOWABLE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT
OF CREDIT ALLOWABLE TO ALL THE PARTNERS OR  SHAREHOLDERS  OF  EACH  SUCH
ENTITY,  TAKEN IN THE AGGREGATE, DOES NOT EXCEED TWO HUNDRED FIFTY THOU-
SAND DOLLARS.
  (IV) NO INVESTMENT MADE BY THE TAXPAYER AND USED EITHER AS  THE  BASIS
FOR  THE  ALLOWANCE OF THE CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVI-
SION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED PURSUANT TO  THIS
SUBDIVISION  SHALL BE USED TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO
THIS CHAPTER OR USED IN THE CALCULATION  OF  ANY  OTHER  CREDIT  ALLOWED
PURSUANT TO THIS CHAPTER.
  (2)  RECAPTURE. (I) IF THE CERTIFICATE OF ANGEL INVESTMENT OF AN ANGEL
INVESTOR ISSUED BY THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT  UNDER  THIS
SECTION IS REVOKED BY SUCH DEPARTMENT BECAUSE THE INVESTMENT MADE BY THE
ANGEL  INVESTOR  DOES NOT MEET THE ELIGIBILITY REQUIREMENTS SET FORTH IN
THIS SECTION AND IN REGULATION, THE AMOUNT OF CREDIT DESCRIBED  IN  THIS
SUBDIVISION  AND CLAIMED BY SUCH ANGEL INVESTOR PRIOR TO THAT REVOCATION
SHALL BE ADDED BACK AS TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCA-
TION BECOMES FINAL.
  (II) WHERE A TAXPAYER SELLS, TRANSFERS OR OTHERWISE DISPOSES OF CORPO-
RATE STOCK, A PARTNERSHIP INTEREST OR OTHER OWNERSHIP  INTEREST  ARISING
FROM  THE  MAKING OF AN ANGEL INVESTMENT THAT WAS THE BASIS, IN WHOLE OR
IN PART, FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS  SUBDI-
VISION, OR WHERE AN INVESTMENT THAT WAS THE BASIS FOR SUCH ALLOWANCE IS,
IN WHOLE OR IN PART, RECOVERED BY SUCH TAXPAYER, AND SUCH DISPOSITION OR
RECOVERY  OCCURS  DURING  THE  TAXABLE YEAR OR WITHIN FORTY-EIGHT MONTHS
FROM THE CLOSE OF THE TAXABLE YEAR WITH RESPECT TO WHICH SUCH CREDIT  IS
ALLOWED, THE TAXPAYER SHALL ADD BACK AS TAX, WITH RESPECT TO THE TAXABLE
YEAR  IN WHICH THE DISPOSITION OR RECOVERY DESCRIBED ABOVE OCCURRED, THE
AMOUNT OF THE CREDIT ORIGINALLY CLAIMED BY THE TAXPAYER.
  (3) MAXIMUM AMOUNT OF CREDITS. THE AGGREGATE  AMOUNT  OF  TAX  CREDITS
ALLOWED  UNDER  THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX UNDER ARTI-
CLES NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL  BE
FIVE  MILLION  DOLLARS.  SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLO-
CATED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER
OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICATION FOR  ALLOCATION
OF  ANGEL  INVESTOR TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT
OF ALLOCATED CREDITS APPLIED FOR IN  ANY  PARTICULAR  YEAR  EXCEEDS  THE
AGGREGATE  AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDI-
VISION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR  ON  THE
FIRST DAY OF THE SUBSEQUENT YEAR.
  (C)  DEFINITIONS.  AS  USED  IN THIS SECTION THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "ANGEL INVESTMENT" MEANS AN INVESTMENT IN THE FORM OF  A  CONTRIB-
UTION  TO  THE  CAPITAL OF THE QUALIFIED LIFE SCIENCES COMPANY, PROVIDED
THAT SUCH INVESTMENT IS AT RISK AND IS NOT  SECURED  OR  GUARANTEED.  AN
"ANGEL  INVESTMENT"  DOES NOT INCLUDE ANY LOANS, OR INVESTMENTS IN HEDGE

S. 2009                            34                            A. 3009

FUNDS OR COMMODITY FUNDS WITH INSTITUTIONAL INVESTORS  OR  WITH  INVEST-
MENTS  IN  A  BUSINESS  INVOLVED  IN  RETAIL,  REAL ESTATE, PROFESSIONAL
SERVICES, GAMING OR FINANCIAL SERVICES.
  (2)  "ANGEL  INVESTOR" MEANS AN ACCREDITED INVESTOR, AS DEFINED BY THE
UNITED STATE SECURITIES AND  EXCHANGE  COMMISSION  PURSUANT  TO  SECTION
SEVENTY-SEVEN-B OF TITLE FIFTEEN OF THE UNITED STATES CODE, OR A NETWORK
OF  ACCREDITED  INVESTORS,  THAT  REVIEWS NEW OR PROPOSED BUSINESSES FOR
POTENTIAL INVESTMENT AND THAT  MAY  SEEK  ACTIVE  INVOLVEMENT,  SUCH  AS
CONSULTING  AND  MENTORING, IN A LIFE SCIENCES COMPANY. "ANGEL INVESTOR"
DOES NOT INCLUDE A PERSON CONTROLLING,  DIRECTLY  OR  INDIRECTLY,  FIFTY
PERCENT  OR  MORE  OF THE LIFE SCIENCES COMPANY INVESTED IN BY THE ANGEL
INVESTOR OR WHO IS INVOLVED IN THE LIFE SCIENCES COMPANY IN A  FULL-TIME
PROFESSIONAL  CAPACITY, AND DOES NOT INCLUDE A CORPORATION OF WHICH SUCH
LIFE SCIENCES COMPANY IS A DIRECT OR INDIRECT SUBSIDIARY, AS DEFINED  IN
SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
  (3)  "CERTIFICATE  OF ANGEL INVESTMENT" MEANS THE DOCUMENT ISSUED TO A
QUALIFIED ANGEL INVESTOR BY THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  FOR
EACH  ANGEL  INVESTMENT  MADE BY THE QUALIFIED ANGEL INVESTOR, AFTER THE
DEPARTMENT OR ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH ANGEL INVESTOR
HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION TO BE ELIGIBLE  FOR  THE
ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
INCLUDING  BUT  NOT LIMITED TO CERTIFYING THAT THE LIFE SCIENCES COMPANY
IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALIFIED LIFE
SCIENCES COMPANY. THE CERTIFICATE  SHALL  BE  ISSUED  ANNUALLY  IF  SUCH
CRITERIA  ARE SATISFIED AND SHALL SPECIFY THE EXACT AMOUNT OF EACH ANGEL
INVESTMENT MADE BY THE ANGEL INVESTOR AND THE AMOUNT OF THE  TAX  CREDIT
THAT  MAY BE CLAIMED BY SUCH ANGEL INVESTOR, PURSUANT TO SUBDIVISION (B)
OF THIS SECTION, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH SUCH CREDIT
MAY BE CLAIMED.
  (4) "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A  QUALI-
FIED  LIFE  SCIENCES  COMPANY BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT,
AFTER THE DEPARTMENT OF ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH LIFE
SCIENCES COMPANY HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION  TO  BE
ELIGIBLE  FOR  THE  LIFE  SCIENCES  RESEARCH  AND DEVELOPMENT TAX CREDIT
ALLOWED UNDER SUBDIVISION (A) OF THIS SECTION, INCLUDING BUT NOT LIMITED
TO VERIFYING THAT THE LIFE SCIENCES  COMPANY  IS  A  NEW  BUSINESS.  THE
CERTIFICATE  SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED AND
SHALL SPECIFY THE EXACT AMOUNT OF THE LIFE SCIENCES RESEARCH AND  DEVEL-
OPMENT  TAX  CREDIT  THAT MAY BE CLAIMED BY SUCH QUALIFIED LIFE SCIENCES
COMPANY, PURSUANT TO SUBDIVISION (A) OF THIS SECTION, AND SHALL  SPECIFY
THE TAXABLE YEAR IN WHICH SUCH CREDIT MAY BE CLAIMED.
  (5) "NEW BUSINESS" MEANS ANY BUSINESS THAT QUALIFIES AS A NEW BUSINESS
UNDER  EITHER  PARAGRAPH  (F)  OF SUBDIVISION ONE OF SECTION TWO HUNDRED
TEN-B OR PARAGRAPH TEN OF SUBSECTION ONE OF SECTION SIX HUNDRED  SIX  OF
THIS CHAPTER.
  (6)  "QUALIFIED  ANGEL  INVESTOR" MEANS AN ANGEL INVESTOR CERTIFIED BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT AS AN ANGEL INVESTOR.
  (7) "QUALIFIED LIFE SCIENCES COMPANY" MEANS A LIFE  SCIENCES  COMPANY,
AS  DEFINED  IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED FIFTY-TWO OF
THE ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN CERTIFIED BY THE  DEPARTMENT
OF  ECONOMIC  DEVELOPMENT  AS A LIFE SCIENCES COMPANY AND IS A NEW BUSI-
NESS. PROVIDED THAT, FOR PURPOSES  OF  THE  ANGEL  INVESTOR  TAX  CREDIT
PROVIDED  PURSUANT  TO SUBDIVISION (B) OF THIS SECTION, A QUALIFIED LIFE
SCIENCES COMPANY SHALL AT THE TIME THAT  THE  ANGEL  INVESTOR  MAKES  AN
INITIAL  ANGEL INVESTMENT IN SUCH LIFE SCIENCES COMPANY EMPLOY TWENTY OR
FEWER PERSONS DURING THE TAXABLE YEAR AND SHALL  HAVE  HAD,  DURING  THE

S. 2009                            35                            A. 3009

IMMEDIATELY  PRECEDING  TAXABLE YEAR, GROSS RECEIPTS OF NOT GREATER THAN
FIVE HUNDRED THOUSAND DOLLARS.  PROVIDED HOWEVER, FOR  PURPOSES  OF  THE
CREDITS AUTHORIZED UNDER THIS SECTION, THE DEPARTMENT OF ECONOMIC DEVEL-
OPMENT  SHALL  NOT  CERTIFY  AS A LIFE SCIENCES COMPANY ANY CORPORATION,
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER ENTITY THAT HAS  BEEN  WITHIN
THE  IMMEDIATELY  PRECEDING  SIXTY  MONTHS A RELATED PERSON TO AN ENTITY
THAT IS A LIFE SCIENCES COMPANY OR AN ENTITY THAT IS ENGAGED  IN  SCIEN-
TIFIC  RESEARCH  AND DEVELOPMENT AS DEFINED IN SUBDIVISION TWENTY-TWO OF
SECTION THREE HUNDRED FIFTY-TWO OF THE ECONOMIC DEVELOPMENT LAW.
  (8) "RESEARCH AND DEVELOPMENT EXPENDITURES" MEANS  QUALIFIED  RESEARCH
EXPENSES  AS  DEFINED  IN  SUBSECTION  (B) OF SECTION 41 OF THE INTERNAL
REVENUE CODE BUT EXCLUDING WAGES, PROVIDED, HOWEVER, THAT SUCH QUALIFIED
RESEARCH EXPENSES SHALL NOT INCLUDE AMOUNTS UNDER  SUBPARAGRAPH  (B)  OF
PARAGRAPH 1 OF SUBSECTION (B) OF SECTION 41 OF THE INTERNAL REVENUE CODE
AND  AS FURTHER DESCRIBED IN PARAGRAPH 3 OF SUBSECTION (B) OF SECTION 41
OF THE INTERNAL REVENUE CODE. IF SECTION 41 OF THE INTERNAL REVENUE CODE
HAS EXPIRED, THEN THE RESEARCH AND DEVELOPMENT EXPENSES SHALL BE  CALCU-
LATED  AS  IF  THE FEDERAL RESEARCH AND DEVELOPMENT CREDIT STRUCTURE AND
DEFINITION IN EFFECT IN SECTION 41 IN FEDERAL TAX YEAR TWO THOUSAND NINE
WERE STILL IN EFFECT.
  (9) "RELATED PERSON" MEANS A RELATED PERSON AS DEFINED IN SUBPARAGRAPH
(C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION 465 OF THE  INTERNAL
REVENUE  CODE.  FOR  THIS  PURPOSE,  A "RELATED PERSON" SHALL INCLUDE AN
ENTITY THAT WOULD HAVE QUALIFIED AS A "RELATED PERSON"  IF  IT  HAD  NOT
BEEN  DISSOLVED,  LIQUIDATED,  MERGED  WITH  ANOTHER ENTITY OR OTHERWISE
CEASED TO EXIST OR OPERATE.
  (D)(1) FOR PURPOSES OF THIS SECTION, IN ORDER TO BE ELIGIBLE  FOR  THE
LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX CREDIT ALLOWED UNDER SUBDIVI-
SION  (A)  OF  THIS  SECTION,  A  LIFE SCIENCES COMPANY MUST BE ISSUED A
CERTIFICATE OF TAX CREDIT BY THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT.
THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  SHALL  VERIFY THAT SUCH LIFE
SCIENCES COMPANY HAS MET ALL APPLICABLE  ELIGIBILITY  CRITERIA  IN  THIS
SECTION  BEFORE  ISSUING  A CERTIFICATE OF TAX CREDIT, INCLUDING BUT NOT
LIMITED TO VERIFYING THAT THE LIFE SCIENCES COMPANY IS A NEW BUSINESS.
  (2) FOR PURPOSES OF THIS SECTION, IN ORDER  TO  BE  ELIGIBLE  FOR  THE
ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
AN  ANGEL  INVESTOR  MUST BE ISSUED A CERTIFICATE OF ANGEL INVESTMENT BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR  EACH  ANGEL  INVESTMENT  FOR
WHICH  THE  CREDIT  IS CLAIMED.   THE DEPARTMENT OF ECONOMIC DEVELOPMENT
SHALL VERIFY THAT SUCH ANGEL INVESTOR HAS MET ALL APPLICABLE ELIGIBILITY
CRITERIA IN THIS SECTION BEFORE ISSUING A CERTIFICATE OF  ANGEL  INVEST-
MENT,  INCLUDING  BUT  NOT  LIMITED TO CERTIFYING THAT THE LIFE SCIENCES
COMPANY IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALI-
FIED LIFE SCIENCES COMPANY.
  (3) THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  AFTER  CONSULTING  WITH
THE  COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST,
TWO THOUSAND SEVENTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX
CREDITS ALLOWED UNDER THIS SECTION. SUCH  RULES  AND  REGULATIONS  SHALL
INCLUDE  PROVISIONS  DESCRIBING THE APPLICATION PROCESS FOR EACH CREDIT,
THE DUE DATES FOR SUCH APPLICATIONS, THE ELIGIBILITY STANDARDS FOR QUAL-
IFIED LIFE SCIENCES COMPANIES, THE STANDARDS  WHICH  SHALL  BE  USED  TO
EVALUATE  THE  APPLICATIONS,  THE DOCUMENTATION THAT WILL BE PROVIDED TO
TAXPAYERS TO SUBSTANTIATE TO THE DEPARTMENT THE AMOUNT  OF  TAX  CREDITS
ALLOCATED  TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECES-
SARY AND  APPROPRIATE.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO  THE
CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGU-

S. 2009                            36                            A. 3009

LATIONS  MAY  BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH
OCTOBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN DEADLINE.
  (E)  CROSS-REFERENCES.  FOR APPLICATION OF THE CREDITS PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 52.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (HHH).
  (F) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (I)  EMPLOYEES  AND
OFFICERS  OF  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
SHALL BE ALLOWED AND ARE DIRECTED  TO  SHARE  AND  EXCHANGE  INFORMATION
REGARDING  THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS
SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO  ARE  CLAIMING
CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
FORMS  SUBMITTED  TO  THE  DEPARTMENT AND APPLICATIONS FOR CERTIFICATION
SUBMITTED TO THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,  AND  (II)  THE
COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP-
MENT  MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THESE
CREDITS AND THE AMOUNT OF THE CREDIT EARNED BY THE  TAXPAYER.  PROVIDED,
HOWEVER,  IF  A  TAXPAYER CLAIMS EITHER OF THESE CREDITS BECAUSE IT IS A
MEMBER OF A LIMITED LIABILITY COMPANY OR A  PARTNER  IN  A  PARTNERSHIP,
ONLY  THE  AMOUNT  OF  CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF
CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED.
  (G) FOR PURPOSES OF THE CREDITS ALLOWED UNDER THIS SECTION, THE NUMBER
OF PERSONS EMPLOYED BY A QUALIFIED  LIFE  SCIENCES  COMPANY  DURING  THE
TAXABLE  YEAR  SHALL  BE  DETERMINED  BY ASCERTAINING THE NUMBER OF SUCH
INDIVIDUALS EMPLOYED FULL-TIME BY SUCH COMPANY, EXCLUDING GENERAL EXECU-
TIVE OFFICERS, ON THE THIRTY-FIRST DAY OF MARCH, THE  THIRTIETH  DAY  OF
JUNE,  THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEM-
BER DURING EACH TAXABLE YEAR, BY ADDING  TOGETHER  THE  NUMBER  OF  SUCH
INDIVIDUALS  ASCERTAINED  ON  EACH OF SUCH DATES AND DIVIDING THE SUM SO
OBTAINED BY THE NUMBER OF SUCH DATES OCCURRING WITHIN SUCH TAXABLE YEAR.
AN INDIVIDUAL EMPLOYED FULL-TIME MEANS AN EMPLOYEE IN A  JOB  CONSISTING
OF AT LEAST THIRTY-FIVE HOURS PER WEEK, OR TWO OR MORE EMPLOYEES WHO ARE
IN  JOBS  THAT  TOGETHER  CONSTITUTE THE EQUIVALENT OF A JOB OF AT LEAST
THIRTY-FIVE HOURS PER WEEK (FULL-TIME EQUIVALENT).
  § 8. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 52 to read as follows:
  52. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVELOP-
MENT  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS ELIGIBLE
PURSUANT TO SUBDIVISION (A) OF SECTION FORTY-THREE OF THIS CHAPTER SHALL
BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN  SUCH  SUBDIVISION
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR
ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN
THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED  TEN  OF  THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF
THE CREDIT ALLOWABLE UNDER THIS PARAGRAPH FOR ANY TAXABLE  YEAR  REDUCES
THE  TAX  TO  SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON
THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVER-
PAYMENT OF TAX TO  BE  CREDITED  OR  REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  (B)  ANGEL  INVESTOR  TAX  CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
THAT IS ELIGIBLE PURSUANT TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF

S. 2009                            37                            A. 3009

THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR
ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN
THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED  TEN  OF  THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF
THE CREDIT ALLOWABLE UNDER THIS PARAGRAPH FOR ANY TAXABLE  YEAR  REDUCES
THE  TAX  TO  SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON
THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVER-
PAYMENT OF TAX TO  BE  CREDITED  OR  REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  §  9. Section 606 of the tax law is amended by adding a new subsection
(hhh) to read as follows:
  (HHH) LIFE SCIENCES TAX CREDITS.    (1)  LIFE  SCIENCES  RESEARCH  AND
DEVELOPMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT. A TAXPAYER WHO IS
ELIGIBLE PURSUANT TO SUBDIVISION (A)  OF  SECTION  FORTY-THREE  OF  THIS
CHAPTER  SHALL  BE  ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS PARAGRAPH FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR  SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED  OR  REFUNDED  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  (2) ANGEL INVESTOR TAX CREDIT. (A) A TAXPAYER WHO IS ELIGIBLE PURSUANT
TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF  THIS  CHAPTER  SHALL  BE
ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SUBDIVISION AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS PARAGRAPH FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR  SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED  OR  REFUNDED  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  § 10. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding two new clauses (xliii)  and  (xliv)
to read as follows:
(XLIII) LIFE SCIENCES RESEARCH AND      AMOUNT OF CREDIT UNDER PARAGRAPH
DEVELOPMENT TAX CREDIT UNDER            (A) OF SUBDIVISION FIFTY-TWO OF
PARAGRAPH ONE OF SUBSECTION (HHH)       SECTION TWO HUNDRED TEN-B

(XLIV) ANGEL INVESTOR TAX               AMOUNT OF CREDIT UNDER PARAGRAPH
CREDIT UNDER PARAGRAPH TWO OF           (B) OF SUBDIVISION FIFTY-TWO OF
SUBSECTION (HHH)                        SECTION TWO HUNDRED TEN-B
  § 11. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2018.

                                 PART L

  Section  1.  Section  441 of the economic development law, as added by
section 1 of part O of chapter 59 of the laws of  2015,  is  amended  to
read as follows:
  § 441. Definitions. As used in this article, the following terms shall
have the following meanings:

S. 2009                            38                            A. 3009

  1.  "Approved provider" means an entity meeting such criteria as shall
be established by the commissioner in rules and regulations  promulgated
pursuant  to this article, that may provide eligible training to employ-
ees of a business entity participating in the employee  training  incen-
tive program; provided that, for internship programs, the business enti-
ty  shall  be  an  approved provider or an approved provider in contract
with such business entity. Such criteria shall ensure that any  approved
provider  possess adequate credentials to provide the training described
in an application by a business entity to the  commissioner  to  partic-
ipate in the employee training incentive program.
  2. "Commissioner" means the commissioner of economic development.
  3.  "Eligible  training"  means  (a)  training provided by an approved
provider that is:
  (i) to upgrade, retrain or improve the productivity of employees;
  (ii) provided to employees [filling  net  new  jobs,  or  to  existing
employees]  in  connection  with  a  significant capital investment by a
participating business entity;
  (iii) determined by the commissioner to satisfy a business need on the
part of a participating business entity;
  (iv) not designed to train or upgrade skills as required by a  federal
or state entity;
  (v) not training the completion of which may result in the awarding of
a license or certificate required by law in order to perform a job func-
tion; and
  (vi) not culturally focused training; or
  (b)  an  internship  program  in  advanced technology OR LIFE SCIENCES
approved by the commissioner and provided by an approved provider, on or
after August first, two thousand  fifteen,  to  provide  employment  and
experience  opportunities  for  current  students, recent graduates, and
recent members of the armed forces.
  4.["Net new job" means a job created in this state that:
  (a) is new to the state;
  (b) has not been transferred from  employment  with  another  business
located  in  this state through an acquisition, merger, consolidation or
other reorganization of businesses  or  the  acquisition  of  assets  of
another  business,  and  has not been transferred from employment with a
related person in this state;
  (c) is either a full-time wage-paying job or equivalent to a full-time
wage-paying job requiring at least thirty-five hours per week;
  (d) is filled for more than six months;
  (e) is filled by a person who has received eligible training; and
  (f) is comprised of tasks the performance of which required the person
filling the job to undergo eligible training.] "LIFE SCIENCES" MEANS THE
FIELD OF BIOTECHNOLOGY, PHARMACEUTICALS, BIOMEDICAL  TECHNOLOGIES,  LIFE
SYSTEMS  TECHNOLOGIES, HEALTH INFORMATICS, HEALTH ROBOTICS OR BIOMEDICAL
DEVICES. "LIFE SCIENCES COMPANY" IS A BUSINESS ENTITY OR AN ORGANIZATION
OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN  THE  VARIOUS
STAGES  OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMERCIALIZA-
TION RELATED TO ANY LIFE SCIENCES FIELD.
  5. "Significant capital investment" means a capital investment [of  at
least  one  million dollars] in new business processes or equipment, THE
COST OF WHICH IS EQUAL TO OR EXCEEDS TEN DOLLARS FOR EVERY ONE DOLLAR OF
TAX CREDIT ALLOWED TO AN ELIGIBLE BUSINESS  ENTITY  UNDER  THIS  PROGRAM
PURSUANT TO SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B OR SUBSECTION
(DDD) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.

S. 2009                            39                            A. 3009

  6.  "Strategic  industry"  means  an industry in this state, as estab-
lished by the commissioner in regulations promulgated pursuant  to  this
article, based upon the following criteria:
  (a) shortages of workers trained to work within the industry;
  (b)  technological  disruption  in the industry, requiring significant
capital investment for existing businesses to remain competitive;
  (c) the ability of businesses in the industry to relocate  outside  of
the state in order to attract talent;
  (d)  the  potential  to  recruit minorities and women to be trained to
work in the industry in which they are traditionally underrepresented;
  (e) the potential to create jobs  in  economically  distressed  areas,
which  shall  be  based  on  criteria  indicative  of economic distress,
including poverty rates, numbers of persons receiving public assistance,
and unemployment rates; or
  (f) such other criteria as shall be developed by the  commissioner  in
consultation with the commissioner of labor.
  § 2.  Section 442 of the economic development law, as added by section
1  of  part  O  of chapter 59 of the laws of 2015, is amended to read as
follows:
  § 442. Eligibility criteria. In order to participate in  the  employee
training incentive program, a business entity must satisfy the following
criteria:
  1.  (a) The business entity must operate in the state predominantly in
a strategic industry;
  (b) The business entity must demonstrate that it is obtaining eligible
training from an approved provider;
  (c) The business entity must [create at least ten  net  new  jobs  or]
make  a  significant  capital investment in connection with the eligible
training; and
  (d) The  business  entity  must  be  in  compliance  with  all  worker
protection  and  environmental  laws  and  regulations. In addition, the
business entity may not owe past  due  state  taxes  or  local  property
taxes; or
  2.  (a)  The business entity, or an approved provider in contract with
such business entity, must be approved by the  commissioner  to  provide
eligible training in the form of an internship program in advanced tech-
nology OR AT A LIFE SCIENCES COMPANY pursuant to paragraph (b) of subdi-
vision three of section four hundred forty-one of this article;
  (b) The business entity must be located in the state;
  (c)  The  business  entity  must  be  in  compliance  with  all worker
protection and environmental laws  and  regulations.  In  addition,  the
business  entity  must  not  have past due state taxes or local property
taxes;
  (d) The internship program shall not displace regular employees;
  (e) The business entity must have less than one hundred employees; and
  (f) Participation of an individual in an internship program shall  not
last more than a total of twelve months.
  § 3. This act shall take effect immediately.

                                 PART M

  Section  1.  Paragraph  5  of subdivision (a) of section 24 of the tax
law, as amended by chapter 420 of the laws of 2016, is amended  to  read
as follows:
  (5)  For  the  period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO, in addition to the amount  of  credit  established  in

S. 2009                            40                            A. 3009

paragraph  two of this subdivision, a taxpayer shall be allowed a credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries  paid to individuals directly employed (excluding those employed as
writers, directors, music directors, producers and performers, including
background actors with no scripted lines) by a qualified film production
company or a qualified independent film production company for  services
performed  by those individuals in one of the counties specified in this
paragraph in connection with a qualified film with a minimum  budget  of
five  hundred  thousand dollars. For purposes of this additional credit,
the services must be performed in one or more of the following counties:
Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,
Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
Schenectady,  Schoharie,  Schuyler,  Seneca,  St.   Lawrence,   Steuben,
[Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
Wyoming,  or Yates. The aggregate amount of tax credits allowed pursuant
to the authority of this paragraph shall be five  million  dollars  each
year  during the period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO of the annual allocation made available to the  program
pursuant  to  paragraph  four  of  subdivision (e) of this section. Such
aggregate amount of credits shall be allocated by the governor's  office
for  motion  picture and television development among taxpayers in order
of priority based upon the date of filing an application for  allocation
of film production credit with such office. If the total amount of allo-
cated  credits  applied for under this paragraph in any year exceeds the
aggregate amount of tax credits allowed for such year under  this  para-
graph,  such  excess  shall be treated as having been applied for on the
first day of the next year. If the total amount of allocated tax credits
applied for under this paragraph at the conclusion of any year  is  less
than five million dollars, the remainder shall be treated as part of the
annual  allocation  made  available to the program pursuant to paragraph
four of subdivision (e) of this section. However, in no  event  may  the
total  of  the  credits  allocated  under this paragraph and the credits
allocated under paragraph five of subdivision (a) of section  thirty-one
of this article exceed five million dollars in any year during the peri-
od two thousand fifteen through two thousand [nineteen] TWENTY-TWO.
  §  2.  Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 1-a of part P of chapter 60 of the laws of  2016,  is
amended to read as follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through  two  thousand  [nineteen]  TWENTY-TWO  provided  however, seven
million dollars of the annual allocation  shall  be  available  for  the
empire  state film post production credit pursuant to section thirty-one
of this article in two thousand thirteen and two thousand  fourteen  and
twenty-five  million dollars of the annual allocation shall be available
for the empire state film post production  credit  pursuant  to  section
thirty-one of this article in each year starting in two thousand fifteen
through  two  thousand [nineteen] TWENTY-TWO. This amount shall be allo-
cated by the governor's office for motion picture and television  devel-
opment  among  taxpayers  in  accordance  with  subdivision  (a) of this
section. If the commissioner of economic development determines that the

S. 2009                            41                            A. 3009

aggregate amount of tax credits available from additional pool 2 for the
empire state film production tax credit have been previously  allocated,
and  determines  that  the pending applications from eligible applicants
for the empire state film post production tax credit pursuant to section
thirty-one  of  this  article  is insufficient to utilize the balance of
unallocated empire state film post  production  tax  credits  from  such
pool,  the  remainder,  after  such pending applications are considered,
shall be made available for allocation in  the  empire  state  film  tax
credit  pursuant  to  this  section,  subdivision  twenty of section two
hundred ten-B and subsection (gg) of section six  hundred  six  of  this
chapter.  Also,  if  the commissioner of economic development determines
that the aggregate amount of tax credits available from additional  pool
2  for the empire state film post production tax credit have been previ-
ously allocated, and  determines  that  the  pending  applications  from
eligible  applicants  for  the  empire  state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part  of
the  remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post  production
credit  pursuant  to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six  hundred  six  of  this
chapter.  The governor's office for motion picture and television devel-
opment must notify taxpayers of their allocation year  and  include  the
allocation  year on the certificate of tax credit. Taxpayers eligible to
claim a credit must report the allocation year directly on their  empire
state  film production credit tax form for each year a credit is claimed
and include a copy of the certificate with their tax return. In the case
of a qualified film that receives  funds  from  additional  pool  2,  no
empire state film production credit shall be claimed before the later of
the  taxable  year  the production of the qualified film is complete, or
the taxable year immediately following the allocation year for which the
film has been allocated credit  by  the  governor's  office  for  motion
picture and television development.
  §  3.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
amended by section 2 of part JJ of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  (6)  For  the  period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
paragraph  two  of  subdivision (a) of this section, a taxpayer shall be
allowed a credit equal to the product (or pro rata share of the product,
in the case of a member of a partnership) of ten percent and the  amount
of  wages  or  salaries paid to individuals directly employed (excluding
those employed as writers, directors,  music  directors,  producers  and
performers,  including  background  actors  with  no scripted lines) for
services performed by those individuals in one of the counties specified
in this paragraph in connection with the post production work on a qual-
ified film with a minimum budget of five hundred thousand dollars  at  a
qualified post production facility in one of the counties listed in this
paragraph.  For purposes of this additional credit, the services must be
performed in one or more of the following  counties:  Albany,  Allegany,
Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung, Chenango, Clinton,
Cortland, Delaware, Erie, Essex, Franklin,  Fulton,  Genesee,  Hamilton,
Herkimer,  Jefferson,  Lewis,  Livingston,  Madison, Monroe, Montgomery,
Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego,  Schenecta-
dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
Wayne,  Wyoming,  or  Yates. The aggregate amount of tax credits allowed

S. 2009                            42                            A. 3009

pursuant to the authority  of  this  paragraph  shall  be  five  million
dollars  each  year  during  the period two thousand fifteen through two
thousand [nineteen] TWENTY-TWO of the annual allocation  made  available
to  the  empire  state film post production credit pursuant to paragraph
four of subdivision (e) of section twenty-four  of  this  article.  Such
aggregate  amount of credits shall be allocated by the governor's office
for motion picture and television development among taxpayers  in  order
of  priority based upon the date of filing an application for allocation
of post production credit with such office. If the total amount of allo-
cated credits applied for under this paragraph in any year  exceeds  the
aggregate  amount  of tax credits allowed for such year under this para-
graph, such excess shall be treated as having been applied  for  on  the
first day of the next year. If the total amount of allocated tax credits
applied  for  under this paragraph at the conclusion of any year is less
than five million dollars, the remainder shall be treated as part of the
annual allocation for two  thousand  seventeen  made  available  to  the
empire  state  film post production credit pursuant to paragraph four of
subdivision (e) of section twenty-four of this article. However,  in  no
event  may  the  total of the credits allocated under this paragraph and
the credits allocated under paragraph five of subdivision (a) of section
twenty-four of this article exceed five  million  dollars  in  any  year
during  the  period two thousand fifteen through two thousand [nineteen]
TWENTY-TWO.
  § 4. This act shall take effect immediately.

                                 PART N

  Section 1. The section heading and subdivisions (a), (d)  and  (e)  of
section  25-a of the labor law, the section heading and subdivisions (d)
and (e) as amended by section 1 of part AA of chapter 56 of the laws  of
2015  and  subdivision (a) as amended by section 1 of part VV of chapter
60 of the laws of 2016, are amended to read as follows:
  Power to administer the urban youth jobs program tax credit.
  (a) The commissioner is authorized to  establish  and  administer  the
program  established  under  this  section  to provide tax incentives to
employers for employing at risk youth in part-time and  full-time  posi-
tions.  There  will  be  [five]  TEN  distinct  pools of tax incentives.
Program one will cover tax incentives allocated for two thousand  twelve
and  two  thousand thirteen. Program two will cover tax incentives allo-
cated in two thousand fourteen. Program three will cover tax  incentives
allocated  in  two  thousand fifteen. Program four will cover tax incen-
tives allocated in two thousand sixteen. Program  five  will  cover  tax
incentives  allocated in two thousand seventeen.  PROGRAM SIX WILL COVER
TAX INCENTIVES ALLOCATED IN TWO THOUSAND EIGHTEEN.   PROGRAM SEVEN  WILL
COVER  TAX INCENTIVES ALLOCATED IN TWO THOUSAND NINETEEN.  PROGRAM EIGHT
WILL COVER TAX INCENTIVES ALLOCATED IN TWO  THOUSAND  TWENTY.    PROGRAM
NINE  WILL  COVER  TAX  INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-ONE.
PROGRAM TEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND  TWENTY-
TWO.  The  commissioner  is  authorized  to  allocate  up to twenty-five
million dollars of tax credits under program one, ten million dollars of
tax credits under program two, twenty million  dollars  of  tax  credits
under program three, and fifty million dollars of tax credits under each
[of programs four and five] SUBSEQUENT PROGRAM.
  (d)  To  participate in the program established under this section, an
employer must submit an application (in a form prescribed by the commis-
sioner) to the commissioner after January first, two thousand twelve but

S. 2009                            43                            A. 3009

no later than November thirtieth, two thousand twelve for  program  one,
after  January  first,  two thousand fourteen but no later than November
thirtieth, two thousand fourteen for program two, after  January  first,
two  thousand fifteen but no later than November thirtieth, two thousand
fifteen for program three, after January first, two thousand sixteen but
no later than November thirtieth, two thousand sixteen for program four,
[and] after January first, two thousand  seventeen  but  no  later  than
November thirtieth, two thousand seventeen for program five, AFTER JANU-
ARY  FIRST,  TWO THOUSAND EIGHTEEN BUT NO LATER THAN NOVEMBER THIRTIETH,
TWO THOUSAND EIGHTEEN FOR PROGRAM SIX, AFTER JANUARY FIRST, TWO THOUSAND
NINETEEN BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND NINETEEN FOR
PROGRAM SEVEN, AFTER JANUARY FIRST, TWO THOUSAND  TWENTY  BUT  NO  LATER
THAN  NOVEMBER  THIRTIETH,  TWO THOUSAND TWENTY FOR PROGRAM EIGHT, AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-ONE BUT NO LATER THAN NOVEMBER  THIR-
TIETH,  TWO  THOUSAND  TWENTY-ONE  FOR  PROGRAM  NINE, AND AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-TWO BUT NO LATER THAN NOVEMBER THIRTIETH, TWO
THOUSAND TWENTY-TWO FOR PROGRAM TEN.  The qualified employees must start
their employment on or after January first, two thousand twelve  but  no
later  than  December thirty-first, two thousand twelve for program one,
on or after January first, two  thousand  fourteen  but  no  later  than
December  thirty-first,  two  thousand  fourteen  for program two, on or
after January first, two thousand fifteen but  no  later  than  December
thirty-first,  two thousand fifteen for program three, on or after Janu-
ary first, two thousand sixteen but no later than December thirty-first,
two thousand sixteen for program four, [and] on or after January  first,
two  thousand  seventeen  but  no  later than December thirty-first, two
thousand seventeen for program five, AFTER JANUARY FIRST,  TWO  THOUSAND
EIGHTEEN  BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN
FOR PROGRAM SIX, AFTER JANUARY FIRST, TWO THOUSAND NINETEEN BUT NO LATER
THAN DECEMBER THIRTY-FIRST, TWO THOUSAND  NINETEEN  FOR  PROGRAM  SEVEN,
AFTER  JANUARY  FIRST,  TWO  THOUSAND  TWENTY BUT NO LATER THAN DECEMBER
THIRTY-FIRST, TWO THOUSAND  TWENTY  FOR  PROGRAM  EIGHT,  AFTER  JANUARY
FIRST,  TWO THOUSAND TWENTY-ONE BUT NO LATER THAN DECEMBER THIRTY-FIRST,
TWO THOUSAND TWENTY-ONE FOR PROGRAM NINE, AND AFTER JANUARY  FIRST,  TWO
THOUSAND  TWENTY-TWO  BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOU-
SAND TWENTY-TWO FOR PROGRAM  TEN.    The  commissioner  shall  establish
guidelines  and  criteria  that  specify  requirements  for employers to
participate in the program including criteria for  certifying  qualified
employees.  Any  regulations that the commissioner determines are neces-
sary may be adopted on an emergency basis  notwithstanding  anything  to
the  contrary  in  section  two  hundred two of the state administrative
procedure act. Such requirements may include  the  types  of  industries
that the employers are engaged in.  The commissioner may give preference
to employers that are engaged in demand occupations or industries, or in
regional  growth  sectors,  including  those  identified by the regional
economic  development  councils,  such  as  clean  energy,   healthcare,
advanced  manufacturing  and conservation. In addition, the commissioner
shall give preference to employers who offer  advancement  and  employee
benefit packages to the qualified individuals.
  (e)  If, after reviewing the application submitted by an employer, the
commissioner determines that such employer is eligible to participate in
the program established under this section, the commissioner shall issue
the employer a certificate of eligibility that establishes the  employer
as  a  qualified  employer. The certificate of eligibility shall specify
the maximum amount of tax credit that the employer will  be  allowed  to
claim AND THE PROGRAM YEAR UNDER WHICH IT CAN BE CLAIMED.

S. 2009                            44                            A. 3009

  § 2. The subdivision heading of subdivision 36 of section 210-B of the
tax law, as amended by section 2 of part AA of chapter 56 of the laws of
2015, is amended to read as follows:
  [Urban] NEW YORK youth jobs program tax credit.
  §  3.  The subsection heading of subsection (tt) of section 606 of the
tax law, as amended by section 3 of part AA of chapter 56 of the laws of
2015, is amended to read as follows:
  [Urban] NEW YORK youth jobs program tax credit.
  § 4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of  subsection
(i) of section 606 of the tax law, as amended by section 4 of part AA of
chapter 56 of the laws of 2015, is amended to read as follows:
(xxxiii) [Urban] NEW YORK youth      Amount of credit under
jobs program tax credit              subdivision thirty-six
                                     of section two hundred ten-B
  § 5. This act shall take effect immediately.

                                 PART O

  Section  1.  Subdivision 6 of section 187-b of the tax law, as amended
by section 1 of part G of chapter 59 of the laws of 2013, is amended  to
read as follows:
  6.  Termination. The credit allowed by subdivision two of this section
shall not apply in taxable years beginning after December  thirty-first,
two thousand [seventeen] TWENTY-TWO.
  §  2. Paragraph (f) of subdivision 30 of section 210-B of the tax law,
as added by section 17 of part A of chapter 59 of the laws of  2014,  is
amended to read as follows:
  (f)  Termination. The credit allowed by paragraph (b) of this subdivi-
sion shall not apply in taxable years beginning after  December  thirty-
first, two thousand [seventeen] TWENTY-TWO.
  §  3.  Paragraph 6 of subsection (p) of section 606 of the tax law, as
amended by section 3 of part G of chapter 59 of the  laws  of  2013,  is
amended to read as follows:
  (6) Termination. The credit allowed by this subsection shall not apply
in  taxable  years  beginning  after December thirty-first, two thousand
[seventeen] TWENTY-TWO.
  § 4. This act shall take effect immediately.

                                 PART P

  Section 1. Subparagraph (i) of  paragraph  (b)  of  subdivision  1  of
section  210-B  of  the  tax  law, as amended by section 31 of part T of
chapter 59 of the laws of 2015, is amended to read as follows:
  (i) A credit shall be allowed under this subdivision with  respect  to
tangible personal property and other tangible property, including build-
ings  and  structural  components  of  buildings, which are: depreciable
pursuant to section one hundred  sixty-seven  of  the  internal  revenue
code, have a useful life of four years or more, are acquired by purchase
as  defined  in  section  one  hundred  seventy-nine (d) of the internal
revenue code, have a situs in this state and are (A) principally used by
the taxpayer in the production of goods  by  manufacturing,  processing,
assembling,  refining,  mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial fishing, (B) industrial
waste treatment facilities or air pollution control facilities, used  in
the taxpayer's trade or business, (C) research and development property,
or  (D)  principally used in the ordinary course of the taxpayer's trade

S. 2009                            45                            A. 3009

or business as a broker or dealer in connection  with  the  purchase  or
sale  (which  shall include but not be limited to the issuance, entering
into, assumption,  offset,  assignment,  termination,  or  transfer)  of
stocks,  bonds  or  other  securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code,  (E)  principally  used  in  the ordinary course of the taxpayer's
trade or business of providing investment advisory services for a  regu-
lated  investment  company as defined in section eight hundred fifty-one
of the Internal Revenue Code, or lending, loan arrangement or loan orig-
ination services to customers in connection with the  purchase  or  sale
(which  shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of  securities
as  defined  in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, (F) principally used in the ordinary course of the taxpay-
er's business  as  an  exchange  registered  as  a  national  securities
exchange  within the meaning of sections 3(a)(1) and 6(a) of the Securi-
ties Exchange Act of 1934 or a board of trade as defined in subparagraph
one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
fit corporation law or as an entity that is wholly owned by one or  more
such  national securities exchanges or boards of trade and that provides
automation or technical services thereto, or (G) principally used  as  a
qualified  film  production facility including qualified film production
facilities having a situs in an empire zone designated as such  pursuant
to  article  eighteen-B of the general municipal law, where the taxpayer
is providing three or more services to  any  qualified  film  production
company using the facility, including such services as a studio lighting
grid,  lighting  and grip equipment, multi-line phone service, broadband
information technology access,  industrial  scale  electrical  capacity,
food  services,  security  services,  and  heating,  ventilation and air
conditioning. For purposes of clauses (D), (E) and (F) of this  subpara-
graph,  property  purchased  by  a  taxpayer affiliated with a regulated
broker,  dealer,  registered  investment  advisor,  national  securities
exchange  or  board of trade, is allowed a credit under this subdivision
if the property is used by  its  affiliated  regulated  broker,  dealer,
registered  investment advisor, national securities exchange or board of
trade in accordance with this subdivision. For purposes  of  determining
if  the property is principally used in qualifying uses, the uses by the
taxpayer described in clauses (D) and (E) of this  subparagraph  may  be
aggregated.  In addition, the uses by the taxpayer, its affiliated regu-
lated broker, dealer and registered investment advisor under  either  or
both  of  those clauses may be aggregated. Provided, however, a taxpayer
shall not be allowed the credit provided by clauses (D), (E) and (F)  of
this  subparagraph unless the property is first placed in service before
October first, two thousand fifteen and (i) eighty percent  or  more  of
the  employees  performing  the  administrative  and  support  functions
resulting from or related to the qualifying uses of such  equipment  are
located  in  this  state  or  (ii)  the average number of employees that
perform the administrative  and  support  functions  resulting  from  or
related to the qualifying uses of such equipment and are located in this
state  during  the taxable year for which the credit is claimed is equal
to or greater than ninety-five percent of the average number of  employ-
ees  that  perform  these functions and are located in this state during
the thirty-six months immediately preceding the year for which the cred-
it is claimed, or (iii) the number of employees located  in  this  state
during  the  taxable year for which the credit is claimed is equal to or

S. 2009                            46                            A. 3009

greater than ninety percent of the number of employees located  in  this
state on December thirty-first, nineteen hundred ninety-eight or, if the
taxpayer  was  not  a calendar year taxpayer in nineteen hundred ninety-
eight,  the  last  day  of  its first taxable year ending after December
thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer  becomes
subject  to  tax in this state after the taxable year beginning in nine-
teen hundred ninety-eight, then the taxpayer is not required to  satisfy
the  employment test provided in the preceding sentence of this subpara-
graph for its first taxable year. For purposes of clause (iii)  of  this
subparagraph  the employment test will be based on the number of employ-
ees located in this state on the last day of the first taxable year  the
taxpayer  is  subject  to tax in this state. If the uses of the property
must be aggregated to determine whether the property is principally used
in qualifying uses, then either each affiliate using the  property  must
satisfy  this  employment test or this employment test must be satisfied
through the aggregation of the employees of the taxpayer, its affiliated
regulated broker, dealer, and registered investment  adviser  using  the
property.  For purposes of [this subdivision, the term "goods" shall not
include electricity] CLAUSE (A) OF THIS SUBPARAGRAPH, TANGIBLE  PERSONAL
PROPERTY  AND OTHER TANGIBLE PROPERTY SHALL NOT INCLUDE PROPERTY PRINCI-
PALLY USED BY THE TAXPAYER (I) IN  THE  PRODUCTION  OR  DISTRIBUTION  OF
ELECTRICITY,  NATURAL  GAS,  STEAM, OR WATER DELIVERED THROUGH PIPES AND
MAINS, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI-
UM, OF A FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS
ASSOCIATED WITH SUCH CREATION, PRODUCTION OR REPRODUCTION  ARE  INCURRED
OUTSIDE  OF THIS STATE, OR IN THE DUPLICATION, FOR PURPOSES OF BROADCAST
IN ANY MEDIUM, OF A MASTER OF A FILM,  VISUAL  OR  AUDIO  RECORDING,  OR
COMMERCIAL,  WHERE  THE  COSTS  ASSOCIATED  WITH  SUCH  DUPLICATION  ARE
INCURRED OUTSIDE OF THIS STATE.
  § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section  606
of  the  tax  law,  as  amended  by  chapter 637 of the laws of 2008, is
amended to read as follows:
  (A) A credit shall be allowed under this subsection  with  respect  to
tangible personal property and other tangible property, including build-
ings  and  structural  components  of  buildings, which are: depreciable
pursuant to section one hundred  sixty-seven  of  the  internal  revenue
code, have a useful life of four years or more, are acquired by purchase
as  defined  in  section  one  hundred  seventy-nine (d) of the internal
revenue code, have a situs in this state and are (i) principally used by
the taxpayer in the production of goods  by  manufacturing,  processing,
assembling,  refining,  mining, extracting, farming, agriculture, horti-
culture, floriculture, viticulture or commercial  fishing,  (ii)  indus-
trial  waste  treatment  facilities or air pollution control facilities,
used in the taxpayer's trade or business, (iii) research and development
property, (iv) principally used in the ordinary course of the taxpayer's
trade or business as a broker or dealer in connection with the  purchase
or  sale (which shall include but not be limited to the issuance, enter-
ing into, assumption, offset, assignment, termination, or  transfer)  of
stocks,  bonds  or  other  securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
defined  in section 475(e) of the Internal Revenue Code, (v) principally
used in the ordinary course of  the  taxpayer's  trade  or  business  of
providing investment advisory services for a regulated investment compa-
ny as defined in section eight hundred fifty-one of the Internal Revenue
Code,  or  lending,  loan  arrangement  or  loan origination services to
customers in connection with the purchase or sale (which  shall  include

S. 2009                            47                            A. 3009

but  not  be limited to the issuance, entering into, assumption, offset,
assignment, termination,  or  transfer)  of  securities  as  defined  in
section  four  hundred seventy-five (c)(2) of the Internal Revenue Code,
or (vi) principally used as a qualified film production facility includ-
ing  qualified  film  production  facilities having a situs in an empire
zone designated as such pursuant to article eighteen-B  of  the  general
municipal law, where the taxpayer is providing three or more services to
any qualified film production company using the facility, including such
services  as a studio lighting grid, lighting and grip equipment, multi-
line phone service, broadband information technology access,  industrial
scale  electrical  capacity, food services, security services, and heat-
ing, ventilation and air conditioning. For purposes of clauses (iv)  and
(v)  of  this  subparagraph, property purchased by a taxpayer affiliated
with a regulated broker, dealer, or  registered  investment  adviser  is
allowed  a  credit  under this subsection if the property is used by its
affiliated regulated broker, dealer or registered investment adviser  in
accordance  with  this  subsection.  For  purposes of determining if the
property is principally used in qualifying uses, the uses by the taxpay-
er described in clauses (iv) and (v) of this subparagraph may be  aggre-
gated.  In  addition, the uses by the taxpayer, its affiliated regulated
broker, dealer and registered investment adviser under either or both of
those clauses may be aggregated. Provided, however, a taxpayer shall not
be allowed the credit provided by clauses (iv) and (v) of this  subpara-
graph  unless (I) eighty percent or more of the employees performing the
administrative and support functions resulting from or  related  to  the
qualifying uses of such equipment are located in this state, or (II) the
average  number of employees that perform the administrative and support
functions resulting from or related  to  the  qualifying  uses  of  such
equipment  and  are  located  in  this state during the taxable year for
which the credit is claimed is equal  to  or  greater  than  ninety-five
percent  of the average number of employees that perform these functions
and are located in this state during the thirty-six  months  immediately
preceding  the year for which the credit is claimed, or (III) the number
of employees located in this state during the taxable year for which the
credit is claimed is equal to or greater  than  ninety  percent  of  the
number  of  employees  located  in  this state on December thirty-first,
nineteen hundred ninety-eight or, if the taxpayer  was  not  a  calendar
year  taxpayer  in  nineteen  hundred  ninety-eight, the last day of its
first taxable year ending after December thirty-first, nineteen  hundred
ninety-eight. If the taxpayer becomes subject to tax in this state after
the  taxable  year  beginning in nineteen hundred ninety-eight, then the
taxpayer is not required to satisfy the employment test provided in  the
preceding  sentence of this subparagraph for its first taxable year. For
the purposes of clause (III) of this subparagraph  the  employment  test
will  be  based  on the number of employees located in this state on the
last day of the first taxable year the taxpayer is  subject  to  tax  in
this  state. If the uses of the property must be aggregated to determine
whether the property is principally used in qualifying uses, then either
each affiliate using the property must satisfy this employment  test  or
this  employment  test  must be satisfied through the aggregation of the
employees of the taxpayer, its affiliated regulated broker, dealer,  and
registered  investment adviser using the property. For purposes of [this
subsection, the term "goods" shall not include electricity]  CLAUSE  (I)
OF  THIS  SUBPARAGRAPH,  TANGIBLE  PERSONAL  PROPERTY AND OTHER TANGIBLE
PROPERTY SHALL NOT INCLUDE PROPERTY PRINCIPALLY USED BY THE TAXPAYER (A)
IN THE PRODUCTION OR DISTRIBUTION OF ELECTRICITY, NATURAL GAS, STEAM, OR

S. 2009                            48                            A. 3009

WATER DELIVERED THROUGH  PIPES  AND  MAINS,  OR  (B)  IN  THE  CREATION,
PRODUCTION  OR  REPRODUCTION,  IN ANY MEDIUM, OF A FILM, VISUAL OR AUDIO
RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCIATED WITH SUCH CREATION,
PRODUCTION OR REPRODUCTION ARE INCURRED OUTSIDE OF THIS STATE, OR IN THE
DUPLICATION,  FOR  PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF A
FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS  ASSOCI-
ATED WITH SUCH DUPLICATION ARE INCURRED OUTSIDE OF THIS STATE.
  § 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.

                                 PART Q

  Section 1. Legislative findings. The legislature finds it necessary to
revise  a  decision of the tax appeals tribunal that disturbed the long-
standing policy of the department of taxation and  finance  that  single
member limited liability companies that are treated as disregarded enti-
ties  for  federal  income  tax purposes also would be treated as disre-
garded entities for purposes of determining eligibility of the owners of
such entities for tax credits allowed  under  article  9,  9-A,  22,  32
(prior  to  its  repeal)  or  33 of the tax law. The decision of the tax
appeals tribunal, if allowed to stand, will result in the denial of  tax
credits,  such  as  empire  zone  tax credits, to taxpayers who in prior
years received those credits.
  § 2. The tax law is amended by adding a new  section  43  to  read  as
follows:
  §  43.  SINGLE  MEMBER LIMITED LIABILITY COMPANIES AND ELIGIBILITY FOR
TAX CREDITS. A LIMITED LIABILITY COMPANY THAT HAS A SINGLE MEMBER AND IS
DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME  TAX
PURPOSES  (WITHOUT REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSI-
TION OF CERTAIN FEDERAL TAXES, INCLUDING  BUT  NOT  LIMITED  TO  CERTAIN
EMPLOYMENT  AND EXCISE TAXES) SHALL BE DISREGARDED AS AN ENTITY SEPARATE
FROM ITS OWNER FOR PURPOSES OF DETERMINING WHETHER OR NOT  THE  TAXPAYER
THAT  IS  THE  SINGLE MEMBER OF SUCH LIMITED LIABILITY COMPANY SATISFIES
THE REQUIREMENTS TO BE ELIGIBLE FOR ANY TAX CREDIT ALLOWED UNDER ARTICLE
NINE, NINE-A, TWENTY-TWO OR THIRTY-THREE  OF  THIS  CHAPTER  OR  ALLOWED
UNDER  ARTICLE  THIRTY-TWO  OF  THIS CHAPTER PRIOR TO THE REPEAL OF SUCH
ARTICLE. SUCH REQUIREMENTS, INCLUDING BUT NOT LIMITED TO  ANY  NECESSARY
CERTIFICATION, EMPLOYMENT OR INVESTMENT THRESHOLDS, PAYMENT OBLIGATIONS,
AND  ANY  TIME  PERIOD FOR ELIGIBILITY, SHALL BE IMPOSED ON THE TAXPAYER
AND THE DETERMINATION OF WHETHER OR  NOT  SUCH  REQUIREMENTS  HAVE  BEEN
SATISFIED  AND  THE  COMPUTATION  OF THE CREDIT SHALL BE MADE BY DEEMING
SUCH TAXPAYER AND SUCH LIMITED LIABILITY COMPANY TO BE A SINGLE  ENTITY.
IF  THE TAXPAYER IS THE SINGLE MEMBER OF MORE THAN ONE LIMITED LIABILITY
COMPANY THAT IS DISREGARDED AS AN ENTITY SEPARATE FROM  ITS  OWNER,  THE
DETERMINATION  OF WHETHER OR NOT THE REQUIREMENTS TO BE ELIGIBLE FOR ANY
TAX CREDIT ALLOWED UNDER ARTICLE NINE,  NINE-A,  TWENTY-TWO  OR  THIRTY-
THREE  OF THIS CHAPTER OR ALLOWED UNDER ARTICLE THIRTY-TWO OF THIS CHAP-
TER PRIOR TO THE REPEAL OF SUCH ARTICLE  HAVE  BEEN  SATISFIED  AND  THE
COMPUTATION  OF  THE  CREDIT  SHALL BE MADE BY DEEMING SUCH TAXPAYER AND
SUCH LIMITED LIABILITY COMPANIES TO BE A SINGLE ENTITY.
  § 3. This act shall take effect immediately;  provided  however,  that
section  43  of  the tax law, as added by section two of this act, shall
apply to all taxable years for which  the  statute  of  limitations  for
seeking a refund or assessing additional tax is still open.

                                 PART R

S. 2009                            49                            A. 3009

  Section  1.  Subparagraph  (B)  of  paragraph  1  of subsection (a) of
section 601 of the tax law is REPEALED and a  new  subparagraph  (B)  is
added to read as follows:
  (B)(I)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND EIGHTEEN THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                      INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.33% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,597 PLUS 6.57% OF EXCESS OVER
                                      $161,550
OVER $323,200 BUT NOT OVER $2,155,350 $20,218 PLUS 6.85% OF EXCESS OVER
                                      $323,200
OVER $2,155,350                       $145,720 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE  FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                      INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.21% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,455 PLUS 6.49% OF EXCESS OVER
                                      $161,550
OVER $323,200 BUT NOT OVER $2,155,350 $19,946 PLUS 6.85% OF EXCESS OVER
                                      $323,200
OVER $2,155,350                       $145,448 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.09% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,313 PLUS 6.41% OF EXCESS OVER
                                      $161,550
OVER $323,200 BUT NOT OVER $2,155,350 $19,674 PLUS 6.85% OF EXCESS OVER

S. 2009                            50                            A. 3009

                                      $323,200
OVER $2,155,350                       $145,177 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 5.97% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,170 PLUS 6.33% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $19,403 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.85% OF EXCESS OVER
                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $9,021 PLUS 6.25% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $19,124 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (VI) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-THREE  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.73% OF EXCESS OVER
                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $8,860 PLUS 6.17% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $18,834 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (VII)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.61% OF EXCESS OVER

S. 2009                            51                            A. 3009

                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $8,700 PLUS 6.09% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $18,544 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.5% OF EXCESS OVER
                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $8,553 PLUS 6.00% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $18,252 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  § 2. Subparagraph (B) of paragraph 1 of subsection (b) of section  601
of  the  tax law is REPEALED and a new subparagraph (B) is added to read
as follows:
  (B)(I) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  EIGHTEEN  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.33% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,344 PLUS 6.57% OF EXCESS OVER
                                      $107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,964 PLUS 6.85% OF EXCESS OVER
                                      $269,300
OVER $1,616,450                       $109,244 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (II)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.21% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,253 PLUS 6.49% OF EXCESS OVER
                                      $107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,744 PLUS 6.85% OF EXCESS OVER
                                      $269,300
OVER $1,616,450                       $109,024 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:

S. 2009                            52                            A. 3009

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.09% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,162 PLUS 6.41% OF EXCESS OVER
                                      $107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,524 PLUS 6.85% OF EXCESS OVER
                                      $269,300
OVER $1,616,450                       $108,804 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER
                                      $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 5.97% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,072 PLUS 6.33% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $16,304 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.85% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,976 PLUS 6.25% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $16,079 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (VI) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-THREE  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.73% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,872 PLUS 6.17% OF EXCESS OVER

S. 2009                            53                            A. 3009

                                      $107,650
OVER $269,300                         $15,845 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (VII)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.61% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,768 PLUS 6.09% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $15,612 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.5% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,672 PLUS 6.00% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $15,371 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  §  3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601
of the tax law is REPEALED and a new subparagraph (B) is added  to  read
as follows:
  (B)(I)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND EIGHTEEN THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.33% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,793 PLUS 6.57% OF EXCESS OVER
                                      $80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,646 PLUS 6.85% OF EXCESS OVER
                                      $215,400
OVER $1,077,550                       $72,703 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE  FOLLOW-
ING RATES SHALL APPLY:

S. 2009                            54                            A. 3009

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.21% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,721 PLUS 6.49% OF EXCESS OVER
                                      $80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,467 PLUS 6.85% OF EXCESS OVER
                                      $215,400
OVER $1,077,550                       $72,524 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.09% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,650 PLUS 6.41% OF EXCESS OVER
                                      $80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,288 PLUS 6.85% OF EXCESS OVER
                                      $215,400
OVER $1,077,550                       $72,345 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 5.97% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,579 PLUS 6.33% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $13,109 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER

S. 2009                            55                            A. 3009

                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.85% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,504 PLUS 6.25% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,926 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  (VI)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-THREE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.73% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,424 PLUS 6.17% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,738 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  (VII) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-FOUR  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.61% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,344 PLUS 6.09% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,550 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.50% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,271 PLUS 6.00% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,356 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  § 4. Subparagraph (D) of paragraph 1 of subsection  (d-1)  of  section
601  of the tax law, as amended by section 5 of part FF of chapter 59 of
the laws of 2013, is amended to read as follows:
  (D) The tax table benefit is the difference between (i) the amount  of
taxable income set forth in the tax table in paragraph one of subsection

S. 2009                            56                            A. 3009

(a)  of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table  applicable
to  the  taxable year in paragraph one of subsection (a) of this section
less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
of this paragraph. The fraction for this  subparagraph  is  computed  as
follows:  the  numerator  is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year  over  two
million  dollars  and  the  denominator  is fifty thousand dollars. This
subparagraph shall apply only to taxable years  beginning  on  or  after
January  first,  two thousand twelve and before January first, two thou-
sand [eighteen] TWENTY-ONE.
  § 5. Subparagraph (C) of paragraph 2 of subsection  (d-1)  of  section
601  of the tax law, as amended by section 6 of part FF of chapter 59 of
the laws of 2013, is amended to read as follows:
  (C) The tax table benefit is the difference between (i) the amount  of
taxable income set forth in the tax table in paragraph one of subsection
(b)  of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table  applicable
to  the  taxable year in paragraph one of subsection (b) of this section
less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
this  paragraph.  The  fraction  for  this  subparagraph  is computed as
follows: the numerator is the lesser of fifty thousand  dollars  or  the
excess  of  New York adjusted gross income for the taxable year over one
million five hundred thousand dollars and the denominator is fifty thou-
sand dollars. This subparagraph shall apply only to taxable years begin-
ning on or after January first, two thousand twelve and  before  January
first, two thousand [eighteen] TWENTY-ONE.
  §  6.  Subparagraph  (C) of paragraph 3 of subsection (d-1) of section
601 of the tax law, as amended by section 7 of part FF of chapter 59  of
the laws of 2013, is amended to read as follows:
  (C)  The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(c) of this section not subject to the 8.82 percent rate of tax for  the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for  such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (c) of  this  section
less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
this paragraph. The  fraction  for  this  subparagraph  is  computed  as
follows:  the  numerator  is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year  over  one
million  dollars  and  the  denominator  is fifty thousand dollars. This
subparagraph shall apply only to taxable years  beginning  on  or  after
January  first,  two thousand twelve and before January first, two thou-
sand [eighteen] TWENTY-ONE.
  § 7. This act shall take effect immediately.

                                 PART S

  Section 1. Subsection (g) of section 615 of the tax law, as amended by
section 1 of part H of chapter 59 of the laws of  2015,  is  amended  to
read as follows:
  (g)(1)  With  respect  to  an individual whose New York adjusted gross
income is over one million dollars and no more than ten million dollars,
the New York itemized deduction  shall  be  an  amount  equal  to  fifty

S. 2009                            57                            A. 3009

percent  of  any charitable contribution deduction allowed under section
one hundred seventy of the internal  revenue  code  [for  taxable  years
beginning after two thousand nine and before two thousand eighteen. With
respect  to  an  individual whose New York adjusted gross income is over
one million dollars, the New York itemized deduction shall be an  amount
equal  to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning in two thousand nine or after  two  thousand  seven-
teen].
  (2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount  equal  to  twenty-five  percent  of  any charitable contribution
deduction allowed under section one  hundred  seventy  of  the  internal
revenue  code  [for  taxable years beginning after two thousand nine and
ending before two thousand eighteen].
  § 2. Subdivision (g) of section 11-1715 of the administrative code  of
the city of New York, as amended by section 2 of part H of chapter 59 of
the laws of 2015, is amended to read as follows:
  (g)  (1)  With  respect to an individual whose New York adjusted gross
income is over one million dollars but no more than ten million dollars,
the New York itemized deduction  shall  be  an  amount  equal  to  fifty
percent  of  any charitable contribution deduction allowed under section
one hundred seventy of the internal  revenue  code  [for  taxable  years
beginning after two thousand nine and before two thousand eighteen. With
respect  to  an  individual whose New York adjusted gross income is over
one million dollars, the New York itemized deduction shall be an  amount
equal  to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning in two thousand nine or after  two  thousand  seven-
teen].
  (2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount  equal  to  twenty-five  percent  of  any charitable contribution
deduction allowed under section one  hundred  seventy  of  the  internal
revenue  code  [for  taxable years beginning after two thousand nine and
ending before two thousand eighteen].
  § 3. This act shall take effect immediately.

                                 PART T

  Section 1. Subsection (c) of section 606 of the tax law is amended  by
adding a new paragraph (1-a) to read as follows:
  (1-A)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, FOR A
TAXPAYER WITH NEW YORK ADJUSTED GROSS INCOME OF AT LEAST FIFTY  THOUSAND
DOLLARS BUT LESS THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE
PERCENTAGE  SHALL  BE THE APPLICABLE PERCENTAGE OTHERWISE COMPUTED UNDER
PARAGRAPH ONE OF THIS SUBSECTION MULTIPLIED BY A FACTOR AS FOLLOWS:
  IF NEW YORK ADJUSTED GROSS
  INCOME IS:                                         THE FACTOR IS:
  AT LEAST $50,000 AND LESS
  THAN $55,000                                       1.1682
  AT LEAST $55,000 AND LESS
  THAN $60,000                                       1.2733
  AT LEAST $60,000 AND LESS
  THAN $65,000                                       2.322
  AT LEAST $65,000 AND LESS

S. 2009                            58                            A. 3009

  THAN $150,000                                      3.000
  § 2. This act shall take effect immediately.

                                 PART U

  Section  1. Paragraph (a) of subdivision 1 and paragraph (a) of subdi-
vision 2 of section 1701 of the tax law, as added by section 1  of  part
CC-1 of chapter 57 of the laws of 2008, are amended to read as follows:
  (a) "Debt" means [all] PAST-DUE TAX liabilities, including unpaid tax,
interest,  and  penalty,  that  the  commissioner  is required by law to
collect and that have [been reduced to judgment by the  docketing  of  a
New  York  state  tax warrant in the office of a county clerk located in
the state of New York or by the filing of a copy of the warrant  in  the
office  of the department of state] BECOME FIXED AND FINAL SUCH THAT THE
TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
  (a) To assist the commissioner in the collection of debts, the depart-
ment must develop and operate a financial institution data match  system
for  the purpose of identifying and seizing the non-exempt assets of tax
debtors as identified by the commissioner. The commissioner  is  author-
ized  to  designate  a  third  party to develop and operate this system.
NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER,  THE  COMMISSIONER
IS  AUTHORIZED  TO  DISCLOSE THE DEBT AND THE DEBTOR INFORMATION TO SUCH
THIRD PARTY AND TO FINANCIAL INSTITUTIONS FOR PURPOSES OF  THIS  SYSTEM.
Any  third party designated by the commissioner to develop and operate a
financial data match system must keep all information  it  obtains  from
both  the department and the financial institution confidential, and any
employee, agent or representative of that third party is prohibited from
disclosing that information to anyone other than the department  or  the
financial institution.
  § 2. This act shall take effect immediately.

                                 PART V

  Section  1.  Subdivision  4  of section 50 of the civil service law is
amended by adding a new closing paragraph to read as follows:
  THE DEPARTMENT SHALL REQUIRE A TAX CLEARANCE FROM  THE  DEPARTMENT  OF
TAXATION  AND  FINANCE,  AS PROVIDED FOR IN SECTION ONE HUNDRED SEVENTY-
ONE-W OF THE TAX LAW, FOR EACH APPLICANT AND SHALL REFUSE TO EXAMINE  AN
APPLICANT,  OR  AFTER  EXAMINATION  TO  CERTIFY AN ELIGIBLE FOR WHOM TAX
CLEARANCE IS DENIED BY THE DEPARTMENT OF TAXATION AND FINANCE.  A MUNIC-
IPAL COMMISSION, SUBJECT TO THE APPROVAL OF THE GOVERNING BOARD OR  BODY
OF  THE  CITY  OR COUNTY AS THE CASE MAY BE, OR A REGIONAL COMMISSION OR
PERSONNEL OFFICER, PURSUANT TO  GOVERNMENTAL  AGREEMENT,  MAY  ELECT  TO
REQUIRE TAX CLEARANCES FOR APPLICANTS AND TO REFUSE TO EXAMINE AN APPLI-
CANT,  OR AFTER EXAMINATION TO CERTIFY AN ELIGIBLE FOR WHOM A TAX CLEAR-
ANCE IS DENIED BY THE DEPARTMENT  OF  TAXATION  AND  FINANCE.  PROVIDED,
HOWEVER, THAT THE DEPARTMENT AND MUNICIPAL COMMISSIONS SHALL NOT REQUIRE
A  TAX  CLEARANCE  FOR  (1) ANY CURRENT EMPLOYEE; OR (2) A PERSON WHO IS
CONSIDERED AN APPLICANT BY REASON OF (A) A TRANSFER PURSUANT TO  SECTION
SEVENTY  OF  THIS  CHAPTER;  OR  (B) A PERSON WHO IS ON A PREFERRED LIST
SUBJECT TO SECTION EIGHTY-ONE OF THIS CHAPTER; OR  (C)  A  PERSON  WHOSE
NAME  IS  ON  AN  ELIGIBLE  LIST AS DEFINED IN SECTION FIFTY-SIX OF THIS
ARTICLE AND WHO HAS SUCCESSFULLY COMPLETED A PROMOTION EXAM  SUBJECT  TO
SECTION  FIFTY-TWO  OF  THIS ARTICLE. WHERE A TAX CLEARANCE IS REQUIRED,
THE APPLICATION FOR EXAMINATION, OR THE INSTRUCTIONS FOR  SUCH  APPLICA-
TION,  SHALL  CLEARLY  INFORM THE APPLICANT THAT A TAX CLEARANCE WILL BE

S. 2009                            59                            A. 3009

PERFORMED AND THAT, IF THE TAX CLEARANCE IS DENIED, THE  APPLICANT  MUST
CONTACT  THE  DEPARTMENT OF TAXATION AND FINANCE TO RESOLVE ANY PAST-DUE
TAX LIABILITIES OR RETURN FILING COMPLIANCE BEFORE THE  APPLICATION  FOR
EXAMINATION  MAY  BE RESUBMITTED. ANY APPLICANT SUBJECT TO TAX CLEARANCE
SHALL BE REQUIRED TO PROVIDE ANY INFORMATION  DEEMED  NECESSARY  BY  THE
DEPARTMENT AND THE DEPARTMENT OF TAXATION AND FINANCE TO EFFICIENTLY AND
ACCURATELY  PROVIDE A TAX CLEARANCE, AND THE FAILURE BY THE APPLICANT TO
PROVIDE SUCH INFORMATION SHALL DISQUALIFY THE APPLICANT.
  § 2. The tax law is amended by adding a new section 171-w to  read  as
follows:
  §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
ANCES. (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX  LIABILITIES"
SHALL  MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
OR ANY PENALTY OR INTEREST ON SUCH TAX, SURCHARGE, OR FEE,  OWED  BY  AN
INDIVIDUAL  OR  ENTITY.  THE  TERM  "PAST-DUE TAX LIABILITIES" MEANS ANY
UNPAID TAX LIABILITIES THAT HAVE BECOME FIXED AND FINAL  SUCH  THAT  THE
TAXPAYER  NO  LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
THE TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF  ITS
AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
(INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
  (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT  ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A TAX CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO  THE  GOVERN-
MENT  ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT  PRAC-
TICABLE,  REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE DEPARTMENT
AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX  CLEAR-
ANCE  REQUESTS  TO  THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE  ANY  APPLICANT  DATA  OR
INFORMATION  WITH  THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY  THE  DEPART-
MENT.
  (3)  UPON  RECEIPT  OF  A  TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE  TAX  CLEAR-
ANCE  REQUEST  HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR,  WERE  NO
THRESHOLD  HAS  BEEN  ESTABLISHED  BY  LAW  OR OTHERWISE, EQUAL TO OR IN
EXCESS OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST  SO
REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
FOR  EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS  A  PERSON  REQUIRED  TO
REGISTER  PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A  TAX
CLEARANCE  IF  IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN  EXCESS  OF  THE  APPLICABLE
THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
  (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT

S. 2009                            60                            A. 3009

SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
  (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
  (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
SUPPORT PURSUANT TO AN INCOME EXECUTION ISSUED PURSUANT TO SECTION FIFTY
TWO  HUNDRED FORTY-ONE OR FIFTY TWO HUNDRED FORTY-TWO OF THE CIVIL PRAC-
TICE LAW AND RULES  OR  ANOTHER  STATE'S  INCOME  WITHHOLDING  ORDER  AS
AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
GARNISHED  BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX LIABIL-
ITIES AT ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD  SUPPORT  PAYMENTS
OR  COMBINED  CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO A SATISFAC-
TORY PAYMENT ARRANGEMENT UNDER  SECTION  ONE  HUNDRED  ELEVEN-B  OF  THE
SOCIAL  SERVICES  LAW WITH A SUPPORT COLLECTION UNIT OR OTHERWISE MAKING
PERIODIC PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY  OF  THE
FAMILY  COURT  ACT.  AN  APPLICANT MAY CHALLENGE A DEPARTMENT FINDING OF
FAILURE TO COMPLY WITH  TAX  RETURN  FILING  REQUIREMENTS  ONLY  ON  THE
GROUNDS  THAT  ALL  REQUIRED TAX RETURNS HAVE BEEN FILED FOR EACH OF THE
PAST THREE YEARS.
  (C) NOTHING IN THIS SUBDIVISION IS INTENDED  TO  LIMIT  ANY  APPLICANT
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX  HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE IS
ELIGIBLE PURSUANT TO THAT SECTION, OR  ESTABLISHING  TO  THE  DEPARTMENT
THAT  THE  ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED
BY THE FILING OF A PETITION PURSUANT TO  THE  BANKRUPTCY  CODE  OF  1978
(TITLE ELEVEN OF THE UNITED STATES CODE).
  (6)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, THE DEPARTMENT MAY
EXCHANGE WITH A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT,  IN  THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS  INFORMATION  TO  ANY  OTHER  ENTITY  OR PERSON, OTHER THAN FOR THE
PURPOSE OF INFORMING THE APPLICANT THAT A  REQUIRED  TAX  CLEARANCE  HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
  (7)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE  DEPARTMENT  PURSUANT
TO  THIS  SECTION  SHALL  NOT  IN  ANY WAY LIMIT, RESTRICT OR IMPAIR THE

S. 2009                            61                            A. 3009

DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
  §  3. This act shall take effect June 1, 2017; provided, however, that
the department of taxation and finance, the department of civil service,
any municipal commission, and any other government  entity  electing  to
receive  a tax clearance from the department of taxation and finance may
work to execute  the  necessary  procedures  and  technical  changes  to
support  the  tax clearance process as described in sections one and two
of this act before that date; provided,  further,  that  this  effective
date  will  not  impact  the administration of any tax clearance program
authorized by another provision of law.

                                 PART W

  Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266
of the laws of 1986, amending the civil practice law and rules and other
laws relating  to  malpractice  and  professional  medical  conduct,  as
amended  by  section  2  of part C of chapter 59 of the laws of 2016, is
amended to read as follows:
  (a) The superintendent of financial services and the  commissioner  of
health  or  their  designee  shall, from funds available in the hospital
excess liability pool created pursuant to subdivision 5 of this section,
purchase a policy or policies for excess insurance coverage, as  author-
ized  by  paragraph 1 of subsection (e) of section 5502 of the insurance
law; or from an insurer, other than an insurer described in section 5502
of the insurance law, duly authorized to write such coverage and actual-
ly writing  medical  malpractice  insurance  in  this  state;  or  shall
purchase equivalent excess coverage in a form previously approved by the
superintendent  of  financial  services for purposes of providing equiv-
alent excess coverage in accordance with section 19 of  chapter  294  of
the  laws of 1985, for medical or dental malpractice occurrences between
July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30,  1988,
between  July  1,  1988 and June 30, 1989, between July 1, 1989 and June
30, 1990, between July 1, 1990 and June 30, 1991, between July  1,  1991
and  June 30, 1992, between July 1, 1992 and June 30, 1993, between July
1, 1993 and June 30, 1994, between July  1,  1994  and  June  30,  1995,
between  July  1,  1995 and June 30, 1996, between July 1, 1996 and June
30, 1997, between July 1, 1997 and June 30, 1998, between July  1,  1998
and  June 30, 1999, between July 1, 1999 and June 30, 2000, between July
1, 2000 and June 30, 2001, between July  1,  2001  and  June  30,  2002,
between  July  1,  2002 and June 30, 2003, between July 1, 2003 and June
30, 2004, between July 1, 2004 and June 30, 2005, between July  1,  2005
and  June 30, 2006, between July 1, 2006 and June 30, 2007, between July
1, 2007 and June 30, 2008, between July  1,  2008  and  June  30,  2009,
between  July  1,  2009 and June 30, 2010, between July 1, 2010 and June
30, 2011, between July 1, 2011 and June 30, 2012, between July  1,  2012
and  June 30, 2013, between July 1, 2013 and June 30, 2014, between July
1, 2014 and June 30, 2015, between July 1, 2015 and June 30, 2016, [and]
between July 1, 2016 and June 30, 2017, AND BETWEEN  JULY  1,  2017  AND
JUNE  30,  2018  or  reimburse the hospital where the hospital purchases
equivalent excess coverage as defined in subparagraph (i)  of  paragraph
(a) of subdivision 1-a of this section for medical or dental malpractice
occurrences between July 1, 1987 and June 30, 1988, between July 1, 1988
and  June 30, 1989, between July 1, 1989 and June 30, 1990, between July
1, 1990 and June 30, 1991, between July  1,  1991  and  June  30,  1992,
between  July  1,  1992 and June 30, 1993, between July 1, 1993 and June

S. 2009                            62                            A. 3009

30, 1994, between July 1, 1994 and June 30, 1995, between July  1,  1995
and  June 30, 1996, between July 1, 1996 and June 30, 1997, between July
1, 1997 and June 30, 1998, between July  1,  1998  and  June  30,  1999,
between  July  1,  1999 and June 30, 2000, between July 1, 2000 and June
30, 2001, between July 1, 2001 and June 30, 2002, between July  1,  2002
and  June 30, 2003, between July 1, 2003 and June 30, 2004, between July
1, 2004 and June 30, 2005, between July  1,  2005  and  June  30,  2006,
between  July  1,  2006 and June 30, 2007, between July 1, 2007 and June
30, 2008, between July 1, 2008 and June 30, 2009, between July  1,  2009
and  June 30, 2010, between July 1, 2010 and June 30, 2011, between July
1, 2011 and June 30, 2012, between July  1,  2012  and  June  30,  2013,
between  July  1,  2013 and June 30, 2014, between July 1, 2014 and June
30, 2015, between July 1, 2015 and June 30, 2016, [and] between July  1,
2016  and  June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 for
physicians or dentists certified as eligible for  each  such  period  or
periods  pursuant to subdivision 2 of this section by a general hospital
licensed pursuant to article 28 of the public health law; provided  that
no  single  insurer  shall  write  more  than fifty percent of the total
excess premium for a given policy year; and provided, however, that such
eligible physicians or dentists must have in force an individual policy,
from an insurer licensed in this state of primary malpractice  insurance
coverage  in  amounts of no less than one million three hundred thousand
dollars for each  claimant  and  three  million  nine  hundred  thousand
dollars  for  all  claimants under that policy during the period of such
excess coverage for  such  occurrences  or  be  endorsed  as  additional
insureds under a hospital professional liability policy which is offered
through a voluntary attending physician ("channeling") program previous-
ly  permitted  by  the  superintendent  of financial services during the
period of such excess coverage for such occurrences; AND  PROVIDED  THAT
SUCH  ELIGIBLE  PHYSICIANS OR DENTISTS HAVE RECEIVED TAX CLEARANCES FROM
THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO SECTION 171-W OF  THE
TAX  LAW.  During  such  period, such policy for excess coverage or such
equivalent excess coverage shall, when combined with the physician's  or
dentist's  primary  malpractice  insurance coverage or coverage provided
through a voluntary attending physician ("channeling") program, total an
aggregate level of two million three hundred thousand dollars  for  each
claimant and six million nine hundred thousand dollars for all claimants
from all such policies with respect to occurrences in each of such years
provided, however, if the cost of primary malpractice insurance coverage
in  excess of one million dollars, but below the excess medical malprac-
tice insurance coverage provided pursuant to this act, exceeds the  rate
of  nine  percent per annum, then the required level of primary malprac-
tice insurance coverage in excess of one million dollars for each claim-
ant shall be in an amount of not less than the  dollar  amount  of  such
coverage available at nine percent per annum; the required level of such
coverage  for  all claimants under that policy shall be in an amount not
less than three times the dollar amount of coverage for  each  claimant;
and  excess coverage, when combined with such primary malpractice insur-
ance coverage, shall increase the aggregate level for each  claimant  by
one  million  dollars  and  three million dollars for all claimants; and
provided further, that, with respect  to  policies  of  primary  medical
malpractice  coverage that include occurrences between April 1, 2002 and
June 30, 2002, such requirement that coverage be in amounts no less than
one million three hundred thousand dollars for each claimant  and  three
million  nine hundred thousand dollars for all claimants for such occur-
rences shall be effective April 1, 2002.

S. 2009                            63                            A. 3009

  § 2. Subdivision 3 of section 18 of chapter 266 of the laws  of  1986,
amending  the  civil  practice  law and rules and other laws relating to
malpractice and professional medical conduct, as amended by section 3 of
part C of chapter 59 of the laws of 2016, is amended to read as follows:
  (3)(a)  The  superintendent  of financial services shall determine and
certify to each general hospital and to the commissioner of  health  the
cost  of  excess malpractice insurance for medical or dental malpractice
occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
and June 30, 1989, between July 1, 1989 and June 30, 1990, between  July
1,  1990  and  June  30,  1991,  between July 1, 1991 and June 30, 1992,
between July 1, 1992 and June 30, 1993, between July 1,  1993  and  June
30,  1994,  between July 1, 1994 and June 30, 1995, between July 1, 1995
and June 30, 1996, between July 1, 1996 and June 30, 1997, between  July
1,  1997  and  June  30,  1998,  between July 1, 1998 and June 30, 1999,
between July 1, 1999 and June 30, 2000, between July 1,  2000  and  June
30,  2001,  between July 1, 2001 and June 30, 2002, between July 1, 2002
and June 30, 2003, between July 1, 2003 and June 30, 2004, between  July
1,  2004  and  June  30,  2005,  between July 1, 2005 and June 30, 2006,
between July 1, 2006 and June 30, 2007, between July 1,  2007  and  June
30,  2008,  between July 1, 2008 and June 30, 2009, between July 1, 2009
and June 30, 2010, between July 1, 2010 and June 30, 2011, between  July
1,  2011  and June 30, 2012, between July 1, 2012 and June 30, 2013, and
between July 1, 2013 and June 30, 2014, between July 1,  2014  and  June
30,  2015,  between  July 1, 2015 and June 30, 2016, and between July 1,
2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 allo-
cable to each general hospital for physicians or dentists  certified  as
eligible  for purchase of a policy for excess insurance coverage by such
general hospital in accordance with subdivision 2 of this  section,  and
may amend such determination and certification as necessary.
  (b)  The  superintendent  of  financial  services  shall determine and
certify to each general hospital and to the commissioner of  health  the
cost  of  excess malpractice insurance or equivalent excess coverage for
medical or dental malpractice occurrences between July 1, 1987 and  June
30,  1988,  between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between  July
1,  1991  and  June  30,  1992,  between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1,  1994  and  June
30,  1995,  between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between  July
1,  1998  and  June  30,  1999,  between July 1, 1999 and June 30, 2000,
between July 1, 2000 and June 30, 2001, between July 1,  2001  and  June
30,  2002,  between July 1, 2002 and June 30, 2003, between July 1, 2003
and June 30, 2004, between July 1, 2004 and June 30, 2005, between  July
1,  2005  and  June  30,  2006,  between July 1, 2006 and June 30, 2007,
between July 1, 2007 and June 30, 2008, between July 1,  2008  and  June
30,  2009,  between July 1, 2009 and June 30, 2010, between July 1, 2010
and June 30, 2011, between July 1, 2011 and June 30, 2012, between  July
1,  2012  and  June  30,  2013,  between July 1, 2013 and June 30, 2014,
between July 1, 2014 and June 30, 2015, between July 1,  2015  and  June
30,  2016,  and between July 1, 2016 and June 30, 2017, AND BETWEEN JULY
1, 2017 AND JUNE 30, 2018 allocable to each general hospital for  physi-
cians  or  dentists  certified  as eligible for purchase of a policy for
excess insurance coverage or equivalent excess coverage by such  general
hospital in accordance with subdivision 2 of this section, and may amend
such determination and certification as necessary. The superintendent of
financial  services shall determine and certify to each general hospital

S. 2009                            64                            A. 3009

and to the commissioner of health the ratable share of such cost alloca-
ble to the period July 1, 1987 to December 31, 1987, to the period Janu-
ary 1, 1988 to June 30, 1988, to the period July 1, 1988 to December 31,
1988, to the period January 1, 1989 to June 30, 1989, to the period July
1,  1989 to December 31, 1989, to the period January 1, 1990 to June 30,
1990, to the period July 1, 1990 to December 31,  1990,  to  the  period
January 1, 1991 to June 30, 1991, to the period July 1, 1991 to December
31,  1991, to the period January 1, 1992 to June 30, 1992, to the period
July 1, 1992 to December 31, 1992, to the period January 1, 1993 to June
30, 1993, to the period July 1, 1993 to December 31, 1993, to the period
January 1, 1994 to June 30, 1994, to the period July 1, 1994 to December
31, 1994, to the period January 1, 1995 to June 30, 1995, to the  period
July 1, 1995 to December 31, 1995, to the period January 1, 1996 to June
30, 1996, to the period July 1, 1996 to December 31, 1996, to the period
January 1, 1997 to June 30, 1997, to the period July 1, 1997 to December
31,  1997, to the period January 1, 1998 to June 30, 1998, to the period
July 1, 1998 to December 31, 1998, to the period January 1, 1999 to June
30, 1999, to the period July 1, 1999 to December 31, 1999, to the period
January 1, 2000 to June 30, 2000, to the period July 1, 2000 to December
31, 2000, to the period January 1, 2001 to June 30, 2001, to the  period
July  1,  2001  to June 30, 2002, to the period July 1, 2002 to June 30,
2003, to the period July 1, 2003 to June 30, 2004, to the period July 1,
2004 to June 30, 2005, to the period July 1, 2005 and June 30, 2006,  to
the  period  July  1, 2006 and June 30, 2007, to the period July 1, 2007
and June 30, 2008, to the period July 1, 2008 and June 30, 2009, to  the
period  July  1,  2009 and June 30, 2010, to the period July 1, 2010 and
June 30, 2011, to the period July 1, 2011 and  June  30,  2012,  to  the
period  July  1,  2012 and June 30, 2013, to the period July 1, 2013 and
June 30, 2014, to the period July 1, 2014 and  June  30,  2015,  to  the
period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June
30, 2017, AND TO THE PERIOD JULY 1, 2017 AND JUNE 30, 2018.
  § 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18  of  chapter 266 of the laws of 1986, amending the civil practice law
and rules and  other  laws  relating  to  malpractice  and  professional
medical  conduct, as amended by section 4 of part C of chapter 59 of the
laws of 2016, are amended to read as follows:
  (a) To the extent funds available to  the  hospital  excess  liability
pool  pursuant to subdivision 5 of this section as amended, and pursuant
to section 6 of part J of chapter 63 of the laws of 2001,  as  may  from
time  to  time  be amended, which amended this subdivision, are insuffi-
cient to meet the costs  of  excess  insurance  coverage  or  equivalent
excess  coverage  for coverage periods during the period July 1, 1992 to
June 30, 1993, during the period July 1, 1993 to June 30,  1994,  during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to  June  30,  1996,  during  the  period July 1, 1996 to June 30, 1997,
during the period July 1, 1997 to June 30, 1998, during the period  July
1,  1998  to  June  30, 1999, during the period July 1, 1999 to June 30,
2000, during the period July 1, 2000 to June 30, 2001, during the period
July 1, 2001 to October 29, 2001, during the period  April  1,  2002  to
June  30,  2002, during the period July 1, 2002 to June 30, 2003, during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to June 30, 2005, during the period July  1,  2005  to  June  30,  2006,
during  the period July 1, 2006 to June 30, 2007, during the period July
1, 2007 to June 30, 2008, during the period July 1,  2008  to  June  30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July  1,  2010  to June 30, 2011, during the period July 1, 2011 to June

S. 2009                            65                            A. 3009

30, 2012, during the period July 1, 2012 to June 30,  2013,  during  the
period  July 1, 2013 to June 30, 2014, during the period July 1, 2014 to
June 30, 2015, during the period July 1, 2015 and June  30,  2016,  [and
between]  DURING  THE  PERIOD July 1, 2016 and June 30, 2017, AND DURING
THE PERIOD JULY 1, 2017 AND JUNE 30, 2018 allocated  or  reallocated  in
accordance  with  paragraph  (a)  of  subdivision 4-a of this section to
rates of payment applicable to state governmental agencies, each  physi-
cian  or  dentist  for  whom  a  policy for excess insurance coverage or
equivalent excess coverage is purchased for such period shall be respon-
sible for payment to the provider of excess insurance coverage or equiv-
alent excess coverage of an allocable share of such insufficiency, based
on the ratio of the total cost of such coverage for  such  physician  to
the sum of the total cost of such coverage for all physicians applied to
such insufficiency.
  (b)  Each  provider  of excess insurance coverage or equivalent excess
coverage covering the period July 1, 1992 to June 30, 1993, or  covering
the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994  to  June 30, 1995, or covering the period July 1, 1995 to June 30,
1996, or covering the period July 1, 1996 to June 30, 1997, or  covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998  to  June 30, 1999, or covering the period July 1, 1999 to June 30,
2000, or covering the period July 1, 2000 to June 30, 2001, or  covering
the  period  July  1,  2001  to October 29, 2001, or covering the period
April 1, 2002 to June 30, 2002, or covering the period July 1,  2002  to
June  30, 2003, or covering the period July 1, 2003 to June 30, 2004, or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June 30, 2007, or covering the period July 1, 2007 to June 30, 2008,  or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June  30, 2011, or covering the period July 1, 2011 to June 30, 2012, or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June 30, 2015, or covering the period July 1, 2015 to June 30, 2016,  or
covering the period July 1, 2016 to June 30, 2017, OR COVERING THE PERI-
OD  JULY  1,  2017  TO JUNE 30, 2018 shall notify a covered physician or
dentist by mail, mailed to the address shown on the last application for
excess insurance coverage or equivalent excess coverage, of  the  amount
due  to  such  provider from such physician or dentist for such coverage
period determined in accordance with paragraph (a) of this  subdivision.
Such amount shall be due from such physician or dentist to such provider
of excess insurance coverage or equivalent excess coverage in a time and
manner determined by the superintendent of financial services.
  (c)  If  a physician or dentist liable for payment of a portion of the
costs of excess insurance coverage or equivalent excess coverage  cover-
ing  the  period  July  1, 1992 to June 30, 1993, or covering the period
July 1, 1993 to June 30, 1994, or covering the period July  1,  1994  to
June  30, 1995, or covering the period July 1, 1995 to June 30, 1996, or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-
od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June 30, 1999, or covering the period July 1, 1999 to June 30, 2000,  or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od  July  1,  2001  to October 29, 2001, or covering the period April 1,
2002 to June 30, 2002, or covering the period July 1, 2002 to  June  30,
2003,  or covering the period July 1, 2003 to June 30, 2004, or covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,

S. 2009                            66                            A. 3009

2005 to June 30, 2006, or covering the period July 1, 2006 to  June  30,
2007,  or covering the period July 1, 2007 to June 30, 2008, or covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009  to  June 30, 2010, or covering the period July 1, 2010 to June 30,
2011, or covering the period July 1, 2011 to June 30, 2012, or  covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013  to  June 30, 2014, or covering the period July 1, 2014 to June 30,
2015, or covering the period July 1, 2015 to June 30, 2016, or  covering
the period July 1, 2016 to June 30, 2017, OR COVERING THE PERIOD JULY 1,
2017  TO  JUNE  30,  2018 determined in accordance with paragraph (a) of
this subdivision fails, refuses or  neglects  to  make  payment  to  the
provider  of  excess insurance coverage or equivalent excess coverage in
such time and manner as determined by the  superintendent  of  financial
services pursuant to paragraph (b) of this subdivision, excess insurance
coverage  or  equivalent excess coverage purchased for such physician or
dentist in accordance with this section for such coverage  period  shall
be  cancelled and shall be null and void as of the first day on or after
the commencement of a policy period  where  the  liability  for  payment
pursuant to this subdivision has not been met.
  (d)  Each  provider  of excess insurance coverage or equivalent excess
coverage shall notify the superintendent of financial services  and  the
commissioner  of  health or their designee of each physician and dentist
eligible for purchase of a  policy  for  excess  insurance  coverage  or
equivalent  excess coverage covering the period July 1, 1992 to June 30,
1993, or covering the period July 1, 1993 to June 30, 1994, or  covering
the period July 1, 1994 to June 30, 1995, or covering the period July 1,
1995  to  June 30, 1996, or covering the period July 1, 1996 to June 30,
1997, or covering the period July 1, 1997 to June 30, 1998, or  covering
the period July 1, 1998 to June 30, 1999, or covering the period July 1,
1999  to  June 30, 2000, or covering the period July 1, 2000 to June 30,
2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
ing the period April 1, 2002 to June 30, 2002, or  covering  the  period
July  1,  2002  to June 30, 2003, or covering the period July 1, 2003 to
June 30, 2004, or covering the period July 1, 2004 to June 30, 2005,  or
covering the period July 1, 2005 to June 30, 2006, or covering the peri-
od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to
June  30, 2008, or covering the period July 1, 2008 to June 30, 2009, or
covering the period July 1, 2009 to June 30, 2010, or covering the peri-
od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
June 30, 2012, or covering the period July 1, 2012 to June 30, 2013,  or
covering the period July 1, 2013 to June 30, 2014, or covering the peri-
od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
June  30, 2016, or covering the period July 1, 2016 to June 30, 2017, OR
COVERING THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 that has made  payment
to  such  provider  of  excess  insurance  coverage or equivalent excess
coverage in accordance with paragraph (b) of  this  subdivision  and  of
each  physician and dentist who has failed, refused or neglected to make
such payment.
  (e) A provider of  excess  insurance  coverage  or  equivalent  excess
coverage  shall  refund to the hospital excess liability pool any amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period
July 1, 1993 to June 30, 1994, and to the period July 1,  1994  to  June
30,  1995,  and  to the period July 1, 1995 to June 30, 1996, and to the
period July 1, 1996 to June 30, 1997, and to the period July 1, 1997  to
June  30,  1998, and to the period July 1, 1998 to June 30, 1999, and to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000

S. 2009                            67                            A. 3009

to June 30, 2001, and to the period July 1, 2001 to  October  29,  2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1,  2002  to  June  30, 2003, and to the period July 1, 2003 to June 30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July  1,  2005  to June 30, 2006, and to the period July 1, 2006 to June
30, 2007, and to the period July 1, 2007 to June 30, 2008,  and  to  the
period  July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
June 30, 2010, and to the period July 1, 2010 to June 30, 2011,  and  to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to  June  30, 2013, and to the period July 1, 2013 to June 30, 2014, and
to the period July 1, 2014 to June 30, 2015, and to the period  July  1,
2015  to  June  30,  2016,  [and] to the period July 1, 2016 to June 30,
2017, AND TO THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 received from  the
hospital excess liability pool for purchase of excess insurance coverage
or  equivalent  excess coverage covering the period July 1, 1992 to June
30, 1993, and covering the period July 1, 1993 to  June  30,  1994,  and
covering  the  period  July  1,  1994 to June 30, 1995, and covering the
period July 1, 1995 to June 30, 1996, and covering the  period  July  1,
1996  to June 30, 1997, and covering the period July 1, 1997 to June 30,
1998, and covering the period July 1, 1998 to June 30, 1999, and  cover-
ing  the  period  July 1, 1999 to June 30, 2000, and covering the period
July 1, 2000 to June 30, 2001, and covering the period July 1,  2001  to
October  29,  2001,  and  covering  the period April 1, 2002 to June 30,
2002, and covering the period July 1, 2002 to June 30, 2003, and  cover-
ing  the  period  July 1, 2003 to June 30, 2004, and covering the period
July 1, 2004 to June 30, 2005, and covering the period July 1,  2005  to
June  30,  2006,  and covering the period July 1, 2006 to June 30, 2007,
and covering the period July 1, 2007 to June 30, 2008, and covering  the
period  July  1,  2008 to June 30, 2009, and covering the period July 1,
2009 to June 30, 2010, and covering the period July 1, 2010 to June  30,
2011,  and covering the period July 1, 2011 to June 30, 2012, and cover-
ing the period July 1, 2012 to June 30, 2013, and  covering  the  period
July  1,  2013 to June 30, 2014, and covering the period July 1, 2014 to
June 30, 2015, and covering the period July 1, 2015 to  June  30,  2016,
and  covering the period July 1, 2016 to June 30, 2017, AND COVERING THE
PERIOD JULY 1, 2017 TO JUNE 30, 2018 for a physician  or  dentist  where
such   excess  insurance  coverage  or  equivalent  excess  coverage  is
cancelled in accordance with paragraph (c) of this subdivision.
  § 4. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice law and rules  and  other  laws  relating  to  malpractice  and
professional medical conduct, as amended by section 5 of part C of chap-
ter 59 of the laws of 2016, is amended to read as follows:
  §  40.  The superintendent of financial services shall establish rates
for policies providing coverage  for  physicians  and  surgeons  medical
malpractice  for the periods commencing July 1, 1985 and ending June 30,
[2017] 2018; provided, however, that notwithstanding any other provision
of law, the superintendent shall not establish or approve  any  increase
in  rates  for  the  period  commencing July 1, 2009 and ending June 30,
2010. The superintendent shall direct insurers to  establish  segregated
accounts  for premiums, payments, reserves and investment income attrib-
utable to such premium periods and shall require periodic reports by the
insurers regarding claims and expenses attributable to such  periods  to
monitor whether such accounts will be sufficient to meet incurred claims
and  expenses. On or after July 1, 1989, the superintendent shall impose
a surcharge on premiums  to  satisfy  a  projected  deficiency  that  is
attributable  to the premium levels established pursuant to this section

S. 2009                            68                            A. 3009

for such periods; provided, however, that such  annual  surcharge  shall
not  exceed  eight  percent of the established rate until July 1, [2017]
2018, at which time and thereafter such surcharge shall not exceed twen-
ty-five  percent  of  the  approved  adequate rate, and that such annual
surcharges shall continue for such period of time as shall be sufficient
to satisfy such deficiency. The superintendent  shall  not  impose  such
surcharge  during the period commencing July 1, 2009 and ending June 30,
2010. On and after July  1,  1989,  the  surcharge  prescribed  by  this
section  shall  be  retained by insurers to the extent that they insured
physicians and surgeons during the July 1, 1985 through June 30,  [2017]
2018  policy  periods;  in  the  event  and to the extent physicians and
surgeons were insured by another insurer during such periods, all  or  a
pro  rata  share of the surcharge, as the case may be, shall be remitted
to such other insurer in accordance with rules  and  regulations  to  be
promulgated by the superintendent.  Surcharges collected from physicians
and  surgeons  who  were not insured during such policy periods shall be
apportioned among all insurers in proportion to the premium  written  by
each  insurer  during such policy periods; if a physician or surgeon was
insured by an insurer subject to rates established by the superintendent
during such policy periods, and  at  any  time  thereafter  a  hospital,
health  maintenance organization, employer or institution is responsible
for responding in damages for liability arising out of such  physician's
or  surgeon's  practice  of medicine, such responsible entity shall also
remit to such prior insurer the equivalent amount  that  would  then  be
collected  as  a  surcharge if the physician or surgeon had continued to
remain insured by such prior insurer. In  the  event  any  insurer  that
provided  coverage  during  such  policy  periods is in liquidation, the
property/casualty insurance security fund shall receive the  portion  of
surcharges to which the insurer in liquidation would have been entitled.
The surcharges authorized herein shall be deemed to be income earned for
the  purposes of section 2303 of the insurance law.  The superintendent,
in establishing adequate rates and in determining  any  projected  defi-
ciency  pursuant  to  the requirements of this section and the insurance
law, shall give substantial weight, determined  in  his  discretion  and
judgment,  to  the  prospective  anticipated  effect  of any regulations
promulgated and laws enacted and the  public  benefit  of    stabilizing
malpractice rates and minimizing rate level fluctuation during the peri-
od  of  time  necessary for the development of more reliable statistical
experience as to the efficacy of such  laws  and  regulations  affecting
medical, dental or podiatric malpractice enacted or promulgated in 1985,
1986,  by this act and at any other time.  Notwithstanding any provision
of the insurance law, rates already established and to be established by
the superintendent pursuant to this section are deemed adequate if  such
rates  would be adequate when taken together with the maximum authorized
annual surcharges to be imposed for a reasonable period of time  whether
or  not  any  such  annual surcharge has been actually imposed as of the
establishment of such rates.
  § 5. Section 5 and subdivisions (a) and (e) of section 6 of part J  of
chapter  63  of  the  laws  of 2001, amending chapter 266 of the laws of
1986, amending the civil practice law and rules and other laws  relating
to malpractice and professional medical conduct, as amended by section 6
of  part  C  of  chapter  59 of the laws of 2016, are amended to read as
follows:
  § 5. The superintendent of financial services and the commissioner  of
health shall determine, no later than June 15, 2002, June 15, 2003, June
15,  2004,  June  15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,

S. 2009                            69                            A. 3009

June 15, 2009, June 15, 2010, June 15, 2011, June  15,  2012,  June  15,
2013,  June 15, 2014, June 15, 2015, June 15, 2016, [and] June 15, 2017,
AND JUNE 15, 2018 the amount of funds available in the  hospital  excess
liability  pool,  created  pursuant  to section 18 of chapter 266 of the
laws of 1986, and whether such funds  are  sufficient  for  purposes  of
purchasing  excess  insurance coverage for eligible participating physi-
cians and dentists during the period July 1, 2001 to June 30,  2002,  or
July 1, 2002 to June 30, 2003, or July 1, 2003 to June 30, 2004, or July
1,  2004  to June 30, 2005, or July 1, 2005 to June 30, 2006, or July 1,
2006 to June 30, 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008
to June 30, 2009, or July 1, 2009 to June 30, 2010, or July 1,  2010  to
June 30, 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June
30,  2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
2015, or July 1, 2015 to June 30, 2016, or July  1,  2016  to  June  30,
2017, OR TO JULY 1, 2017 TO JUNE 30, 2018 as applicable.
  (a)  This section shall be effective only upon a determination, pursu-
ant to section five of this act,  by  the  superintendent  of  financial
services  and  the  commissioner  of health, and a certification of such
determination to the state director of the  budget,  the  chair  of  the
senate  committee  on finance and the chair of the assembly committee on
ways and means, that the amount of funds in the hospital excess  liabil-
ity  pool,  created pursuant to section 18 of chapter 266 of the laws of
1986, is insufficient for purposes of purchasing excess insurance cover-
age for eligible participating physicians and dentists during the period
July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or  July  1,
2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
to  June  30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to
June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June  30,
2014,  or  July  1,  2014  to June 30, 2015, or July 1, 2015 to June 30,
2016, or July 1, 2016 to June 30, 2017, OR JULY 1, 2017 TO JUNE 30, 2018
as applicable.
  (e) The commissioner of health  shall  transfer  for  deposit  to  the
hospital excess liability pool created pursuant to section 18 of chapter
266  of  the laws of 1986 such amounts as directed by the superintendent
of financial services for the purchase  of  excess  liability  insurance
coverage  for  eligible  participating  physicians  and dentists for the
policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to  June  30,
2003,  or  July  1,  2003  to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July  1,  2006  to  June  30,
2007,  as  applicable, and the cost of administering the hospital excess
liability pool for such applicable policy year,  pursuant to the program
established in chapter 266 of the laws of 1986,  as  amended,  no  later
than  June  15,  2002, June 15, 2003, June 15, 2004, June 15, 2005, June
15, 2006, June 15, 2007, June 15, 2008, June 15, 2009,  June  15,  2010,
June  15,  2011,  June  15, 2012, June 15, 2013, June 15, 2014, June 15,
2015, June 15, 2016, [and] June 15, 2017, AND JUNE 15, 2018 as  applica-
ble.
  § 6. Notwithstanding any law, rule or regulation to the contrary, only
physicians  or  dentists who were eligible, and for whom the superinten-
dent of financial services and the  commissioner  of  health,  or  their
designee, purchased, with funds available in the hospital excess liabil-
ity  pool,  a  full  or partial policy for excess coverage or equivalent
excess coverage for the coverage period ending the  thirtieth  of  June,
two thousand seventeen, shall be eligible to apply for such coverage for

S. 2009                            70                            A. 3009

the coverage period beginning the first of July, two thousand seventeen;
provided,  however,  if  the  total number of physicians or dentists for
whom such excess coverage or equivalent excess  coverage  was  purchased
for the policy year ending the thirtieth of June, two thousand seventeen
exceeds the total number of physicians or dentists certified as eligible
for the coverage period beginning the first of July, two thousand seven-
teen,  then the general hospitals may certify additional eligible physi-
cians or dentists in a number equal to such general  hospital's  propor-
tional  share  of  the  total  number of physicians or dentists for whom
excess coverage or equivalent excess coverage was purchased  with  funds
available  in  the hospital excess liability pool as of the thirtieth of
June, two thousand seventeen, as applied to the difference  between  the
number  of  eligible physicians or dentists for whom a policy for excess
coverage or equivalent excess coverage was purchased  for  the  coverage
period  ending  the  thirtieth  of  June, two thousand seventeen and the
number of such eligible physicians or  dentists  who  have  applied  for
excess  coverage  or  equivalent excess coverage for the coverage period
beginning the first of July, two thousand seventeen.
  § 7. The tax law is amended by adding a new section 171-w to  read  as
follows:
  §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
ANCES.  (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
SHALL MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE  COMMISSIONER,
OR  ANY  PENALTY  OR  INTEREST ON SUCH TAX, SURCHARGE OR FEE, OWED BY AN
INDIVIDUAL OR ENTITY. THE TERM  "PAST-DUE  TAX  LIABILITIES"  MEANS  ANY
UNPAID  TAX  LIABILITIES  THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE
TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR  JUDICIAL  REVIEW.
THE  TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF ITS
AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
(INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
  (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE  TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A  TAX  CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT  THE
PROVISIONS  OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE  DEPARTMENT
AND  THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
ANCE REQUESTS TO THE DEPARTMENT AND TRANSMISSION OF  TAX  CLEARANCES  TO
THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT  ENTITY  SHALL  BE  AUTHORIZED TO SHARE ANY APPLICANT DATA OR
INFORMATION WITH THE DEPARTMENT THAT IS NECESSARY TO ENSURE  THE  PROPER
MATCHING  OF  THE APPLICANT TO THE TAX RECORDS MAINTAINED BY THE DEPART-
MENT.
  (3) UPON RECEIPT OF A TAX  CLEARANCE  REQUEST,  THE  DEPARTMENT  SHALL
EXAMINE  ITS  RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE TAX CLEAR-
ANCE REQUEST HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS  OF  THE
DOLLAR  THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE NO
THRESHOLD HAS BEEN ESTABLISHED BY LAW  OR  OTHERWISE,  EQUAL  TO  OR  IN
EXCESS  OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST SO
REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
FOR EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF  SUCH
REQUEST  THAT  IS  AN  INDIVIDUAL OR ENTITY THAT IS A PERSON REQUIRED TO
REGISTER PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS  CHAPTER

S. 2009                            71                            A. 3009

IS  REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A TAX
CLEARANCE IF IT DETERMINES THAT THE SUBJECT OF A TAX  CLEARANCE  REQUEST
HAS  PAST-DUE  TAX  LIABILITIES  EQUAL TO OR IN EXCESS OF THE APPLICABLE
THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
  (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
  (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
  (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
SUPPORT  PURSUANT  TO  AN  INCOME  EXECUTION  ISSUED PURSUANT TO SECTION
FIFTY-TWO HUNDRED FORTY-ONE OR FIFTY-TWO HUNDRED FORTY-TWO OF THE  CIVIL
PRACTICE  LAW  AND  RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX  LIABIL-
ITIES  AT  ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD SUPPORT PAYMENTS
OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO  A  SATISFAC-
TORY  PAYMENT  ARRANGEMENT  UNDER  SECTION  ONE  HUNDRED ELEVEN-B OF THE
SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT OR  OTHERWISE  MAKING
PERIODIC  PAYMENTS  IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY OF THE
FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE  A  DEPARTMENT  FINDING  OF
FAILURE  TO  COMPLY  WITH  TAX  RETURN  FILING  REQUIREMENTS ONLY ON THE
GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE BEEN FILED FOR  EACH  OF  THE
PAST THREE YEARS.
  (C)  NOTHING  IN  THIS  SUBDIVISION IS INTENDED TO LIMIT ANY APPLICANT
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE  IS
ELIGIBLE  PURSUANT  TO  THAT  SECTION, OR ESTABLISHING TO THE DEPARTMENT
THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS  BEEN  STAYED
BY  THE  FILING  OF  A  PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
(TITLE ELEVEN OF THE UNITED STATES CODE).

S. 2009                            72                            A. 3009

  (6) NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  THE  DEPARTMENT  MAY
EXCHANGE  WITH  A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS  INFORMATION  TO  ANY  OTHER  ENTITY  OR PERSON, OTHER THAN FOR THE
PURPOSE OF INFORMING THE APPLICANT THAT A  REQUIRED  TAX  CLEARANCE  HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
  (7)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE  DEPARTMENT  PURSUANT
TO  THIS  SECTION  SHALL  NOT  IN  ANY WAY LIMIT, RESTRICT OR IMPAIR THE
DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
  § 8. This act shall take effect immediately.

                                 PART X

  Section 1. Section 2 of part Q of chapter 59  of  the  laws  of  2013,
amending  the  tax  law,  relating  to  serving an income execution with
respect to individual tax debtors without filing a warrant,  as  amended
by section 1 of part DD of chapter 59 of the laws of 2015, is amended to
read as follows:
  §  2.  This act shall take effect immediately [and shall expire and be
deemed repealed on and after April 1, 2017].
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2017.

                                 PART Y

  Section  1.  Subdivision 1-A of section 208 of the tax law, as amended
by section 4 of part A of chapter 59 of the laws of 2014, is amended  to
read as follows:
  1-A.  The  term  "New  York  S corporation" means, with respect to any
taxable year, a corporation subject to tax under this article [for which
an election is in effect pursuant  to  subsection  (a)  of  section  six
hundred sixty of this chapter for such year] AND DESCRIBED IN SUBSECTION
(B)  OF  SECTION  SIX  HUNDRED  SIXTY OF THIS CHAPTER, AND any such year
shall be denominated a "New York S year"[, and such  election  shall  be
denominated  a "New York S election"]. The term "New York C corporation"
means, with respect to any taxable year, a corporation  subject  to  tax
under  this  article which is not a New York S corporation, and any such
year shall be denominated a "New York C  year".  The  term  "termination
year"  means  any  taxable year of a corporation during which the CORPO-
RATION'S STATUS AS A New York S [election] CORPORATION terminates  on  a
day  other  than  the first day of such year. The portion of the taxable
year ending before the first day for which such termination is effective
shall be denominated the "S short year", and the portion  of  such  year
beginning on such first day shall be denominated the "C short year". The
term  "New  York S termination year" means any termination year which is
[not] also an S termination year for federal purposes.
  § 2. Subdivision 1-B, paragraph (ii)  of  the  opening  paragraph  and
paragraph  (k)  of  subdivision  9  of  section  208  of the tax law are
REPEALED.
  § 3. Subdivision 1 of section 210-A of the  tax  law,  as  amended  by
section  21  of  part T of chapter 59 of the laws of 2015, is amended to
read as follows:

S. 2009                            73                            A. 3009

  1. General. Business income and capital shall be  apportioned  to  the
state  by  the apportionment factor determined pursuant to this section.
The apportionment factor is a fraction,  determined  by  including  only
those receipts, net income, net gains, and other items described in this
section  that are included in the computation of the taxpayer's business
income (determined  without  regard  to  the  modification  provided  in
subparagraph  nineteen  of  paragraph (a) of subdivision nine of section
two hundred eight of this article) for the taxable year.  The  numerator
of  the  apportionment  fraction  shall  be  equal to the sum of all the
amounts required to  be  included  in  the  numerator  pursuant  to  the
provisions  of  this  section  and  the denominator of the apportionment
fraction shall be equal to the sum of all the  amounts  required  to  be
included  in the denominator pursuant to the provisions of this section.
FOR A NEW YORK S CORPORATION, THE RECEIPTS INCLUDED IN THE APPORTIONMENT
FRACTION ARE THOSE RECEIPTS, NET INCOME (NOT LESS THAN ZERO), NET  GAINS
(NOT LESS THAN ZERO), AND OTHER ITEMS DESCRIBED IN THIS SECTION THAT ARE
INCLUDED  IN  THE NEW YORK S CORPORATION'S NONSEPARATELY COMPUTED INCOME
AND LOSS OR IN THE NEW YORK S CORPORATION'S SEPARATELY STATED  ITEMS  OF
INCOME  AND LOSS, DETERMINED PURSUANT TO SUBDIVISION (A) OF SECTION 1366
OF THE INTERNAL REVENUE CODE.
  § 4. Section 660 of the tax law, as amended by chapter 606 of the laws
of 1984, subsections (a) and (h) as amended by section 73 of part  A  of
chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended
by section 51 of part A of chapter 389 of the laws of 1997, paragraphs 4
and  5  as  added  and  paragraph  6  of subsection (b) as renumbered by
section 52 of part A of chapter 389 of the laws of 1997, subsection  (d)
as  added by chapter 760 of the laws of 1992, subsections (e) and (f) as
added and subsection (g) as relettered by section 53 of part A of  chap-
ter  389  of  the  laws of 1997, subsection (i) as added by section 1 of
part L of chapter 60 of the laws of 2007, and paragraph 1 of  subsection
(i)  as  amended  by  section  39 of part T of chapter 59 of the laws of
2015, is amended to read as follows:
  § 660. [Election by shareholders of S corporations.] TAX TREATMENT  OF
FEDERAL  S  CORPORATIONS. (a) [Election.] If a corporation is an [eligi-
ble] S corporation DESCRIBED IN SUBSECTION  (B)  OF  THIS  SECTION,  the
shareholders  of  the  corporation [may elect in the manner set forth in
subsection (b) of this section to]  SHALL  take  into  account,  to  the
extent  provided  for  in  this  article (or in article thirteen of this
chapter, in the case of a shareholder which is  a  taxpayer  under  such
article),  the  S  corporation  items  of  income,  loss,  deduction and
reductions for taxes described in paragraphs two and three of subsection
(f) of section thirteen hundred sixty-six of the internal  revenue  code
which  are  taken  into  account for federal income tax purposes for the
taxable year. [No election under  this  subsection  shall  be  effective
unless all shareholders of the corporation have so elected. An eligible]
  (B) A NEW YORK S corporation is (i) [an S] A corporation THAT HAS MADE
A  VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES
PURSUANT TO SECTION 1362 OF THE INTERNAL REVENUE CODE which  is  subject
to  tax  under  article  nine-A of this chapter, or (ii) [an S] A corpo-
ration THAT HAS MADE A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL
INCOME TAX PURPOSES PURSUANT TO SECTION 1362  OF  THE  INTERNAL  REVENUE
CODE  which  is  the  parent  of  a qualified subchapter S subsidiary AS
DEFINED IN SUBPARAGRAPH (B) OF PARAGRAPH  THREE  OF  SUBSECTION  (B)  OF
SECTION  THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE subject
to tax under article nine-A[, where  the  shareholders  of  such  parent
corporation  are  entitled to make the election under this subsection by

S. 2009                            74                            A. 3009

reason of subparagraph three of paragraph (k)  of  subdivision  nine  of
section two hundred eight] of this chapter.
  [(b)  Requirements  of  election.  An election under subsection (a) of
this section shall be made on such form and in such manner  as  the  tax
commission may prescribe by regulation or instruction.
  (1) When made. An election under subsection (a) of this section may be
made at any time during the preceding taxable year of the corporation or
at  any time during the taxable year of the corporation and on or before
the fifteenth day of the third month of such taxable year.
  (2) Certain elections made during first two and one-half months. If an
election made under subsection (a) of this section is made for any taxa-
ble year of the corporation during  such  year  and  on  or  before  the
fifteenth  day  of  the third month of such year, such election shall be
treated as made for the following taxable year if
  (A) on one or more days in such taxable year before the day  on  which
the  election  was made the corporation did not meet the requirements of
subsection (b) of section thirteen hundred  sixty-one  of  the  internal
revenue code or
  (B)  one or more of the shareholders who held stock in the corporation
during such taxable year and  before  the  election  was  made  did  not
consent to the election.
  (3) Elections made after first two and one-half months. If an election
under subsection (a) of this section is made for any taxable year of the
corporation  and  such  election  is made after the fifteenth day of the
third month of such taxable year and on or before the fifteenth  day  of
the  third  month  of the following taxable year, such election shall be
treated as made for the following taxable year.
  (4) Taxable years of two and one-half months or less. For purposes  of
this  subsection, an election for a taxable year made not later than two
months and fifteen days after the first day of the taxable year shall be
treated as timely made during such year.
  (5) Authority to treat late elections, etc.,  as  timely.  If  (A)  an
election  under  subsection  (a) of this section is made for any taxable
year (determined without regard to paragraph three of  this  subsection)
after  the  date  prescribed by this subsection for making such election
for such taxable year, or if no such election is made  for  any  taxable
year, and
  (B)  the  commissioner  determines that there was reasonable cause for
failure to timely make such election, then
  (C) the commissioner may treat such an election  as  timely  made  for
such  taxable  year  (and  paragraph  three of this subsection shall not
apply).
  (6) Years for which effective. An election  under  subsection  (a)  of
this  section shall be effective for the taxable year of the corporation
for which it is made and for all succeeding taxable years of the  corpo-
ration  until  such  election is terminated under subsection (c) of this
section.]
  (c) Termination. An [election under subsection (a) of this section]  S
CORPORATION shall cease to be [effective
  (1)] A NEW YORK S CORPORATION on the day an election to be an S corpo-
ration  ceases  to be effective for federal income tax purposes pursuant
to subsection (d) of section thirteen hundred sixty-two of the  internal
revenue code[, or
  (2)  if shareholders holding more than one-half of the shares of stock
of the corporation on the day on which the  revocation  is  made  revoke

S. 2009                            75                            A. 3009

such  election  in  the manner the tax commission may prescribe by regu-
lation,
  (A)  on  the  first day of the taxable year of the corporation, if the
revocation is made during  such  taxable  year  and  on  or  before  the
fifteenth day of the third month thereof, or
  (B) on the first day of the following taxable year of the corporation,
if  the  revocation  is  made  during  the  taxable  year  but after the
fifteenth day of the third month thereof, or
  (C) on and after the date so specified, if the revocation specifies  a
date for revocation which is on or after the day on which the revocation
is made, or
  (3)  if any person who was not a shareholder of the corporation on the
day on which the election is made becomes a shareholder  in  the  corpo-
ration  and  affirmatively  refuses  to  consent to such election in the
manner the tax commission may prescribe by regulation, on the  day  such
person becomes a shareholder].
  (d)  New  York  S termination year. In the case of a New York S termi-
nation year, the amount of any item of S corporation  income,  loss  and
deduction  and  reductions for taxes (as described in paragraphs two and
three of subsection (f) of section thirteen  hundred  sixty-six  of  the
internal  revenue code) required to be taken account of under this arti-
cle shall be adjusted in the same manner that the S corporation's  items
which  are  included  in the shareholder's federal adjusted gross income
are adjusted under subsection (s) of section six hundred twelve.
  (e)  [Inadvertent  invalid  elections.  If  (1)  an   election   under
subsection  (a)  of  this section was not effective for the taxable year
for which made (determined without regard to paragraph two of subsection
(b) of this section) by  reason  of  a  failure  to  obtain  shareholder
consents,
  (2)  the  commissioner  determines that the circumstances resulting in
such ineffectiveness were inadvertent,
  (3) no later than a reasonable period of time after discovery  of  the
circumstances  resulting  in  such  ineffectiveness, steps were taken to
acquire the required shareholder consents, and
  (4) the corporation, and each person who  was  a  shareholder  in  the
corporation  at  any  time  during the period specified pursuant to this
subsection, agrees to make such adjustments (consistent with the  treat-
ment  of the corporation as a New York S corporation) as may be required
by the commissioner with respect to such period,
  (5) then, notwithstanding the circumstances resulting in such ineffec-
tiveness, such corporation shall be treated as a New York S  corporation
during the period specified by the commissioner.
  (f)  Validated  federal elections. If (1) an election under subsection
(a) of this section was made for a taxable year or  years  of  a  corpo-
ration, which years occur with or within the period for which the feder-
al  S  election  of  such corporation has been validated pursuant to the
provisions of subsection (f) of section thirteen  hundred  sixty-two  of
the internal revenue code, and
  (2)  the  corporation,  and  each  person who was a shareholder in the
corporation at any time during such taxable year or years agrees to make
such adjustments (consistent with the treatment of the corporation as  a
New  York  S  corporation)  as  may be required by the commissioner with
respect to such year or years,
  (3) then such corporation shall be treated as a New York S corporation
during such year or years.

S. 2009                            76                            A. 3009

  (g) Transitional rule. Any election made under  this  section  (as  in
effect  for  taxable  years  beginning  before  January  first, nineteen
hundred eighty-three)  shall  be  treated  as  an  election  made  under
subsection (a) of this section.
  (h)]  QUALIFIED  SUBCHAPTER  S  SUBSIDIARIES.  IF AN S CORPORATION HAS
ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S
SUBSIDIARY FOR FEDERAL INCOME TAX  PURPOSES  UNDER  PARAGRAPH  THREE  OF
SUBSECTION  (B)  OF  SECTION  1361  OF  THE  INTERNAL REVENUE CODE, SUCH
ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND
  (1) THE ASSETS, LIABILITIES, INCOME,  DEDUCTIONS,  PROPERTY,  PAYROLL,
RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF
ECONOMIC  ACTIVITY  OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE OF THE
PARENT CORPORATION,
  (2) TRANSACTIONS BETWEEN THE PARENT CORPORATION  AND  THE  SUBSIDIARY,
INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO
ACCOUNT, AND
  (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE
GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION.
  (F)  Cross reference.  For definitions relating to S corporations, see
subdivision one-A of section two hundred eight of this chapter.
  [(i) Mandated New York S corporation election.    (1)  Notwithstanding
the  provisions  in  subsection  (a)  of this section, in the case of an
eligible S corporation for which the election under  subsection  (a)  of
this  section  is not in effect for the current taxable year, the share-
holders of an eligible S  corporation  are  deemed  to  have  made  that
election effective for the eligible S corporation's entire current taxa-
ble  year,  if  the  eligible  S corporation's investment income for the
current taxable year is more than fifty percent  of  its  federal  gross
income  for  such year. In determining whether an eligible S corporation
is deemed to have made that election, the income of a qualified subchap-
ter S subsidiary owned directly or indirectly by the eligible  S  corpo-
ration shall be included with the income of the eligible S corporation.
  (2)  For  the purposes of this subsection, the term "eligible S corpo-
ration" has the same definition as in subsection (a) of this section.
  (3) For the purposes of this subsection, the term "investment  income"
means the sum of an eligible S corporation's gross income from interest,
dividends,  royalties,  annuities, rents and gains derived from dealings
in property, including the corporation's share  of  such  items  from  a
partnership, estate or trust, to the extent such items would be includa-
ble in federal gross income for the taxable year.
  (4)  Estimated  tax  payments.  When  making  estimated  tax  payments
required to be made under this chapter in  the  current  tax  year,  the
eligible  S  corporation and its shareholders may rely on the eligible S
corporation's filing status for the prior year. If the eligible S corpo-
ration's filing status changes from the prior tax year  the  corporation
or  the  shareholders, as the case may be, which made the payments shall
be entitled to a refund of such estimated tax payments.  No additions to
tax with respect to any required declarations or payments  of  estimated
tax  imposed  under  this chapter shall be imposed on the corporation or
shareholders, whichever is the taxpayer for the current taxable year, if
the corporation or the shareholders file such declarations and make such
estimated tax payments by January fifteenth of  the  following  calendar
year,  regardless  of whether the taxpayer's tax year is a calendar or a
fiscal year.]

S. 2009                            77                            A. 3009

  § 5. Subparagraph (A) of paragraph 18 of subsection (b) of section 612
of the tax law, as amended by chapter 28 of the laws of 1987, is amended
to read as follows:
  (A)  [where the election provided for in subsection (a) of section six
hundred sixty is in effect with respect to such corporation] THAT  IS  A
NEW  YORK  S  CORPORATION,  an amount equal to his pro rata share of the
corporation's reductions for taxes described in paragraphs two and three
of subsection (f) of section thirteen hundred sixty-six of the  internal
revenue code, and
  §  6.  Paragraph 19 of subsection (b) of section 612 of the tax law is
REPEALED.
  § 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the  tax
law,  paragraph  20  as  amended  by chapter 606 of the laws of 1984 and
paragraph 21 as amended by section 70 of part A of  chapter  59  of  the
laws of 2014, are amended to read as follows:
  (20) S corporation distributions to the extent not included in federal
gross  income for the taxable year because of the application of section
thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
seventy-one or subsection (c) of section thirteen  hundred  seventy-nine
of  the  internal  revenue  code  which  represent income not previously
subject to tax under this article because the election provided  for  in
subsection  (a) of section six hundred sixty IN EFFECT FOR TAXABLE YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN had not been made.
Any such distribution treated in the manner described in  paragraph  two
of  subsection (b) of section thirteen hundred sixty-eight of the inter-
nal revenue code for federal income tax purposes  shall  be  treated  as
ordinary income for purposes of this article.
  (21)  In  relation  to  the  disposition of stock or indebtedness of a
corporation which elected under subchapter  s  of  chapter  one  of  the
internal  revenue  code  for any taxable year of such corporation begin-
ning, in the case of a corporation taxable under article nine-A of  this
chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount required to be added to
federal  adjusted  gross  income  pursuant  to  subsection  (n)  of this
section.
  § 8. Paragraph 21 of subsection (c) of section 612 of the tax law,  as
amended  by  section  70 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (21) In relation to the disposition of  stock  or  indebtedness  of  a
corporation  which  elected  under  subchapter  s  of chapter one of the
internal revenue code for any taxable year of  such  corporation  begin-
ning,  in the case of a corporation taxable under article nine-A of this
chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
JANUARY FIRST,  TWO  THOUSAND  EIGHTEEN,  the  amounts  required  to  be
subtracted from federal adjusted gross income pursuant to subsection (n)
of this section.
  §  9.  Paragraph 22 of subsection (c) of section 612 of the tax law is
REPEALED.
  § 10. Subsection (e) of section 612 of the  tax  law,  as  amended  by
chapter  166 of the laws of 1991 and paragraph 3 as added by chapter 760
of the laws of 1992, is amended to read as follows:
  (e) Modifications of partners and shareholders of S corporations.  (1)
Partners  and  shareholders  of S corporations [which are not New York C
corporations]. The amounts of modifications required to  be  made  under
this  section  by  a  partner  or  by  a shareholder of an S corporation
[(other than an S corporation which is a New York C corporation)], which

S. 2009                            78                            A. 3009

relate to partnership or S corporation items of income,  gain,  loss  or
deduction  shall  be determined under section six hundred seventeen and,
in the case of a partner of a partnership doing an insurance business as
a  member  of  the  New York insurance exchange described in section six
thousand two hundred one of the insurance law, under section six hundred
seventeen-a of this article.
  (2) [Shareholders of S corporations which are New York C corporations.
In the case of a shareholder of an S corporation which is a New  York  C
corporation,  the  modifications  under this section which relate to the
corporation's items of income,  loss  and  deduction  shall  not  apply,
except  for  the  modifications  provided  under  paragraph  nineteen of
subsection (b) and  paragraph  twenty-two  of  subsection  (c)  of  this
section.
  (3)]  New  York S termination year. In the case of a New York S termi-
nation year, the  amounts  of  the  modifications  required  under  this
section  which  relate  to  the  S  corporation's items of income, loss,
deduction and reductions for taxes (as described in paragraphs  two  and
three  of  subsection  (f)  of section thirteen hundred sixty-six of the
internal revenue code) shall be adjusted in the same manner that  the  S
corporation's  items  are  adjusted under subsection (s) of [section six
hundred twelve] THIS SECTION.
  § 11. Subsection (n) of section 612 of the  tax  law,  as  amended  by
section  61  of part A of chapter 389 of the laws of 1997, is amended to
read as follows:
  (n) Where gain or loss is recognized for federal income  tax  purposes
upon  the disposition of stock or indebtedness of a corporation electing
under subchapter s of chapter one of the internal revenue code
  (1) There shall be added to federal adjusted gross income  the  amount
of increase in basis with respect to such stock or indebtedness pursuant
to  subsection (a) of section thirteen hundred seventy-six of the inter-
nal revenue code as such section was in effect for taxable years  begin-
ning  before  January  first, nineteen hundred eighty-three and subpara-
graphs (A) and (B)  of  paragraph  one  of  subsection  (a)  of  section
thirteen  hundred sixty-seven of such code, for each taxable year of the
corporation beginning, in the case of a corporation taxable under  arti-
cle  nine-A  of  this  chapter,  after  December  thirty-first, nineteen
hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,  and  in
the case of a corporation taxable under article thirty-two of this chap-
ter, after December thirty-first, nineteen hundred ninety-six AND BEFORE
JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for
in  subsection  (a) of section six hundred sixty of this article was not
in effect, and
  (2) There shall be subtracted from federal adjusted gross income
  (A) the amount of reduction in basis with respect  to  such  stock  or
indebtedness  pursuant  to  subsection  (b)  of section thirteen hundred
seventy-six of the internal revenue code as such section was  in  effect
for  taxable  years  beginning  before  January  first, nineteen hundred
eighty-three  and  subparagraphs  (B)  and  (C)  of  paragraph  two   of
subsection (a) of section thirteen hundred sixty-seven of such code, for
each  taxable year of the corporation beginning, in the case of a corpo-
ration taxable under article nine-A  of  this  chapter,  after  December
thirty-first,  nineteen  hundred  eighty  AND  BEFORE JANUARY FIRST, TWO
THOUSAND EIGHTEEN, and in the case of a corporation taxable under  arti-
cle  thirty-two  of  this chapter, after December thirty-first, nineteen
hundred ninety-six AND BEFORE JANUARY FIRST, TWO THOUSAND  FIFTEEN,  for

S. 2009                            79                            A. 3009

which the election provided for in subsection (a) of section six hundred
sixty of this article was not in effect and
  (B)  the  amount  of  any  modifications  to federal gross income with
respect to such stock pursuant to paragraph twenty of subsection (b)  of
this section.
  §  12.  Subparagraph (E-1) of paragraph 1 of subsection (b) of section
631 of the tax law, as added by section 3 of part C of chapter 57 of the
laws of 2010, is amended to read as follows:
  (E-1) in the case of [an] A NEW  YORK  S  corporation  [for  which  an
election  is in effect pursuant to subsection (a) of section six hundred
sixty of this article] that terminates its taxable status in  New  York,
any  income  or  gain  recognized  on  the  receipt  of payments from an
installment sale contract  entered  into  when  the  S  corporation  was
subject  to  tax  in New York, allocated in a manner consistent with the
applicable methods and rules for  allocation  under  article  nine-A  or
thirty-two  of  this chapter PRIOR TO ITS REPEAL, in the year that the S
corporation sold its assets.
  § 13. The section heading and paragraph 2 of subsection (a) of section
632 of the tax law, the section heading as amended by chapter 606 of the
laws of 1984, paragraph 2 of subsection (a) as amended by section 71  of
part  A of chapter 59 of the laws of 2014 and such section as renumbered
by chapter 28 of the laws of 1987, are amended to read as follows:
  Nonresident partners and [electing] shareholders of S corporations.
  (2) In determining New York source income of a nonresident shareholder
of [an] A NEW YORK S corporation [where the  election  provided  for  in
subsection  (a)  of  section  six  hundred  sixty  of this article is in
effect], there shall be  included  only  the  portion  derived  from  or
connected  with New York sources of such shareholder's pro rata share of
items of S corporation income, loss  and  deduction  entering  into  his
federal  adjusted  gross  income,  increased  by  reductions  for  taxes
described in paragraphs two and three of subsection (f) of section thir-
teen hundred sixty-six of the internal revenue  code,  as  such  portion
shall  be  determined  under  regulations of the commissioner consistent
with the applicable methods  and  rules  for  allocation  under  article
nine-A  of  this  chapter,  regardless  of  whether  or not such item or
reduction is included in entire net income under article nine-A for  the
tax  year. If a nonresident is a shareholder in [an] A NEW YORK S corpo-
ration [where the election provided for in subsection (a) of section six
hundred sixty of this article is in effect, and the S corporation]  THAT
has  distributed an installment obligation under section 453(h)(1)(A) of
the Internal Revenue Code, then any gain recognized on  the  receipt  of
payments from the installment obligation for federal income tax purposes
will be treated as New York source income allocated in a manner consist-
ent  with  the applicable methods and rules for allocation under article
nine-A of this chapter in the year that the assets were sold.  In  addi-
tion,  if  the  shareholders  of the NEW YORK S corporation have made an
election under section 338(h)(10) of the Internal Revenue Code, then any
gain recognized on the deemed asset sale for federal income tax purposes
will be treated as New York source income allocated in a manner consist-
ent with the applicable methods and rules for allocation  under  article
nine-A of this chapter in the year that the shareholder made the section
338(h)(10) election. For purposes of a section 338(h)(10) election, when
a  nonresident  shareholder  exchanges his or her S corporation stock as
part of the deemed liquidation, any gain or  loss  recognized  shall  be
treated  as the disposition of an intangible asset and will not increase

S. 2009                            80                            A. 3009

or offset any gain recognized on the deemed assets sale as a  result  of
the section 338(h)(10) election.
  §  14.  Subparagraph (A) and the opening paragraph of subparagraph (B)
of paragraph 5 of subdivision (a) of section 292  of  the  tax  law,  as
added  by  section  48 of part A of chapter 389 of the laws of 1997, are
amended to read as follows:
  (A) In the case of a shareholder of an S corporation,
  (i) [where the election provided for in subsection (a) of section  six
hundred  sixty  of this chapter is in effect with respect to such corpo-
ration] THAT IS A NEW YORK S CORPORATION, there shall be added to feder-
al unrelated business taxable income an amount equal to  the  sharehold-
er's  pro rata share of the corporation's reductions for taxes described
in paragraphs two and  three  of  subsection  (f)  of  section  thirteen
hundred sixty-six of the internal revenue code, and
  (ii)  [where  such  election  has  not  been made with respect to such
corporation, there shall be subtracted from federal  unrelated  business
taxable  income any items of income of the corporation included therein,
and there shall be added to federal unrelated  business  taxable  income
any items of loss or deduction included therein, and
  (iii)] in the case of a New York S termination year, the amount of any
such  items  of S corporation income, loss, deduction and reductions for
taxes shall be adjusted in the manner provided in paragraph two or three
of subsection (s) of section six hundred twelve of this chapter.
  In the case of a shareholder of a corporation which was,  for  any  of
its  taxable  years  beginning  after  nineteen hundred ninety-seven AND
BEFORE TWO THOUSAND EIGHTEEN, a federal S corporation but a New  York  C
corporation:
  §  15.  Transition  rules.  Any  prior  net  operating loss conversion
subtraction pool and net  operating  loss  carryforward  that  otherwise
would  have  been  allowed under subparagraph (viii) of paragraph (a) of
subdivision 1 of section 210 of the tax law  and  subparagraph  (ix)  of
paragraph  (a)  of  subdivision 1 of section 210 of the tax law, respec-
tively, for the 2018 or subsequent taxable years, to any  taxpayer  that
was  a  New  York C corporation for the 2017 taxable year, and becomes a
New York S corporation for the 2018 taxable year  as  a  result  of  the
amendments  made by this act, shall be held in abeyance and be available
to such taxpayer if its election to be a federal S corporation is termi-
nated. Further, any credit carryforwards that otherwise would have  been
allowed  to  such  a taxpayer under section 210-B of the tax law for the
2018 or subsequent taxable years shall be held in abeyance and be avail-
able to such taxpayer if its election to be a federal S  corporation  is
terminated. However, the taxpayer's taxable years as a New York S corpo-
ration shall be counted for purposes of computing any time period appli-
cable  to  the  allowance  of  the  prior  net operating loss conversion
subtraction, the net operating loss deduction or  any  credit  carryfor-
ward.
  §  16. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2018.

                                 PART Z

  Section 1. Clause 1 of subparagraph (A) of paragraph 1  of  subsection
(b)  of section 631 of the tax law, as added by section 1 of part F-1 of
chapter 57 of the laws of 2009, is amended to read as follows:
  (1) For purposes of this subparagraph, the term "real property located
in this state" includes an interest in a partnership, limited  liability

S. 2009                            81                            A. 3009

corporation,  S  corporation,  or non-publicly traded C corporation with
one hundred or fewer shareholders (hereinafter the "entity")  that  owns
real  property  that is located in New York [and has a fair market value
that] OR OWNS SHARES OF STOCK IN A COOPERATIVE HOUSING CORPORATION WHERE
THE  COOPERATIVE  UNITS  RELATING TO THE SHARES ARE LOCATED IN NEW YORK;
PROVIDED, THAT THE SUM OF THE FAIR MARKET VALUES OF SUCH REAL  PROPERTY,
COOPERATIVE  SHARES,  AND  RELATED  COOPERATIVE  UNITS equals or exceeds
fifty percent of all the assets of the entity on the  date  of  sale  or
exchange  of  the  taxpayer's interest in the entity.  Only those assets
that the entity owned for at least two years before the date of the sale
or exchange of the taxpayer's interest in the entity are to be  used  in
determining the fair market value of all the assets of the entity on the
date of sale or exchange. The gain or loss derived from New York sources
from the taxpayer's sale or exchange of an interest in an entity that is
subject to the provisions of this subparagraph is the total gain or loss
for federal income tax purposes from that sale or exchange multiplied by
a  fraction, the numerator of which is the fair market value of the real
property, AND THE COOPERATIVE  HOUSING  CORPORATION  STOCK  AND  RELATED
COOPERATIVE  UNITS  located  in New York on the date of sale or exchange
and the denominator of which is the fair market value of all the  assets
of the entity on the date of sale or exchange.
  § 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART AA

  Section  1.  Paragraph  1  of subsection (a) of section 632 of the tax
law, as amended by chapter 28 of the laws of 1987, is amended to read as
follows:
  (1) In determining New York source income of a nonresident partner  of
any  partnership,  there shall be included only the portion derived from
or connected with New York sources of such partner's distributive  share
of  items  of partnership income, gain, loss and deduction entering into
his federal adjusted gross income, as such portion shall  be  determined
under  regulations  of the tax commission consistent with the applicable
rules of section six hundred thirty-one OF THIS PART.  IF A  NONRESIDENT
IS A PARTNER IN A PARTNERSHIP WHERE A SALE OR TRANSFER OF THE MEMBERSHIP
INTEREST  OF  THE  PARTNER  IS SUBJECT TO THE PROVISIONS OF SECTION ONE-
THOUSAND SIXTY OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON
THE SALE OR TRANSFER FOR FEDERAL INCOME TAX PURPOSES SHALL BE TREATED AS
NEW YORK SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE  APPLI-
CABLE  METHODS  AND  RULES FOR ALLOCATION UNDER THIS ARTICLE IN THE YEAR
THAT THE ASSETS WERE SOLD OR TRANSFERRED.
  § 2. This act shall take effect immediately

                                 PART BB

  Section 1. Section 1101 of the tax law is  amended  by  adding  a  new
subdivision (e) to read as follows:
  (E)  WHEN  USED  IN THIS ARTICLE FOR THE PURPOSES OF THE TAXES IMPOSED
UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL
MEAN:
  (1) MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT  WITH
A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
SUCH  MARKETPLACE  SELLER  OR  SELLERS.  A PERSON "FACILITATES A SALE OF

S. 2009                            82                            A. 3009

TANGIBLE PERSONAL PROPERTY" FOR PURPOSES  OF  THIS  PARAGRAPH  WHEN  THE
PERSON  MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON PROVIDES
THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE TAKES  PLACE  OR  THE
OFFER  OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN INTER-
NET WEBSITE, CATALOG, OR SIMILAR FORUM;  AND  (II)  SUCH  PERSON  OR  AN
AFFILIATE  OF  SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER TO A
MARKETPLACE  SELLER  FOR  A  SALE  OF  TANGIBLE  PERSONAL  PROPERTY,  OR
CONTRACTS  WITH  A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR PURPOSES OF
THIS PARAGRAPH, TWO PERSONS ARE AFFILIATED IF ONE PERSON HAS  AN  OWNER-
SHIP  INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN
THE OTHER, OR WHERE AN OWNERSHIP INTEREST OF  MORE  THAN  FIVE  PERCENT,
WHETHER  DIRECT  OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY ANOTHER
PERSON OR BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED  PERSONS  WITH
RESPECT  TO  EACH  OTHER.  NOTWITHSTANDING ANYTHING IN THIS PARAGRAPH, A
PERSON WHO FACILITATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS NOT
A MARKETPLACE PROVIDER FOR A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW
THAT IT HAS FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS  OF  SALES
ANNUALLY FOR EVERY CALENDAR YEAR AFTER TWO THOUSAND FIFTEEN.
  (2)  MARKETPLACE  SELLER.  ANY  PERSON,  WHETHER OR NOT SUCH PERSON IS
REQUIRED TO OBTAIN A  CERTIFICATE  OF  AUTHORITY  UNDER  SECTION  ELEVEN
HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
PLACE  PROVIDER  UNDER  WHICH  THE  MARKETPLACE PROVIDER WILL FACILITATE
SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
PARAGRAPH ONE OF THIS SUBDIVISION.
  § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
ter 576 of the laws of 1994, is amended to read as follows:
  (1) "Persons required to collect tax" or "person required  to  collect
any tax imposed by this article" shall include: every vendor of tangible
personal  property  or  services;  every recipient of amusement charges;
[and] every operator of a hotel, AND  EVERY  MARKETPLACE  PROVIDER  WITH
RESPECT  TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES AS
DESCRIBED IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN  HUNDRED
ONE OF THIS ARTICLE. Said terms shall also include any officer, director
or employee of a corporation or of a dissolved corporation, any employee
of  a partnership, any employee or manager of a limited liability compa-
ny, or any employee of an individual proprietorship who as such officer,
director, employee or manager is under a duty to  act  for  such  corpo-
ration, partnership, limited liability company or individual proprietor-
ship  in  complying with any requirement of this article; and any member
of a partnership or limited liability company.  Provided, however,  that
any  person  who  is  a  vendor solely by reason of clause (D) or (E) of
subparagraph (i) of paragraph (8) of subdivision (b) of  section  eleven
hundred  one  OF THIS ARTICLE shall not be a "person required to collect
any tax imposed by this article" until twenty days  after  the  date  by
which  such  person  is  required  to file a certificate of registration
pursuant to section eleven hundred thirty-four OF THIS PART.
  § 3. Section 1132 of the tax law is amended by adding a  new  subdivi-
sion (l) to read as follows:
  (L)  (1)  A  MARKETPLACE  PROVIDER, WITH RESPECT TO A SALE OF TANGIBLE
PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND
RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE  TWENTY-NINE  OF  THIS
CHAPTER  AND  UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING,
BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE  OF  AUTHORITY,  TO
COLLECT  TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF-
ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE  THE  REFUND  AUTHORIZED  BY

S. 2009                            83                            A. 3009

SUBDIVISION  (E)  OF  THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION
(F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT  TO  THE
PROVISIONS  OF  SUCH  SUBDIVISION;  AND (II) SHALL KEEP SUCH RECORDS AND
INFORMATION  AND  COOPERATE  WITH  THE COMMISSIONER TO ENSURE THE PROPER
COLLECTION AND REMITTANCE OF TAX IMPOSED COLLECTED  OR  REQUIRED  TO  BE
COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
  (2)  A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY TO
COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
SUBJECT TO TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED  FIVE  OF
THIS  ARTICLE  AND  SHALL NOT INCLUDE THE RECEIPTS FROM SUCH SALE IN ITS
TAXABLE RECEIPTS FOR PURPOSES OF SECTION ELEVEN  HUNDRED  THIRTY-SIX  OF
THIS  PART  IF,  IN  REGARD TO SUCH SALE: (I) THE MARKETPLACE SELLER CAN
SHOW THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM  WHOM
SUCH  SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIFICATE
OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING  THAT
THE  MARKETPLACE  PROVIDER  IS  REGISTERED TO COLLECT SALES TAX AND WILL
COLLECT SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY  BY
THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH
SUCH  OTHER  INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND (II) ANY
FAILURE OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF  TAX
IN  REGARD  TO  SUCH  SALE WAS NOT THE RESULT OF SUCH MARKETPLACE SELLER
PROVIDING THE MARKETPLACE  PROVIDER  WITH  INCORRECT  INFORMATION.  THIS
PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
(I)  OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A CERTIF-
ICATE OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR  PURPOSES
OF  SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH
CERTIFICATE OF COLLECTION AND  THE  TIMING  OF  ITS  ACCEPTANCE  BY  THE
MARKETPLACE  SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF TANGIBLE
PERSONAL PROPERTY BY A MARKETPLACE SELLER  THAT  ARE  FACILITATED  BY  A
MARKETPLACE  PROVIDER  WHO  IS  AFFILIATED  WITH SUCH MARKETPLACE SELLER
WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
HUNDRED ONE OF THIS ARTICLE, THE  MARKETPLACE  SELLER  SHALL  BE  DEEMED
LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
PART.
  (3)  THE  COMMISSIONER  MAY,  IN  HIS OR HER DISCRETION: (I) DEVELOP A
STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED  BY  A  MARKETPLACE
PROVIDER,  IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO COLLECT
THE TAX ON BEHALF OF ALL THE MARKETPLACE SELLERS FOR  WHOM  THE  MARKET-
PLACE  PROVIDER  FACILITATES  SALES  OF TANGIBLE PERSONAL PROPERTY, WITH
RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY
OCCURS IN THE STATE; AND (II) PROVIDE BY REGULATION  OR  OTHERWISE  THAT
THE  INCLUSION  OF  SUCH  PROVISION  IN THE PUBLICLY-AVAILABLE AGREEMENT
BETWEEN THE MARKETPLACE PROVIDER AND MARKETPLACE SELLER  WILL  HAVE  THE
SAME  EFFECT  AS  A  MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF
COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH  TWO  OF  THIS
SUBDIVISION.
  §  4.  Section 1133 of the tax law is amended by adding a new subdivi-
sion (f) to read as follows:
  (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT  THE
MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
MATION  GIVEN  TO  THE  MARKETPLACE  PROVIDER BY THE MARKETPLACE SELLER.
PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF  THE  MARKETPLACE
SELLER  AND  MARKETPLACE  PROVIDER  ARE AFFILIATED WITHIN THE MEANING OF

S. 2009                            84                            A. 3009

PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE  OF  THIS
ARTICLE.
  § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (4) The return of a vendor of tangible personal property  or  services
shall  show  such vendor's receipts from sales and the number of gallons
of any motor fuel or diesel motor fuel sold and also the aggregate value
of tangible personal property and services and number of gallons of such
fuels sold by the vendor, the use of which is subject to tax under  this
article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
provisions of section eleven hundred  thirty-seven  of  this  part.  The
return  of  a recipient of amusement charges shall show all such charges
and the amount of tax thereon, and the return of an operator required to
collect tax on rents shall show all rents received or  charged  and  the
amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE  PROVIDER  AND  THE
MARKETPLACE  SELLER  AS  DESCRIBED  IN SUBDIVISION (1) OF SECTION ELEVEN
HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
MARKETPLACE SELLER TO  THE  MARKETPLACE  PROVIDER  ABOUT  SUCH  TANGIBLE
PERSONAL PROPERTY IS ACCURATE.
  §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
sion 15 to read as follows:
  15. TO PUBLISH A LIST  ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
PROVIDERS WHOSE CERTIFICATE OF AUTHORITY HAS BEEN REVOKED AND, IF NECES-
SARY  TO  PROTECT  SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE
THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF  THE  DUTY
TO  COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
MARKETPLACE PROVIDER ONLY IF, IN ADDITION TO THE  CONDITIONS  PRESCRIBED
BY PARAGRAPH TWO OF SUBDIVISION (1) OF SECTION ELEVEN HUNDRED THIRTY-TWO
OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT
THE COMMENCEMENT OF THE CALENDAR YEAR IN WHICH THE SALE WAS MADE.
  §  7. This act shall take effect September 1, 2017, and shall apply to
sales made on or after that date.

                                 PART CC

  Section 1. Paragraph 4 of subdivision (b) of section 1101 of  the  tax
law is amended by adding a new subparagraph (v) to read as follows:
  (V)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
GRAPH, THE FOLLOWING SALES OF TANGIBLE PERSONAL PROPERTY SHALL BE DEEMED
TO BE RETAIL SALES: (A) A SALE TO  A  SINGLE  MEMBER  LIMITED  LIABILITY
COMPANY  OR  A  SUBSIDIARY FOR RESALE TO ITS MEMBER OR OWNER, WHERE SUCH
SINGLE MEMBER LIMITED LIABILITY COMPANY OR SUBSIDIARY IS DISREGARDED  AS
AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME TAX PURPOSES (WITH-
OUT  REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSITION OF CERTAIN
FEDERAL TAXES), INCLUDING BUT NOT  LIMITED  TO  CERTAIN  EMPLOYMENT  AND
EXCISE  TAXES;  (B) A SALE TO A PARTNERSHIP FOR RESALE TO ONE OR MORE OF
ITS PARTNERS; OR (C) A SALE TO A TRUSTEE OF A TRUST FOR RESALE TO ONE OR
MORE BENEFICIARIES OF SUCH TRUST.

S. 2009                            85                            A. 3009

  § 2. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
section  4  of subpart B of part S of chapter 57 of the laws of 2010, is
amended to read as follows:
  (2)(A)  In respect to the use of property or services purchased by the
user while a nonresident of this state, except in the case  of  tangible
personal  property  or  services which the user, in the performance of a
contract, incorporates into real property located in the state. A person
while engaged in any manner in carrying on in this state any employment,
trade, business or profession, shall not be deemed  a  nonresident  with
respect to the use in this state of property or services in such employ-
ment,  trade,  business  or profession. This exemption does not apply to
the use of qualified property where the qualified property is  purchased
primarily to carry individuals, whether or not for hire, who are agents,
employees,  officers,  shareholders,  members,  managers,  partners,  or
directors of (A) the purchaser, where any of  those  individuals  was  a
resident  of this state when the qualified property was purchased or (B)
any affiliated person that was a resident when  the  qualified  property
was  purchased. For purposes of this subdivision: (i) persons are affil-
iated persons with respect to each other where one of the persons has an
ownership interest of more than five percent, whether  direct  or  indi-
rect,  in  the  other,  or where an ownership interest of more than five
percent, whether direct or indirect, is held in each of the  persons  by
another  person  or  by  a  group  of  other persons that are affiliated
persons with respect to each  other;  (ii)  "qualified  property"  means
[aircraft,]  vessels and motor vehicles; and (iii) "carry" means to take
any person from one point to another, whether for the business  purposes
or  pleasure of that person. For an exception to the exclusions from the
definition of "retail sale" applicable to [aircraft  and]  vessels,  see
subdivision (q) of section eleven hundred eleven of this article.
  (B) NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY, THE
EXCLUSION  IN  PARAGRAPH  (A) OF THIS SUBDIVISION SHALL NOT APPLY TO THE
USE WITHIN THE STATE OF PROPERTY OR A  SERVICE  PURCHASED  OUTSIDE  THIS
STATE  BY  A NONRESIDENT THAT IS NOT AN INDIVIDUAL, UNLESS SUCH NONRESI-
DENT HAS BEEN DOING BUSINESS OUTSIDE THE STATE FOR AT LEAST  SIX  MONTHS
PRIOR TO THE DATE SUCH NONRESIDENT BROUGHT SUCH PROPERTY OR SERVICE INTO
THIS STATE.
  § 3. This act shall take effect immediately.

                                 PART DD

  Section  1. Section 1105-C of the tax law, as added by section 24-a of
part Y of chapter 63 of the laws of 2000, and subdivision (d)  as  added
by  section 1 of part B of chapter 85 of the laws of 2002, is amended to
read as follows:
  § 1105-C. Reduced tax rates with respect to certain  gas  service  and
electric  service.  Notwithstanding any other provisions of this article
or article twenty-nine of this chapter:
  (a) The rates of taxes imposed by this article  and  pursuant  to  the
authority  of article twenty-nine of this chapter on receipts from every
sale of gas service or electric service of  whatever  nature  (including
the  transportation, transmission or distribution of gas or electricity,
but not including gas or electricity) shall be  [reduced  each  year  on
September first, beginning in the year two thousand, and each year ther-
eafter,  at  the  rate  per  year of twenty-five percent of the rates in
effect on September first, two thousand, so that the rates of such taxes
on such receipts shall be] zero percent [on and after  September  first,

S. 2009                            86                            A. 3009

two  thousand  three] UNLESS THE CHARGE IS BY THE VENDOR FOR TRANSPORTA-
TION, TRANSMISSION OR DISTRIBUTION, REGARDLESS OF WHETHER  SUCH  CHARGES
ARE  SEPARATELY  STATED  IN THE WRITTEN CONTRACT, IF ANY, OR ON THE BILL
RENDERED  TO  SUCH  PURCHASER AND REGARDLESS OF WHETHER SUCH TRANSPORTA-
TION, TRANSMISSION, OR DISTRIBUTION IS PROVIDED  BY  SUCH  VENDOR  OR  A
THIRD PARTY.
  (b)  [The  provisions of subdivision (b) of section eleven hundred six
of this article shall apply to the reduced rates described  in  subdivi-
sion  (a)  of this section, as if such section referred to this section,
provided that any reference in subdivision (b) of  such  section  eleven
hundred six to the date August first, nineteen hundred sixty-five, shall
be  deemed  to refer, respectively, to September first of the applicable
years described in subdivision (a) of this section, and any reference in
subdivision (b) of such section eleven hundred six to July thirty-first,
nineteen hundred sixty-five, shall be deemed to refer to the  day  imme-
diately preceding each such September first, respectively.
  (c)  Nothing  in this section shall be deemed to exempt from the taxes
imposed under this article or pursuant to the authority of article twen-
ty-nine of this chapter any transaction which may not be subject to  the
reduced  rates of such taxes, each year, as set forth in subdivision (a)
of this section in effect on the respective September first.
  (d)] For [the purpose] PURPOSES of [the reduced rate of  tax  provided
by]  subdivision  (a)  of  this section, [the following shall apply to a
sale, other than a sale for resale, of the]  WHERE  THE  transportation,
transmission  or  distribution  of  gas  or electricity [by a vendor not
subject to the supervision of the public service commission  where  such
transportation, transmission or distribution service being] IS sold [is]
wholly  within  a  service  area of the state wherein the public service
commission [shall have] HAS approved by formal order a  single  retailer
model  for  the  regulated utility which has the responsibility to serve
that area[. Where such a vendor makes a sale,  other  than  a  sale  for
resale,  of gas or electricity to be delivered to a customer within such
service area and, for  the  purpose  of  transporting,  transmitting  or
distributing  such  gas or electricity, also makes a sale of transporta-
tion, transmission or distribution service to such customer], the charge
for [the] SUCH transportation, transmission or distribution [of  gas  or
electricity  wholly  within  such  service  area  made  by  such vendor,
notwithstanding paragraph three of subdivision  (b)  of  section  eleven
hundred  one  of  this article, shall not be included in the receipt for
such gas or electricity, and, therefore,] WHEN MADE BY THE PROVIDER  WHO
ALSO  SELLS,  OTHER  THAN  AS A SALE FOR RESALE, THE GAS OR ELECTRICITY,
shall qualify for such reduced rate.
  § 2. This act shall take effect immediately.

                                 PART EE

  Section 1. Subdivision 1 of section 186-f of the tax law is amended by
adding three new paragraphs (f), (g) and (h) to read as follows:
  (F) "PREPAID WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON  MAKING  A
RETAIL  SALE  OF  PREPAID  WIRELESS  COMMUNICATIONS SERVICE OR A PREPAID
WIRELESS COMMUNICATIONS DEVICE.
  (G) "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT  USED
TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
  (H)  "PREPAID  WIRELESS COMMUNICATIONS SERVICE" MEANS A PREPAID MOBILE
CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.

S. 2009                            87                            A. 3009

  § 2. Subdivision 2 of section 186-f  of  the  tax  law,  as  added  by
section  3  of  part  B of chapter 56 of the laws of 2009, is amended to
read as follows:
  2.  Public  safety  communications  surcharge.  (a) (1) A surcharge on
wireless communications service provided to  a  wireless  communications
customer  with  a  place  of primary use in this state is imposed at the
rate of one dollar and twenty cents per month on each wireless  communi-
cations  device  in service during any part of each month. The surcharge
must be reflected and made payable on bills  rendered  to  the  wireless
communications customer for wireless communication service.
  [(b)]  (2)  Each  wireless  communications  service supplier providing
wireless communications  service  in  New  York  state  must  act  as  a
collection  agent for the state for the collection of the surcharge. The
wireless communications service supplier  has  no  legal  obligation  to
enforce  the  collection  of  the surcharge from its customers. However,
each wireless communications service supplier must  collect  and  retain
the  name  and  address  of  any wireless communications customer with a
place of primary use in this state that refuses  or  fails  to  pay  the
surcharge,  as  well as the cumulative amount of the surcharge remaining
unpaid, and must provide this information to  the  commissioner  at  the
time  and  according to the procedures the commissioner may provide. The
surcharge must be reported and paid to the commissioner on  a  quarterly
basis  on  or before the fifteenth day of the month following each quar-
terly period ending on the last day of February, May, August and  Novem-
ber,  respectively.  The payments must be accompanied by a return in the
form and containing the information the commissioner may prescribe.
  [(c)] (3) The surcharge must be added as a separate line item to bills
furnished by a wireless communications service supplier to  its  custom-
ers,  and  must  be  identified  as  the  "public  safety communications
surcharge". Each wireless communications customer who is subject to  the
provisions of this section remains liable to the state for the surcharge
due  under this section until it has been paid to the state, except that
payment to a wireless communications service supplier is  sufficient  to
relieve the customer from further liability for the surcharge.
  [(d)  Each  wireless  communications  service  supplier is entitled to
retain, as an administrative fee, an amount  equal  to  two  percent  of
fifty-eight  and  three-tenths  percent  of the total collections of the
surcharge imposed by this section, provided that the supplier files  any
required  return  and remits the surcharge due to the commissioner on or
before its due date.]
  (B)(1) A SURCHARGE IS IMPOSED ON THE RETAIL SALE OF EACH PREPAID WIRE-
LESS COMMUNICATIONS SERVICE OR DEVICE AT THE RATE OF:  (I)  SIXTY  CENTS
PER RETAIL SALE THAT DOES NOT EXCEED THIRTY DOLLARS; AND (II) ONE DOLLAR
AND TWENTY CENTS PER RETAIL SALE THAT EXCEEDS THIRTY DOLLARS.
  (2)  FOR  PURPOSES  OF  THIS  PARAGRAPH,  A SALE OF A PREPAID WIRELESS
COMMUNICATIONS SERVICE OR DEVICE OCCURS IN THIS STATE IF THE SALE  TAKES
PLACE AT A SELLER'S BUSINESS LOCATION IN THE STATE. IF THE SALE DOES NOT
TAKE  PLACE  AT THE SELLER'S PLACE OF BUSINESS, IT SHALL BE CONCLUSIVELY
DETERMINED TO TAKE PLACE AT THE  PURCHASER'S  SHIPPING  ADDRESS  OR,  IF
THERE IS NO ITEM SHIPPED, AT THE PURCHASER'S BILLING ADDRESS, OR, IF THE
SELLER  DOES  NOT  HAVE THAT ADDRESS, AT SUCH ADDRESS AS APPROVED BY THE
COMMISSIONER THAT REASONABLY REFLECTS THE  CUSTOMER'S  LOCATION  AT  THE
TIME  OF  THE  SALE  OF  THE  PREPAID WIRELESS COMMUNICATIONS SERVICE OR
DEVICE.
  (3) EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN NEW YORK STATE MUST
ACT AS A COLLECTION AGENT FOR  THE  STATE  FOR  THE  COLLECTION  OF  THE

S. 2009                            88                            A. 3009

SURCHARGE.   THE SURCHARGE MUST BE REPORTED AND PAID TO THE COMMISSIONER
ON A QUARTERLY BASIS ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOW-
ING EACH QUARTERLY PERIOD ENDING ON  THE  LAST  DAY  OF  FEBRUARY,  MAY,
AUGUST AND NOVEMBER, RESPECTIVELY. THE PAYMENTS MUST BE ACCOMPANIED BY A
RETURN  IN  THE FORM AND CONTAINING THE INFORMATION THE COMMISSIONER MAY
PRESCRIBE.
  (4) THE SURCHARGE MUST BE ADDED AS A SEPARATE LINE  ITEM  TO  A  SALES
SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
FURNISHED  BY  A  PREPAID WIRELESS COMMUNICATIONS SELLER TO A PURCHASER,
AND MUST BE IDENTIFIED AS THE "PUBLIC SAFETY COMMUNICATIONS  SURCHARGE."
EACH PURCHASER OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE IN
THIS  STATE REMAINS LIABLE TO THE STATE FOR THE SURCHARGE DUE UNDER THIS
SECTION UNTIL IT HAS BEEN PAID TO THE STATE, EXCEPT THAT  PAYMENT  TO  A
PREPAID  WIRELESS  COMMUNICATIONS  SELLER  IS  SUFFICIENT TO RELIEVE THE
PURCHASER FROM FURTHER LIABILITY FOR SUCH SURCHARGE.
  § 3.  The county law is amended by adding a new section 309 to read as
follows:
  § 309. ESTABLISHMENT OF PREPAID WIRELESS SURCHARGE FOR  SYSTEM  COSTS.
1.  DEFINITIONS.  WHEN USED IN THIS ARTICLE, WHERE NOT OTHERWISE SPECIF-
ICALLY DEFINED AND UNLESS THE SPECIFIC CONTEXT CLEARLY INDICATES  OTHER-
WISE:
  (A)  "PREPAID  WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
RETAIL SALE OF PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR  A  PREPAID
WIRELESS COMMUNICATIONS DEVICE.
  (B)  "PREPAID WIRELESS COMMUNICATIONS DEVICE" MEANS ANY EQUIPMENT USED
TO ACCESS A PREPAID WIRELESS COMMUNICATIONS SERVICE.
  (C) "PREPAID WIRELESS COMMUNICATIONS SERVICE" MEANS A  PREPAID  MOBILE
CALLING SERVICE AS DEFINED IN PARAGRAPH TWENTY-TWO OF SUBDIVISION (B) OF
SECTION ELEVEN HUNDRED ONE OF THE TAX LAW.
  2.  NOTWITHSTANDING  THE  PROVISIONS  OF  ANY LAW TO THE CONTRARY, ANY
MUNICIPALITY, AS DEFINED IN SECTION THREE HUNDRED ONE OF  THIS  ARTICLE,
THAT  IS  AUTHORIZED  TO  IMPOSE  AN ENHANCED EMERGENCY TELEPHONE SYSTEM
SURCHARGE ON WIRELESS COMMUNICATIONS  SERVICE  UNDER  THIS  ARTICLE,  IS
HEREBY  AUTHORIZED  AND  EMPOWERED TO ADOPT, AMEND OR REPEAL LOCAL LAWS,
ACTING THROUGH ITS BOARD, TO IMPOSE A SURCHARGE ON THE  RETAIL  SALE  OF
EACH PREPAID WIRELESS COMMUNICATIONS SERVICE OR DEVICE, IN AN AMOUNT NOT
TO  EXCEED  THIRTY  CENTS  PER RETAIL SALE WITHIN SUCH MUNICIPALITY. THE
PROCEEDS FROM SUCH SURCHARGE SHALL BE USED TO PAY FOR THE COSTS  ASSOCI-
ATED  WITH  OBTAINING,  OPERATING  AND MAINTAINING THE TELECOMMUNICATION
EQUIPMENT AND TELEPHONE SERVICES NEEDED TO PROVIDE AN ENHANCED 911 EMER-
GENCY TELEPHONE SYSTEM TO SERVE SUCH MUNICIPALITY.
  3. FOR PURPOSES OF THIS SECTION, A SALE OF A PREPAID WIRELESS COMMUNI-
CATIONS SERVICE OR DEVICE OCCURS IN A MUNICIPALITY  IF  THE  SALE  TAKES
PLACE  AT  A SELLER'S BUSINESS LOCATION IN THE MUNICIPALITY. IF THE SALE
DOES NOT TAKE PLACE AT THE SELLER'S  PLACE  OF  BUSINESS,  IT  SHALL  BE
CONCLUSIVELY  DETERMINED  TO  TAKE  PLACE  AT  THE  PURCHASER'S SHIPPING
ADDRESS IN THE MUNICIPALITY OR, IF THERE IS  NO  ITEM  SHIPPED,  AT  THE
PURCHASER'S  BILLING ADDRESS IN THE MUNICIPALITY, OR, IF THE SELLER DOES
NOT HAVE THAT ADDRESS, AT SUCH  ADDRESS  THAT  REASONABLY  REFLECTS  THE
CUSTOMER'S  LOCATION  AT  THE  TIME  OF THE SALE OF THE PREPAID WIRELESS
COMMUNICATIONS SERVICE OR DEVICE.
  4. ANY SUCH LOCAL LAW SHALL STATE THE AMOUNT OF THE SURCHARGE AND  THE
DATE  ON  WHICH  SELLERS IN THE MUNICIPALITY SHALL BEGIN TO COLLECT SUCH
SURCHARGE. ANY SELLER OF A PREPAID WIRELESS  COMMUNICATIONS  SERVICE  OR
DEVICE  WITHIN  A  MUNICIPALITY THAT HAS IMPOSED A SURCHARGE PURSUANT TO
THE PROVISIONS OF THIS SECTION SHALL BE GIVEN A  MINIMUM  OF  FORTY-FIVE

S. 2009                            89                            A. 3009

DAYS  WRITTEN  NOTICE PRIOR TO THE DATE IT SHALL BE REQUIRED TO BEGIN TO
COLLECT SUCH SURCHARGE OR PRIOR TO ANY MODIFICATION TO OR CHANGE IN  THE
SURCHARGE AMOUNT.
  5.  (A)  EACH PREPAID WIRELESS COMMUNICATIONS SELLER IN A MUNICIPALITY
SHALL ACT AS COLLECTION AGENT FOR SUCH MUNICIPALITY AND SHALL REMIT  THE
FUNDS  COLLECTED PURSUANT TO A SURCHARGE IMPOSED UNDER THE PROVISIONS OF
THIS SECTION TO THE CHIEF  FISCAL  OFFICER  OF  THE  MUNICIPALITY  EVERY
MONTH.  SUCH FUNDS SHALL BE REMITTED NO LATER THAN THIRTY DAYS AFTER THE
LAST BUSINESS DAY OF THE MONTH.
  (B)  THE SELLER SHALL BE ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE,
AN AMOUNT EQUAL TO TWO PERCENT  OF  ITS  COLLECTIONS  OF  THE  SURCHARGE
IMPOSED UNDER THIS ARTICLE.
  (C)  THE  SURCHARGE SHALL BE ADDED TO AND STATED SEPARATELY ON A SALES
SLIP, INVOICE, RECEIPT, OR OTHER STATEMENT OF THE PRICE, IF ANY, THAT IS
PROVIDED TO THE PURCHASER.
  (D) THE SELLER SHALL PROVIDE TO THE MUNICIPALITY AN ACCOUNTING OF  THE
SURCHARGE  AMOUNTS COLLECTED NO MORE FREQUENTLY THAN ANNUALLY UPON WRIT-
TEN REQUEST FROM THE MUNICIPALITY'S CHIEF FISCAL OFFICER.
  (E) EACH PURCHASER OF A PREPAID  WIRELESS  COMMUNICATIONS  SERVICE  OR
DEVICE IN A MUNICIPALITY THAT HAS IMPOSED SUCH SURCHARGE SHALL BE LIABLE
TO  THE  MUNICIPALITY  FOR  THE  SURCHARGE UNTIL IT HAS BEEN PAID TO THE
MUNICIPALITY, EXCEPT THAT PAYMENT TO A PREPAID  WIRELESS  COMMUNICATIONS
SELLER IS SUFFICIENT TO RELIEVE THE PURCHASER FROM FURTHER LIABILITY FOR
SUCH SURCHARGE.
  6.  ALL SURCHARGE MONIES REMITTED TO A MUNICIPALITY BY A PREPAID WIRE-
LESS COMMUNICATIONS SELLER SHALL BE EXPENDED ONLY UPON AUTHORIZATION  OF
THE  LEGISLATIVE BODY OF A MUNICIPALITY AND ONLY FOR PAYMENT OF ELIGIBLE
WIRELESS 911 SERVICE COSTS AS DEFINED IN SUBDIVISION SIXTEEN OF  SECTION
THREE  HUNDRED TWENTY-FIVE OF THIS CHAPTER. THE MUNICIPALITY SHALL SEPA-
RATELY ACCOUNT FOR AND KEEP ADEQUATE BOOKS AND RECORDS OF THE AMOUNT AND
SOURCE OF ALL SUCH MONIES AND OF THE AMOUNT AND OBJECT OR PURPOSE OF ALL
EXPENDITURES THEREOF. IF, AT THE END  OF  ANY  FISCAL  YEAR,  THE  TOTAL
AMOUNT  OF  ALL  SUCH MONIES EXCEEDS THE AMOUNT NECESSARY FOR PAYMENT OF
THE ABOVE MENTIONED COSTS IN SUCH FISCAL  YEAR,  SUCH  EXCESS  SHALL  BE
RESERVED  AND CARRIED OVER FOR THE PAYMENT OF THOSE COSTS IN THE FOLLOW-
ING FISCAL YEAR.
  § 4. This act shall take effect December 1, 2017.

                                 PART FF

  Section 1. Subdivision 8 of section 1399-n of the public  health  law,
as  amended  by  chapter  13  of  the laws of 2003, is amended and a new
subdivision 9 is added to read as follows:
  8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
any  other matter or substance which contains tobacco, THE BURNING OF AN
HERBAL CIGARETTE, OR THE USE OF A VAPOR PRODUCT.
  9. "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL,  REGARDLESS
OF  THE  PRESENCE  OF  NICOTINE  THEREIN,  THAT  IS  MANUFACTURED INTO A
FINISHED PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE,  ELECTRONIC  CIGAR,
ELECTRONIC  CIGARILLO,  ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN OR OTHER
SIMILAR DEVICE. "VAPOR PRODUCT" SHALL NOT INCLUDE ANY  PRODUCT  APPROVED
BY  THE  UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL
DEVICE, OR APPROVED FOR USE PURSUANT TO  SECTION  THREE  THOUSAND  THREE
HUNDRED SIXTY-TWO OF THIS CHAPTER.

S. 2009                            90                            A. 3009

  §  2. The article heading of article 13-F of the public health law, as
amended by chapter 448 of the laws  of  2012,  is  amended  to  read  as
follows:
     REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES AND [SMOKING
          PARAPHERNALIA] VAPOR PRODUCTS; DISTRIBUTION TO MINORS
  § 3. Subdivisions 5, 8, and 13 of section 1399-aa of the public health
law, subdivision 5 as amended by chapter 152 of the laws of 2004, subdi-
vision  8 as added by chapter 13 of the laws of 2003, and subdivision 13
as amended by chapter 542 of the laws of 2014, are amended  to  read  as
follows:
  5.  "Tobacco  products" means one or more cigarettes or cigars, bidis,
chewing tobacco, powdered tobacco, SHISHA nicotine water  or  any  other
PRODUCT CONTAINING OR DERIVED FROM tobacco [products].
  8. "Tobacco business" means a sole proprietorship, corporation, limit-
ed  liability  company,  partnership  or  other  enterprise in which the
primary activity is the  sale,  manufacture  or  promotion  of  tobacco,
tobacco  products,  VAPOR PRODUCTS, and accessories, either at wholesale
or retail, and in which the sale,  manufacture  or  promotion  of  other
products is merely incidental.
  13.  ["Electronic  cigarette"  or  "e-cigarette"  means  an electronic
device that delivers vapor which is inhaled by an individual  user,  and
shall  include  any  refill, cartridge and any other component of such a
device.] "VAPOR PRODUCT" MEANS ANY NONCOMBUSTIBLE LIQUID OR GEL, REGARD-
LESS OF THE PRESENCE OF NICOTINE THEREIN, THAT IS  MANUFACTURED  INTO  A
FINISHED  PRODUCT  FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR,
ELECTRONIC CIGARILLO, ELECTRONIC PIPE, VAPING PEN, HOOKAH PEN  OR  OTHER
SIMILAR  DEVICE.  "VAPOR PRODUCT" SHALL NOT INCLUDE ANY PRODUCT APPROVED
BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG  OR  MEDICAL
DEVICE,  OR  APPROVED  FOR  USE PURSUANT TO SECTION THREE THOUSAND THREE
HUNDRED SIXTY-TWO OF THIS CHAPTER.
  § 4. Section 1399-bb of the public health law, as amended  by  chapter
508  of  the laws of 2000, subdivision 2 as amended by chapter 13 of the
laws of 2003, is amended to read as follows:
  § 1399-bb. Distribution of tobacco products [or],  herbal  cigarettes,
OR  VAPOR  PRODUCTS without charge. 1. No person engaged in the business
of selling or otherwise distributing tobacco products [or], herbal ciga-
rettes, OR VAPOR PRODUCTS for  commercial  purposes,  or  any  agent  or
employee  of  such person, shall knowingly, in furtherance of such busi-
ness:
  (a) distribute without charge any tobacco products [or], herbal  ciga-
rettes,  OR VAPOR PRODUCTS to any individual, provided that the distrib-
ution of a package containing tobacco products [or], herbal  cigarettes,
OR  VAPOR  PRODUCTS  in violation of this subdivision shall constitute a
single violation without regard to the number of items in  the  package;
or
  (b) distribute coupons which are redeemable for tobacco products [or],
herbal  cigarettes,  OR  VAPOR PRODUCTS to any individual, provided that
this subdivision shall not apply to  coupons  contained  in  newspapers,
magazines  or  other types of publications, coupons obtained through the
purchase of tobacco products [or], herbal cigarettes, OR VAPOR  PRODUCTS
or  obtained at locations which sell tobacco products [or], herbal ciga-
rettes, OR VAPOR PRODUCTS provided that such distribution is confined to
a designated area or to coupons sent through the mail.
  2. The prohibitions contained in subdivision one of this section shall
not apply to the following locations:

S. 2009                            91                            A. 3009

  (a) private social functions when seating arrangements are  under  the
control  of  the  sponsor  of  the function and not the owner, operator,
manager or person in charge of such indoor area;
  (b)  conventions  and  trade  shows; provided that the distribution is
confined to designated areas generally accessible only to  persons  over
the age of eighteen;
  (c) events sponsored by tobacco [or], herbal cigarette, OR VAPOR PROD-
UCT  manufacturers  provided that the distribution is confined to desig-
nated areas generally accessible only to persons over the age  of  eigh-
teen;
  (d)  bars  as  defined  in subdivision one of section thirteen hundred
ninety-nine-n of this chapter;
  (e) tobacco businesses as defined  in  subdivision  eight  of  section
thirteen hundred ninety-nine-aa of this article;
  (f)  factories  as  defined  in  subdivision  nine of section thirteen
hundred ninety-nine-aa of this article and construction sites;  provided
that the distribution is confined to designated areas generally accessi-
ble only to persons over the age of eighteen.
  3.   No   person   shall  distribute  tobacco  products  [or],  herbal
cigarettes, OR VAPOR PRODUCTS at the locations set forth  in  paragraphs
(b),  (c)  and (f) of subdivision two of this section unless such person
gives five days written notice to the enforcement officer.
  4. The distribution of tobacco products [or],  herbal  cigarettes,  OR
VAPOR PRODUCTS pursuant to subdivision two of this section shall be made
only  to  an individual who demonstrates, through (A) a driver's license
or [other photographic] NON-DRIVER'S identification card  issued  by  [a
government  entity or educational institution] THE COMMISSIONER OF MOTOR
VEHICLES, THE FEDERAL GOVERNMENT, ANY UNITED STATES  TERRITORY,  COMMON-
WEALTH OR POSSESSION, THE DISTRICT OF COLUMBIA, A STATE GOVERNMENT WITH-
IN THE UNITED STATES OR A PROVINCIAL GOVERNMENT OF THE DOMINION OF CANA-
DA,  OR  (B)  A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR
ANY OTHER COUNTRY, OR (C) AN IDENTIFICATION CARD  ISSUED  BY  THE  ARMED
FORCES  OF THE UNITED STATES, indicating that the individual is at least
eighteen years of age. Such identification need not be required  of  any
individual  who  reasonably  appears to be at least twenty-five years of
age; provided, however, that such  appearance  shall  not  constitute  a
defense  in  any proceeding alleging the sale of a tobacco product [or],
herbal cigarette, OR VAPOR PRODUCTS to an individual.
  § 5. The section heading of section 1399-cc of the public health  law,
as  amended  by  chapter  542 of the laws of 2014, is amended to read as
follows:
  Sale of tobacco products, herbal cigarettes, [liquid nicotine, shisha,
rolling papers]  VAPOR  PRODUCTS  or  smoking  paraphernalia  to  minors
prohibited.
  §  6.  Subdivisions  2,  3,  4, and 7 of section 1399-cc of the public
health law, as amended by chapter 542 of the laws of 2014 are amended to
read as follows:
  2. Any person operating a place of business wherein tobacco  products,
herbal  cigarettes, [liquid nicotine, shisha] or [electronic cigarettes]
VAPOR PRODUCTS, are sold or offered for sale is prohibited from  selling
such  products,  herbal cigarettes, [liquid nicotine, shisha, electronic
cigarettes] VAPOR PRODUCTS or smoking paraphernalia to individuals under
eighteen years of age, and shall post in a conspicuous place a sign upon
which there shall be imprinted the following statement, "SALE  OF  CIGA-
RETTES,  CIGARS,  [CHEWING  TOBACCO,  POWDERED TOBACCO,] SHISHA OR OTHER
TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICOTINE, ELECTRONIC  CIGA-

S. 2009                            92                            A. 3009

RETTES]  VAPOR  PRODUCTS,  [ROLLING PAPERS] OR SMOKING PARAPHERNALIA, TO
PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED  BY  LAW."  Such  sign
shall  be  printed on a white card in red letters at least one-half inch
in height.
  3.  Sale  of  tobacco  products,  herbal cigarettes, [liquid nicotine,
shisha] or [electronic cigarettes] VAPOR PRODUCTS in such places,  other
than  by  a  vending  machine,  shall  be made only to an individual who
demonstrates, through (a) a valid driver's license or non-driver's iden-
tification card issued by the commissioner of motor vehicles, the feder-
al government, any United States territory, commonwealth or  possession,
the District of Columbia, a state government within the United States or
a  provincial government of the dominion of Canada, or (b) a valid pass-
port issued by the United States government or any other country, or (c)
an identification card issued by the armed forces of the United  States,
indicating  that  the individual is at least eighteen years of age. Such
identification need not be required of  any  individual  who  reasonably
appears to be at least twenty-five years of age, provided, however, that
such  appearance shall not constitute a defense in any proceeding alleg-
ing the sale of a tobacco product, herbal cigarettes, [liquid  nicotine,
shisha] or [electronic cigarettes] VAPOR PRODUCTS to an individual under
eighteen years of age.
  4.  (a)  Any  person  operating  a  place  of business wherein tobacco
products, herbal cigarettes, [liquid nicotine,  shisha]  or  [electronic
cigarettes]  VAPOR  PRODUCTS  are sold or offered for sale may perform a
transaction scan as a precondition for such purchases.
  (b) In any instance where the information  deciphered  by  the  trans-
action  scan  fails  to  match  the  information printed on the driver's
license or non-driver identification card, or if  the  transaction  scan
indicates  that  the  information  is false or fraudulent, the attempted
transaction shall be denied.
  (c) In any proceeding pursuant to  section  thirteen  hundred  ninety-
nine-ee  of  this  article, it shall be an affirmative defense that such
person had produced a driver's license or non-driver identification card
apparently issued by a governmental entity, successfully completed  that
transaction  scan,  and  that the tobacco product, herbal cigarettes [or
liquid nicotine], OR VAPOR PRODUCTS had been sold, delivered or given to
such person in reasonable reliance upon such identification  and  trans-
action scan. In evaluating the applicability of such affirmative defense
the  commissioner  shall  take  into  consideration  any  written policy
adopted and implemented by the seller to effectuate  the  provisions  of
this  chapter.  Use  of  a  transaction scan shall not excuse any person
operating a place of business wherein  tobacco  products,  herbal  ciga-
rettes,  [liquid  nicotine,  shisha]  or  [electronic  cigarettes] VAPOR
PRODUCTS are sold, or the agent or employee of  such  person,  from  the
exercise  of  reasonable  diligence  otherwise required by this chapter.
Notwithstanding the above provisions, any such affirmative defense shall
not be applicable in any civil or criminal proceeding, or in  any  other
forum.
  7.  No  person operating a place of business wherein tobacco products,
herbal cigarettes, [liquid nicotine, shisha] or [electronic  cigarettes]
VAPOR  PRODUCTS  are  sold  or offered for sale shall sell, permit to be
sold, offer for sale or display for sale  any  tobacco  product,  herbal
cigarettes,  [liquid  nicotine, shisha] or [electronic cigarettes] VAPOR
PRODUCTS in any manner, unless such products and cigarettes  are  stored
for  sale (a) behind a counter in an area accessible only to the person-
nel of such business, or (b) in a locked container[; provided,  however,

S. 2009                            93                            A. 3009

such  restriction  shall  not apply to tobacco businesses, as defined in
subdivision eight of section thirteen  hundred  ninety-nine-aa  of  this
article, and to places to which admission is restricted to persons eigh-
teen years of age or older].
  §  7.  Section 1399-dd of the public health law, as amended by chapter
448 of the laws of 2012, is amended to read as follows:
  § 1399-dd. Sale of tobacco products, herbal cigarettes or  [electronic
cigarettes]  VAPOR PRODUCTS in vending machines.  No person, firm, part-
nership, company or corporation shall operate a  vending  machine  which
dispenses tobacco products, herbal cigarettes or [electronic cigarettes]
VAPOR  PRODUCTS  unless such machine is located: (a) in a bar as defined
in subdivision one of section thirteen  hundred  ninety-nine-n  of  this
chapter,  or  the bar area of a food service establishment with a valid,
on-premises full liquor license; (b) in a private club; (c) in a tobacco
business as defined in subdivision eight  of  section  thirteen  hundred
ninety-nine-aa  of  this  article; or (d) in a place of employment which
has an insignificant portion  of  its  regular  workforce  comprised  of
people  under  the age of eighteen years and only in such locations that
are not accessible to the general public;  provided,  however,  that  in
such  locations  the  vending machine is located in plain view and under
the direct supervision and control  of  the  person  in  charge  of  the
location or his or her designated agent or employee.
  §  8.  Subdivision  2  of section 1399-ee of the public health law, as
amended by chapter 162 of the laws  of  2002,  is  amended  to  read  as
follows:
  2.  If  the  enforcement  officer  determines  after  a hearing that a
violation of this article has occurred, he or she shall impose  a  civil
penalty  of  a  minimum  of three hundred dollars, but not to exceed one
thousand dollars for a first violation, and a minimum  of  five  hundred
dollars,  but  not  to exceed one thousand five hundred dollars for each
subsequent violation, unless a different penalty is  otherwise  provided
in  this article. The enforcement officer shall advise the retail dealer
that upon the accumulation of three or  more  points  pursuant  to  this
section  the  department of taxation and finance shall suspend the deal-
er's registration. If the enforcement officer determines after a hearing
that a retail dealer was selling  tobacco  products  OR  VAPOR  PRODUCTS
while  their  registration was suspended or permanently revoked pursuant
to subdivision three or four of this section, he or she shall  impose  a
civil penalty of twenty-five hundred dollars.
  §  9.  Subdivision  1  of section 1399-ff of the public health law, as
amended by chapter 448 of the laws  of  2012,  is  amended  to  read  as
follows:
  1.  Where  a  civil  penalty  for  a  particular incident has not been
imposed or an enforcement action regarding an alleged  violation  for  a
particular  incident is not pending under section thirteen hundred nine-
ty-nine-ee of this article, a parent or guardian  of  a  minor  to  whom
tobacco  products,  herbal  cigarettes  or [electronic cigarettes] VAPOR
PRODUCTS are sold or distributed in violation of this article may submit
a complaint to an enforcement officer setting forth the name and address
of the alleged violator, the date of the alleged violation, the name and
address of the complainant and the minor, and a brief statement describ-
ing the alleged violation. The  enforcement  officer  shall  notify  the
alleged  violator  by  certified  or  registered  mail,  return  receipt
requested, that a complaint has been submitted, and shall set a date, at
least fifteen days after the mailing of such notice, for  a  hearing  on

S. 2009                            94                            A. 3009

the  complaint.  Such  notice shall contain the information submitted by
the complainant.
  §  10.  Section  1399-hh of the public health law, as added by chapter
433 of the laws of 1997, is amended to read as follows:
  § 1399-hh. Tobacco AND VAPOR PRODUCTS  enforcement.  The  commissioner
shall  develop, plan and implement a comprehensive program to reduce the
prevalence of tobacco AND VAPOR PRODUCTS use, particularly among persons
less than eighteen years of age. This program shall include, but not  be
limited  to, support for enforcement of article thirteen-F of this chap-
ter.
  1. An enforcement officer, as  defined  in  section  thirteen  hundred
ninety-nine-t  of  this chapter, may annually, on such dates as shall be
fixed by the commissioner, submit an application for such monies as  are
made  available for such purpose. Such application shall be in such form
as prescribed by the commissioner and shall include, but not be  limited
to,  plans  regarding random spot checks, including the number and types
of compliance checks that will be conducted,  and  other  activities  to
determine  compliance with this article. Each such plan shall include an
agreement to report to the commissioner:   the names  and  addresses  of
tobacco  retailers  and vendors determined to be unlicensed, if any; the
number of complaints filed against licensed tobacco retail outlets;  and
the  names of tobacco retailers and vendors who have paid fines, or have
been otherwise penalized, due to enforcement actions.
  2. The commissioner shall distribute such monies as are made available
for such purpose to enforcement officers and, in so doing, consider  the
number  of  retail  locations registered to sell tobacco products within
the jurisdiction of the enforcement officer and the  level  of  proposed
activities.
  3.  Monies  made  available  to  enforcement officers pursuant to this
section shall only be used for local tobacco, HERBAL CIGARETTE AND VAPOR
PRODUCTS enforcement activities approved by the commissioner.
  § 11. The public health  law  is  amended  by  adding  a  new  section
1399-mm-1 to read as follows:
  §  1399-MM-1. VAPOR PRODUCTS; CHILD-RESISTANT CONTAINERS REQUIRED.  NO
PERSON ENGAGED IN THE BUSINESS OF MANUFACTURING,  SELLING  OR  OTHERWISE
DISTRIBUTING VAPOR PRODUCTS, MAY SELL ANY COMPONENT OF SUCH SYSTEMS THAT
CONTAINS  NICOTINE, INCLUDING ANY REFILL, CARTRIDGE, OR OTHER COMPONENT,
UNLESS SUCH COMPONENT CONSTITUTES "SPECIAL PACKAGING" FOR THE PROTECTION
OF CHILDREN, AS DEFINED IN 15 U.S.C. 1471 OR ANY SUPERSEDING STATUTE.
  § 12. Subdivision 2 of section 409 of the education law, as amended by
chapter 449 of the laws of 2012, is amended to read as follows:
  2. Notwithstanding the provisions of any  other  law,  rule  or  regu-
lation,  tobacco,  HERBAL CIGARETTE, AND VAPOR PRODUCTS use shall not be
permitted and no person shall use  [tobacco]  SUCH  PRODUCTS  on  school
grounds.  "School grounds" means any building, structure and surrounding
outdoor grounds, including entrances or exits, contained within a public
or private pre-school, nursery school, elementary or secondary  school's
legally  defined  property  boundaries as registered in a county clerk's
office.
  § 13. Section 3624 of the education law, as amended by chapter 529  of
the laws of 2002, is amended to read as follows:
  § 3624. Drivers,  monitors  and  attendants.  The  commissioner  shall
determine and define the qualifications of drivers, monitors and attend-
ants and shall make the rules and regulations governing the operation of
all transportation facilities used by pupils which rules and regulations
shall include, but not be limited to,  a  maximum  speed  of  fifty-five

S. 2009                            95                            A. 3009

miles  per hour for school vehicles engaged in pupil transportation that
are operated on roads, interstates or other highways, parkways or bridg-
es or portions thereof that  have  posted  speed  limits  in  excess  of
fifty-five  miles  per hour, prohibitions relating to smoking AND USE OF
VAPOR PRODUCTS, eating and drinking  and  any  and  all  other  acts  or
conduct  which  would otherwise impair the safe operation of such trans-
portation facilities while actually being  used  for  the  transport  of
pupils.  The  employment  of each driver, monitor and attendant shall be
approved by the chief school administrator of a school district for each
school bus operated within his or  her  district.  For  the  purpose  of
determining  his  or  her  physical  fitness,  each  driver, monitor and
attendant may be examined on order of the chief school administrator  by
a  duly  licensed  physician  within two weeks prior to the beginning of
service in each school year as a school bus driver, monitor  or  attend-
ant. The report of the physician, in writing, shall be considered by the
chief  school  administrator in determining the fitness of the driver to
operate or continue to operate any  transportation  facilities  used  by
pupils  and  in  determining  the fitness of any monitor or attendant to
carry out his or her functions on such transportation facilities.  Noth-
ing  in  this  section  shall prohibit a school district from imposing a
more restrictive speed limit policy for the operation of school vehicles
engaged in pupil transportation than the speed limit policy  established
by the commissioner.
  §  14.  Subdivision  2  of  section  470 of the tax law, as amended by
section 15 of part D of chapter 134 of the laws of 2010, is  amended  to
read as follows:
  2.  "Tobacco  products."  Any cigar, including a little cigar, A VAPOR
PRODUCT, or tobacco, other than cigarettes, intended for consumption  by
smoking, chewing, INHALING VAPORS, or as snuff.
  §  15. Subdivision 12 of section 470 of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
  12. "Distributor." Any person who imports or  causes  to  be  imported
into this state any tobacco product (in excess of fifty cigars [or], one
pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT) for sale,
or  who  manufactures  any tobacco product in this state, and any person
within or without the state who is authorized  by  the  commissioner  of
taxation and finance to make returns and pay the tax on tobacco products
sold, shipped or delivered by him to any person in the state.
  §  16.  Section 470 of the tax law is amended by adding a new subdivi-
sion 20 to read as follows:
  20. "VAPOR PRODUCT." ANY NONCOMBUSTIBLE LIQUID OR GEL,  REGARDLESS  OF
THE  PRESENCE  OF NICOTINE THEREIN, THAT IS MANUFACTURED INTO A FINISHED
PRODUCT FOR USE IN AN ELECTRONIC CIGARETTE, ELECTRONIC CIGAR, ELECTRONIC
CIGARILLO, ELECTRONIC PIPE, VAPING PEN,  HOOKAH  PEN  OR  OTHER  SIMILAR
DEVICE.  "VAPOR  PRODUCT"  SHALL NOT INCLUDE ANY PRODUCT APPROVED BY THE
UNITED STATES FOOD AND DRUG ADMINISTRATION AS A DRUG OR MEDICAL  DEVICE,
OR  APPROVED  FOR  USE  PURSUANT TO SECTION THREE THOUSAND THREE HUNDRED
SIXTY-TWO OF THE PUBLIC HEALTH LAW.
  § 17. Subdivision (a) of subdivision 1 of section  471-b  of  the  tax
law,  as  amended  by section 18 of part D of chapter 134 of the laws of
2010, is amended to read as follows:
  (a) Such tax on  tobacco  products  other  than  snuff,  [and]  little
cigars,  AND VAPOR PRODUCTS shall be at the rate of seventy-five percent
of the wholesale price, and is intended to be imposed only once upon the
sale of any tobacco products other than snuff [and], little cigars,  AND
VAPOR PRODUCTS.

S. 2009                            96                            A. 3009

  §  18.  Subdivision  1  of  section 471-b of the tax law is amended by
adding a new subdivision (d) to read as follows:
  (D)  SUCH  TAX  ON  VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR  PRODUCT.  ALL  INVOICES
FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE
AMOUNT OF VAPOR PRODUCT IN MILLILITERS.
  § 19. The opening paragraph of subdivision (a) of section 471-c of the
tax law, as amended by section 2 of part I1 of chapter 57 of the laws of
2009, is amended to read as follows:
  There  is  hereby  imposed  and  shall  be  paid  a tax on all tobacco
products used in the state by any person, except that no such tax  shall
be imposed (1) if the tax provided in section four hundred seventy-one-b
of this article is paid, or (2) on the use of tobacco products which are
exempt  from  the  tax imposed by said section, or (3) on the use of two
hundred fifty cigars or less, or five pounds or less  of  tobacco  other
than  roll-your-own  tobacco, or thirty-six ounces or less of roll-your-
own tobacco, OR FIVE  HUNDRED  MILLILITERS  OR  LESS  OF  VAPOR  PRODUCT
brought into the state on, or in the possession of, any person.
  §  20.  Paragraph  (i)  of subdivision (a) of section 471-c of the tax
law, as amended by section 20 of part D of chapter 134 of  the  laws  of
2010, is amended to read as follows:
  (i) Such tax on tobacco products other than snuff [and], little cigars
AND  VAPOR  PRODUCTS shall be at the rate of seventy-five percent of the
wholesale price.
  § 21. Subdivision (a) of section 471-c of the tax law  is  amended  by
adding a new paragraph (iv) to read as follows:
  (IV)  SUCH  TAX  ON VAPOR PRODUCTS SHALL BE AT A RATE OF TEN CENTS PER
FLUID MILLILITER, OR PART THEREOF, OF THE VAPOR  PRODUCT.  ALL  INVOICES
FOR VAPOR PRODUCTS ISSUED BY DISTRIBUTORS AND WHOLESALERS MUST STATE THE
AMOUNT OF VAPOR PRODUCT IN MILLILITERS.
  § 22. Subdivision 2 of section 474 of the tax law, as amended by chap-
ter 552 of the laws of 2008, is amended to read as follows:
  2.  Every  person who shall possess or transport more than two hundred
fifty cigars, or more than five pounds of tobacco other than  roll-your-
own tobacco, or more than thirty-six ounces of roll-your-own tobacco, OR
MORE  THAN  FIVE  HUNDRED  MILLILITERS  OF VAPOR PRODUCT upon the public
highways, roads or streets of the state, shall be required  to  have  in
his  actual  possession  invoices  or  delivery tickets for such tobacco
products. Such invoices or delivery tickets  shall  show  the  name  and
address  of  the  consignor  or  seller,  the  name  and  address of the
consignee or purchaser, the quantity and brands of the tobacco  products
transported,  and  the  name  and address of the person who has or shall
assume the payment of the tax and the wholesale price or the tax paid or
payable. The absence of such invoices or delivery tickets shall be prima
facie evidence that such person is a dealer in tobacco products in  this
state and subject to the requirements of this article.
  § 23. Subdivision 3 of section 474 of the tax law, as added by chapter
61 of the laws of 1989, is amended to read as follows:
  3.  Every  dealer  or distributor or employee thereof, or other person
acting on behalf of a dealer or distributor, who shall possess or trans-
port more than fifty cigars or more than one pound of tobacco,  OR  MORE
THAN  ONE HUNDRED MILLILITERS OF VAPOR PRODUCT upon the public highways,
roads or streets of the state, shall be required to have in  his  actual
possession  invoices or delivery tickets for such tobacco products. Such
invoices or delivery tickets shall show the  name  and  address  of  the
consignor or seller, the name and address of the consignee or purchaser,

S. 2009                            97                            A. 3009

the  quantity  and  brands  of the tobacco products transported, and the
name and address of the person who has or shall assume  the  payment  of
the  tax and the wholesale price or the tax paid or payable. The absence
of  such invoices or delivery tickets shall be prima facie evidence that
the tax imposed by this article on tobacco products has  not  been  paid
and is due and owing.
  §  24.  Subparagraph  (i) of paragraph (b) of subdivision 1 of section
481 of the tax law, as amended by section 1 of part O of chapter  59  of
the laws of 2013, is amended to read as follows:
  (i)  In  addition  to  any  other penalty imposed by this article, the
commissioner may (A) impose a penalty  of  not  more  than  six  hundred
dollars  for each two hundred cigarettes, or fraction thereof, in excess
of one thousand cigarettes in unstamped or unlawfully  stamped  packages
in  the  possession  or  under the control of any person or (B) impose a
penalty of not more than two hundred  dollars  for  each  ten  unaffixed
false,   altered  or  counterfeit  cigarette  tax  stamps,  imprints  or
impressions, or fraction thereof, in the possession or under the control
of any person. In addition, the commissioner may impose a penalty of not
more than seventy-five dollars for each fifty cigars [or], one pound  of
tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or fraction there-
of,  in  excess of two hundred fifty cigars [or], five pounds of tobacco
OR FIVE HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or  under
the  control  of  any  person and a penalty of not more than one hundred
fifty dollars for each fifty cigars  [or],  pound  of  tobacco,  OR  ONE
HUNDRED  MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in excess of
five hundred cigars [or], ten pounds of tobacco, OR ONE THOUSAND  MILLI-
LITERS  OF  VAPOR  PRODUCT in the possession or under the control of any
person, with respect to which the tobacco products tax has not been paid
or assumed by a distributor or tobacco products dealer; provided, howev-
er, that any such penalty imposed shall not exceed seven  thousand  five
hundred  dollars in the aggregate. The commissioner may impose a penalty
of not more than seventy-five dollars for each fifty  cigars  [or],  one
pound  of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR PRODUCT, or frac-
tion thereof, in excess of fifty cigars [or], one pound of  tobacco,  OR
ONE  HUNDRED MILLILITERS OF VAPOR PRODUCT in the possession or under the
control of any tobacco products dealer or distributor appointed  by  the
commissioner,  and  a penalty of not more than one hundred fifty dollars
for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
OF VAPOR PRODUCT, or fraction thereof, in excess of  two  hundred  fifty
cigars  [or],  five  pounds  of  tobacco, OR FIVE HUNDRED MILLILITERS OF
VAPOR PRODUCT, in the possession or under the control of any such dealer
or distributor, with respect to which the tobacco products tax  has  not
been  paid  or  assumed  by  a distributor or a tobacco products dealer;
provided, however, that  any  such  penalty  imposed  shall  not  exceed
fifteen thousand dollars in the aggregate.
  §  25.  Clauses  (B)  and (C) of subparagraph (ii) of paragraph (b) of
subdivision 1 of section 481 of the tax law, as added by chapter 262  of
the laws of 2000, is amended to read as follows:
  (B)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR ONE HUNDRED
MILLILITERS  OF  VAPOR  PRODUCT,  or  fraction thereof, in excess of two
hundred fifty cigars [or], five  pounds  of  tobacco,  OR  FIVE  HUNDRED
MILLILITERS  OF  VAPOR  PRODUCT knowingly in the possession or knowingly
under the control of any person,  with  respect  to  which  the  tobacco
products  tax  has  not been paid or assumed by a distributor or tobacco
products dealer; and

S. 2009                            98                            A. 3009

  (II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
OF VAPOR PRODUCT, or fraction thereof, in excess of five hundred  cigars
[or],  ten pounds of tobacco, OR ONE THOUSAND MILLILITERS OF VAPOR PROD-
UCT  knowingly  in  the possession or knowingly under the control of any
person, with respect to which the tobacco products tax has not been paid
or assumed by a distributor or tobacco products dealer; provided, howev-
er, that any such penalty imposed under this clause shall not exceed ten
thousand dollars in the aggregate.
  (C)(I) not less than twenty-five dollars but not more than one hundred
dollars for each fifty cigars [or], one pound of tobacco, OR ONE HUNDRED
MILLILITERS OF VAPOR PRODUCT, or fraction thereof, in  excess  of  fifty
cigars  [or],  one pound of tobacco, OR ONE HUNDRED MILLILITERS OF VAPOR
PRODUCT knowingly in the possession or knowingly under  the  control  of
any  person, with respect to which the tobacco products tax has not been
paid or assumed by a distributor or tobacco products dealer; and
  (II) not less than fifty dollars but not more than two hundred dollars
for each fifty cigars [or], pound of tobacco, OR ONE HUNDRED MILLILITERS
OF VAPOR PRODUCT, or fraction thereof, in excess of  two  hundred  fifty
cigars  [or],  five  pounds  of  tobacco, OR FIVE HUNDRED MILLILITERS OF
VAPOR PRODUCT knowingly in the possession or knowingly under the control
of any person, with respect to which the tobacco products  tax  has  not
been  paid  or  assumed  by  a distributor or a tobacco products dealer;
provided, however, that any such penalty imposed under this clause shall
not exceed twenty thousand dollars in the aggregate.
  § 26. Subdivisions (a) and (h) of section 1814  of  the  tax  law,  as
amended  by section 28 of subpart I of part V1 of chapter 57 of the laws
of 2009, are amended to read as follows:
  (a) Any person who willfully attempts in any manner to evade or defeat
the taxes imposed by article twenty of this chapter or  payment  thereof
on  (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars
or more, [or] (iii) four hundred forty pounds of  tobacco  or  more,  OR
(IV)  FORTY-FOUR  THOUSAND  MILLILITERS  OF VAPOR PRODUCT OR MORE or has
previously been convicted two or more times of a violation of  paragraph
[one] (I) of this subdivision shall be guilty of a class E felony.
  (h)  (1) Any dealer, other than a distributor appointed by the commis-
sioner of taxation and finance under article twenty of this chapter, who
shall knowingly transport or have in his custody,  possession  or  under
his  control  more than ten pounds of tobacco, or more than five hundred
cigars, OR MORE THAN ONE THOUSAND  MILLILITERS  OF  VAPOR  PRODUCT  upon
which  the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed by the commissioner of  taxa-
tion  and  finance under article twenty of this chapter, or other person
treated as a distributor pursuant to section four hundred  seventy-one-d
of  this  chapter, shall be guilty of a misdemeanor punishable by a fine
of not more than five thousand dollars or by a term of imprisonment  not
to exceed thirty days.
  (2)  Any person, other than a dealer or a distributor appointed by the
commissioner under article twenty of this chapter, who  shall  knowingly
transport  or  have in his custody, possession or under his control more
than fifteen pounds of tobacco, or more than seven hundred fifty cigars,
OR MORE THAN FIFTEEN HUNDRED MILLILITERS OR MORE OF VAPOR  PRODUCT  upon
which  the taxes imposed by article twenty of this chapter have not been
assumed or paid by a distributor appointed  by  the  commissioner  under
article twenty of this chapter, or other person treated as a distributor
pursuant  to section four hundred seventy-one-d of this chapter shall be

S. 2009                            99                            A. 3009

guilty of a misdemeanor punishable by a fine of not more than five thou-
sand dollars or by a term of imprisonment not to exceed thirty days.
  (3) Any person, other than a distributor appointed by the commissioner
under  article  twenty of this chapter, who shall knowingly transport or
have in his custody, possession or under his control twenty-five hundred
or more cigars, or fifty or more pounds of  tobacco,  OR  FIVE  THOUSAND
MILLILITERS  OR  MORE  OF  VAPOR PRODUCT upon which the taxes imposed by
article twenty of this chapter have  not  been  assumed  or  paid  by  a
distributor  appointed  by the commissioner under article twenty of this
chapter, or other person treated as a distributor  pursuant  to  section
four  hundred  seventy-one-d of this chapter shall be guilty of a misde-
meanor. Provided further, that any person who has twice  been  convicted
under  this  subdivision  shall  be  guilty  of a class E felony for any
subsequent violation of this section, regardless of the amount of tobac-
co products involved in such violation.
  (4) For purposes of this  subdivision,  such  person  shall  knowingly
transport or have in his custody, possession or under his control tobac-
co,  [or]  cigars,  OR  VAPOR PRODUCTS on which such taxes have not been
assumed or paid by a distributor appointed  by  the  commissioner  where
such  person  has  knowledge  of  the  requirement of the tax on tobacco
products and, where to his knowledge, such taxes have not  been  assumed
or  paid  on  such  tobacco  products  by a distributor appointed by the
commissioner of taxation and finance.
  § 27. Subdivisions (a) and (b) of section 1814-a of the  tax  law,  as
added by chapter 61 of the laws of 1989, are amended to read as follows:
  (a)  Any  person  who, while not appointed as a distributor of tobacco
products pursuant to the provisions of article twenty of  this  chapter,
imports  or causes to be imported into the state more than fifty cigars,
or more than one pound of tobacco, OR MORE THAN ONE HUNDRED  MILLILITERS
OF VAPOR PRODUCT for sale within the state, or produces, manufactures or
compounds  tobacco products within the state shall be guilty of a misde-
meanor punishable by a fine of not more than five thousand dollars or by
a term of imprisonment not to exceed thirty days. If, within any  ninety
day  period, one thousand or more cigars, or five hundred pounds or more
of tobacco, OR FIFTY THOUSAND MILLILITERS OR MORE OF VAPOR  PRODUCT  are
imported  or  caused  to  be imported into the state for sale within the
state or are produced, manufactured or compounded within  the  state  by
any  person  while  not  appointed as a distributor of tobacco products,
such person shall be guilty of a misdemeanor. Provided further, that any
person who has twice been convicted under this section shall  be  guilty
of  a  class  E  felony  for  any  subsequent violation of this section,
regardless of the amount of tobacco products involved in such violation.
  (b) For purposes of this section,  the  possession  or  transportation
within this state by any person, other than a tobacco products distribu-
tor  appointed  by  the commissioner of taxation and finance, at any one
time of seven hundred fifty or more cigars [or], fifteen pounds or  more
of  tobacco,  OR  FIFTEEN  HUNDRED  MILLILITERS OR MORE OF VAPOR PRODUCT
shall be presumptive evidence that such tobacco products  are  possessed
or  transported  for  the  purpose  of  sale  and are subject to the tax
imposed by section four hundred  seventy-one-b  of  this  chapter.  With
respect  to such possession or transportation, any provisions of article
twenty of this chapter providing for a time period during which the  tax
imposed by such article may be paid shall not apply.
  §  28. Subdivision (a) of section 1846-a of the tax law, as amended by
chapter 556 of the laws of 2011, is amended to read as follows:

S. 2009                            100                           A. 3009

  (a) Whenever a police officer designated in section 1.20 of the crimi-
nal procedure law or a peace officer designated in subdivision  four  of
section  2.10  of such law, acting pursuant to his special duties, shall
discover any tobacco products in excess of five hundred cigars [or], ten
pounds  of  tobacco,  OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT which
are being imported for sale in the state where the person  importing  or
causing such tobacco products to be imported has not been appointed as a
distributor  pursuant  to section four hundred seventy-two of this chap-
ter, such police officer or  peace  officer  is  hereby  authorized  and
empowered  forthwith  to  seize  and  take  possession  of  such tobacco
products. Such tobacco products seized by  a  police  officer  or  peace
officer  shall  be  turned over to the commissioner. Such seized tobacco
products shall be forfeited to the state. All tobacco products forfeited
to the state shall be destroyed or used for  law  enforcement  purposes,
except  that  tobacco products that violate, or are suspected of violat-
ing, federal trademark laws or import laws shall not  be  used  for  law
enforcement   purposes.  If  the  commissioner  determines  the  tobacco
products may not be used for law enforcement purposes, the  commissioner
must, within a reasonable time thereafter, upon publication in the state
registry  of  a  notice  to  such  effect before the day of destruction,
destroy such forfeited tobacco products. The commissioner may, prior  to
any  destruction  of  tobacco  products,  permit  the true holder of the
trademark rights in the  tobacco  products  to  inspect  such  forfeited
products  in order to assist in any investigation regarding such tobacco
products.
  § 29. Subdivision (b) of section 1847 of the  tax  law,  as  added  by
chapter 61 of the laws of 1989, is amended to read as follows:
  (b)  Any  peace officer designated in subdivision four of section 2.10
of the criminal procedure law, acting pursuant to his special duties, or
any police officer designated in section 1.20 of the criminal  procedure
law  may  seize  any  vehicle  or  other means of transportation used to
import tobacco products in excess  of  five  hundred  cigars  [or],  ten
pounds of tobacco, OR ONE THOUSAND MILLILITERS OF VAPOR PRODUCT for sale
where  the  person  importing  or  causing  such  tobacco products to be
imported has not been appointed a distributor pursuant to  section  four
hundred seventy-two of this chapter, other than a vehicle or other means
of  transportation used by any person as a common carrier in transaction
of business as such common carrier, and such vehicle or other  means  of
transportation  shall  be  subject  to forfeiture as hereinafter in this
section provided.
  § 30. This act shall take effect on  the  one  hundred  eightieth  day
after  it shall have become a law and shall apply to vapor products that
first become subject to taxation under article 20 of the tax law  on  or
after that date.

                                 PART GG

  Section  1. Subdivision (d) of section 1814 of the tax law, as amended
by section 28 of subpart I of part V-1 of chapter  57  of  the  laws  of
2009, is amended to read as follows:
  (d) For the purposes of this section, the possession or transportation
within this state by any person, other than an agent, at any one time of
[five]  TWO  thousand  or  more  cigarettes  in  unstamped or unlawfully
stamped packages shall be presumptive evidence that such cigarettes  are
possessed  or transported for the purpose of sale and are subject to the
tax imposed by section four hundred seventy-one of  this  chapter.  With

S. 2009                            101                           A. 3009

respect  to  such possession or transportation any provisions of article
twenty of this chapter providing for a time period during  which  a  use
tax  imposed  by  such  article  may  be paid on unstamped cigarettes or
unlawfully  or  improperly stamped cigarettes or during which such ciga-
rettes may be returned to an agent shall not apply. The possession with-
in this state of more than  four  hundred  cigarettes  in  unstamped  or
unlawfully stamped packages by any person other than an agent at any one
time  shall  be presumptive evidence that such cigarettes are subject to
tax as provided by article twenty of this chapter.
  § 2. Subdivision (g) of section 1814 of the tax  law,  as  amended  by
section  28  of subpart I of part V-1 of chapter 57 of the laws of 2009,
is amended to read as follows:
  (g) Any person who falsely or fraudulently makes, alters  or  counter-
feits any stamp prescribed by the tax commission under the provisions of
article  twenty  of this chapter, or causes or procures to be falsely or
fraudulently made, altered or counterfeited any such stamp, or knowingly
and willfully utters, purchases, passes or  tenders  as  true  any  such
false,  altered  or  counterfeited  stamp,  or  knowingly  and willfully
possesses any cigarettes in packages bearing any such false, altered  or
counterfeited  stamp,  and any person who knowingly and willfully makes,
causes to be made, purchases or receives any device for forging or coun-
terfeiting any  stamp,  prescribed  by  the  tax  commission  under  the
provisions of article twenty of this chapter, or who knowingly and will-
fully  possesses any such device, shall be guilty of a class [E] C felo-
ny. For the purposes of this subdivision, the words "stamp prescribed by
the tax commission" shall include a stamp, impression or imprint made by
a metering machine, the design  of  which  has  been  approved  by  such
commission.
  §  3.  This  act  shall  take effect immediately and apply to offenses
committed on and after such effective date.

                                 PART HH

  Section 1. The tax law is amended by adding a  new  section  478-a  to
read as follows:
  §  478-A.  JEOPARDY ASSESSMENTS. IF THE COMMISSIONER BELIEVES THAT THE
COLLECTION OF ANY TAX WILL BE JEOPARDIZED BY DELAY, HE OR SHE MAY DETER-
MINE THE AMOUNT OF SUCH TAX AND  ASSESS  THE  SAME,  TOGETHER  WITH  ALL
INTEREST AND PENALTIES PROVIDED BY LAW, AGAINST ANY PERSON LIABLE THERE-
FOR  PRIOR TO THE FILING OF HIS OR HER RETURN AND PRIOR TO THE DATE WHEN
HIS OR HER RETURN IS REQUIRED TO BE  FILED.  THE  AMOUNT  SO  DETERMINED
SHALL  BECOME  DUE AND PAYABLE TO THE COMMISSIONER BY THE PERSON AGAINST
WHOM SUCH A JEOPARDY ASSESSMENT IS MADE, AS SOON AS  NOTICE  THEREOF  IS
GIVEN  TO  HIM  OR  HER. THE PROVISIONS OF SECTION FOUR HUNDRED SEVENTY-
EIGHT OF THIS ARTICLE SHALL APPLY TO ANY SUCH  DETERMINATION  EXCEPT  TO
THE  EXTENT  THAT  THEY  MAY BE INCONSISTENT WITH THE PROVISIONS OF THIS
SECTION. THE COMMISSIONER MAY ABATE ANY JEOPARDY ASSESSMENT IF HE OR SHE
FINDS THAT JEOPARDY DOES NOT  EXIST.  THE  COLLECTION  OF  ANY  JEOPARDY
ASSESSMENT  MAY  BE STAYED BY FILING WITH THE COMMISSIONER A BOND ISSUED
BY A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN  THIS  STATE  AND
APPROVED  BY THE SUPERINTENDENT OF FINANCIAL SERVICES AS TO SOLVENCY AND
RESPONSIBILITY, OR SUCH OTHER SECURITY ACCEPTABLE TO  THE  COMMISSIONER,
CONDITIONED UPON PAYMENT OF THE AMOUNT ASSESSED AND INTEREST THEREON, OR
ANY  LESSER  AMOUNT TO WHICH SUCH ASSESSMENT MAY BE REDUCED BY THE DIVI-
SION OF TAX APPEALS OR BY A PROCEEDING UNDER  ARTICLE  SEVENTY-EIGHT  OF
THE  CIVIL  PRACTICE  LAW  AND RULES AS PROVIDED IN SECTION FOUR HUNDRED

S. 2009                            102                           A. 3009

SEVENTY-EIGHT OF THIS ARTICLE, SUCH PAYMENT TO BE MADE WHEN THE  ASSESS-
MENT  OR  ANY  SUCH  REDUCTION  THEREOF BECOMES FINAL AND NOT SUBJECT TO
FURTHER REVIEW. IF SUCH A BOND IS  FILED  AND  THEREAFTER  A  PROCEEDING
UNDER  ARTICLE  SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE LAW AND RULES IS
COMMENCED AS PROVIDED IN SECTION  FOUR  HUNDRED  SEVENTY-EIGHT  OF  THIS
ARTICLE, DEPOSIT OF THE TAXES, INTEREST AND PENALTIES ASSESSED SHALL NOT
BE  REQUIRED  AS  A  CONDITION  PRECEDENT  TO  THE  COMMENCEMENT OF SUCH
PROCEEDING. WHERE A JEOPARDY ASSESSMENT IS MADE, ANY PROPERTY SEIZED FOR
THE COLLECTION OF THE TAX SHALL NOT BE SOLD: (1) UNTIL EXPIRATION OF THE
TIME TO APPLY FOR A HEARING AS PROVIDED IN SECTION FOUR  HUNDRED  SEVEN-
TY-EIGHT  OF  THIS ARTICLE, AND (2) IF SUCH APPLICATION IS TIMELY FILED,
UNTIL THE EXPIRATION OF THE TIME TO FILE AN EXCEPTION  TO  THE  DETERMI-
NATION  OF  THE  ADMINISTRATIVE  LAW JUDGE OR, IF AN EXCEPTION IS TIMELY
FILED, UNTIL FOUR MONTHS AFTER THE TAX APPEALS TRIBUNAL HAS GIVEN NOTICE
OF ITS DECISION TO THE PERSON  AGAINST  WHOM  THE  ASSESSMENT  IS  MADE;
PROVIDED,  HOWEVER, SUCH PROPERTY MAY BE SOLD AT ANY TIME IF SUCH PERSON
HAS FAILED TO ATTEND A HEARING OF WHICH HE OR SHE HAS  BEEN  DULY  NOTI-
FIED,  OR  IF  HE  OR  SHE  CONSENTS TO THE SALE, OR IF THE COMMISSIONER
DETERMINES THAT THE EXPENSES OF CONSERVATION AND MAINTENANCE WILL GREAT-
LY REDUCE THE NET PROCEEDS, OR IF THE PROPERTY IS PERISHABLE.
  § 2. This act shall take effect immediately.

                                 PART II

  Section 1. Paragraph (a) of subdivision 1 of section 471-b of the  tax
law,  as  amended  by section 18 of part D of chapter 134 of the laws of
2010, is amended to read as follows:
  (a) Such tax on  tobacco  products  other  than  snuff  [and],  little
cigars,  AND  CIGARS shall be at the rate of seventy-five percent of the
wholesale price, and is intended to be imposed only once upon  the  sale
of  any  tobacco  products  other  than  snuff  [and], little cigars AND
CIGARS.
  § 2. Subdivision 1 of section 471-b of  the  tax  law  is  amended  by
adding a new paragraph (d) to read as follows:
  (D)  SUCH  TAX ON CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A  RATE  OF  FORTY-FIVE
CENTS PER CIGAR.
  § 3. Paragraph (i) of subdivision (a) of section 471-c of the tax law,
as  amended  by section 20 of part D of chapter 134 of the laws of 2010,
is amended to read as follows:
  (i) Such tax on tobacco products other than snuff [and], little cigars
AND CIGARS shall be at the rate of seventy-five percent of the wholesale
price.
  § 4. Subdivision (a) of section 471-c of the tax  law  is  amended  by
adding a new paragraph (iv) to read as follows:
  (IV)  SUCH TAX ON CIGARS AS DEFINED IN SUBDIVISION NINETEEN OF SECTION
FOUR HUNDRED SEVENTY OF THIS ARTICLE SHALL BE AT A  RATE  OF  FORTY-FIVE
CENTS PER CIGAR.
  § 5. This act shall take effect September 1, 2017.

                                 PART JJ

  Section  1. Subdivision (e) of section 1401 of the tax law, as amended
by chapter 760 of the laws of 1992, is amended to read as follows:
  (e) "Conveyance" means the transfer or transfers of  any  interest  in
real  property  by  any  method,  including  but  not  limited  to sale,

S. 2009                            103                           A. 3009

exchange, assignment, surrender, mortgage foreclosure, transfer in  lieu
of  foreclosure,  option,  trust  indenture,  taking  by eminent domain,
conveyance upon liquidation or by a receiver, or transfer or acquisition
of a controlling interest in any entity with an interest in real proper-
ty.   CONVEYANCE ALSO INCLUDES THE TRANSFER OF AN INTEREST IN A PARTNER-
SHIP, LIMITED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRAD-
ED C CORPORATION WITH FEWER THAN ONE HUNDRED SHAREHOLDERS THAT  OWNS  AN
INTEREST  IN  REAL  PROPERTY  THAT IS LOCATED IN NEW YORK AND HAS A FAIR
MARKET VALUE THAT EQUALS OR EXCEEDS FIFTY PERCENT OF ALL THE  ASSETS  OF
THE  ENTITY  ON  THE  DATE OF THE TRANSFER OF AN INTEREST IN THE ENTITY.
ONLY  THOSE ASSETS THAT THE ENTITY OWNED FOR AT LEAST TWO  YEARS  BEFORE
THE  DATE OF THE TRANSFER OF THE TAXPAYER'S INTEREST IN THE ENTITY SHALL
BE USED IN DETERMINING THE FAIR MARKET VALUE OF ALL THE  ASSETS  OF  THE
ENTITY  ON  THE  DATE  OF  THE TRANSFER. Transfer of an interest in real
property shall include the creation of  a  leasehold  or  sublease  only
where  (i)  the sum of the term of the lease or sublease and any options
for renewal exceeds forty-nine years, (ii) substantial capital  improve-
ments  are or may be made by or for the benefit of the lessee or subles-
see, and (iii) the lease or sublease is for  substantially  all  of  the
premises  constituting the real property. Notwithstanding the foregoing,
conveyance of real property shall not include a conveyance  pursuant  to
devise,  bequest  or inheritance; the creation, modification, extension,
spreading, severance, consolidation, assignment,  transfer,  release  or
satisfaction  of a mortgage; a mortgage subordination agreement, a mort-
gage severance agreement, an instrument given to perfect  or  correct  a
recorded  mortgage; or a release of lien of tax pursuant to this chapter
or the internal revenue code.
  § 2. Subdivision (d) of section 1401 of the  tax  law  is  amended  by
adding a new paragraph (vi) to read as follows:
  (VI) IN THE CASE OF A TRANSFER OF AN INTEREST IN A PARTNERSHIP, LIMIT-
ED  LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRADED C CORPO-
RATION WITH ONE HUNDRED OR FEWER SHAREHOLDERS THAT  OWNS  REAL  PROPERTY
THAT  IS  LOCATED IN NEW YORK AND HAS A FAIR MARKET VALUE THAT EQUALS OR
EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF THE ENTITY ON THE DATE OF THE
TRANSFER OF AN INTEREST IN THE ENTITY, THE CONSIDERATION FOR THE CONVEY-
ANCE SHALL BE CALCULATED BY MULTIPLYING (1) THE FAIR MARKET VALUE OF THE
REAL PROPERTY THAT IS LOCATED IN NEW YORK THAT IS OWNED  BY  THE  ENTITY
AND (2) THE PERCENTAGE OF THE ENTITY THAT IS TRANSFERRED.
  §  3. This act shall take effect immediately and shall apply to trans-
fers occurring on and after the effective date.

                                 PART KK

  Section 1. Section 1402-a of the tax law is amended by  adding  a  new
subdivision (b-1) to read as follows:
  (B-1)  THE COMMISSIONER IS AUTHORIZED TO TREAT AS SUBJECT TO TAX UNDER
THIS SECTION ANY CONVEYANCE OF AN INTEREST IN REAL PROPERTY MADE  PURSU-
ANT  TO  AN  AGREEMENT, UNDERSTANDING OR ARRANGEMENT THAT RESULTS IN THE
AVOIDANCE OR EVASION OF THE TAX IMPOSED BY THIS SECTION.
  § 2. This act shall take effect immediately.

                                 PART LL

  Section 1. Section 902 of the racing, pari-mutuel wagering and  breed-
ing  law, as amended by chapter 60 of the laws of 1993, subdivision 1 as

S. 2009                            104                           A. 3009

amended by chapter 15 of the laws of 2010 and subdivision 2  as  amended
by chapter 18 of the laws of 2008, is amended to read as follows:
  §  902.  Equine  drug  testing and expenses. 1. In order to assure the
public's confidence and continue the high degree of integrity in  racing
at  the pari-mutuel betting tracks, equine drug testing at race meetings
shall be conducted by  a  [state  college  within  this  state  with  an
approved  equine  science  program]  SUITABLE LABORATORY OR LABORATORIES
LOCATED IN NEW YORK STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS
DISCRETION. The [state racing  and  wagering  board]  GAMING  COMMISSION
shall  promulgate  any  rules and regulations necessary to implement the
provisions of this section, including administrative penalties  of  loss
of  purse  money,  fines,  or  denial,  suspension[,] or revocation of a
license for racing drugged horses.
  2. Notwithstanding any inconsistent provision of law,  all  costs  and
expenses  of the [state racing and wagering board] GAMING COMMISSION for
equine drug testing and research shall be paid  from  [an  appropriation
from  the  state  treasury,  on the certification of the chairman of the
state racing and wagering board, upon the audit and warrant of the comp-
troller and pursuant to a plan developed by the state racing and  wager-
ing  board  as approved by the director of the budget] AN ASSESSMENT THE
COMMISSION MAY MAKE ON HORSEMEN ENTERING HORSES IN RACES, AN  ASSESSMENT
THE COMMISSION MAY MAKE ON RACETRACKS, OR BOTH.
  §  2. Subdivision 2 of section 228 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 18 of the laws of 2008  and  the
opening  paragraph  as  amended  by  chapter 291 of the laws of 2016, is
amended to read as follows:
  2. The New York state gaming  commission  shall,  as  a  condition  of
racing,  require  any franchised corporation and every other corporation
subject to its jurisdiction to  withhold  one  percent  of  all  purses,
except that for the franchised corporation, starting on September first,
two thousand seven and continuing through August thirty-first, two thou-
sand seventeen, two percent of all purses shall be withheld, and, in the
case  of  the  franchised corporation, to pay such sum to the horsemen's
organization or  its  successor  that  was  first  entitled  to  receive
payments  pursuant  to  this  section  in  accordance  with rules of the
commission adopted effective November third,  nineteen  hundred  eighty-
three representing at least fifty-one percent of the owners and trainers
[utilizing]  USING the facilities of such franchised corporation, on the
condition that such horsemen's organization shall expend [as much as  is
necessary,  but  not  to  exceed]  one-half of one percent of such total
sum[,] to acquire and maintain the equipment required  to  [establish  a
program  at  a  state  college within this state with an approved equine
science program to] test, AT A SUITABLE LABORATORY LOCATED IN  NEW  YORK
STATE, AS THE GAMING COMMISSION MAY DETERMINE IN ITS DISCRETION, for the
presence  of  [steroids]  IMPERMISSIBLE  DRUGS  OR OTHER SUBSTANCES THAT
MIGHT BE CLASSIFIED AS  IMPERMISSIBLE  SUBSTANCES  in  horses,  provided
further  that  the qualified organization shall also, in an amount to be
determined by its board of directors, annually include in  its  expendi-
tures for benevolence programs, funds to support an organization provid-
ing  services  necessary  to  backstretch employees, and, in the case of
every other corporation, to pay such one percent sum of  purses  to  the
horsemen's  organization  or  its  successor  that was first entitled to
receive payments pursuant to this section in accordance  with  rules  of
the  commission  adopted  effective  May  twenty-third, nineteen hundred
eighty-six representing at least fifty-one percent  of  the  owners  and
trainers [utilizing] USING the facilities of such corporation.

S. 2009                            105                           A. 3009

  In  either  case,  any  other horsemen's organization may apply to the
[board] COMMISSION to be  approved  as  the  qualified  organization  to
receive  payment  of  the one percent of all purses by submitting to the
[board] COMMISSION proof of both,  that  (i)  it  represents  more  than
fifty-one  percent  of all the owners and trainers [utilizing] USING the
same facilities and (ii) the horsemen's organization previously approved
as qualified by the [board]  COMMISSION  does  not  represent  fifty-one
percent of all the owners and trainers [utilizing] USING the same facil-
ities.  If  the  [board]  COMMISSION is satisfied that the documentation
submitted with the application of any other horsemen's  organization  is
conclusive  with respect to items (i) and (ii) of this paragraph, it may
approve the applicant as the qualified recipient organization.
  In the best interests of racing, upon receipt of such an  application,
the  [board] COMMISSION may direct the payments to the previously quali-
fied horsemen's organization to continue uninterrupted, or it may direct
the payments to be withheld and placed in interest-bearing accounts  for
a  period  not  to  exceed  ninety  days,  during which time the [board]
COMMISSION shall review and approve or disapprove the application. Funds
held in such manner shall be paid to the organization  approved  by  the
[board] COMMISSION. In no event shall the [board] COMMISSION accept more
than  one such application in any calendar year from the same horsemen's
organization.
  The funds authorized to be paid by the [board] COMMISSION  are  to  be
used  exclusively  for  the benefit of those horsemen racing in New York
state through the administrative purposes of  such  qualified  organiza-
tion,  benevolent activities on behalf of backstretch employees, and for
the promotion of equine research.
  § 3. This act shall take effect immediately.

                                 PART MM

  Section 1. Article 19-B of the executive law is REPEALED.
  § 1-a. Article 9-A of the general municipal law is REPEALED.
  § 1-b. Article 14-H of the general municipal law is REPEALED.
  § 1-c. Article 34 of the tax law is REPEALED.
  § 2. The racing, pari-mutuel wagering and breeding law is  amended  by
adding a new article 15 to read as follows:
                               ARTICLE 15
                            CHARITABLE GAMING
TITLE 1. GENERAL PROVISIONS.
      2. BINGO CONTROL.
      3. LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS.
      4. LOCAL  OPTION  FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN ORGAN-
           IZATIONS.
                                 TITLE 1
                           GENERAL PROVISIONS
SECTION 1500. DEFINITIONS.
        1501. FORMS.
        1502. PARTICIPATION BY PERSONS UNDER THE AGE OF EIGHTEEN.
        1503. SUNDAYS.
        1504. ADVERTISING OF CHARITABLE GAMES.
        1505. SANCTIONS FOR VIOLATIONS.
        1506. SEVERABILITY.
  § 1500. DEFINITIONS. AS USED IN THIS ARTICLE, IN ADDITION TO THE DEFI-
NITIONS SET FORTH IN SECTION  ONE  HUNDRED  ONE  OF  THIS  CHAPTER,  THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:

S. 2009                            106                           A. 3009

  1.  "AUTHORIZED BINGO LESSOR" SHALL MEAN A PERSON, FIRM OR CORPORATION
OTHER THAN A LICENSEE TO CONDUCT BINGO  UNDER  THE  PROVISIONS  OF  THIS
ARTICLE,  WHO OR WHICH OWNS OR IS A NET LESSEE OF PREMISES AND OFFER THE
SAME FOR LEASING BY HIM, HER OR IT TO AN AUTHORIZED ORGANIZATION FOR ANY
CONSIDERATION  WHATSOEVER,  DIRECT  OR  INDIRECT,  FOR  THE  PURPOSE  OF
CONDUCTING BINGO THEREIN, PROVIDED, THAT HE, SHE OR IT, AS THE CASE  MAY
BE, SHALL NOT BE:
  (A)  A  PERSON  CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE  INTEGRITY
OF  BINGO,  CONSIDERING  THE  FACTORS SET FORTH IN SECTION SEVEN HUNDRED
FIFTY-THREE OF THE CORRECTION LAW;
  (B) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
  (C)  A  PUBLIC OFFICER WHO RECEIVES ANY CONSIDERATION, DIRECT OR INDI-
RECT, AS OWNER OR LESSOR OF PREMISES OFFERED FOR THE PURPOSE OF CONDUCT-
ING BINGO THEREIN; OR
  (D) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN PARAGRAPH  (A),
(B)  OR  (C)  OF  THIS SUBDIVISION OR A PERSON MARRIED OR RELATED IN THE
FIRST DEGREE TO SUCH A PERSON HAS GREATER THAN A  TEN  PERCENT  PROPRIE-
TARY,  EQUITABLE  OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS ACTIVE
OR EMPLOYED.
  NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED  TO  BAR  ANY
FIRM  OR  CORPORATION  THAT IS NOT ORGANIZED FOR PECUNIARY PROFIT AND NO
PART OF THE NET EARNINGS OF WHICH INURE TO THE BENEFIT OF  ANY  INDIVID-
UAL, MEMBER OR SHAREHOLDER, FROM BEING AN AUTHORIZED BINGO LESSOR SOLELY
BECAUSE  A  PUBLIC  OFFICER, OR A PERSON MARRIED OR RELATED IN THE FIRST
DEGREE TO A PUBLIC OFFICER, IS A MEMBER OF, ACTIVE  IN  OR  EMPLOYED  BY
SUCH FIRM OR CORPORATION.
  2. "AUTHORIZED GAMES OF CHANCE LESSOR" SHALL MEAN AN AUTHORIZED ORGAN-
IZATION  THAT  HAS  BEEN  GRANTED  A  LESSOR'S  LICENSE  PURSUANT TO THE
PROVISIONS OF TITLE FOUR OF THIS ARTICLE OR A MUNICIPALITY.
  3. "AUTHORIZED ORGANIZATION" SHALL MEAN ANY  BONA  FIDE  RELIGIOUS  OR
CHARITABLE  ORGANIZATION  OR  BONA FIDE EDUCATIONAL, FRATERNAL, CIVIC OR
SERVICE ORGANIZATION OR BONA FIDE ORGANIZATION  OF  VETERANS,  VOLUNTEER
FIREFIGHTERS OR VOLUNTEER AMBULANCE WORKERS THAT BY ITS CHARTER, CERTIF-
ICATE OF INCORPORATION, CONSTITUTION OR ACT OF THE LEGISLATURE HAS AMONG
ITS  DOMINANT  PURPOSES ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED IN
THIS SECTION, PROVIDED THAT EACH SHALL OPERATE  WITHOUT  PROFIT  TO  ITS
MEMBERS  AND PROVIDED THAT EACH SUCH ORGANIZATION HAS ENGAGED IN SERVING
ONE OR MORE OF THE LAWFUL PURPOSES AS DEFINED  IN  THIS  SECTION  FOR  A
PERIOD  OF  ONE  YEAR  IMMEDIATELY PRIOR TO APPLYING FOR A LICENSE UNDER
THIS ARTICLE. NO ORGANIZATION SHALL BE DEEMED AN AUTHORIZED ORGANIZATION
THAT IS FORMED PRIMARILY FOR THE PURPOSE OF CONDUCTING BINGO OR GAMES OF
CHANCE AND THAT DOES NOT DEVOTE AT LEAST  SEVENTY-FIVE  PERCENT  OF  ITS
ACTIVITIES  TO  OTHER THAN CONDUCTING BINGO OR GAMES OF CHANCE. NO POLI-
TICAL PARTY, POLITICAL CAMPAIGN OR POLITICAL CAMPAIGN COMMITTEE SHALL BE
DEEMED AN AUTHORIZED ORGANIZATION.
  4. "AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT" SHALL  MEAN  ANY
PERSON,  FIRM,  PARTNERSHIP, CORPORATION OR ORGANIZATION LICENSED BY THE
COMMISSION TO SELL OR LEASE GAMES OF CHANCE EQUIPMENT  OR  PARAPHERNALIA
THAT MEETS THE SPECIFICATIONS AND REGULATIONS ESTABLISHED BY THE COMMIS-
SION.  NOTHING  HEREIN  SHALL  PREVENT  AN  AUTHORIZED ORGANIZATION FROM
PURCHASING COMMON ARTICLES, SUCH AS CARDS AND DICE, FROM NORMAL  SOURCES
OF  SUPPLY OF SUCH ARTICLES OR FROM CONSTRUCTING EQUIPMENT AND PARAPHER-
NALIA FOR GAMES OF CHANCE FOR ITS OWN USE.  HOWEVER, NO  SUCH  EQUIPMENT
OR  PARAPHERNALIA,  CONSTRUCTED  OR  OWNED BY AN AUTHORIZED ORGANIZATION

S. 2009                            107                           A. 3009

SHALL BE SOLD OR LEASED TO ANY OTHER  AUTHORIZED  ORGANIZATION,  WITHOUT
WRITTEN PERMISSION FROM THE COMMISSION.
  5.  "BELL  JARS" SHALL MEAN AND INCLUDE THOSE GAMES IN WHICH A PARTIC-
IPANT SHALL DRAW A CARD THAT CONTAINS NUMBERS, COLORS  OR  SYMBOLS  THAT
ARE  COVERED  AND THAT, WHEN UNCOVERED, MAY REVEAL THAT A PRIZE SHALL BE
AWARDED ON THE BASIS OF A DESIGNATED WINNING NUMBER, COLOR OR SYMBOL  OR
COMBINATION OF NUMBERS, COLORS OR SYMBOLS. SUCH CARD SHALL BE DRAWN FROM
A  JAR, VENDING MACHINE OR OTHER SUITABLE DEVICE OR CONTAINER. BELL JARS
SHALL ALSO INCLUDE SEAL CARDS, COIN BOARDS, EVENT GAMES AND  MERCHANDISE
BOARDS.
  6.  "BINGO"  SHALL  MEAN  A SPECIFIC GAME OF CHANCE, COMMONLY KNOWN AS
BINGO OR LOTTO, IN WHICH PRIZES ARE AWARDED ON THE BASIS  OF  DESIGNATED
NUMBERS  OR  SYMBOLS ON A CARD CONFORMING TO NUMBERS OR SYMBOLS SELECTED
AT RANDOM.
  7. "BINGO CONTROL LAW" SHALL MEAN TITLE TWO OF THIS ARTICLE.
  8. "BINGO LICENSING LAW" SHALL MEAN TITLE THREE OF THIS ARTICLE.
  9. "BONUS BALL" SHALL MEAN A BINGO GAME THAT IS PLAYED IN  CONJUNCTION
WITH ONE OR MORE REGULAR OR SPECIAL BINGO GAMES DESIGNATED AS BONUS BALL
GAMES BY THE LICENSED AUTHORIZED ORGANIZATION DURING ONE OR MORE CONSEC-
UTIVE  BINGO OCCASIONS IN WHICH A PRIZE IS AWARDED TO THE PLAYER OBTAIN-
ING A SPECIFIED WINNING BINGO PATTERN WHEN THE LAST NUMBER CALLED BY THE
LICENSED AUTHORIZED ORGANIZATION IS THE DESIGNATED  BONUS  BALL  NUMBER.
THE  BONUS BALL PRIZE SHALL BE BASED UPON A PERCENTAGE OF THE SALES FROM
OPPORTUNITIES TO PARTICIPATE IN BONUS BALL GAMES NOT TO EXCEED  SEVENTY-
FIVE  PERCENT  OF  THE SUM OF MONEY RECEIVED FROM THE SALE OF BONUS BALL
OPPORTUNITIES OR TEN THOUSAND DOLLARS,  WHICHEVER  SHALL  BE  LESS,  AND
WHICH  IS  NOT  SUBJECT TO THE PRIZE LIMITS IMPOSED BY SUBDIVISIONS FIVE
AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE  AND  PARAGRAPH  (A)  OF
SUBDIVISION  ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE.
THE PERCENTAGE SHALL BE SPECIFIED BOTH IN THE APPLICATION FOR THE  BINGO
LICENSE AND THE LICENSEE.  NOTWITHSTANDING SECTION FIFTEEN HUNDRED THIR-
TY-ONE  OF  THIS  ARTICLE, NOT MORE THAN ONE DOLLAR SHALL BE CHARGED PER
PLAYER FOR AN  OPPORTUNITY  TO  PARTICIPATE  IN  ALL  BONUS  BALL  GAMES
CONDUCTED DURING A SINGLE BINGO OCCASION, AND THE TOTAL AMOUNT COLLECTED
FROM THE SALE OF BONUS BALL OPPORTUNITIES AND THE AMOUNT OF THE PRIZE TO
BE AWARDED SHALL BE ANNOUNCED PRIOR TO THE START OF EACH BINGO OCCASION.
  10.  "COIN  BOARD"  AND "MERCHANDISE BOARD" SHALL MEAN A BOARD USED IN
CONJUNCTION WITH BELL JAR TICKETS THAT  CONTAINS  AND  DISPLAYS  VARIOUS
COINS  AND/OR  MERCHANDISE  AS PRIZES. A PLAYER HAVING A BELL JAR TICKET
WITH A NUMBER MATCHING A PRE-DESIGNATED NUMBER REFLECTED  ON  THE  BOARD
FOR A PRIZE WINS THAT PRIZE.
  11. "CLERK" SHALL MEAN THE CLERK OF A MUNICIPALITY OUTSIDE THE CITY OF
NEW YORK.
  12.  "DEPARTMENT"  SHALL MEAN THE NEW YORK CITY DEPARTMENT OF CONSUMER
AFFAIRS.
  13. "EARLY BIRD" SHALL MEAN A BINGO GAME THAT IS PLAYED AS  A  SPECIAL
GAME,  CONDUCTED  NOT  MORE THAN TWICE DURING A BINGO OCCASION, IN WHICH
PRIZES ARE AWARDED BASED UPON A PERCENTAGE NOT  TO  EXCEED  SEVENTY-FIVE
PERCENT  OF  THE  SUM  OF MONEY RECEIVED FROM THE SALE OF THE EARLY BIRD
CARDS AND THAT IS NEITHER SUBJECT TO THE PRIZE LIMITS IMPOSED BY  SUBDI-
VISIONS  FIVE  AND SIX OF SECTION FIFTEEN HUNDRED TWENTY-THREE AND PARA-
GRAPH (A) OF SUBDIVISION ONE OF SECTION FIFTEEN HUNDRED TWENTY-FIVE, NOR
THE SPECIAL GAME OPPORTUNITY CHARGE LIMIT  IMPOSED  BY  SECTION  FIFTEEN
HUNDRED  THIRTY-ONE  OF  THIS ARTICLE. THE PERCENTAGE SHALL BE SPECIFIED
BOTH IN THE APPLICATION FOR BINGO LICENSE AND THE  LICENSE.    NOT  MORE
THAN  ONE  DOLLAR  SHALL  BE  CHARGED  PER  CARD  WITH  THE TOTAL AMOUNT

S. 2009                            108                           A. 3009

COLLECTED FROM THE SALE OF THE EARLY BIRD CARDS AND THE PRIZE  FOR  EACH
GAME TO BE ANNOUNCED BEFORE THE COMMENCEMENT OF EACH GAME.
  14.  "EVENT  GAME" SHALL MEAN A BELL JAR GAME IN WHICH CERTAIN WINNERS
ARE DETERMINED BY THE RANDOM SELECTION OF ONE OR MORE BINGO NUMBERS, THE
USE OF A SEAL CARD OR BY ANOTHER METHOD APPROVED BY THE COMMISSION.
  15. "FLARE" SHALL MEAN A POSTER DESCRIPTION  OF  THE  BELL  JAR  GAME,
WHICH SHALL INCLUDE:
  (A)  A  DECLARATION  OF  THE NUMBER OF WINNERS AND AMOUNT OF PRIZES IN
EACH DEAL;
  (B) THE NUMBER OF PRIZES AVAILABLE IN THE DEAL;
  (C) THE NUMBER OF TICKETS IN EACH DEAL THAT CONTAIN THE STATED PRIZE;
  (D) THE MANUFACTURER'S GAME FORM NUMBER AND THE SERIAL NUMBER  OF  THE
DEAL,  WHICH  SHALL  BE IDENTICAL TO THE SERIAL NUMBER IMPRINTED ON EACH
TICKET CONTAINED IN THE DEAL; AND
  (E) SUCH OTHER REQUIREMENTS  AS  THE  RULES  AND  REGULATIONS  OF  THE
COMMISSION MAY REQUIRE.
  16.  "GAMES  OF CHANCE" SHALL MEAN AND INCLUDE ONLY THE GAMES KNOWN AS
"MERCHANDISE WHEELS," "COIN BOARDS," "MERCHANDISE BOARDS," "SEAL CARDS,"
"EVENT GAMES," "RAFFLES," "BELL JARS" AND SUCH OTHER SPECIFIC  GAMES  AS
MAY  BE AUTHORIZED BY THE COMMISSION, IN WHICH PRIZES ARE AWARDED ON THE
BASIS OF A DESIGNATED WINNING NUMBER OR NUMBERS, COLOR OR COLORS, SYMBOL
OR SYMBOLS DETERMINED BY CHANCE, BUT NOT INCLUDING GAMES COMMONLY  KNOWN
AS  "BINGO"  OR "LOTTO," WHICH ARE CONTROLLED UNDER TITLES TWO AND THREE
OF THIS ARTICLE, AND ALSO NOT INCLUDING "BOOKMAKING," "POLICY OR NUMBERS
GAMES" AND "LOTTERY" AS DEFINED IN SECTION 225.00 OF THE PENAL LAW.
  17. "LAWFUL PURPOSES" SHALL MEAN ONE OR MORE OF THE FOLLOWING  CAUSES,
DEEDS OR ACTIVITIES:
  (A) THOSE THAT BENEFIT NEEDY OR DESERVING PERSONS INDEFINITE IN NUMBER
BY ENHANCING THEIR OPPORTUNITY FOR RELIGIOUS OR EDUCATIONAL ADVANCEMENT,
BY  RELIEVING THEM FROM DISEASE, SUFFERING OR DISTRESS, OR BY CONTRIBUT-
ING TO THEIR PHYSICAL WELL-BEING,  BY  ASSISTING  THEM  IN  ESTABLISHING
THEMSELVES IN LIFE AS WORTHY AND USEFUL CITIZENS, OR BY INCREASING THEIR
COMPREHENSION  OF  AND DEVOTION TO THE PRINCIPLES UPON WHICH THIS NATION
WAS FOUNDED AND ENHANCING THEIR LOYALTY TO THEIR GOVERNMENTS;
  (B) THOSE THAT INITIATE, PERFORM OR  FOSTER  WORTHY  PUBLIC  WORKS  OR
ENABLE OR FURTHER THE ERECTION OR MAINTENANCE OF PUBLIC STRUCTURES;
  (C)  THOSE THAT INITIATE, PERFORM OR FOSTER THE PROVISIONS OF SERVICES
TO VETERANS BY ENCOURAGING THE GATHERING OF SUCH VETERANS AND ENABLE  OR
FURTHER THE ERECTION OR MAINTENANCE OF FACILITIES FOR USE BY SUCH VETER-
ANS  THAT  SHALL BE USED PRIMARILY FOR CHARITABLE OR PATRIOTIC PURPOSES,
OR THOSE PURPOSES THAT SHALL BE AUTHORIZED BY A BONA  FIDE  ORGANIZATION
OF  VETERANS,  PROVIDED  HOWEVER  THAT  SUCH  PROCEEDS  ARE DISBURSED IN
ACCORDANCE WITH THE RULES AND REGULATIONS OF THE COMMISSION AND  SECTION
FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE; AND
  (D) THOSE THAT OTHERWISE LESSEN THE BURDENS BORNE BY THE GOVERNMENT OR
THAT ARE VOLUNTARILY UNDERTAKEN BY AN AUTHORIZED ORGANIZATION TO AUGMENT
OR  SUPPLEMENT SERVICES THAT THE GOVERNMENT WOULD NORMALLY RENDER TO THE
PEOPLE, INCLUDING, IN THE CASE OF  VOLUNTEER  FIREFIGHTERS'  ACTIVITIES,
THE  PURCHASE,  ERECTION  OR  MAINTENANCE OF A BUILDING FOR A FIREHOUSE,
ACTIVITIES OPEN TO THE PUBLIC FOR THE ENHANCEMENT OF MEMBERSHIP AND  THE
PURCHASE  OF  EQUIPMENT  THAT CAN REASONABLY BE EXPECTED TO INCREASE THE
EFFICIENCY OF RESPONSE TO FIRES, ACCIDENTS, PUBLIC CALAMITIES AND  OTHER
EMERGENCIES.
  18. "LICENSE PERIOD" SHALL MEAN:
  (A)  FOR  BINGO,  THE DURATION OF A LICENSE ISSUED PURSUANT TO SECTION
FIFTEEN HUNDRED TWENTY-FIVE OF THIS ARTICLE;

S. 2009                            109                           A. 3009

  (B) FOR GAMES OF CHANCE OTHER THAN BELL JARS OR RAFFLES, A  PERIOD  OF
TIME NOT TO EXCEED FOURTEEN CONSECUTIVE HOURS; AND
  (C)  FOR  BELL JARS AND RAFFLES, A PERIOD OF TIME RUNNING FROM JANUARY
FIRST TO DECEMBER THIRTY-FIRST OF THE YEAR SET FORTH IN THE LICENSE.
  19. "LIMITED-PERIOD BINGO" SHALL  MEAN  THE  CONDUCT  OF  BINGO  BY  A
LICENSED AUTHORIZED ORGANIZATION, FOR A PERIOD OF NOT MORE THAN SEVEN OF
TWELVE CONSECUTIVE DAYS IN ANY ONE YEAR, AT A FESTIVAL, BAZAAR, CARNIVAL
OR  SIMILAR FUNCTION CONDUCTED BY SUCH LICENSED AUTHORIZED ORGANIZATION.
NO AUTHORIZED ORGANIZATION  LICENSED  TO  CONDUCT  LIMITED-PERIOD  BINGO
SHALL  BE  OTHERWISE ELIGIBLE TO CONDUCT BINGO PURSUANT TO THIS TITLE IN
THE SAME YEAR.
  20. "MUNICIPAL OFFICER" SHALL MEAN THE CHIEF LAW  ENFORCEMENT  OFFICER
OF  A MUNICIPALITY OUTSIDE THE CITY OF NEW YORK, OR IF SUCH MUNICIPALITY
EXERCISES THE OPTION SET FORTH IN SUBDIVISION  TWO  OF  SECTION  FIFTEEN
HUNDRED  SIXTY-THREE  OF THIS ARTICLE, THE CHIEF LAW ENFORCEMENT OFFICER
OF THE COUNTY.
  21. "MUNICIPALITY" SHALL MEAN ANY CITY, TOWN OR  VILLAGE  WITHIN  THIS
STATE.
  22.  "NET  LEASE"  SHALL MEAN A WRITTEN AGREEMENT BETWEEN A LESSOR AND
LESSEE  UNDER  THE  TERMS  OF  WHICH  THE  LESSEE  IS  ENTITLED  TO  THE
POSSESSION,  USE  OR  OCCUPANCY  OF  THE WHOLE OR PART OF ANY COMMERCIAL
PREMISES FOR WHICH THE LESSEE PAYS  RENT  TO  THE  LESSOR  AND  LIKEWISE
UNDERTAKES  TO PAY SUBSTANTIALLY ALL OF THE REGULARLY RECURRING EXPENSES
INCIDENT TO THE OPERATION AND MAINTENANCE OF SUCH LEASED PREMISES.
  23. "NET PROCEEDS" SHALL MEAN:
  (A) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR  MORE  OCCASIONS  OF
BINGO,  THE  AMOUNT  THAT  REMAINS  AFTER  DEDUCTING THE REASONABLE SUMS
NECESSARILY AND ACTUALLY EXPENDED  FOR  BINGO  SUPPLIES  AND  EQUIPMENT,
PRIZES,  STATED  RENTAL,  IF  ANY,  BOOKKEEPING  OR  ACCOUNTING SERVICES
ACCORDING TO A SCHEDULE OF COMPENSATION PRESCRIBED  BY  THE  COMMISSION,
JANITORIAL  SERVICES  AND UTILITY SUPPLIES IF ANY, LICENSE FEES, AND THE
COST OF BUS TRANSPORTATION, IF AUTHORIZED BY THE COMMISSION;
  (B) IN RELATION TO BELL JARS, THE DIFFERENCE BETWEEN THE IDEAL  HANDLE
FROM  THE  SALE  OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND
COIN BOARDS LESS THE AMOUNT OF MONEY PAID OUT IN  PRIZES  AND  LESS  THE
PURCHASE  PRICE  OF THE BELL JAR DEAL, SEAL CARD DEAL, MERCHANDISE BOARD
DEAL OR COIN BOARD DEAL.   ADDITIONALLY, A  CREDIT  SHALL  BE  PERMITTED
AGAINST THE NET PROCEEDS FEE TENDERED TO THE COMMISSION FOR UNSOLD TICK-
ETS  OF  THE  BELL  JAR DEAL SO LONG AS THE UNSOLD TICKETS HAVE THE SAME
SERIAL AND FORM NUMBER AS THE TICKETS FOR WHICH THE FEE IS RENDERED;
  (C) IN RELATION TO THE GROSS RECEIPTS FROM ONE OR MORE LICENSE PERIODS
OF GAMES OF CHANCE, THE AMOUNT THAT SHALL  REMAIN  AFTER  DEDUCTING  THE
REASONABLE  SUMS  NECESSARILY  AND  ACTUALLY  EXPENDED  FOR SUPPLIES AND
EQUIPMENT, PRIZES, SECURITY-PERSONNEL, STATED RENTAL IF ANY, BOOKKEEPING
OR  ACCOUNTING  SERVICES  ACCORDING  TO  A  SCHEDULE   OF   COMPENSATION
PRESCRIBED  BY THE COMMISSION, JANITORIAL SERVICES AND UTILITY SUPPLIES,
IF ANY, LICENSE FEES, AND THE COST OF BUS TRANSPORTATION, IF  AUTHORIZED
BY THE CLERK OR DEPARTMENT;
  (D) IN RELATION TO THE GROSS RENT RECEIVED BY AN ORGANIZATION LICENSED
TO  CONDUCT  BINGO  FOR THE USE OF ITS PREMISES BY ANOTHER LICENSEE, THE
AMOUNT THAT REMAINS AFTER DEDUCTING THE REASONABLE SUMS NECESSARILY  AND
ACTUALLY  EXPENDED FOR JANITORIAL SERVICES AND UTILITY SUPPLIES DIRECTLY
ATTRIBUTABLE THERETO IF ANY; AND
  (E) IN RELATION TO THE GROSS RENT RECEIVED BY AN AUTHORIZED  GAMES  OF
CHANCE  LESSOR FOR THE USE OF ITS PREMISES BY A GAME OF CHANCE LICENSEE,
THE AMOUNT THAT SHALL REMAIN AFTER DEDUCTING THE REASONABLE SUMS  NECES-

S. 2009                            110                           A. 3009

SARILY  AND  ACTUALLY  EXPENDED  FOR  JANITORIAL  SERVICES  AND  UTILITY
SUPPLIES DIRECTLY ATTRIBUTABLE THERETO IF ANY.
  24. (A) "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
SINGLE  TYPE  OF GAME OF CHANCE THAT RESULTS IN THE AWARDING OF A SERIES
OF PRIZES AMOUNTING TO FIVE HUNDRED  DOLLARS  OR  FOUR  HUNDRED  DOLLARS
DURING  ANY  ONE  LICENSE  PERIOD,  IN ACCORDANCE WITH THE PROVISIONS OF
SUBDIVISION EIGHT OF SECTION FIFTEEN HUNDRED FIFTY-FOUR OF THIS ARTICLE,
AS THE CASE MAY BE.
  (B) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A MERCHANDISE WHEEL OR
A RAFFLE, "ONE OCCASION" SHALL MEAN THE SUCCESSIVE OPERATIONS OF ANY ONE
SUCH MERCHANDISE WHEEL OR RAFFLE FOR WHICH THE  LIMIT  ON  A  SERIES  OF
PRIZES PROVIDED BY SUBDIVISION SIX OF SECTION FIFTEEN HUNDRED FIFTY-FOUR
OF THIS ARTICLE SHALL APPLY.
  (C) FOR PURPOSES OF THE GAME OF CHANCE KNOWN AS A BELL JAR, "ONE OCCA-
SION" SHALL MEAN THE SUCCESSIVE OPERATION OF ANY ONE SUCH BELL JAR, SEAL
CARD,  EVENT  GAME, COIN BOARD, OR MERCHANDISE BOARD THAT RESULTS IN THE
AWARDING OF A SERIES OF PRIZES AMOUNTING TO SIX THOUSAND DOLLARS.
  (D) FOR THE PURPOSES OF THE GAME OF CHANCE KNOWN AS RAFFLE "ONE  OCCA-
SION"  SHALL  MEAN A CALENDAR YEAR DURING WHICH SUCCESSIVE OPERATIONS OF
SUCH GAME ARE CONDUCTED.
  25. "OPERATION" SHALL MEAN, IN REGARD TO A GAME OF CHANCE, THE PLAY OF
A SINGLE TYPE OF GAME OF CHANCE NECESSARY TO DETERMINE  THE  OUTCOME  OR
WINNERS  EACH TIME WAGERS ARE MADE. A SINGLE DRAWING OF A WINNING TICKET
OR OTHER RECEIPT IN A RAFFLE SHALL BE DEEMED ONE OPERATION.
  26. "PREMISES" SHALL MEAN, IN REGARD TO GAMES OF CHANCE, A  DESIGNATED
AREA  WITHIN A BUILDING, HALL, TENT OR GROUNDS REASONABLY IDENTIFIED FOR
THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN SHALL REQUIRE  SUCH  AREA
TO BE ENCLOSED.
  27.  "PRIZE,"  WHERE  SUPERCARD  IS PLAYED AS SET FORTH IN SUBDIVISION
THIRTY-THREE OF THIS SECTION, SHALL MEAN THE  SUM  OF  MONEY  OR  ACTUAL
VALUE  OF  MERCHANDISE  AWARDED  TO THE WINNER OR WINNERS ON A GAME CARD
DURING A GAME OF BINGO AND THE SUM OF MONEY OR ACTUAL VALUE OF  MERCHAN-
DISE  AWARDED  TO  THE WINNER OR WINNERS ON A SUPERCARD IN EXCESS OF THE
TOTAL RECEIPTS DERIVED FROM THE SALE OF  SUPERCARDS  FOR  THAT  SPECIFIC
GAME.
  28.  "RAFFLE"  SHALL MEAN AND INCLUDE THOSE GAMES OF CHANCE IN WHICH A
PARTICIPANT PAYS MONEY IN RETURN FOR A TICKET OR OTHER  RECEIPT  AND  IN
WHICH  A  PRIZE  IS AWARDED ON THE BASIS OF A WINNING NUMBER OR NUMBERS,
COLOR OR COLORS, OR SYMBOL  OR  SYMBOLS  DESIGNATED  ON  THE  TICKET  OR
RECEIPT, DETERMINED BY CHANCE AS A RESULT OF:
  (A) A DRAWING FROM AMONG THOSE TICKETS OR RECEIPTS PREVIOUSLY SOLD; OR
  (B)  A  RANDOM  EVENT, THE RESULTS OF WHICH CORRESPOND WITH TICKETS OR
RECEIPTS PREVIOUSLY SOLD.
  29. "SEAL CARDS" SHALL MEAN A BOARD OR  PLACARD  USED  IN  CONJUNCTION
WITH  A  DEAL  OF  THE  SAME  SERIAL  NUMBER  THAT  CONTAINS ONE OR MORE
CONCEALED AREAS THAT, WHEN REMOVED OR  OPENED,  REVEAL  A  PREDESIGNATED
WINNING NUMBER, LETTER OR SYMBOL LOCATED ON THE BOARD OR PLACARD. A SEAL
CARD  USED  IN  CONJUNCTION  WITH AN EVENT GAME SHALL NOT BE REQUIRED TO
CONTAIN LINES FOR PROSPECTIVE SEAL WINNERS TO SIGN THEIR NAME.
  30. "SERIES OF PRIZES" SHALL MEAN THE TOTAL AMOUNT  OF  SINGLE  PRIZES
MINUS  THE  TOTAL AMOUNT OF WAGERS LOST DURING THE SUCCESSIVE OPERATIONS
OF A SINGLE TYPE OF GAME OF CHANCE, EXCEPT THAT FOR  MERCHANDISE  WHEELS
AND  RAFFLES, "SERIES OF PRIZES" SHALL MEAN THE SUM OF CASH AND THE FAIR
MARKET VALUE OF MERCHANDISE AWARDED AS SINGLE PRIZES DURING THE  SUCCES-
SIVE  OPERATIONS  OF ANY SINGLE MERCHANDISE WHEEL OR RAFFLE. IN THE GAME

S. 2009                            111                           A. 3009

OF RAFFLE, A SERIES OF PRIZES MAY INCLUDE A PERCENTAGE  OF  THE  SUM  OF
CASH RECEIVED FROM THE SALE OF RAFFLE TICKETS.
  31. "SINGLE PRIZE" SHALL MEAN THE SUM OF MONEY OR FAIR MARKET VALUE OF
MERCHANDISE  OR  COINS  AWARDED  TO  A  PARTICIPANT BY A GAMES OF CHANCE
LICENSEE IN ANY ONE OPERATION OF A SINGLE TYPE  OF  GAME  OF  CHANCE  IN
EXCESS OF HIS OR HER WAGER.
  32.  "SINGLE  TYPE  OF  GAME"  SHALL MEAN THE GAMES OF CHANCE KNOWN AS
MERCHANDISE  WHEELS,  COIN  BOARDS,  MERCHANDISE  BOARDS,  EVENT  GAMES,
RAFFLES  AND BELL JARS AND EACH OTHER SPECIFIC GAME OF CHANCE AUTHORIZED
BY THE COMMISSION.
  33. "SUPERCARD" SHALL MEAN A BINGO CARD ON WHICH PRIZES  ARE  AWARDED,
WHICH  CARD  IS  SELECTED  BY  THE  PLAYER,  CONTAINING  FIVE DESIGNATED
NUMBERS, COLORS OR SYMBOLS, CORRESPONDING TO THE LETTERS B, I, N, G,  O,
DISPLAYED  ON  THE BINGO BOARD OF THE BINGO PREMISES OPERATOR, WHICH CAN
BE PLAYED CONCURRENTLY WITH THE OTHER BINGO CARDS PLAYED DURING THE GAME
OF BINGO.
  § 1501. FORMS. THE COMMISSION SHALL, TO THE GREATEST EXTENT  PRACTICA-
BLE,  MAKE  FORMS  AND  APPLICATIONS REQUIRED BY THIS ARTICLE OR RELATED
RULES AND REGULATIONS OF THE COMMISSION AVAILABLE IN ELECTRONIC  FORMATS
THAT  MINIMIZE  PAPERWORK  AND  ARE  DESIGNED TO MAXIMIZE EFFICIENCY FOR
AUTHORIZED ORGANIZATIONS, MUNICIPALITIES AND THE COMMISSION.
  § 1502. PARTICIPATION BY PERSONS UNDER THE AGE OF  EIGHTEEN.  1.    NO
PERSON  UNDER  THE  AGE OF EIGHTEEN YEARS SHALL BE PERMITTED TO PLAY ANY
GAME OF BINGO OR ANY GAME OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.
  2. NO PERSON UNDER THE AGE OF EIGHTEEN YEARS  SHALL  BE  PERMITTED  TO
CONDUCT,  OPERATE  OR ASSIST IN THE CONDUCT OF ANY GAME OF BINGO OR GAME
OF CHANCE CONDUCTED PURSUANT TO THIS ARTICLE.
  3. PERSONS UNDER THE AGE OF EIGHTEEN YEARS MAY BE PERMITTED TO  ATTEND
GAMES OF CHANCE AT THE DISCRETION OF THE GAMES OF CHANCE LICENSEE.
  §  1503.  SUNDAYS.  A  MUNICIPALITY  MAY RESTRICT A LICENSE TO CONDUCT
BINGO OR GAMES OF CHANCE BY PROVIDING THAT NO BINGO OR GAMES  OF  CHANCE
SHALL  BE  CONDUCTED  ON  THE  FIRST  DAY OF THE WEEK, COMMONLY KNOWN AS
SUNDAY, IF THE PROVISIONS OF A LOCAL LAW OR AN ORDINANCE DULY ADOPTED BY
THE GOVERNING BODY OF THE MUNICIPALITY ISSUING THE LICENSE PROHIBITS THE
CONDUCT OF BINGO OR GAMES OF CHANCE PURSUANT TO THIS TITLE ON SUCH DAYS.
  § 1504. ADVERTISING OF CHARITABLE GAMES. A LICENSEE MAY ADVERTISE  THE
CONDUCT  OF AN OCCASION OF BINGO OR GAMES OF CHANCE EVENT TO THE GENERAL
PUBLIC BY MEANS OF NEWSPAPER, RADIO, CIRCULAR, HANDBILL AND  POSTER,  BY
ONE SIGN NOT EXCEEDING SIXTY SQUARE FEET IN AREA, WHICH MAY BE DISPLAYED
ON  OR  ADJACENT TO THE PREMISES OWNED OR OCCUPIED BY A LICENSED AUTHOR-
IZED ORGANIZATION, BY OTHER SIGNS AS MAY BE PERMITTED BY THE  RULES  AND
REGULATIONS OF THE COMMISSION AND THROUGH THE INTERNET AS MAY BE PERMIT-
TED BY THE RULES AND REGULATIONS OF THE COMMISSION. WHEN AN ORGANIZATION
IS  LICENSED OR AUTHORIZED TO CONDUCT BINGO OCCASIONS OR GAMES OF CHANCE
EVENTS ON THE PREMISES OF ANOTHER LICENSED AUTHORIZED ORGANIZATION OR OF
AN AUTHORIZED BINGO LESSOR OR AUTHORIZED GAMES  OF  CHANCE  LESSOR,  ONE
ADDITIONAL  SUCH SIGN MAY BE DISPLAYED ON OR ADJACENT TO THE PREMISES IN
WHICH THE OCCASIONS  ARE  TO  BE  CONDUCTED.  ADDITIONAL  SIGNS  MAY  BE
DISPLAYED  UPON  ANY  FIREFIGHTING  EQUIPMENT  BELONGING TO ANY LICENSED
AUTHORIZED ORGANIZATION THAT IS A VOLUNTEER FIRE COMPANY,  OR  UPON  ANY
EQUIPMENT OF A FIRST AID OR RESCUE SQUAD IN AND THROUGHOUT THE COMMUNITY
SERVED BY SUCH VOLUNTEER FIRE COMPANY OR SUCH FIRST AID OR RESCUE SQUAD,
AS THE CASE MAY BE. ALL ADVERTISEMENTS SHALL BE LIMITED TO:
  (A)  THE  DESCRIPTION  OF  SUCH EVENT AS "BINGO," "GAMES OF CHANCE" OR
"CASINO NIGHT," AS THE CASE MAY BE;

S. 2009                            112                           A. 3009

  (B) THE NAME OF THE  AUTHORIZED  ORGANIZATION  CONDUCTING  SUCH  BINGO
OCCASIONS OR GAMES OF CHANCE;
  (C)  THE  LICENSE NUMBER OF THE AUTHORIZED ORGANIZATION AS ASSIGNED BY
THE CLERK OR DEPARTMENT;
  (D) THE PRIZES OFFERED; AND
  (E) THE DATE, LOCATION AND TIME OF THE  BINGO  OCCASION  OR  GAMES  OF
CHANCE EVENT.
  §  1505. SANCTIONS FOR VIOLATIONS. THE COMMISSION SHALL HAVE THE POWER
TO ISSUE LETTERS OF REPRIMAND OR IMPOSE FINES IN ANY AMOUNT  UP  TO  THE
MAXIMUM  AUTHORIZED  BY  SECTION ONE HUNDRED SIXTEEN OF THIS CHAPTER FOR
ANY VIOLATION OF THIS ARTICLE  OR  THE  RULES  AND  REGULATIONS  OF  THE
COMMISSION. A PERSON OR ENTITY THAT HAS BEEN FINED MAY REQUEST A DE NOVO
HEARING  BEFORE THE COMMISSION TO REVIEW AND DETERMINE SUCH FINE, PURSU-
ANT TO THE RULES AND REGULATIONS OF THE COMMISSION.
  § 1506. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
TION THEREOF TO ANY  MUNICIPALITY,  PERSON  OR  CIRCUMSTANCES  SHALL  BE
ADJUDGED  UNCONSTITUTIONAL  BY  ANY COURT OF COMPETENT JURISDICTION, THE
REMAINDER OF THIS ARTICLE OR THE APPLICATION THEREOF  TO  OTHER  MUNICI-
PALITIES,  PERSONS  AND CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY, AND
THE LEGISLATURE HEREBY DECLARES THAT IT WOULD HAVE  ENACTED  THIS  TITLE
WITHOUT  THE  INVALID  PROVISION OR APPLICATION, AS THE CASE MAY BE, HAD
SUCH INVALIDITY BEEN APPARENT.
                                 TITLE 2
                              BINGO CONTROL
SECTION 1510. SHORT TITLE.
        1511. PURPOSE OF TITLE.
        1512. OTHER AGENCY ASSISTANCE.
        1513. POWERS AND DUTIES OF THE COMMISSION.
        1514. HEARINGS; IMMUNITY.
        1515. PLACE OF INVESTIGATIONS AND HEARINGS; WITNESSES; BOOKS AND
                DOCUMENTS.
        1516. PRIVILEGE AGAINST SELF-INCRIMINATION.
        1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS.
        1518. MUNICIPALITY TO FILE COPIES OF LOCAL LAWS AND  ORDINANCES;
                REPORTS.
  § 1510. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
BINGO CONTROL LAW.
  §  1511.  PURPOSE  OF TITLE. THE PURPOSE OF THIS TITLE IS TO IMPLEMENT
SECTION NINE OF ARTICLE ONE OF THE STATE  CONSTITUTION,  AS  AMENDED  BY
VOTE OF THE PEOPLE AT THE GENERAL ELECTION IN NOVEMBER, NINETEEN HUNDRED
FIFTY-SEVEN.  THE  LEGISLATURE HEREBY DECLARES THAT THE RAISING OF FUNDS
FOR THE PROMOTION OF  BONA  FIDE  CHARITABLE,  EDUCATIONAL,  SCIENTIFIC,
HEALTH,  RELIGIOUS,  CIVIC  AND PATRIOTIC CAUSES AND UNDERTAKINGS, WHERE
THE BENEFICIARIES ARE INDEFINITE, IS IN THE PUBLIC INTEREST.  IT  HEREBY
FINDS THAT, AS CONDUCTED PRIOR TO THE ENACTMENT OF THIS TITLE, BINGO WAS
THE  SUBJECT  OF  EXPLOITATION  BY  PROFESSIONAL GAMBLERS, PROMOTERS AND
COMMERCIAL INTERESTS. IT IS HEREBY DECLARED TO  BE  THE  POLICY  OF  THE
LEGISLATURE  THAT ALL PHASES OF THE SUPERVISION, LICENSING AND THE REGU-
LATION OF BINGO AND OF THE CONDUCT OF BINGO GAMES, SHOULD BE  CONTROLLED
CLOSELY  AND  THAT THE LAWS AND REGULATIONS PERTAINING THERETO SHOULD BE
CONSTRUED STRICTLY AND ENFORCED RIGIDLY; THAT THE CONDUCT OF  BINGO  AND
ALL ATTENDANT ACTIVITIES SHOULD BE SO REGULATED AND ADEQUATE CONTROLS SO
INSTITUTED  AS TO DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS, INCLUD-
ING THE RENTAL OF COMMERCIAL PREMISES FOR BINGO GAMES, AND TO  ENSURE  A
MAXIMUM AVAILABILITY OF THE NET PROCEEDS OF BINGO EXCLUSIVELY FOR APPLI-
CATION  TO THE WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT THE

S. 2009                            113                           A. 3009

ONLY JUSTIFICATION FOR THIS TITLE IS TO FOSTER AND SUPPORT  SUCH  WORTHY
CAUSES AND UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE
ONE  OF  THE  STATE  CONSTITUTION,  AS AMENDED, SHOULD BE CARRIED OUT BY
RIGID  REGULATION  TO  PREVENT  COMMERCIALIZED GAMBLING, PREVENT PARTIC-
IPATION BY CRIMINAL AND  OTHER  UNDESIRABLE  ELEMENTS  AND  PREVENT  THE
DIVERSION OF FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
  §  1512.  OTHER  AGENCY ASSISTANCE. TO EFFECTUATE THE PURPOSES OF THIS
TITLE, THE GOVERNOR  MAY  AUTHORIZE  ANY  DEPARTMENT,  DIVISION,  BOARD,
BUREAU,  COMMISSION  OR AGENCY OF THE STATE OR IN ANY POLITICAL SUBDIVI-
SION THEREOF TO PROVIDE SUCH FACILITIES, ASSISTANCE  AND  DATA  AS  WILL
ENABLE  THE COMMISSION PROPERLY TO CARRY OUT ITS ACTIVITIES AND EFFECTU-
ATE ITS PURPOSES HEREUNDER.
  § 1513. POWERS AND DUTIES OF THE COMMISSION. 1. THE  COMMISSION  SHALL
HAVE THE POWER AND IT SHALL BE ITS DUTY TO:
  (A) SUPERVISE THE ADMINISTRATION OF THE BINGO LICENSING LAW AND ADOPT,
AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSUANCE AND AMEND-
MENT  OF  LICENSES  THEREUNDER  AND  THE  CONDUCTING OF BINGO UNDER SUCH
LICENSES, WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE AND EFFECT OF
LAW AND SHALL BE BINDING UPON ALL MUNICIPALITIES  ISSUING  LICENSES  AND
UPON  LICENSEES  THEREUNDER  AND LICENSEES OF THE COMMISSION, TO THE END
THAT SUCH LICENSES SHALL BE ISSUED TO QUALIFIED LICENSEES ONLY AND  THAT
SAID BINGO GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES
AND  IN  THE  MANNER  IN  THE SAID BINGO LICENSING LAW PRESCRIBED AND TO
PREVENT THE BINGO GAMES THEREBY AUTHORIZED TO BE  CONDUCTED  FROM  BEING
CONDUCTED  FOR  COMMERCIAL PURPOSES OR PURPOSES OTHER THAN THOSE THEREIN
AUTHORIZED, PARTICIPATED IN BY CRIMINAL OR  OTHER  UNDESIRABLE  ELEMENTS
AND  THE  FUNDS  DERIVED  FROM  THE  BINGO GAMES BEING DIVERTED FROM THE
PURPOSES AUTHORIZED, AND, TO PROVIDE UNIFORMITY IN THE ADMINISTRATION OF
SAID LAW THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE  FORMS  OF
APPLICATION  FOR  LICENSES,  LICENSES, AMENDMENT OF LICENSES, REPORTS OF
THE CONDUCT OF BINGO GAMES AND OTHER MATTERS INCIDENT  TO  THE  ADMINIS-
TRATION OF SUCH LAW;
  (B) CONDUCT, ANYWHERE WITHIN THE STATE, INVESTIGATIONS OF THE ADMINIS-
TRATION,  ENFORCEMENT  AND  POTENTIAL  OR ACTUAL VIOLATIONS OF THE BINGO
LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION;
  (C) REVIEW ALL DETERMINATIONS AND ACTIONS OF THE  MUNICIPAL  GOVERNING
BODY IN ISSUING AN INITIAL LICENSE AND REVIEW THE ISSUANCE OF SUBSEQUENT
LICENSES  AND,  AFTER  HEARING, REVOKE THOSE LICENSES THAT DO NOT IN ALL
RESPECTS MEET THE REQUIREMENTS OF THIS TITLE AND  THE  RULES  AND  REGU-
LATIONS OF THE COMMISSION;
  (D)  SUSPEND  OR REVOKE A LICENSE, AFTER HEARING, FOR ANY VIOLATION OF
THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
SION;
  (E) HEAR APPEALS FROM THE DETERMINATIONS AND ACTION OF  THE  MUNICIPAL
GOVERNING  BODY  IN  CONNECTION WITH THE REFUSING TO ISSUE LICENSES, THE
SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION OF FINES IN THE
MANNER PRESCRIBED BY LAW AND THE ACTION AND DETERMINATION OF THE COMMIS-
SION UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE MUNICIPAL  GOVERNING
BODY AND ALL PARTIES THERETO;
  (F)  INITIATE  PROSECUTIONS  FOR  VIOLATIONS  OF THIS TITLE AND OF THE
BINGO LICENSING LAW;
  (G) CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE BINGO  LICENSING
LAW  TO  ASCERTAIN  FROM  TIME  TO  TIME DEFECTS THEREIN JEOPARDIZING OR
THREATENING TO JEOPARDIZE THE PURPOSES OF THIS TITLE  AND  TO  FORMULATE
AND  RECOMMEND  CHANGES  IN SUCH LAW AND IN OTHER LAWS OF THE STATE THAT
THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZATION OF SUCH

S. 2009                            114                           A. 3009

PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF  THE  OPERA-
TION  AND  ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT IN OTHER
STATES OF THE UNITED STATES;
  (H) SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
BINGO BY AUTHORIZED ORGANIZATIONS NOT CURRENTLY LICENSED TO CONDUCT SUCH
BINGO GAMES; AND
  (I)  ISSUE  AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGAN-
IZATION IF THE COMMISSION DETERMINES THAT THE  APPLICANT  SATISFIES  THE
REQUIREMENTS OF THE BINGO LICENSING LAW AND THE RULES AND REGULATIONS OF
THE COMMISSION.
  2. (A) THE COMMISSION SHALL HAVE THE POWER TO ISSUE OR, AFTER HEARING,
REFUSE  TO  ISSUE  A LICENSE PERMITTING A PERSON, FIRM OR CORPORATION TO
SELL OR DISTRIBUTE TO ANY OTHER PERSON, FIRM OR CORPORATION  ENGAGED  IN
BUSINESS  AS A WHOLESALER, JOBBER, DISTRIBUTOR OR RETAILER OF ALL CARDS,
BOARDS, SHEETS, PADS AND  ALL  OTHER  SUPPLIES,  DEVICES  AND  EQUIPMENT
DESIGNED  FOR  USE IN THE PLAY OF BINGO BY AN ORGANIZATION DULY LICENSED
TO CONDUCT BINGO GAMES OR TO  SELL  OR  DISTRIBUTE  ANY  SUCH  MATERIALS
DIRECTLY  TO  SUCH AN ORGANIZATION. FOR THE PURPOSES OF THIS SECTION THE
WORDS "SELL  OR  DISTRIBUTE"  SHALL  INCLUDE,  WITHOUT  LIMITATION,  THE
FOLLOWING  ACTIVITIES: OFFERING FOR SALE, RECEIVING, HANDLING, MAINTAIN-
ING, STORING THE SAME ON BEHALF OF SUCH AN ORGANIZATION, DISTRIBUTING OR
PROVIDING THE SAME TO SUCH AN ORGANIZATION  AND  OFFERING  FOR  SALE  OR
LEASE  BINGO DEVICES AND EQUIPMENT. EACH SUCH LICENSE SHALL BE VALID FOR
ONE YEAR.
  (B) (1) NO PERSON, FIRM OR CORPORATION,  OTHER  THAN  AN  ORGANIZATION
THAT  IS OR HAS BEEN DURING THE PRECEDING TWELVE MONTHS DULY LICENSED TO
CONDUCT BINGO GAMES, SHALL SELL OR DISTRIBUTE BINGO SUPPLIES  OR  EQUIP-
MENT  WITHOUT  HAVING  FIRST  OBTAINED  A  LICENSE THEREFOR UPON WRITTEN
APPLICATION MADE, VERIFIED AND FILED WITH THE  COMMISSION  IN  THE  FORM
PRESCRIBED BY THE RULES AND REGULATIONS OF THE COMMISSION.
  (2)  THE  COMMISSION,  AS  A  PART OF ITS DETERMINATION CONCERNING THE
APPLICANT'S SUITABILITY FOR LICENSING AS A BINGO SUPPLIER, SHALL REQUIRE
THE APPLICANT TO FURNISH TO THE COMMISSION  TWO  SETS  OF  FINGERPRINTS.
SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK, AS DEFINED IN SUBDI-
VISION  ONE  OF SECTION THREE THOUSAND THIRTY-FIVE OF THE EDUCATION LAW,
AND MAY BE SUBMITTED TO  THE  FEDERAL  BUREAU  OF  INVESTIGATION  FOR  A
NATIONAL CRIMINAL HISTORY RECORD CHECK.
  (3) IN EACH SUCH APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL BE
STATED:
  (I) THE NAME AND ADDRESS OF THE APPLICANT;
  (II)  THE NAMES AND ADDRESSES OF ITS OFFICERS, DIRECTORS, SHAREHOLDERS
OR PARTNERS;
  (III) THE AMOUNT OF GROSS RECEIPTS REALIZED ON THE  SALE  OR  DISTRIB-
UTION  OF  BINGO  SUPPLIES  AND EQUIPMENT TO DULY LICENSED ORGANIZATIONS
DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR; AND
  (IV) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY SUCH  RULES  AND
REGULATIONS.
  (4)  THE  FEE FOR SUCH LICENSE SHALL BE AS PRESCRIBED BY REGULATION OF
THE COMMISSION, WHICH SHALL TAKE INTO  ACCOUNT  THE  QUANTITY  OF  GROSS
SALES OF THE APPLICANT.
  (C) THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
  (1)  A  PERSON  CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE  INTEGRITY
OF  BINGO,  CONSIDERING  THE  FACTORS SET FORTH IN SECTION SEVEN HUNDRED
FIFTY-THREE OF THE CORRECTION LAW;

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  (2) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
  (3) A PUBLIC OFFICER OR EMPLOYEE;
  (4) AN OPERATOR OR PROPRIETOR OF A COMMERCIAL HALL DULY LICENSED UNDER
THE BINGO LICENSING LAW; AND
  (5)  A  FIRM  OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
ONE, TWO, THREE OR FOUR OF  THIS  PARAGRAPH,  OR  A  PERSON  MARRIED  OR
RELATED  IN  THE  FIRST  DEGREE TO SUCH A PERSON, HAS GREATER THAN A TEN
PERCENT PROPRIETARY, EQUITABLE OR CREDIT INTEREST OR  IN  WHICH  SUCH  A
PERSON IS ACTIVE OR EMPLOYED.
  (D) THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED
THE  BOOKS  AND RECORDS OF ANY APPLICANT FOR A LICENSE, OR ANY LICENSEE,
UNDER THIS SECTION. ANY INFORMATION SO RECEIVED SHALL NOT  BE  DISCLOSED
EXCEPT  SO  FAR  AS MAY BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE
PROVISIONS OF THIS ARTICLE.
  (E) ANY SOLICITATION OF AN  ORGANIZATION  LICENSED  TO  CONDUCT  BINGO
GAMES,  TO  PURCHASE OR INDUCE THE PURCHASE OF BINGO SUPPLIES AND EQUIP-
MENT, OR ANY REPRESENTATION, STATEMENT OR INQUIRY DESIGNED OR REASONABLY
TENDING TO INFLUENCE SUCH AN ORGANIZATION TO PURCHASE  THE  SAME,  OTHER
THAN  BY  A  PERSON  LICENSED  OR  OTHERWISE AUTHORIZED PURSUANT TO THIS
SECTION SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
  (F) ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN ANY
APPLICATION FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER  THIS  TITLE  OR
WHO  WILLFULLY  VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR OF ANY
LICENSE ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN  ADDI-
TION  TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT ANY
LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
  (G) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION SHALL  BE  MADE
AS BETWEEN THE LICENSEE AND THE COMMISSION IN RESPECT OF THE GROSS SALES
ACTUALLY  RECORDED  DURING THE LICENSE PERIOD AND THE FEE PAID THEREFOR,
AND ANY DEFICIENCY OF FEE THEREBY SHOWN TO BE DUE SHALL BE PAID  BY  THE
LICENSEE  AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID SHALL BE
CREDITED TO SAID LICENSEE IN SUCH MANNER AS THE COMMISSION BY THE  RULES
AND REGULATIONS SHALL PRESCRIBE.
  3.  THE  COMMISSION  SHALL  HAVE  THE POWER TO APPROVE AND ESTABLISH A
STANDARD SET OF BINGO CARDS COMPRISING A CONSECUTIVELY  NUMBERED  SERIES
AND  SHALL  BY  RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH SUCH
CARDS ARE TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
OF ANY CARD OR CARDS OTHER THAN THOSE CONTAINED IN THE STANDARD  SET  OF
BINGO  CARDS  SHALL  CONSTITUTE  A  VIOLATION  OF THIS SECTION. LICENSED
AUTHORIZED ORGANIZATIONS SHALL NOT BE REQUIRED TO USE  NOR  TO  MAINTAIN
SUCH  CARDS  SERIATIM  EXCEPTING  THAT  THE  SAME MAY BE REQUIRED IN THE
CONDUCT OF LIMITED-PERIOD BINGO GAMES.
  § 1514. HEARINGS; IMMUNITY. 1. A HEARING  UPON  ANY  INVESTIGATION  OR
REVIEW  AUTHORIZED  BY  THIS  ARTICLE  MAY  BE  CONDUCTED BY TWO OR MORE
MEMBERS OF THE COMMISSION OR BY A HEARING OFFICER DULY DESIGNATED BY THE
COMMISSION, AS THE COMMISSION SHALL DETERMINE.
  2. A PERSON WHO HAS VIOLATED ANY PROVISION OF THIS ARTICLE, OR OF  THE
RULES  AND  REGULATIONS  OF  THE  COMMISSION, OR ANY TERM OF ANY LICENSE
ISSUED UNDER THIS ARTICLE OR SUCH RULES AND REGULATIONS, IS A  COMPETENT
WITNESS  AGAINST  ANOTHER  PERSON  SO  CHARGED.  IN ANY HEARING UPON ANY
INVESTIGATION OR REVIEW AUTHORIZED BY THIS ARTICLE, FOR OR RELATING TO A
VIOLATION OF ANY PROVISION OF SAID ARTICLE OR OF  THE  RULES  AND  REGU-
LATIONS  OF  THE  COMMISSION  OR  OF  THE  TERM OF ANY SUCH LICENSE, THE

S. 2009                            116                           A. 3009

COMMISSION MAY CONFER IMMUNITY UPON SUCH WITNESS IN ACCORDANCE WITH  THE
PROVISIONS OF SECTION 50.20 OF THE CRIMINAL PROCEDURE LAW.  SUCH IMMUNI-
TY  SHALL  BE  CONFERRED ONLY UPON THE VOTE OF AT LEAST THREE MEMBERS OF
THE  COMMISSION  AND  ONLY  AFTER AFFORDING THE ATTORNEY GENERAL AND THE
APPROPRIATE DISTRICT ATTORNEY A REASONABLE OPPORTUNITY TO BE HEARD  WITH
RESPECT  TO  ANY  OBJECTIONS THAT THEY OR EITHER OF THEM MAY HAVE TO THE
GRANTING OF SUCH IMMUNITY.
  § 1515. PLACE OF INVESTIGATIONS AND  HEARINGS;  WITNESSES;  BOOKS  AND
DOCUMENTS. THE COMMISSION MAY CONDUCT INVESTIGATIONS AND HEARINGS WITHIN
OR  WITHOUT  THE  STATE AND SHALL HAVE POWER TO COMPEL THE ATTENDANCE OF
WITNESSES,  THE  PRODUCTION  OF  BOOKS,  RECORDS,  DOCUMENTS  AND  OTHER
EVIDENCE  BY THE ISSUANCE OF A SUBPOENA SIGNED BY A PERSON AUTHORIZED BY
THE COMMISSION TO DO SO.
  § 1516. PRIVILEGE AGAINST SELF-INCRIMINATION. THE WILLFUL  REFUSAL  TO
ANSWER  A  MATERIAL QUESTION OR THE ASSERTION OF PRIVILEGE AGAINST SELF-
INCRIMINATION DURING A HEARING UPON ANY INVESTIGATION OR REVIEW  AUTHOR-
IZED  BY  THIS ARTICLE BY ANY LICENSEE OR ANY PERSON IDENTIFIED WITH ANY
LICENSEE AS AN OFFICER, DIRECTOR, STOCKHOLDER, PARTNER, MEMBER, EMPLOYEE
OR AGENT THEREOF SHALL CONSTITUTE SUFFICIENT CAUSE FOR THE REVOCATION OR
SUSPENSION OF ANY LICENSE ISSUED UNDER THIS TITLE OR UNDER THE LICENSING
LAW, AS THE COMMISSION OR AS THE MUNICIPAL GOVERNING BODY MAY DETERMINE.
  § 1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS.  A  COPY  OF
EVERY  RULE  AND  REGULATION  ADOPTED  AND PROMULGATED BY THE COMMISSION
SHALL BE MADE AVAILABLE TO THE VARIOUS  MUNICIPALITIES  OPERATING  UNDER
THE BINGO LICENSING LAW.
  §  1518.  MUNICIPALITY  TO  FILE  COPIES OF LOCAL LAWS AND ORDINANCES;
REPORTS.  EACH MUNICIPALITY IN WHICH THE BINGO LICENSING LAW IS  ADOPTED
SHALL  FILE  WITH  THE  COMMISSION A COPY OF EACH LOCAL LAW OR ORDINANCE
ENACTED PURSUANT THERETO  WITHIN  TEN  DAYS  AFTER  THE  SAME  HAS  BEEN
APPROVED BY A MAJORITY OF THE ELECTORS VOTING ON A PROPOSITION SUBMITTED
AT  A GENERAL OR SPECIAL ELECTION, OR WITHIN TEN DAYS AFTER THE SAME HAS
BEEN AMENDED OR REPEALED BY THE COMMON COUNCIL OR OTHER  LOCAL  LEGISLA-
TIVE BODY AND ON OR BEFORE FEBRUARY FIRST OF EACH YEAR, AND AT ANY OTHER
TIME  OR  TIMES  THAT THE COMMISSION MAY DETERMINE, MAKE A REPORT TO THE
COMMISSION OF THE NUMBER OF LICENSES  ISSUED  THEREIN  UNDER  THE  BINGO
LICENSING  LAW,  THE NAMES AND ADDRESSES OF THE LICENSEES, THE AGGREGATE
AMOUNT OF LICENSE FEES COLLECTED, THE NAMES AND ADDRESSES OF ALL PERSONS
DETECTED OF VIOLATING THE BINGO LICENSING LAW, THIS TITLE OR  THE  RULES
AND  REGULATIONS  ADOPTED  BY THE COMMISSION PURSUANT HERETO, AND OF ALL
PERSONS PROSECUTED FOR SUCH VIOLATIONS AND THE RESULT OF EACH SUCH PROS-
ECUTION, THE PENALTIES IMPOSED THEREIN  DURING  THE  PRECEDING  CALENDAR
YEAR,  OR  THE PERIOD FOR WHICH THE REPORT IS REQUIRED, WHICH REPORT MAY
CONTAIN ANY RECOMMENDATIONS FOR IMPROVEMENT OF THE BINGO  LICENSING  LAW
OR  THE  ADMINISTRATION  THEREOF  THAT THE GOVERNING BODY OF THE MUNICI-
PALITY DEEMS DESIRABLE.
                                 TITLE 3
       LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS
SECTION 1520. SHORT TITLE; PURPOSE OF TITLE.
        1521. LOCAL OPTION.
        1522. LOCAL LAWS AND ORDINANCES.
        1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES.
        1524. APPLICATION FOR LICENSE.
        1525. INVESTIGATION;  MATTERS  TO  BE  DETERMINED;  ISSUANCE  OF
                LICENSE; FEES; DURATION OF LICENSE.
        1526. HEARING; AMENDMENT OF LICENSE.
        1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.

S. 2009                            117                           A. 3009

        1528. CONTROL   AND   SUPERVISION;   SUSPENSION   OF   LICENSES;
                INSPECTION OF PREMISES.
        1529. FREQUENCY OF GAME; SALE OF ALCOHOLIC BEVERAGES.
        1530. PERSONS  OPERATING  AND CONDUCTING BINGO GAMES; EQUIPMENT;
                EXPENSES; COMPENSATION.
        1531. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF  PRIZES;
                AWARD OF PRIZES.
        1532. STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES.
        1533. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
                ETC.; DISCLOSURE OF INFORMATION.
        1534. APPEALS FROM MUNICIPAL GOVERNING BODY TO COMMISSION.
        1535. EXEMPTION FROM PROSECUTION.
        1536. OFFENSES;  FORFEITURE  OF  LICENSE; INELIGIBILITY TO APPLY
                FOR LICENSE.
        1537. UNLAWFUL BINGO.
        1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
        1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
        1540. DELEGATION OF AUTHORITY.
        1541. POWERS AND DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
  § 1520. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE  KNOWN  AND
MAY BE CITED AS THE BINGO LICENSING LAW. THE LEGISLATURE HEREBY DECLARES
THAT  THE  RAISING  OF  FUNDS FOR THE PROMOTION OF BONA FIDE CHARITABLE,
EDUCATIONAL, SCIENTIFIC, HEALTH, RELIGIOUS, CIVIC AND  PATRIOTIC  CAUSES
AND  UNDERTAKINGS,  WHERE  THE  BENEFICIARIES  ARE INDEFINITE, IS IN THE
PUBLIC INTEREST. IT HEREBY FINDS THAT, AS CONDUCTED PRIOR TO THE  EFFEC-
TIVE  DATE  OF  THIS  TITLE,  BINGO  WAS  THE SUBJECT OF EXPLOITATION BY
PROFESSIONAL GAMBLERS, PROMOTERS, AND COMMERCIAL INTERESTS. IT IS HEREBY
DECLARED TO BE THE POLICY OF THE LEGISLATURE  THAT  ALL  PHASES  OF  THE
SUPERVISION,  LICENSING  AND  REGULATION  OF BINGO AND OF THE CONDUCT OF
BINGO GAMES, SHOULD BE CLOSELY CONTROLLED AND THAT THE  LAWS  AND  REGU-
LATIONS  PERTAINING  THERETO  SHOULD  BE  STRICTLY CONSTRUED AND RIGIDLY
ENFORCED; THAT THE CONDUCT OF THE BINGO GAME AND  ALL  ATTENDANT  ACTIV-
ITIES  SHOULD  BE SO REGULATED AND ADEQUATE CONTROLS SO INSTITUTED AS TO
DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS, INCLUDING THE  RENTAL  OF
COMMERCIAL PREMISES FOR BINGO GAMES, AND TO ENSURE A MAXIMUM AVAILABILI-
TY  OF  THE  NET  PROCEEDS  OF  BINGO EXCLUSIVELY FOR APPLICATION TO THE
WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT  THE  ONLY  JUSTI-
FICATION  FOR THIS TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND
UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE ONE OF THE
STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED  OUT  BY  RIGID  REGU-
LATION  TO  PREVENT  COMMERCIALIZED  GAMBLING,  PREVENT PARTICIPATION BY
CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND  PREVENT  THE  DIVERSION  OF
FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
  §  1521.  LOCAL  OPTION.  SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF  SECTION  NINE
OF  ARTICLE ONE OF THE CONSTITUTION OF THE STATE, THE LEGISLATURE HEREBY
GIVES AND GRANTS TO EVERY MUNICIPALITY THE RIGHT, POWER AND AUTHORITY TO
AUTHORIZE THE CONDUCT OF BINGO GAMES BY AUTHORIZED ORGANIZATIONS  WITHIN
THE  TERRITORIAL  LIMITS  OF  SUCH  MUNICIPALITY PROVIDED, HOWEVER, THAT
WHERE THE ELECTORS OF A VILLAGE HEREAFTER APPROVE A LOCAL LAW  OR  ORDI-
NANCE  PURSUANT  TO  SECTION FIFTEEN HUNDRED TWENTY-THREE OF THIS TITLE,
THE RIGHT, POWER AND AUTHORITY UNDER THIS TITLE OF  ANY  TOWN  IN  WHICH
SUCH  VILLAGE  IS  LOCATED  SHALL NOT EXTEND TO SUCH VILLAGE DURING SUCH
TIME AS SUCH VILLAGE LOCAL LAW OR ORDINANCE IS IN EFFECT.
  § 1522. LOCAL LAWS AND ORDINANCES. 1.  THE  COMMON  COUNCIL  OR  OTHER
LOCAL  LEGISLATIVE  BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL LAW OR

S. 2009                            118                           A. 3009

ORDINANCE, PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED  ORGANIZA-
TION,  UPON  OBTAINING  A LICENSE THEREFOR AS PROVIDED IN THIS TITLE, TO
CONDUCT THE GAME OF BINGO WITHIN THE TERRITORIAL LIMITS OF SUCH  MUNICI-
PALITY,  SUBJECT  TO  THE PROVISIONS OF SUCH LOCAL LAW OR ORDINANCE, THE
PROVISIONS OF THIS TITLE AND THE PROVISIONS OF THE BINGO CONTROL LAW.
  2. NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR  EFFECTIVE
UNLESS  AND  UNTIL  IT  HAS  BEEN APPROVED BY A MAJORITY OF THE ELECTORS
VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION  HELD
WITHIN  SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF SUCH
MUNICIPALITY.
  3.  THE  TIME,  METHOD  AND  MANNER  OF  SUBMISSION,  PREPARATION  AND
PROVISION  OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE AND
CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
RETURNS AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF  AND
ACTION  UPON  ANY  PROPOSITION FOR THE APPROVAL OF ANY SUCH LOCAL LAW OR
ORDINANCE SHALL BE THE SAME AS IN THE CASE OF ANY OTHER  PROPOSITION  TO
BE  SUBMITTED  TO  THE  ELECTORS  OF  SUCH  MUNICIPALITY AT A GENERAL OR
SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
  § 1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES. THE CONDUCT OF BINGO
GAMES AUTHORIZED BY LOCAL LAW OR  ORDINANCE  SHALL  BE  SUBJECT  TO  THE
FOLLOWING  RESTRICTIONS  WITHOUT REGARD TO WHETHER SUCH RESTRICTIONS ARE
CONTAINED IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING  IN  THIS  SECTION
SHALL  BE  CONSTRUED  TO  PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR
ORDINANCE OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON  THE
CONDUCT OF BINGO GAMES:
  1.  NO  PERSON,  FIRM, ASSOCIATION, CORPORATION OR ORGANIZATION, OTHER
THAN A LICENSEE UNDER THE PROVISIONS OF THIS TITLE, SHALL
  (A) CONDUCT BINGO; OR
  (B) LEASE OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING BINGO A  HALL  OR
OTHER  PREMISES  FOR  ANY  CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT,
WITHOUT OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
  2. NO BINGO GAMES SHALL BE HELD, OPERATED OR CONDUCTED  ON  OR  WITHIN
ANY  LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
PARTLY, ON THE BASIS OF A PERCENTAGE OF  THE  RECEIPTS  OR  NET  PROFITS
DERIVED FROM THE OPERATION OF SUCH GAME.
  3.  NO  AUTHORIZED  ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
TITLE SHALL PURCHASE, LEASE OR RECEIVE ANY SUPPLIES OR EQUIPMENT SPECIF-
ICALLY DESIGNED OR ADAPTED FOR USE IN THE CONDUCT OF  BINGO  GAMES  FROM
OTHER  THAN  A  SUPPLIER  LICENSED  UNDER  THE BINGO CONTROL LAW OR FROM
ANOTHER AUTHORIZED ORGANIZATION.
  4. THE ENTIRE NET PROCEEDS OF ANY GAME OF  BINGO  AND  OF  ANY  RENTAL
SHALL  BE DEVOTED EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE ORGANIZATION
PERMITTED TO CONDUCT THE SAME.
  5. NO PRIZE SHALL EXCEED THE SUM OR VALUE OF FIVE THOUSAND DOLLARS  IN
ANY SINGLE GAME OF BINGO.
  6.  NO SERIES OF PRIZES ON ANY ONE BINGO OCCASION SHALL AGGREGATE MORE
THAN FIFTEEN THOUSAND DOLLARS.
  7. NO PERSON EXCEPT A BONA FIDE MEMBER OF ANY SUCH ORGANIZATION  SHALL
PARTICIPATE IN THE MANAGEMENT OR OPERATION OF SUCH BINGO GAME.
  8.  NO  PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
MANAGEMENT OR OPERATION OF ANY GAME OF BINGO.
  9. THE UNAUTHORIZED CONDUCT OF A BINGO GAME AND ANY WILLFUL  VIOLATION
OF  ANY  PROVISION OF ANY LOCAL LAW OR ORDINANCE SHALL CONSTITUTE AND BE
PUNISHABLE AS A MISDEMEANOR.
  10. NO PERSON LICENSED TO SELL BINGO SUPPLIES  OR  EQUIPMENT,  OR  ANY
AGENT  OF  SUCH  PERSON,  SHALL CONDUCT, PARTICIPATE IN OR ASSIST IN THE

S. 2009                            119                           A. 3009

CONDUCT OF BINGO.  NOTHING HEREIN SHALL PROHIBIT A LICENSED  DISTRIBUTOR
FROM SELLING, OFFERING FOR SALE OR EXPLAINING A PRODUCT TO AN AUTHORIZED
ORGANIZATION  OR  INSTALLING OR SERVICING BINGO EQUIPMENT UPON THE PREM-
ISES OF A BINGO GAME LICENSEE.
  11.  LIMITED-PERIOD  BINGO  SHALL  BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF THIS TITLE AND THE RULES AND REGULATIONS  OF  THE  COMMIS-
SION.
  §  1524. APPLICATION FOR LICENSE. 1. TO CONDUCT BINGO. (A) EACH APPLI-
CANT FOR A LICENSE TO CONDUCT BINGO SHALL, AFTER OBTAINING AN  IDENTIFI-
CATION  NUMBER  FROM  THE COMMISSION, FILE WITH THE CLERK OF THE MUNICI-
PALITY AN APPLICATION THEREFOR IN THE FORM PRESCRIBED IN THE  RULES  AND
REGULATIONS OF THE COMMISSION, DULY EXECUTED AND VERIFIED, IN WHICH SUCH
APPLICANT SHALL STATE:
  (1)  THE  NAME  AND  ADDRESS OF THE APPLICANT TOGETHER WITH SUFFICIENT
FACTS RELATING TO SUCH APPLICANT'S  INCORPORATION  AND  ORGANIZATION  TO
ENABLE  THE  GOVERNING  BODY OF THE MUNICIPALITY TO DETERMINE WHETHER OR
NOT THE APPLICANT IS A BONA FIDE AUTHORIZED ORGANIZATION;
  (2) THE NAMES AND ADDRESSES OF THE APPLICANT'S OFFICERS;
  (3) THE PLACE OR PLACES WHERE, AND THE DATE OR DATES AND THE  TIME  OR
TIMES  WHEN,  THE  APPLICANT  INTENDS TO CONDUCT BINGO UNDER THE LICENSE
APPLIED FOR;
  (4) IN CASE THE APPLICANT INTENDS TO LEASE PREMISES FOR  THIS  PURPOSE
FROM  OTHER THAN AN AUTHORIZED ORGANIZATION, THE NAME AND ADDRESS OF THE
LICENSED BINGO LESSOR OF SUCH PREMISES, AND THE  CAPACITY  OR  POTENTIAL
CAPACITY FOR PUBLIC ASSEMBLY PURPOSES OF SPACE IN ANY PREMISES PRESENTLY
OWNED OR OCCUPIED BY THE APPLICANT;
  (5)  THE  AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
DIRECTLY OR INDIRECTLY FOR EACH OCCASION FOR  USE  OF  THE  PREMISES  OF
ANOTHER  AUTHORIZED  ORGANIZATION  LICENSED  UNDER THIS TITLE TO CONDUCT
BINGO OR FOR USE OF THE PREMISES OF A LICENSED BINGO LESSOR;
  (6) ALL OTHER ITEMS OF EXPENSE INTENDED TO  BE  INCURRED  OR  PAID  IN
CONNECTION  WITH  THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
BINGO AND THE NAMES AND ADDRESSES OF THE PERSONS  TO  BE  PAID  AND  THE
PURPOSES FOR WHICH SUCH PERSONS ARE TO BE PAID;
  (7)  THE  SPECIFIC  PURPOSES  TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
GAMES OF BINGO ARE TO BE DEVOTED AND IN WHAT MANNER;
  (8) THAT NO COMMISSION, SALARY,  COMPENSATION,  REWARD  OR  RECOMPENSE
WILL  BE  PAID  TO ANY PERSON FOR CONDUCTING SUCH BINGO GAME OR GAMES OR
FOR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE PROVIDED; AND
  (9) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED  BY  THE  RULES  AND
REGULATIONS OF THE COMMISSION.
  (B)  IN EACH APPLICATION THERE SHALL BE DESIGNATED AN ACTIVE MEMBER OR
MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE GAME  OR  GAMES  OF
BINGO  WILL  BE  CONDUCTED  AND  TO  THE APPLICATION SHALL BE APPENDED A
STATEMENT EXECUTED BY THE MEMBER OR MEMBERS SO DESIGNATED, THAT HE,  SHE
OR  THEY  WILL  BE  RESPONSIBLE  FOR  THE CONDUCT OF SUCH BINGO GAMES IN
ACCORDANCE WITH THE TERMS OF THE LICENSE AND THE RULES  AND  REGULATIONS
OF THE COMMISSION AND OF THIS TITLE.
  2. BINGO LESSOR. (A) EACH APPLICANT FOR A LICENSE TO LEASE PREMISES TO
A  LICENSED  ORGANIZATION  FOR  THE PURPOSES OF CONDUCTING BINGO THEREIN
SHALL FILE WITH THE CLERK OF THE MUNICIPALITY AN APPLICATION THEREFOR IN
A FORM PRESCRIBED IN THE RULES AND REGULATIONS OF  THE  COMMISSION  DULY
EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
  (1) THE NAME AND ADDRESS OF THE APPLICANT;
  (2)  DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
THE LICENSE SOUGHT;

S. 2009                            120                           A. 3009

  (3) LAWFUL CAPACITY FOR PUBLIC ASSEMBLY PURPOSES;
  (4)  COST  OF  PREMISES  AND  ASSESSED  VALUATION  FOR REAL ESTATE TAX
PURPOSES, OR ANNUAL NET LEASE RENT, WHICHEVER IS APPLICABLE;
  (5) GROSS RENTALS RECEIVED AND ITEMIZED EXPENSES FOR  THE  IMMEDIATELY
PRECEDING CALENDAR OR FISCAL YEAR, IF ANY;
  (6)  GROSS RENTALS, IF ANY, DERIVED FROM BINGO DURING THE LAST PRECED-
ING CALENDAR OR FISCAL YEAR;
  (7) COMPUTATION BY WHICH PROPOSED RENTAL SCHEDULE WAS DETERMINED;
  (8) NUMBER OF OCCASIONS ON WHICH APPLICANT ANTICIPATES RECEIVING  RENT
FOR BINGO DURING THE ENSUING YEAR OR SHORTER PERIOD IF APPLICABLE;
  (9)  PROPOSED  RENT  FOR  EACH  SUCH  OCCASION; ESTIMATED GROSS RENTAL
INCOME FROM ALL OTHER SOURCES DURING THE ENSUING YEAR;
  (10) ESTIMATED EXPENSES ITEMIZED FOR ENSUING YEAR AND AMOUNT  OF  EACH
ITEM ALLOCATED TO BINGO RENTALS;
  (11)  A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS WITH THE
SPECIFICATIONS CONTAINED IN THE DEFINITION OF "AUTHORIZED BINGO  LESSOR"
SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
  (12)  SUCH  OTHER  INFORMATION AS SHALL BE PRESCRIBED BY THE RULES AND
REGULATIONS OF THE COMMISSION.
  (B) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION,  IN  A  MANNER
PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION, SHALL BE MADE
AS  BETWEEN  THE LICENSEE AND THE MUNICIPAL GOVERNING BODY IN RESPECT OF
THE GROSS RENTAL ACTUALLY RECEIVED DURING THE LICENSE PERIOD AND THE FEE
PAID THEREFOR.  THE LICENSEE SHALL PAY ANY  DEFICIENCY  OF  FEE  THEREBY
SHOWN  TO  BE  DUE AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID
SHALL BE CREDITED TO SUCH LICENSEE, IN SUCH MANNER AS THE COMMISSION  BY
RULES AND REGULATIONS SHALL PRESCRIBE.
  §  1525. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
FEES; DURATION OF LICENSE. 1. THE GOVERNING  BODY  OF  THE  MUNICIPALITY
SHALL  MAKE AN INVESTIGATION OF THE QUALIFICATIONS OF EACH APPLICANT AND
THE MERITS OF EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING  OF
THE APPLICATION.
  (A)  ISSUANCE  OF  LICENSES TO CONDUCT BINGO. IF THE GOVERNING BODY OF
THE MUNICIPALITY DETERMINES:
  (1) THAT THE APPLICANT IS DULY QUALIFIED TO  BE  LICENSED  TO  CONDUCT
BINGO UNDER THIS TITLE;
  (2)  THAT  THE  MEMBER  OR  MEMBERS OF THE APPLICANT DESIGNATED IN THE
APPLICATION TO CONDUCT BINGO ARE BONA FIDE ACTIVE MEMBERS OF THE  APPLI-
CANT  AND  ARE  PERSONS  OF  GOOD  MORAL  CHARACTER  AND HAVE NEVER BEEN
CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP  BETWEEN  ONE  OR
MORE  OF  THE  PREVIOUS  CRIMINAL  OFFENSES  AND THE INTEGRITY OF BINGO,
CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN  HUNDRED  FIFTY-THREE
OF THE CORRECTION LAW;
  (3)  THAT  SUCH  GAMES OF BINGO ARE TO BE CONDUCTED IN ACCORDANCE WITH
THE PROVISIONS OF THIS TITLE AND IN ACCORDANCE WITH THE RULES AND  REGU-
LATIONS OF THE COMMISSION;
  (4)  THAT  THE  PROCEEDS  THEREOF ARE TO BE DISPOSED OF AS PROVIDED BY
THIS TITLE;
  (5) IF THE GOVERNING BODY IS SATISFIED  THAT  NO  COMMISSION,  SALARY,
COMPENSATION, REWARD OR RECOMPENSE WHATEVER WILL BE PAID OR GIVEN TO ANY
PERSON  HOLDING,  OPERATING  OR  CONDUCTING OR ASSISTING IN THE HOLDING,
OPERATION AND CONDUCT OF ANY SUCH GAMES OF BINGO EXCEPT AS IN THIS TITLE
OTHERWISE PROVIDED; AND
  (6) THAT NO PRIZE WILL BE OFFERED AND GIVEN IN EXCESS OF  THE  SUM  OR
VALUE  OF FIVE THOUSAND DOLLARS IN ANY SINGLE GAME OF BINGO AND THAT THE
AGGREGATE OF ALL PRIZES OFFERED AND GIVEN IN ALL OF SUCH GAMES OF  BINGO

S. 2009                            121                           A. 3009

CONDUCTED  ON A SINGLE OCCASION, UNDER SAID LICENSE SHALL NOT EXCEED THE
SUM OR VALUE OF FIFTEEN THOUSAND DOLLARS, THEN  THE  MUNICIPALITY  SHALL
ISSUE  A  LICENSE TO THE APPLICANT FOR THE CONDUCT OF BINGO UPON PAYMENT
OF  A  LICENSE  FEE  FOR EACH BINGO OCCASION, TO BE ESTABLISHED BY REGU-
LATION OF THE COMMISSION. NOTWITHSTANDING ANYTHING TO  THE  CONTRARY  IN
THIS PARAGRAPH, THE GOVERNING BODY SHALL REFUSE TO ISSUE A LICENSE TO AN
APPLICANT  SEEKING  TO  CONDUCT  BINGO  IN  PREMISES OF A LICENSED BINGO
LESSOR WHERE SUCH GOVERNING BODY DETERMINES THAT THE PREMISES  PRESENTLY
OWNED  OR  OCCUPIED  BY SUCH APPLICANT ARE IN EVERY RESPECT ADEQUATE AND
SUITABLE FOR CONDUCTING BINGO GAMES.
  (B) ISSUANCE OF LICENSES TO BINGO LESSORS. IF THE  GOVERNING  BODY  OF
THE MUNICIPALITY DETERMINES THAT:
  (1)  THE APPLICANT SEEKING TO LEASE A HALL OR PREMISES FOR THE CONDUCT
OF BINGO TO AN AUTHORIZED ORGANIZATION IS DULY QUALIFIED TO BE  LICENSED
UNDER THIS TITLE;
  (2)  THE  APPLICANT SATISFIES THE REQUIREMENTS FOR AN AUTHORIZED BINGO
LESSOR AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
  (3) AT THE TIME OF THE ISSUANCE OF AN  INITIAL  LICENSE,  THERE  IS  A
PUBLIC  NEED AND THAT PUBLIC ADVANTAGE WILL BE SERVED BY THE ISSUANCE OF
SUCH LICENSE;
  (4) THE APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH BINGO OCCASION;
  (5) THE COMMISSION HAS APPROVED AS FAIR AND REASONABLE A  SCHEDULE  OF
MAXIMUM RENTALS FOR EACH SUCH OCCASION;
  (6) THERE IS NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE FROM THE
LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
  (7)  SUCH LEASING OF A HALL OR PREMISES FOR THE CONDUCT OF BINGO IS TO
BE IN ACCORDANCE WITH THE PROVISIONS OF THIS  TITLE  AND  IN  ACCORDANCE
WITH  THE  RULES  AND REGULATIONS OF THE COMMISSION, SUCH GOVERNING BODY
SHALL ISSUE A LICENSE PERMITTING THE APPLICANT TO  LEASE  SAID  PREMISES
FOR THE CONDUCT OF BINGO TO THE AUTHORIZED ORGANIZATION OR ORGANIZATIONS
SPECIFIED IN THE APPLICATION DURING THE PERIOD THEREIN SPECIFIED OR SUCH
SHORTER PERIOD AS THE GOVERNING BODY OF THE MUNICIPALITY DETERMINES, BUT
NOT  TO  EXCEED  ONE  YEAR, UPON PAYMENT OF A LICENSE FEE ESTABLISHED BY
REGULATION OF THE COMMISSION.
  2. ON OR BEFORE THE THIRTIETH DAY OF EACH MONTH, THE TREASURER OF  THE
MUNICIPALITY  SHALL  TRANSMIT  TO  THE  STATE COMPTROLLER A SUM EQUAL TO
FIFTY PERCENT OF ALL BINGO LESSOR LICENSE FEES AND AN AMOUNT ESTABLISHED
BY REGULATION OF THE COMMISSION PER OCCASION OF ALL LICENSE FEES FOR THE
CONDUCT OF BINGO COLLECTED BY SUCH MUNICIPALITY PURSUANT TO THIS SECTION
DURING THE PRECEDING CALENDAR MONTH.
  3. NO LICENSE SHALL BE ISSUED UNDER THIS TITLE THAT IS EFFECTIVE FOR A
PERIOD OF MORE THAN ONE YEAR. IN THE CASE OF  LIMITED-PERIOD  BINGO,  NO
LICENSE  SHALL  BE  ISSUED AUTHORIZING THE CONDUCT OF SUCH GAMES ON MORE
THAN TWO OCCASIONS IN ANY ONE DAY, NOR SHALL ANY LICENSE BE ISSUED UNDER
THIS TITLE THAT IS EFFECTIVE FOR A PERIOD OF MORE THAN SEVEN  OF  TWELVE
CONSECUTIVE  DAYS  IN ANY ONE YEAR. NO LICENSE FOR THE CONDUCT OF LIMIT-
ED-PERIOD BINGO SHALL BE ISSUED IN CITIES HAVING  A  POPULATION  OF  ONE
MILLION OR MORE.
  § 1526. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
ANCE  OF  A  LICENSE SHALL BE DENIED BY THE GOVERNING BODY UNTIL AFTER A
HEARING, HELD ON DUE NOTICE TO THE APPLICANT,  AT  WHICH  THE  APPLICANT
SHALL  BE  ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE APPLICANT
AND THE MERITS OF THE APPLICATION.
  2. ANY LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED,  UPON  APPLICA-
TION  MADE  TO  THE  GOVERNING BODY OF THE MUNICIPALITY THAT ISSUED SUCH
LICENSE, IF THE SUBJECT MATTER OF THE PROPOSED AMENDMENT COULD  LAWFULLY

S. 2009                            122                           A. 3009

AND PROPERLY HAVE BEEN INCLUDED IN THE ORIGINAL LICENSE AND UPON PAYMENT
OF  SUCH  ADDITIONAL  LICENSE  FEE IF ANY, AS WOULD HAVE BEEN PAYABLE IF
SUCH AMENDMENT HAD BEEN SO INCLUDED.
  §  1527.  FORM  AND  CONTENTS OF LICENSE; DISPLAY OF LICENSE. 1.  EACH
LICENSE TO CONDUCT BINGO SHALL BE IN SUCH FORM AS THE  RULES  AND  REGU-
LATIONS OF THE COMMISSION PRESCRIBE AND SHALL CONTAIN:
  (A) THE NAME AND ADDRESS OF THE LICENSEE;
  (B)  THE NAMES OF THE MEMBER OR MEMBERS OF THE LICENSEE UNDER WHOM THE
GAMES WILL BE CONDUCTED;
  (C) THE PLACE OR PLACES WHERE AND THE DATE OR DATES AND TIME OR  TIMES
WHEN SUCH GAMES ARE TO BE CONDUCTED;
  (D)  THE  SPECIFIC  PURPOSES  TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
GAMES ARE TO BE DEVOTED; AND
  (E) IF ANY PRIZE OR PRIZES ARE TO BE OFFERED  AND  GIVEN  IN  CASH,  A
STATEMENT  OF  THE AMOUNTS OF THE PRIZES AUTHORIZED SO TO BE OFFERED AND
GIVEN AND ANY OTHER INFORMATION THAT THE RULES AND  REGULATIONS  OF  THE
COMMISSION MAY REQUIRE.
  2.  EACH  LICENSE ISSUED FOR THE CONDUCT OF ANY GAME OF BINGO SHALL BE
DISPLAYED CONSPICUOUSLY AT THE PLACE WHERE SUCH GAME OF BINGO IS  TO  BE
CONDUCTED AT ALL TIMES DURING SUCH CONDUCT.
  3.  EACH  LICENSE  TO  LEASE PREMISES FOR CONDUCTING BINGO SHALL BE IN
SUCH FORM AS THE RULES AND REGULATIONS OF THE COMMISSION  PRESCRIBE  AND
SHALL  CONTAIN  A  STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE AND
THE ADDRESS OF THE LEASED PREMISES, THE AMOUNT OF PERMISSIBLE  RENT  AND
ANY  OTHER  INFORMATION THAT THE RULES AND REGULATIONS OF THE COMMISSION
MAY REQUIRE. EACH SUCH LICENSE SHALL  BE  DISPLAYED  CONSPICUOUSLY  UPON
SUCH PREMISES AT ALL TIMES DURING THE CONDUCT OF BINGO.
  § 1528. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES; INSPECTION OF
PREMISES.  1. THE GOVERNING BODY OF ANY MUNICIPALITY ISSUING ANY LICENSE
UNDER THIS TITLE SHALL HAVE AND EXERCISE RIGID CONTROL AND CLOSE  SUPER-
VISION  OVER ALL GAMES OF BINGO CONDUCTED UNDER SUCH LICENSE, TO THE END
THAT THE SAME ARE FAIRLY CONDUCTED IN ACCORDANCE WITH THE PROVISIONS  OF
SUCH LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS OF THE COMMIS-
SION AND THE PROVISIONS OF THIS TITLE AND SUCH GOVERNING BODY.
  2.  THE  COMMISSION  SHALL HAVE THE POWER AND THE AUTHORITY TO SUSPEND
ANY LICENSE ISSUED BY SUCH GOVERNING BODY AND TO REVOKE THE  SAME,  AND,
ADDITIONALLY,  IN  THE  CASE  OF AN AUTHORIZED BINGO LESSOR, TO IMPOSE A
FINE IN AN AMOUNT NOT EXCEEDING ONE THOUSAND DOLLARS, AFTER  NOTICE  AND
HEARING,  FOR VIOLATION OF ANY SUCH PROVISIONS, AND SHALL HAVE THE RIGHT
OF ENTRY, BY THE COMMISSION'S OFFICERS AND AGENTS, AT ALL TIMES INTO ANY
PREMISES WHERE ANY GAME OF BINGO IS  BEING  CONDUCTED  OR  WHERE  IT  IS
INTENDED  THAT  ANY  SUCH GAME OF BINGO SHALL BE CONDUCTED, OR WHERE ANY
EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE  CONDUCT  THEREOF  IS
FOUND, FOR THE PURPOSE OF INSPECTING THE SAME.
  3. IN ADDITION TO THE AUTHORITY GRANTED PURSUANT TO SUBDIVISION TWO OF
THIS  SECTION,  THE  GOVERNING BODY IN A CITY HAVING A POPULATION OF ONE
MILLION OR MORE AND THE COMMISSION MAY IMPOSE A FINE IN  AN  AMOUNT  NOT
EXCEEDING  ONE THOUSAND DOLLARS, AFTER NOTICE AND HEARING, ON ANY LICEN-
SEE UNDER THIS TITLE FOR VIOLATION OF ANY  PROVISION  OF  SUCH  LICENSE,
THIS TITLE OR RULES AND REGULATIONS OF THE COMMISSION.
  §  1529.  FREQUENCY  OF  GAME; SALE OF ALCOHOLIC BEVERAGES. NO GAME OR
GAMES OF BINGO, EXCEPT LIMITED-PERIOD BINGO, SHALL  BE  CONDUCTED  UNDER
ANY  LICENSE ISSUED UNDER THIS TITLE MORE OFTEN THAN ON EIGHTEEN DAYS IN
ANY THREE SUCCESSIVE CALENDAR MONTHS. NO GAME OR GAMES OF LIMITED-PERIOD
BINGO SHALL BE CONDUCTED BETWEEN THE HOURS OF TWELVE MIDNIGHT AND  NOON,
AND  NO MORE THAN SIXTY GAMES MAY BE CONDUCTED ON ANY SINGLE OCCASION OF

S. 2009                            123                           A. 3009

LIMITED-PERIOD BINGO. NO GAME OR GAMES OF BINGO SHALL  BE  CONDUCTED  IN
ANY  ROOM  OR OUTDOOR AREA WHERE ALCOHOLIC BEVERAGES ARE SOLD, SERVED OR
CONSUMED DURING THE PROGRESS OF THE GAME OR GAMES.
  §  1530.  PERSONS  OPERATING  AND  CONDUCTING  BINGO GAMES; EQUIPMENT;
EXPENSES; COMPENSATION. 1. (A) NO PERSON SHALL HOLD, OPERATE OR  CONDUCT
ANY  GAME  OF  BINGO  UNDER ANY LICENSE ISSUED UNDER THIS TITLE EXCEPT A
BONA FIDE MEMBER OF THE AUTHORIZED ORGANIZATION TO WHICH THE LICENSE  IS
ISSUED.  NO  PERSON SHALL ASSIST IN THE HOLDING, OPERATING OR CONDUCTING
OF ANY GAME OF BINGO UNDER SUCH LICENSE EXCEPT SUCH A BONA  FIDE  MEMBER
OR  A  BONA  FIDE  MEMBER  OF  AN ORGANIZATION OR ASSOCIATION THAT IS AN
AUXILIARY TO THE LICENSEE OR A BONA FIDE MEMBER OF  AN  ORGANIZATION  OR
ASSOCIATION OF WHICH SUCH LICENSEE IS AN AUXILIARY OR A BONA FIDE MEMBER
OF  AN  ORGANIZATION OR ASSOCIATION THAT IS AFFILIATED WITH THE LICENSEE
BY BEING, WITH IT, AUXILIARY TO ANOTHER ORGANIZATION OR ASSOCIATION  AND
EXCEPT  BOOKKEEPERS  OR  ACCOUNTANTS  AS  HEREINAFTER  PROVIDED, BUT ANY
PERSON MAY ASSIST THE LICENSED ORGANIZATION IN ANY ACTIVITY  RELATED  TO
THE  GAME  OF BINGO THAT DOES NOT ACTUALLY INVOLVE THE HOLDING, CONDUCT-
ING, MANAGING OR OPERATING OF SUCH GAME OF BINGO.
  (B) NO GAME OF BINGO SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
AS SHALL BE OWNED ABSOLUTELY OR LEASED BY THE AUTHORIZED ORGANIZATION SO
LICENSED OR USED WITHOUT PAYMENT OF ANY  COMPENSATION  THEREFOR  BY  THE
LICENSEE.
  (C) LEASE TERMS AND CONDITIONS SHALL BE SUBJECT TO THE RULES AND REGU-
LATIONS OF THE COMMISSION.
  (D)  THIS  TITLE  SHALL  NOT  BE  CONSTRUED  TO AUTHORIZE OR PERMIT AN
AUTHORIZED ORGANIZATION TO ENGAGE  IN  THE  BUSINESS  OF  LEASING  BINGO
SUPPLIES OR EQUIPMENT.
  (E)  NO  ITEMS OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
THE CONDUCTING OF ANY GAME OF BINGO PURSUANT TO ANY LICENSE ISSUED UNDER
THIS TITLE,  EXCEPT  THOSE  THAT  ARE  REASONABLE  AND  ARE  NECESSARILY
EXPENDED  FOR  BINGO  SUPPLIES  AND EQUIPMENT, PRIZES, STATED RENTAL, IF
ANY, BOOKKEEPING OR ACCOUNTING  SERVICES  ACCORDING  TO  A  SCHEDULE  OF
COMPENSATION PRESCRIBED BY THE COMMISSION, JANITORIAL SERVICES AND UTIL-
ITY  SUPPLIES, IF ANY, AND LICENSE FEES, AND THE COST OF BUS TRANSPORTA-
TION, IF AUTHORIZED BY THE COMMISSION.
  2. NOTWITHSTANDING ANY PROVISION OF THIS  TITLE  TO  THE  CONTRARY,  A
PERSON  WHO IS A BONA FIDE MEMBER OF AN ORGANIZATION LICENSED TO CONDUCT
THE GAME OF BINGO AND IS ALSO A BONA FIDE MEMBER OF ONE  OR  MORE  OTHER
ORGANIZATIONS  THAT  ARE ALSO LICENSED TO CONDUCT THE GAME OF BINGO, AND
SUCH ORGANIZATIONS ARE NOT AFFILIATES  OR  AUXILIARIES  OF  THE  OTHERS,
SHALL  BE  AUTHORIZED  TO OPERATE, CONDUCT OR ASSIST IN THE OPERATION OR
CONDUCT OF GAMES OF BINGO HELD BY ANY OF SUCH ORGANIZATIONS LICENSED  TO
CONDUCT BINGO.
  §  1531.  CHARGE  FOR  ADMISSION  AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES. 1. EXCEPT IN THE CONDUCT OF LIMITED-PERIOD  BINGO,  THE
REGULATIONS  OF  THE  COMMISSION  SHALL ESTABLISH A MAXIMUM AMOUNT TO BE
CHARGED BY ANY LICENSEE FOR ADMISSION TO ANY ROOM OR PLACE IN WHICH  ANY
GAME  OR  GAMES  OF  BINGO  ARE TO BE CONDUCTED UNDER ANY LICENSE ISSUED
UNDER THIS TITLE, WHICH ADMISSION FEE, UPON PAYMENT THEREOF, SHALL ENTI-
TLE THE PERSON PAYING THE SAME TO PARTICIPATE WITHOUT ADDITIONAL  CHARGE
IN  ALL  REGULAR  GAMES OF BINGO TO BE PLAYED UNDER SUCH LICENSE ON SUCH
OCCASION.
  2. IN THE CONDUCT OF LIMITED-PERIOD BINGO:
  (A) NO ADMISSION FEE SHALL BE CHARGED;
  (B) NOT MORE THAN AN AMOUNT ESTABLISHED BY REGULATION OF  THE  COMMIS-
SION SHALL BE CHARGED FOR A SINGLE OPPORTUNITY TO PARTICIPATE IN ANY ONE

S. 2009                            124                           A. 3009

GAME  OF  BINGO,  WHICH  CHARGE, UPON PAYMENT THEREOF, SHALL ENTITLE THE
PERSON PAYING THE SAME TO ONE CARD FOR PARTICIPATION IN ONE  SUCH  GAME;
AND
  (C) NO LICENSEE SHALL SELL MORE THAN FIVE OPPORTUNITIES TO EACH PLAYER
PARTICIPATING  IN ANY ONE GAME OF BINGO. EVERY WINNER IN A GAME OF BINGO
SHALL BE DETERMINED AND EVERY PRIZE SHALL BE AWARDED AND DELIVERED WITH-
IN THE SAME CALENDAR DAY AS THAT  UPON  WHICH  THE  GAME  OF  BINGO  WAS
PLAYED.
  §  1532.  STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES. 1.
WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY  OCCASION  OF  BINGO,  THE
AUTHORIZED  ORGANIZATION  THAT  CONDUCTED  THE SAME, AND SUCH AUTHORIZED
ORGANIZATION'S MEMBERS WHO WERE IN CHARGE THEREOF, AND  WHEN  APPLICABLE
THE  AUTHORIZED  ORGANIZATION  THAT  RENTED ITS PREMISES THEREFOR, SHALL
EACH FURNISH TO THE CLERK OR THE DEPARTMENT A  STATEMENT  SUBSCRIBED  BY
THE  MEMBER  IN  CHARGE  AND  AFFIRMED BY SUCH PERSON AS TRUE, UNDER THE
PENALTIES OF PERJURY, SHOWING THE AMOUNT OF THE GROSS  RECEIPTS  DERIVED
THEREFROM  AND  EACH ITEM OF EXPENSE INCURRED, OR PAID, AND EACH ITEM OF
EXPENDITURE MADE OR TO BE MADE, THE NAME AND ADDRESS OF EACH  PERSON  TO
WHOM  EACH  SUCH  ITEM  HAS BEEN PAID, OR IS TO BE PAID, WITH A DETAILED
DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE SERVICES RENDERED THERE-
FOR, THE NET PROCEEDS DERIVED FROM SUCH GAME OR RENTAL, AS THE CASE  MAY
BE,  AND  THE  USE TO WHICH SUCH PROCEEDS HAVE BEEN OR ARE TO BE APPLIED
AND A LIST OF PRIZES OFFERED AND GIVEN, WITH THE RESPECTIVE VALUES THER-
EOF. A CLERK OR THE DEPARTMENT SHALL MAKE PROVISIONS FOR THE  ELECTRONIC
FILING OF SUCH STATEMENT. IT SHALL BE THE DUTY OF EACH LICENSEE TO MAIN-
TAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE
THE PARTICULARS OF EACH SUCH STATEMENT AND WITHIN FIFTEEN DAYS AFTER THE
END OF EACH CALENDAR QUARTER DURING WHICH THERE HAS BEEN ANY OCCASION OF
BINGO,  A  SUMMARY  STATEMENT OF SUCH INFORMATION, IN FORM PRESCRIBED BY
THE COMMISSION, SHALL BE FURNISHED IN THE SAME MANNER TO THE COMMISSION.
  2. UPON THE FILING OF  SUCH  STATEMENT  OF  RECEIPTS,  THE  AUTHORIZED
ORGANIZATION  FURNISHING  THE SAME SHALL PAY TO THE CLERK OF THE MUNICI-
PALITY AS AND FOR AN  ADDITIONAL  LICENSE  FEE  A  SUM  BASED  UPON  THE
REPORTED  NET  PROCEEDS, IF ANY, FOR THE OCCASION COVERED BY SUCH STATE-
MENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS SHALL BE  ESTAB-
LISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE COST TO MUNICI-
PALITIES OF ADMINISTERING THE PROVISIONS OF THIS ARTICLE.
  §  1533.  EXAMINATION  OF  BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
ETC.; DISCLOSURE OF INFORMATION. 1. THE GOVERNING BODY  OF  THE  MUNICI-
PALITY  AND  THE  COMMISSION  SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE
EXAMINED THE BOOKS AND RECORDS OF ANY:
  (A) AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN  LICENSED  TO  CONDUCT
BINGO,  SO  FAR AS SUCH BOOKS AND RECORDS MAY RELATE TO BINGO, INCLUDING
THE MAINTENANCE, CONTROL AND DISPOSITION OF NET  PROCEEDS  DERIVED  FROM
BINGO  OR  FROM  THE  USE  OF ITS PREMISES FOR BINGO, AND TO EXAMINE ANY
MANAGER, OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE THEREOF UNDER OATH
IN RELATION TO THE CONDUCT OF ANY SUCH GAME  OF  BINGO  UNDER  ANY  SUCH
LICENSE,  THE  USE  OF ITS PREMISES FOR BINGO, OR THE DISPOSITION OF NET
PROCEEDS DERIVED FROM BINGO, AS THE CASE MAY BE; AND
  (B) LICENSED AUTHORIZED BINGO LESSOR SO FAR AS SUCH BOOKS AND  RECORDS
MAY  RELATE  TO LEASING PREMISES FOR BINGO AND TO EXAMINE SAID LESSOR OR
ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE THEREOF UNDER OATH  IN
RELATION TO SUCH LEASING.
  2. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS
MAY  BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS
ARTICLE.

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  § 1534. APPEALS FROM MUNICIPAL GOVERNING  BODY  TO  COMMISSION.    ANY
APPLICANT  FOR,  OR  HOLDER OF, ANY LICENSE ISSUED OR TO BE ISSUED UNDER
THIS TITLE AGGRIEVED BY ANY ACTION OF THE GOVERNING BODY OF THE  MUNICI-
PALITY  TO WHICH SUCH APPLICATION HAS BEEN MADE OR BY WHICH SUCH LICENSE
HAS  BEEN ISSUED, MAY APPEAL TO THE COMMISSION FROM THE DETERMINATION OF
SAID GOVERNING BODY BY FILING WITH THE GOVERNING BODY A  WRITTEN  NOTICE
OF  APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR ACTION APPEALED
FROM. UPON THE HEARING OF SUCH  APPEAL,  THE  EVIDENCE,  IF  ANY,  TAKEN
BEFORE  THE  GOVERNING  BODY AND ANY ADDITIONAL EVIDENCE MAY BE PRODUCED
AND SHALL BE CONSIDERED IN ARRIVING AT A DETERMINATION OF THE MATTERS IN
ISSUE. ACTION OF THE COMMISSION UPON SAID APPEAL SHALL BE  BINDING  UPON
SAID GOVERNING BODY AND ALL PARTIES TO SAID APPEAL.
  §  1535. EXEMPTION FROM PROSECUTION. NO PERSON OR CORPORATION LAWFULLY
CONDUCTING, OR PARTICIPATING IN THE CONDUCT OF BINGO OR  PERMITTING  THE
CONDUCT  UPON  ANY  PREMISES OWNED OR LEASED BY HIM, HER OR IT UNDER ANY
LICENSE LAWFULLY ISSUED PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROS-
ECUTION OR CONVICTION FOR VIOLATION OF  ANY  PROVISION  OF  ARTICLE  TWO
HUNDRED  TWENTY-FIVE  OF  THE PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO
THE EXTENT THAT SUCH CONDUCT IS SPECIFICALLY AUTHORIZED BY  THIS  TITLE,
BUT THIS IMMUNITY SHALL NOT EXTEND TO ANY PERSON OR CORPORATION KNOWING-
LY CONDUCTING OR PARTICIPATING IN THE CONDUCT OF BINGO UNDER ANY LICENSE
OBTAINED  BY  ANY  FALSE  PRETENSE OR BY ANY FALSE STATEMENT MADE IN ANY
APPLICATION FOR LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY
PREMISES OWNED OR LEASED BY  HIM,  HER  OR  IT  OF  ANY  GAME  OF  BINGO
CONDUCTED  UNDER  ANY  LICENSE  KNOWN  TO  HIM,  HER  OR IT TO HAVE BEEN
OBTAINED BY ANY SUCH FALSE PRETENSE OR STATEMENT.
  § 1536. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY  TO  APPLY  FOR
LICENSE. ANY PERSON WHO, OR ASSOCIATION OR CORPORATION THAT:
  1.  MAKES  ANY  FALSE  STATEMENT  IN  ANY  APPLICATION FOR ANY LICENSE
AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
  2. PAYS OR RECEIVES, FOR THE USE OF ANY PREMISES FOR CONDUCTING BINGO,
A RENTAL IN EXCESS OF THE AMOUNT SPECIFIED AS THE  PERMISSIBLE  RENT  IN
THE  LICENSE  PROVIDED FOR IN SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED
TWENTY-FOUR OF THIS TITLE;
  3. FAILS TO KEEP BOOKS AND RECORDS THAT FULLY  AND  TRULY  RECORD  ALL
TRANSACTIONS  CONNECTED  WITH  THE CONDUCTING OF BINGO OR THE LEASING OF
PREMISES TO BE USED FOR THE CONDUCT OF BINGO;
  4. FALSIFIES OR MAKES ANY FALSE ENTRY IN ANY BOOKS OR RECORDS  SO  FAR
AS  SUCH  BOOKS OR RECORDS RELATE IN ANY MANNER TO THE CONDUCT OF BINGO,
TO THE DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE
RENTS RECEIVED BY ANY AUTHORIZED ORGANIZATION;
  5. DIVERTS OR PAYS ANY PORTION OF THE NET  PROCEEDS  OF  ANY  GAME  OF
BINGO  TO  ANY PERSON, ASSOCIATION OR CORPORATION, EXCEPT IN FURTHERANCE
OF ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; OR
  6. VIOLATES ANY OF THE PROVISIONS OF THIS TITLE OR OF ANY TERM OF  ANY
LICENSE  ISSUED  UNDER  THIS TITLE; SHALL BE GUILTY OF A MISDEMEANOR AND
SHALL FORFEIT ANY LICENSE ISSUED UNDER THIS TITLE AND BE  INELIGIBLE  TO
APPLY FOR A LICENSE UNDER THIS TITLE FOR ONE YEAR THEREAFTER.
  §  1537.  UNLAWFUL  BINGO.  1. FOR THE PURPOSES OF THIS SECTION, BINGO
SHALL INCLUDE A GAME OF BINGO WHETHER OR NOT A PERSON  WHO  PARTICIPATES
AS  A PLAYER FURNISHES SOMETHING OF VALUE FOR THE OPPORTUNITY TO PARTIC-
IPATE.
  2. ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION, CORPORATION  OR  ORGAN-
IZATION  HOLDING, OPERATING OR CONDUCTING BINGO IS GUILTY OF A MISDEMEA-
NOR, EXCEPT WHEN OPERATING, HOLDING OR CONDUCTING:

S. 2009                            126                           A. 3009

  (A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS  TITLE;
OR
  (B)  WITHIN  A  MUNICIPALITY  THAT HAS AUTHORIZED THE CONDUCT OF BINGO
GAMES BY AUTHORIZED ORGANIZATIONS:
  (1) WITHIN THE CONFINES OF A HOME FOR PURPOSES OF AMUSEMENT OR  RECRE-
ATION  WHERE  NO  PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR
THE OPPORTUNITY TO PARTICIPATE AND THE PRIZES AWARDED OR TO  BE  AWARDED
ARE NOMINAL.
  (2)  WITHIN ANY APARTMENT, CONDOMINIUM OR COOPERATIVE COMPLEX, RETIRE-
MENT COMMUNITY, OR OTHER GROUP RESIDENTIAL COMPLEX OR FACILITY WHERE:
  (I) SPONSORED BY THE OPERATOR OF OR AN  ASSOCIATION  RELATED  TO  SUCH
COMPLEX, COMMUNITY OR FACILITY;
  (II)  SUCH GAMES ARE CONDUCTED SOLELY FOR THE PURPOSE OF AMUSEMENT AND
RECREATION OF ITS RESIDENTS;
  (III) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF  VALUE  FOR  THE
OPPORTUNITY TO PARTICIPATE;
  (IV)  THE  VALUE  OF  THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
  (V) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING  ANY
CALENDAR YEAR; AND
  (VI)  NO  PERSON  OTHER THAN AN EMPLOYEE OR VOLUNTEER OF SUCH COMPLEX,
COMMUNITY OR FACILITY CONDUCTS OR ASSISTS  IN  CONDUCTING  THE  GAME  OR
GAMES.
  (3) ON BEHALF OF ANY BONA FIDE SOCIAL, CHARITABLE, EDUCATIONAL, RECRE-
ATIONAL, FRATERNAL OR AGE-GROUP ORGANIZATION, CLUB OR ASSOCIATION SOLELY
FOR  THE PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS OR BENEFICI-
ARIES WHERE:
  (I) NO PLAYER OR OTHER PERSON FURNISHES  ANYTHING  OF  VALUE  FOR  THE
OPPORTUNITY TO PARTICIPATE;
  (II)  THE  VALUE  OF  THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
  (III) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN  FIFTEEN  DAYS  DURING
ANY CALENDAR YEAR;
  (IV)  NO  PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZA-
TION, CLUB OR ASSOCIATION PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
  (V) NO PERSON IS PAID FOR CONDUCTING OR ASSISTING IN  THE  CONDUCT  OF
THE GAME OR GAMES.
  (4) AS A HOTEL'S, MOTEL'S, RECREATIONAL OR ENTERTAINMENT FACILITY'S OR
COMMON CARRIER'S SOCIAL ACTIVITY SOLELY FOR THE PURPOSE OF AMUSEMENT AND
RECREATION OF ITS PATRONS WHERE:
  (I)  NO  PLAYER  OR  OTHER  PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
  (II) THE VALUE OF THE PRIZES DO NOT EXCEED TEN  DOLLARS  FOR  ANY  ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
  (III)  SUCH  GAMES  ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING
ANY CALENDAR YEAR;
  (IV) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER CONDUCTS OR ASSISTS
IN CONDUCTING THE GAME OR GAMES; AND
  (V) THE GAME OR GAMES ARE NOT CONDUCTED IN THE SAME ROOM  WHERE  ALCO-
HOLIC BEVERAGES ARE SOLD.
  (5) THE COMMISSION AND THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
BINGO  GAMES  ARE CONDUCTED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO
OF THIS SECTION SHALL HAVE THE AUTHORITY TO REGULATE THE CONDUCT OF SUCH
GAMES. ANY BINGO GAME OR GAMES, IN WHICH NO PARTICIPANT OR OTHER  PERSON
FURNISHES  ANYTHING OF VALUE FOR THE OPPORTUNITY TO PARTICIPATE, THAT IS
OR ARE OPERATED IN VIOLATION OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS

S. 2009                            127                           A. 3009

SECTION, A CIVIL PENALTY OF NOT MORE THAN ONE  HUNDRED  DOLLARS  MAY  BE
IMPOSED  FOR  THE FIRST SUCH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN
ONE HUNDRED FIFTY DOLLARS MAY BE IMPOSED FOR THE SECOND  SUCH  VIOLATION
IN  A  PERIOD  OF  THREE  YEARS AND A CIVIL PENALTY OF NOT MORE THAN TWO
HUNDRED DOLLARS  MAY  BE  IMPOSED  FOR  THE  THIRD  OR  SUBSEQUENT  SUCH
VIOLATION IN A PERIOD OF FIVE YEARS.
  3.  THE  PROVISIONS  OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE  THIS  TITLE  IS
INOPERATIVE.
  §  1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
IN SECTION FIFTEEN HUNDRED FORTY, THE PROVISIONS  OF  THIS  TITLE  SHALL
REMAIN  INOPERATIVE  IN  ANY MUNICIPALITY UNLESS AND UNTIL A PROPOSITION
THEREFOR SUBMITTED AT A GENERAL OR SPECIAL ELECTION IN SUCH MUNICIPALITY
IS APPROVED BY A VOTE OF THE MAJORITY OF THE QUALIFIED ELECTORS IN  SUCH
MUNICIPALITY VOTING THEREON.
  §  1539.  AMENDMENT  AND  REPEAL OF LOCAL LAWS AND ORDINANCES. 1.  ANY
LOCAL LAW OR ORDINANCE CONCERNING BINGO MAY BE  AMENDED,  FROM  TIME  TO
TIME,  OR REPEALED BY THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY
OF THE MUNICIPALITY THAT ENACTED IT AND SUCH AMENDMENT OR REPEAL, AS THE
CASE MAY BE, MAY BE MADE EFFECTIVE AND OPERATIVE NOT EARLIER THAN THIRTY
DAYS FOLLOWING THE EFFECTIVE DATE OF THE LOCAL LAW OR ORDINANCE  EFFECT-
ING SUCH AMENDMENT OR REPEAL, AS THE CASE MAY BE.
  2.  THE  APPROVAL  OF  A MAJORITY OF THE ELECTORS OF SUCH MUNICIPALITY
SHALL NOT BE A CONDITION PREREQUISITE TO THE TAKING EFFECT OF SUCH LOCAL
LAW OR ORDINANCE.
  § 1540. DELEGATION OF AUTHORITY. THE GOVERNING BODY OF A  MUNICIPALITY
MAY DELEGATE TO A MUNICIPAL OFFICER OR OFFICERS DESIGNATED BY SUCH MUNI-
CIPALITY  FOR  THAT PURPOSE ANY OF THE AUTHORITY GRANTED TO IT HEREBY IN
RELATION TO THE ISSUANCE, AMENDMENT AND CANCELLATION  OF  LICENSES,  THE
CONDUCT OF INVESTIGATIONS AND HEARINGS, THE SUPERVISION OF THE OPERATION
OF THE GAMES AND THE COLLECTION AND TRANSMISSION OF FEES.
  §  1541.  POWERS  AND  DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE, WHENEVER THE  CHARTER
OF  ANY  CITY,  OR  ANY SPECIAL OR LOCAL LAW, PROVIDES THAT THE MAYOR OR
MANAGER OF SUCH CITY IS THE CHIEF LAW ENFORCEMENT OFFICER THEREOF,  THEN
AND IN THAT EVENT SUCH MAYOR OR MANAGER, AS THE CASE MAY BE, SHALL HAVE,
EXERCISE  AND  PERFORM ALL THE POWERS AND DUTIES OTHERWISE PRESCRIBED BY
THIS TITLE TO BE EXERCISED AND PERFORMED BY THE GOVERNING BODY  OF  SUCH
CITY  EXCEPT  THOSE  PRESCRIBED BY SECTION FIFTEEN HUNDRED TWENTY-TWO OF
THIS TITLE, AND IN ANY SUCH CASE, THE TERM "GOVERNING BODY OF A  MUNICI-
PALITY"  AS  USED  IN THIS TITLE SHALL BE DEEMED TO MEAN AND INCLUDE THE
MAYOR OR MANAGER OF ANY SUCH CITY.
                                 TITLE 4
         LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN
                              ORGANIZATIONS
SECTION 1550. SHORT TITLE; PURPOSE OF TITLE.
        1551. LOCAL OPTION.
        1552. LOCAL LAWS AND ORDINANCES.
        1553. POWERS AND DUTIES OF THE COMMISSION.
        1554. RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE.
        1555. AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT.
        1556. DECLARATION  OF  STATE'S  EXEMPTION  FROM   OPERATION   OF
                PROVISIONS OF 15 U.S.C. § 1172.
        1557. LEGAL SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.
        1558. APPLICATION FOR LICENSE.
        1559. RAFFLES; LICENSE NOT REQUIRED.

S. 2009                            128                           A. 3009

        1560. INVESTIGATION;  MATTERS  TO  BE  DETERMINED;  ISSUANCE  OF
                LICENSE; FEES; DURATION OF LICENSE.
        1561. HEARING; AMENDMENT OF LICENSE.
        1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
        1563. CONTROL  AND  SUPERVISION;  SUSPENSION  OF  IDENTIFICATION
                NUMBERS AND LICENSES; INSPECTIONS OF PREMISES.
        1564. FREQUENCY OF GAMES.
        1565. PERSONS  OPERATING  GAMES;  EQUIPMENT;  EXPENSES;  COMPEN-
                SATION.
        1566. CHARGE  FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
                AWARD OF PRIZES.
        1567. STATEMENT OF RECEIPTS  AND  EXPENSES;  ADDITIONAL  LICENSE
                FEES.
        1568. EXAMINATION  OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS
                AND EMPLOYEES; DISCLOSURE OF INFORMATION.
        1569. APPEALS FOR THE DECISION OF A MUNICIPAL OFFICER, CLERK  OR
                DEPARTMENT TO THE COMMISSION.
        1570. EXEMPTION FROM PROSECUTION.
        1571. OFFENSES;  FORFEITURE  OF  LICENSE; INELIGIBILITY TO APPLY
                FOR LICENSE.
        1572. UNLAWFUL GAMES OF CHANCE.
        1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
        1574. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
        1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS.
        1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS.
        1577. TRANSFER RESTRICTIONS.
        1578. BELL JARS COMPLIANCE AND ENFORCEMENT.
  § 1550. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE  KNOWN  AND
MAY BE CITED AS THE GAMES OF CHANCE LICENSING LAW. THE LEGISLATURE HERE-
BY  DECLARES  THAT  THE  RAISING OF FUNDS FOR THE PROMOTION OF BONA FIDE
CHARITABLE, EDUCATIONAL, SCIENTIFIC,  HEALTH,  RELIGIOUS  AND  PATRIOTIC
CAUSES AND UNDERTAKINGS, WHERE THE BENEFICIARIES ARE UNDETERMINED, IS IN
THE  PUBLIC  INTEREST.  THE  LEGISLATURE HEREBY FINDS THAT, AS CONDUCTED
PRIOR TO THE EFFECTIVE DATE OF THIS TITLE,  GAMES  OF  CHANCE  WERE  THE
SUBJECT  OF EXPLOITATION BY PROFESSIONAL GAMBLERS, PROMOTERS AND COMMER-
CIAL INTERESTS. IT IS HEREBY DECLARED TO BE THE POLICY OF  THE  LEGISLA-
TURE  THAT  ALL  PHASES  OF THE SUPERVISION, LICENSING AND REGULATION OF
GAMES OF CHANCE AND OF THE CONDUCT OF GAMES OF CHANCE SHOULD BE  CLOSELY
CONTROLLED  AND  THAT THE LAWS AND REGULATIONS PERTAINING THERETO SHOULD
BE STRICTLY CONSTRUED AND RIGIDLY ENFORCED; THAT THE CONDUCT OF THE GAME
AND ALL  ATTENDANT  ACTIVITIES  SHOULD  BE  SO  REGULATED  AND  ADEQUATE
CONTROLS SO INSTITUTED AS TO DISCOURAGE COMMERCIALIZATION OF GAMBLING IN
ALL  ITS FORMS, INCLUDING THE RENTAL OF COMMERCIAL PREMISES FOR GAMES OF
CHANCE, AND TO ENSURE A MAXIMUM AVAILABILITY  OF  THE  NET  PROCEEDS  OF
GAMES  OF  CHANCE  EXCLUSIVELY  FOR APPLICATION TO THE WORTHY CAUSES AND
UNDERTAKINGS SPECIFIED HEREIN; THAT  THE  ONLY  JUSTIFICATION  FOR  THIS
TITLE  IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND UNDERTAKINGS, AND
THAT THE MANDATE OF SUBDIVISION TWO OF SECTION NINE OF  ARTICLE  ONE  OF
THE STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY RIGID REGU-
LATIONS  TO  PREVENT  COMMERCIALIZED  GAMBLING, PREVENT PARTICIPATION BY
CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND  PREVENT  THE  DIVERSION  OF
FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
  §  1551.  LOCAL  OPTION.  SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF  SECTION  NINE
OF  ARTICLE  ONE OF THE STATE CONSTITUTION, THE LEGISLATURE HEREBY GIVES
AND GRANTS TO EVERY MUNICIPALITY  THE  RIGHT,  POWER  AND  AUTHORITY  TO

S. 2009                            129                           A. 3009

AUTHORIZE  THE  CONDUCT  OF  GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS
WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICIPALITY. A LOCAL LAW OR ORDI-
NANCE ADOPTED BY A TOWN SHALL BE OPERATIVE IN ANY VILLAGE OR WITHIN  ANY
PART  OF ANY VILLAGE LOCATED WITHIN SUCH TOWN IF, AFTER ADOPTION OF SUCH
LOCAL LAW OR ORDINANCE, THE BOARD OF TRUSTEES OF SUCH VILLAGE  ADOPTS  A
LOCAL  LAW  OR RESOLUTION SUBJECT TO A PERMISSIVE REFERENDUM AS PROVIDED
IN ARTICLE NINE OF THE VILLAGE LAW AUTHORIZING THE ISSUANCE OF  LICENSES
BY  THE  TOWN FOR GAMES OF CHANCE WITHIN SUCH VILLAGE. SUCH LOCAL LAW OR
RESOLUTION MAY BE REPEALED ONLY BY A LOCAL LAW OR RESOLUTION THAT  SHALL
ALSO  BE  SUBJECT TO A PERMISSIVE REFERENDUM, OR BY ENACTMENT OF A LOCAL
LAW AUTHORIZING GAMES OF CHANCE AS PROVIDED IN SECTION  FIFTEEN  HUNDRED
FIFTY-TWO OF THIS TITLE.
  §  1552.  LOCAL  LAWS  AND  ORDINANCES. 1. THE COMMON COUNCIL OR OTHER
LOCAL LEGISLATIVE BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL  LAW  OR
ORDINANCE,  PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED ORGANIZA-
TION, UPON OBTAINING A LICENSE  THEREFOR  AS  HEREINAFTER  PROVIDED,  TO
CONDUCT  GAMES  OF  CHANCE WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICI-
PALITY, SUBJECT TO THE PROVISIONS OF SUCH LOCAL LAW  OR  ORDINANCE,  THE
PROVISIONS OF THIS TITLE AND THE PROVISIONS SET FORTH BY THE COMMISSION.
  2.  NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR EFFECTIVE
UNLESS AND UNTIL IT SHALL HAVE BEEN APPROVED BY A MAJORITY OF THE  ELEC-
TORS  VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION
HELD WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS  OF
SUCH MUNICIPALITY.
  3.  THE  TIME,  METHOD  AND  MANNER  OF  SUBMISSION,  PREPARATION  AND
PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE  AND
CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
RETURNS  AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH  LOCAL  LAW  OR
ORDINANCE  SHALL  BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
BE SUBMITTED TO THE ELECTORS  OF  SUCH  MUNICIPALITY  AT  A  GENERAL  OR
SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
  § 1553. POWERS AND DUTIES OF THE COMMISSION. THE COMMISSION SHALL HAVE
THE POWER AND IT SHALL BE THE DUTY OF THE COMMISSION TO:
  1.  SUPERVISE  THE ADMINISTRATION OF THE GAMES OF CHANCE LICENSING LAW
AND TO ADOPT, AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSU-
ANCE AND AMENDMENT OF LICENSES THEREUNDER AND THE  CONDUCTING  OF  GAMES
UNDER  SUCH  LICENSES,  WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE
AND EFFECT OF LAW AND SHALL BE BINDING UPON ALL  MUNICIPALITIES  ISSUING
LICENSES,  AND  UPON  LICENSEES  OF THE COMMISSION, TO THE END THAT SUCH
LICENSES SHALL BE ISSUED TO QUALIFIED  LICENSEES  ONLY,  AND  THAT  SAID
GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES AND IN THE
MANNER  OF  THE  SAID  GAMES  OF  CHANCE LICENSING LAW PRESCRIBED AND TO
PREVENT THE GAMES OF CHANCE THEREBY  AUTHORIZED  TO  BE  CONDUCTED  FROM
BEING  CONDUCTED  FOR  COMMERCIAL  PURPOSES OR PURPOSES OTHER THAN THOSE
THEREIN AUTHORIZED, PARTICIPATED IN BY  CRIMINAL  OR  OTHER  UNDESIRABLE
ELEMENTS  AND  THE  FUNDS DERIVED FROM THE GAMES BEING DIVERTED FROM THE
PURPOSES AUTHORIZED, AND TO PROVIDE UNIFORMITY IN THE ADMINISTRATION  OF
SAID  LAW  THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE FORMS OF
APPLICATION FOR LICENSES, LICENSEES, AMENDMENT OF LICENSES,  REPORTS  OF
THE CONDUCT OF GAMES AND OTHER MATTERS INCIDENT TO THE ADMINISTRATION OF
SUCH LAW.
  2.  CONDUCT,  ANYWHERE  IN  THE  STATE, INVESTIGATIONS OF THE ADMINIS-
TRATION, ENFORCEMENT AND POTENTIAL OR ACTUAL VIOLATIONS OF THE GAMES  OF
CHANCE LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION.

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  3. REVIEW ALL DETERMINATIONS AND ACTIONS OF THE CLERK OR DEPARTMENT IN
ISSUING  AN INITIAL LICENSE AND IT MAY REVIEW THE ISSUANCE OF SUBSEQUENT
LICENSES AND, AFTER HEARING, REVOKE THOSE LICENSES THAT DO  NOT  IN  ALL
RESPECTS  MEET  THE  REQUIREMENTS  OF THIS TITLE AND THE RULES AND REGU-
LATIONS OF THE COMMISSION.
  4.  SUSPEND  OR  REVOKE A LICENSE, AFTER HEARING, FOR ANY VIOLATION OF
THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
SION.
  5. HEAR APPEALS FROM THE  DETERMINATIONS  AND  ACTION  OF  THE  CLERK,
DEPARTMENT OR MUNICIPAL OFFICER IN CONNECTION WITH THE REFUSING TO ISSUE
LICENSES,  THE  SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION
OF FINES IN THE MANNER PRESCRIBED BY LAW AND  THE  ACTION  AND  DETERMI-
NATION  OF THE COMMISSION UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE
CLERK, DEPARTMENT OR MUNICIPAL OFFICER AND ALL PARTIES THERETO.
  6. CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE GAMES  OF  CHANCE
LICENSING  LAW TO ASCERTAIN FROM TIME TO TIME DEFECTS THEREIN JEOPARDIZ-
ING OR THREATENING TO JEOPARDIZE THE PURPOSES  OF  THIS  TITLE,  AND  TO
FORMULATE  AND  RECOMMEND  CHANGES  IN SUCH LAW AND IN OTHER LAWS OF THE
STATE THAT THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZA-
TION OF SUCH PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF
THE OPERATION AND ADMINISTRATION OF SIMILAR LAWS THAT MAY BE  IN  EFFECT
IN OTHER STATES OF THE UNITED STATES.
  7.  SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS NOT  CURRENTLY  LICENSED  TO
CONDUCT SUCH GAMES.
  8. ISSUE AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGANIZA-
TION  IF  THE  COMMISSION  DETERMINES  THAT  THE APPLICANT SATISFIES THE
REQUIREMENTS OF THE GAMES OF CHANCE LICENSING  LAW  AND  THE  RULES  AND
REGULATIONS OF THE COMMISSION.
  9.  APPROVE  AND ESTABLISH A STANDARD SET OF GAMES OF CHANCE EQUIPMENT
AND BY RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH  SUCH  EQUIP-
MENT  IS  TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
OF ANY EQUIPMENT OTHER THAN THAT CONTAINED IN THE STANDARD SET OF  GAMES
OF CHANCE EQUIPMENT SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
  §  1554.  RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE. THE CONDUCT OF
GAMES OF CHANCE AUTHORIZED BY LOCAL LAW OR ORDINANCE SHALL BE SUBJECT TO
THE FOLLOWING RESTRICTIONS WITHOUT REGARD TO  WHETHER  THE  RESTRICTIONS
ARE  CONTAINED  IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING HEREIN SHALL
BE CONSTRUED TO PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR ORDINANCE
OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE CONDUCT OF
SUCH GAMES:
  1. NO PERSON, FIRM, PARTNERSHIP, CORPORATION  OR  ORGANIZATION,  OTHER
THAN A LICENSEE UNDER THE PROVISIONS OF SECTION FIFTEEN HUNDRED SIXTY OF
THIS TITLE, SHALL
  (A) CONDUCT SUCH GAME; OR
  (B)  LEASE  OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING GAMES OF CHANCE
PREMISES FOR ANY CONSIDERATION WHATSOEVER, DIRECT OR  INDIRECT,  WITHOUT
OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
  2. NO GAME OF CHANCE SHALL BE HELD, OPERATED OR CONDUCTED ON OR WITHIN
ANY  LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
PARTLY, ON THE BASIS OF A PERCENTAGE OF  THE  RECEIPTS  OR  NET  PROFITS
DERIVED FROM THE OPERATION OF SUCH GAME.
  3.  NO  AUTHORIZED  ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
TITLE SHALL PURCHASE,  LEASE,  OR  RECEIVE  ANY  SUPPLIES  OR  EQUIPMENT
SPECIFICALLY  DESIGNED  OR  ADAPTED  FOR  USE IN THE CONDUCT OF GAMES OF

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CHANCE FROM OTHER THAN A SUPPLIER LICENSED BY  THE  COMMISSION  OR  FROM
ANOTHER  AUTHORIZED  ORGANIZATION.   LEASE TERMS AND CONDITIONS SHALL BE
SUBJECT TO RULES AND REGULATIONS OF THE COMMISSION.  THE  PROVISIONS  OF
THIS  TITLE  SHALL NOT BE CONSTRUED TO AUTHORIZE OR PERMIT AN AUTHORIZED
ORGANIZATION TO ENGAGE IN THE  BUSINESS  OF  LEASING  GAMES  OF  CHANCE,
SUPPLIES  OR EQUIPMENT. NO ORGANIZATION SHALL PURCHASE BELL JAR TICKETS,
OR DEALS OF BELL JAR TICKETS, FROM  ANY  OTHER  PERSON  OR  ORGANIZATION
OTHER  THAN  THOSE SPECIFICALLY AUTHORIZED UNDER SECTION FIFTEEN HUNDRED
SEVENTY-SIX OF THIS TITLE.
  4. THE ENTIRE NET PROCEEDS OF ANY GAME  OF  CHANCE  SHALL  BE  DEVOTED
EXCLUSIVELY  TO  THE  LAWFUL  PURPOSES  OF THE ORGANIZATION PERMITTED TO
CONDUCT THE SAME AND THE NET PROCEEDS OF ANY  RENTAL  DERIVED  THEREFROM
SHALL  BE  DEVOTED  EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE AUTHORIZED
GAMES OF CHANCE LESSOR.
  5. (A) NO SINGLE PRIZE AWARDED BY GAMES OF CHANCE  OTHER  THAN  RAFFLE
SHALL  EXCEED THE SUM OR VALUE OF THREE HUNDRED DOLLARS, EXCEPT THAT FOR
MERCHANDISE WHEELS, NO SINGLE PRIZE SHALL EXCEED THE SUM OR VALUE OF TWO
HUNDRED FIFTY DOLLARS, AND FOR BELL JAR, NO SINGLE  PRIZE  SHALL  EXCEED
THE SUM OR VALUE OF ONE THOUSAND DOLLARS.
  (B) NO SINGLE PRIZE AWARDED BY RAFFLE SHALL EXCEED THE SUM OR VALUE OF
THREE HUNDRED THOUSAND DOLLARS.
  (C)  NO  SINGLE WAGER SHALL EXCEED SIX DOLLARS AND FOR BELL JARS, COIN
BOARDS OR MERCHANDISE BOARDS, NO SINGLE PRIZE SHALL EXCEED ONE  THOUSAND
DOLLARS,  PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT APPLY TO THE
AMOUNT OF MONEY OR VALUE PAID BY THE PARTICIPANT IN A RAFFLE  IN  RETURN
FOR A TICKET OR OTHER RECEIPT.
  (D) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
BE  DETERMINED  BY THE COST OF SUCH PRIZE TO THE AUTHORIZED ORGANIZATION
OR, IF DONATED, THE FAIR MARKET VALUE OF SUCH PRIZE.
  6. (A) NO AUTHORIZED ORGANIZATION  SHALL  AWARD  A  SERIES  OF  PRIZES
CONSISTING  OF  CASH OR OF MERCHANDISE WITH AN AGGREGATE VALUE IN EXCESS
OF:
  (1) TEN THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF  ANY  ONE
MERCHANDISE WHEEL; AND
  (2)  SIX THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF ANY BELL
JAR, COIN BOARD OR MERCHANDISE BOARD.
  (B) NO SERIES OF PRIZES AWARDED BY  RAFFLE  SHALL  HAVE  AN  AGGREGATE
VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS.
  (C) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
BE DETERMINED BY ITS COST TO THE AUTHORIZED ORGANIZATION OR, IF DONATED,
ITS FAIR MARKET VALUE.
  7.  IN  ADDITION TO MERCHANDISE WHEELS, RAFFLES AND BELL JARS, NO MORE
THAN FIVE OTHER SINGLE TYPES OF  GAMES  OF  CHANCE  SHALL  BE  CONDUCTED
DURING ANY ONE LICENSE PERIOD.
  8.  (A) EXCEPT FOR MERCHANDISE WHEELS AND RAFFLES, NO SERIES OF PRIZES
ON ANY ONE OCCASION SHALL AGGREGATE MORE THAN FOUR HUNDRED DOLLARS  WHEN
THE LICENSED AUTHORIZED ORGANIZATION CONDUCTS FIVE SINGLE TYPES OF GAMES
OF  CHANCE DURING ANY ONE LICENSE PERIOD. EXCEPT FOR MERCHANDISE WHEELS,
RAFFLES AND BELL JARS, NO SERIES OF PRIZES ON  ANY  ONE  OCCASION  SHALL
AGGREGATE  MORE  THAN  FIVE HUNDRED DOLLARS WHEN THE LICENSED AUTHORIZED
ORGANIZATION CONDUCTS FEWER THAN FIVE SINGLE TYPES OF GAMES  OF  CHANCE,
EXCLUSIVE  OF  MERCHANDISE WHEELS, RAFFLES AND BELL JARS, DURING ANY ONE
LICENSE PERIOD.
  (B) NO AUTHORIZED ORGANIZATION SHALL AWARD BY RAFFLE  PRIZES  WITH  AN
AGGREGATE  VALUE  IN  EXCESS  OF  THREE  MILLION  DOLLARS DURING ANY ONE
LICENSE PERIOD.

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  9. EXCEPT FOR THE LIMITATIONS ON THE SUM OR VALUE  FOR  SINGLE  PRIZES
AND  SERIES  OF PRIZES, NO LIMIT SHALL BE IMPOSED ON THE SUM OR VALUE OF
PRIZES AWARDED TO ANY ONE PARTICIPANT DURING ANY OCCASION OR ANY LICENSE
PERIOD.
  10. (A) NO PERSON EXCEPT A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
ORGANIZATION SHALL PARTICIPATE IN THE MANAGEMENT OF SUCH GAMES.
  (B)  NO  PERSON  EXCEPT  A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
ORGANIZATION, ITS AUXILIARY OR AFFILIATED  ORGANIZATION,  SHALL  PARTIC-
IPATE  IN  THE  OPERATION  OF SUCH GAME, AS SET FORTH IN SECTION FIFTEEN
HUNDRED SIXTY-FIVE OF THIS TITLE.
  11. NO PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN  THE
MANAGEMENT OR OPERATION OF ANY SUCH GAME.
  12.  NO  AUTHORIZED  ORGANIZATION  SHALL  EXTEND CREDIT TO A PERSON TO
PARTICIPATE IN PLAYING A GAME OF CHANCE.
  13. (A) NO GAME OF CHANCE, OTHER THAN  A  RAFFLE  THAT  COMPLIES  WITH
PARAGRAPH  (B) OF THIS SUBDIVISION, SHALL BE CONDUCTED ON OTHER THAN THE
PREMISES OF AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF  CHANCE
LESSOR.
  (B)  RAFFLE  TICKETS MAY BE SOLD TO THE PUBLIC OUTSIDE THE PREMISES OF
AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF  CHANCE  LESSOR  IF
SUCH SALES OCCUR IN A MUNICIPALITY THAT:
  (1) HAS PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE;
  (2)  IS  LOCATED  IN  THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE
RAFFLE LICENSE IS LOCATED OR IN A COUNTY THAT IS CONTIGUOUS TO THE COUN-
TY IN WHICH THE MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED; AND
  (3) HAS NOT OBJECTED TO SUCH SALES AFTER THE COMMISSION  GIVES  NOTICE
TO  SUCH  MUNICIPALITY  OF  AN AUTHORIZED ORGANIZATION'S REQUEST TO SELL
SUCH RAFFLE TICKETS IN SUCH MUNICIPALITY.
  (C) THE COMMISSION MAY BY REGULATION PRESCRIBE THE ADVANCE  NOTICE  AN
AUTHORIZED  ORGANIZATION MUST PROVIDE TO THE COMMISSION IN ORDER TO TAKE
ADVANTAGE OF THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION,  FORMS
IN  WHICH  SUCH  A  REQUEST SHALL BE MADE AND THE TIME PERIOD IN WHICH A
MUNICIPALITY MUST COMMUNICATE AN OBJECTION TO THE COMMISSION.
  (D) NO SALE OF RAFFLE TICKETS SHALL BE  MADE  MORE  THAN  ONE  HUNDRED
EIGHTY  DAYS  PRIOR  TO THE DATE SCHEDULED FOR THE OCCASION AT WHICH THE
RAFFLE WILL BE CONDUCTED.
  (E) THE WINNER OF ANY SINGLE PRIZE IN A RAFFLE SHALL NOT  BE  REQUIRED
TO BE PRESENT AT THE TIME SUCH RAFFLE IS CONDUCTED.
  14.  NO  PERSON  LICENSED  TO MANUFACTURE, DISTRIBUTE OR SELL GAMES OF
CHANCE SUPPLIES OR EQUIPMENT, OR THEIR AGENTS,  SHALL  CONDUCT,  PARTIC-
IPATE  IN,  OR  ASSIST IN THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN
SHALL PROHIBIT A LICENSED DISTRIBUTOR FROM SELLING, OFFERING FOR SALE OR
EXPLAINING A PRODUCT TO AN  AUTHORIZED  ORGANIZATION  OR  INSTALLING  OR
SERVICING GAMES OF CHANCE EQUIPMENT UPON THE PREMISES OF GAMES OF CHANCE
LICENSEES.
  15.  THE UNAUTHORIZED CONDUCT OF A GAME OF CHANCE SHALL CONSTITUTE AND
BE PUNISHABLE AS A MISDEMEANOR.
  16. NO COINS OR MERCHANDISE FROM A COIN  BOARD  OR  MERCHANDISE  BOARD
SHALL  BE  REDEEMABLE OR CONVERTIBLE INTO CASH DIRECTLY OR INDIRECTLY BY
THE AUTHORIZED ORGANIZATION.
  17. NO GAME OF CHANCE SHALL INVOLVE WAGERING OF MONEY  BY  ONE  PLAYER
AGAINST ANOTHER PLAYER.
  §  1555.  AUTHORIZED  SUPPLIER  OF  GAMES  OF  CHANCE EQUIPMENT. 1. NO
PERSON, FIRM, PARTNERSHIP, CORPORATION OR  ORGANIZATION  SHALL  SELL  OR

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DISTRIBUTE  SUPPLIES  OR  EQUIPMENT SPECIFICALLY DESIGNED OR ADAPTED FOR
USE IN CONDUCT OF GAMES  OF  CHANCE  WITHOUT  HAVING  FIRST  OBTAINED  A
LICENSE  THEREFOR UPON WRITTEN APPLICATION MADE, VERIFIED AND FILED WITH
THE  COMMISSION  IN  THE FORM PRESCRIBED BY THE RULES AND REGULATIONS OF
THE COMMISSION. AS A PART OF THE COMMISSION'S  DETERMINATION  CONCERNING
THE APPLICANT'S SUITABILITY FOR LICENSING AS A GAMES OF CHANCE SUPPLIER,
THE  COMMISSION SHALL REQUIRE THE APPLICANT TO FURNISH TO THE COMMISSION
TWO SETS OF FINGERPRINTS. SUCH FINGERPRINTS SHALL BE  SUBMITTED  TO  THE
DIVISION  OF  CRIMINAL  JUSTICE  SERVICES  FOR  A STATE CRIMINAL HISTORY
RECORD CHECK, AS DEFINED IN SUBDIVISION ONE OF  SECTION  THREE  THOUSAND
THIRTY-FIVE  OF  THE  EDUCATION LAW, AND MAY BE SUBMITTED TO THE FEDERAL
BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL  HISTORY  RECORD  CHECK.
MANUFACTURERS  OF BELL JAR TICKETS SHALL BE CONSIDERED SUPPLIERS OF SUCH
EQUIPMENT. IN EACH SUCH APPLICATION FOR A  LICENSE  UNDER  THIS  SECTION
SHALL  BE  STATED  THE  NAME AND ADDRESS OF THE APPLICANT; THE NAMES AND
ADDRESSES OF ITS OFFICERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS;  THE
AMOUNT  OF  GROSS  RECEIPTS  REALIZED ON THE SALE AND RENTAL OF GAMES OF
CHANCE SUPPLIES AND EQUIPMENT TO DULY LICENSED AUTHORIZED  ORGANIZATIONS
DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR, AND SUCH OTHER INFOR-
MATION AS SHALL BE PRESCRIBED BY SUCH RULES AND REGULATIONS. THE FEE FOR
SUCH LICENSE SHALL BE A SUM EQUAL TO AN AMOUNT ESTABLISHED BY COMMISSION
REGULATION  PLUS  AN  AMOUNT EQUAL TO TWO PERCENT OF THE GROSS SALES AND
RENTALS, IF ANY, OF GAMES OF CHANCE EQUIPMENT AND SUPPLIES TO AUTHORIZED
ORGANIZATIONS OR AUTHORIZED GAMES OF CHANCE  LESSORS  BY  THE  APPLICANT
DURING  THE  PRECEDING  CALENDAR  YEAR,  OR FISCAL YEAR IF THE APPLICANT
MAINTAINS HIS ACCOUNTS ON A FISCAL  YEAR  BASIS.    NO  LICENSE  GRANTED
PURSUANT  TO  THE  PROVISIONS  OF  THIS SECTION SHALL BE EFFECTIVE FOR A
PERIOD OF MORE THAN ONE YEAR.
  2. THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
  (A) A PERSON CONVICTED OF A CRIME IF THERE IS  A  DIRECT  RELATIONSHIP
BETWEEN  ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
OF CHARITABLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN
HUNDRED FIFTY-THREE OF THE CORRECTION LAW;
  (B) A PERSON WHO IS OR HAS BEEN A  PROFESSIONAL  GAMBLER  OR  GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
  (C) A PUBLIC OFFICER OR EMPLOYEE;
  (D) AN AUTHORIZED GAMES OF CHANCE LESSOR; OR
  (E)  A  FIRM  OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
(A), (B), (C) OR (D) OF THIS SUBDIVISION HAS GREATER THAN A TEN  PERCENT
PROPRIETARY,  EQUITABLE  OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS
ACTIVE OR EMPLOYED.
  3. THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE  EXAMINED
THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE UNDER THIS SECTION.
ANY  INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY
BE NECESSARY FOR THE PURPOSE OF CARRYING  OUT  THE  PROVISIONS  OF  THIS
TITLE.
  4.  ANY  SOLICITATION  OF AN ORGANIZATION LICENSED TO CONDUCT GAMES OF
CHANCE, TO PURCHASE OR INDUCE THE PURCHASE OF GAMES OF  CHANCE  SUPPLIES
AND  EQUIPMENT,  OTHER THAN BY A PERSON LICENSED OR OTHERWISE AUTHORIZED
PURSUANT TO THIS SECTION, SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
  5. ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN  ANY
APPLICATION  FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER THIS SECTION OR
WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR  OF  ANY
LICENSE  ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT  ANY

S. 2009                            134                           A. 3009

LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
  6.  AT  THE  END  OF SUCH PERIOD SPECIFIED IN THE LICENSE, A RECAPITU-
LATION SHALL BE MADE AS BETWEEN  THE  LICENSEE  AND  THE  COMMISSION  IN
RESPECT  OF  THE  GROSS  SALES AND RENTALS ACTUALLY RECORDED DURING THAT
PERIOD AND THE FEE PAID THEREFOR, AND  ANY  DEFICIENCY  OF  FEE  THEREBY
SHOWN  TO  BE  DUE  SHALL  BE PAID BY THE LICENSEE AND ANY EXCESS OF FEE
THEREBY SHOWN TO HAVE BEEN PAID SHALL BE CREDITED TO  SAID  LICENSEE  IN
SUCH MANNER AS THE COMMISSION BY RULES AND REGULATIONS SHALL PRESCRIBE.
  §  1556. DECLARATION OF STATE'S EXEMPTION FROM OPERATION OF PROVISIONS
OF 15 U.S.C. § 1172. PURSUANT TO SECTION TWO OF AN ACT  OF  CONGRESS  OF
THE  UNITED STATES ENTITLED "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBL-
ING DEVICES  IN  INTERSTATE  AND  FOREIGN  COMMERCE,"  APPROVED  JANUARY
SECOND,  NINETEEN  HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134,
AND ALSO DESIGNATED AS 15 U.S.C.  §§ 1171-1177, THE STATE OF  NEW  YORK,
ACTING  BY  AND  THROUGH  THE  DULY ELECTED AND QUALIFIED MEMBERS OF ITS
LEGISLATURE, DOES HEREBY, IN ACCORDANCE WITH AND IN COMPLIANCE WITH  THE
PROVISIONS  OF SECTION TWO OF SAID ACT OF CONGRESS, DECLARE AND PROCLAIM
THAT IT IS EXEMPT FROM THE PROVISIONS OF SECTION  TWO  OF  SAID  ACT  OF
CONGRESS.
  §  1557.  LEGAL  SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.  ALL
SHIPMENTS INTO THIS STATE OF GAMING DEVICES, EXCLUDING SLOT MACHINES AND
COIN OPERATED GAMBLING DEVICES, AS DEFINED  IN  SUBDIVISION  SEVEN-A  OF
SECTION 225.00 OF THE PENAL LAW, THE REGISTERING, RECORDING AND LABELING
OF  WHICH  HAS  BEEN  DULY  HAD BY THE MANUFACTURER OR DEALER THEREOF IN
ACCORDANCE WITH SECTIONS THREE AND FOUR OF AN ACT  OF  CONGRESS  OF  THE
UNITED  STATES  ENTITLED  "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBLING
DEVICES IN INTERSTATE AND FOREIGN COMMERCE,"  APPROVED  JANUARY  SECOND,
NINETEEN  HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134, AND ALSO
DESIGNATED AS 15 U.S.C. §§ 1171-1177, SHALL BE  DEEMED  LEGAL  SHIPMENTS
THEREOF INTO THIS STATE.
  §  1558.  APPLICATION FOR LICENSE. 1. TO CONDUCT GAMES OF CHANCE.  (A)
EACH APPLICANT FOR A LICENSE SHALL, AFTER  OBTAINING  AN  IDENTIFICATION
NUMBER FROM THE COMMISSION, FILE WITH THE CLERK OR DEPARTMENT, AN APPLI-
CATION  THEREFOR  IN  A  FORM  TO  BE PRESCRIBED BY THE COMMISSION, DULY
EXECUTED AND VERIFIED, IN WHICH SHALL BE STATED:
  (1) THE NAME AND ADDRESS OF THE  APPLICANT  TOGETHER  WITH  SUFFICIENT
FACTS  RELATING  TO  ITS  INCORPORATION  AND ORGANIZATION TO ENABLE SUCH
CLERK OR DEPARTMENT, AS THE CASE MAY BE, TO DETERMINE WHETHER OR NOT  IT
IS A BONA FIDE AUTHORIZED ORGANIZATION;
  (2)  THE  NAMES  AND  ADDRESSES  OF  ITS OFFICERS; THE PLACE OR PLACES
WHERE, THE DATE OR DATES AND  THE  TIME  OR  TIMES  WHEN  THE  APPLICANT
INTENDS TO CONDUCT GAMES UNDER THE LICENSE APPLIED FOR;
  (3)  THE  AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
DIRECTLY OR INDIRECTLY FOR EACH LICENSED PERIOD FOR USE OF THE  PREMISES
OF AN AUTHORIZED GAMES OF CHANCE LESSOR;
  (4)  ALL  OTHER  ITEMS  OF  EXPENSE INTENDED TO BE INCURRED OR PAID IN
CONNECTION WITH THE HOLDING, OPERATING AND CONDUCTING OF SUCH  GAMES  OF
CHANCE  AND  THE  NAMES  AND  ADDRESSES  OF THE PERSONS TO WHOM, AND THE
PURPOSES FOR WHICH, THEY ARE TO BE PAID;
  (5) THE PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH GAMES ARE TO
BE DEVOTED AND IN WHAT MANNER; THAT NO COMMISSION, SALARY, COMPENSATION,
REWARD OR RECOMPENSE WILL BE PAID TO ANY PERSON FOR CONDUCTING SUCH GAME
OR GAMES OR FOR ASSISTING THEREIN EXCEPT  AS  IN  THIS  TITLE  OTHERWISE
PROVIDED;  AND  SUCH  OTHER  INFORMATION  AS SHALL BE PRESCRIBED BY SUCH
RULES AND REGULATIONS; AND

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  (6) THE NAME OF EACH SINGLE TYPE OF GAME OF  CHANCE  TO  BE  CONDUCTED
UNDER  THE  LICENSE APPLIED FOR AND THE NUMBER OF MERCHANDISE WHEELS AND
RAFFLES, IF ANY, TO BE OPERATED.
  (B)  IN  EACH APPLICATION THERE SHALL BE DESIGNATED NOT LESS THAN FOUR
BONA FIDE MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE  GAME  OR
GAMES OF CHANCE WILL BE MANAGED AND TO THE APPLICATION SHALL BE APPENDED
A  STATEMENT  EXECUTED  BY  THE MEMBERS SO DESIGNATED, THAT THEY WILL BE
RESPONSIBLE FOR THE MANAGEMENT OF SUCH  GAMES  IN  ACCORDANCE  WITH  THE
TERMS  OF THE LICENSE, THE RULES AND REGULATIONS OF THE COMMISSION, THIS
TITLE AND THE APPLICABLE LOCAL LAWS OR ORDINANCES.
  2. AUTHORIZED GAMES OF CHANCE LESSOR. EACH APPLICANT FOR A LICENSE  TO
LEASE PREMISES TO A LICENSED ORGANIZATION FOR THE PURPOSES OF CONDUCTING
GAMES  OF  CHANCE  THEREIN  SHALL  FILE  WITH THE CLERK OR DEPARTMENT AN
APPLICATION THEREFOR, IN A FORM TO BE PRESCRIBED BY THE COMMISSION  DULY
EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
  (A) THE NAME AND ADDRESS OF THE APPLICANT;
  (B)  DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
THE LICENSE SOUGHT;
  (C) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS  WITH  THE
SPECIFICATIONS  CONTAINED IN THE DEFINITION OF "AUTHORIZED ORGANIZATION"
SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
  (D) A STATEMENT OF THE LAWFUL PURPOSES TO WHICH THE NET PROCEEDS  FROM
ANY RENTAL ARE TO BE DEVOTED BY THE APPLICANT AND SUCH OTHER INFORMATION
AS SHALL BE PRESCRIBED BY THE COMMISSION.
  3.  IN  COUNTIES  OUTSIDE  THE  CITY  OF NEW YORK, MUNICIPALITIES MAY,
PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-TWO OF THIS  TITLE,  ADOPT  AN
ORDINANCE  PROVIDING  THAT AN AUTHORIZED ORGANIZATION HAVING OBTAINED AN
IDENTIFICATION NUMBER FROM THE COMMISSION, AND  HAVING  APPLIED  FOR  NO
MORE  THAN  ONE LICENSE TO CONDUCT GAMES OF CHANCE DURING THE PERIOD NOT
LESS THAN TWELVE NOR MORE THAN EIGHTEEN  MONTHS  IMMEDIATELY  PRECEDING,
MAY FILE WITH THE CLERK OR DEPARTMENT A SUMMARY APPLICATION IN A FORM TO
BE  PRESCRIBED  BY THE COMMISSION DULY EXECUTED AND VERIFIED, CONTAINING
THE NAMES AND ADDRESSES OF THE APPLICANT ORGANIZATION AND ITS  OFFICERS,
THE  DATE,  TIME  AND  PLACE  OR  PLACES  WHERE THE APPLICANT INTENDS TO
CONDUCT GAMES UNDER THE LICENSE APPLIED FOR, THE PURPOSES TO  WHICH  THE
ENTIRE  NET PROCEEDS OF SUCH GAMES ARE TO BE DEVOTED AND THE INFORMATION
AND STATEMENT REQUIRED BY PARAGRAPH  (B)  OF  SUBDIVISION  ONE  OF  THIS
SECTION  IN  LIEU  OF  THE APPLICATION REQUIRED UNDER SUBDIVISION ONE OF
THIS SECTION.
  4. (A) NOTWITHSTANDING AND IN LIEU OF THE LICENSING  REQUIREMENTS  SET
FORTH  IN  THIS  TITLE,  AN  AUTHORIZED  ORGANIZATION DEFINED IN SECTION
FIFTEEN HUNDRED OF THIS ARTICLE MAY FILE A VERIFIED STATEMENT, FOR WHICH
NO FEE SHALL BE REQUIRED, WITH THE CLERK OR DEPARTMENT AND  THE  COMMIS-
SION  ATTESTING  THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS OR NET
PROFITS FROM RAFFLES IN AN AMOUNT  LESS  THAN  THIRTY  THOUSAND  DOLLARS
DURING  ONE  OCCASION  OR  PART  THEREOF  AT  WHICH  RAFFLES  ARE  TO BE
CONDUCTED. SUCH STATEMENT SHALL BE ON A SINGLE-PAGE FORM  PRESCRIBED  BY
THE COMMISSION, AND SHALL BE DEEMED A LICENSE TO CONDUCT RAFFLES:
  (1) UNDER THIS TITLE; AND
  (2)  WITHIN THE MUNICIPALITIES IN WHICH THE AUTHORIZED ORGANIZATION IS
DOMICILED THAT HAVE PASSED A  LOCAL  LAW,  ORDINANCE  OR  RESOLUTION  IN
ACCORDANCE  WITH  SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE, AND IN
MUNICIPALITIES THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION  IN
ACCORDANCE  WITH  SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES  OF  CHANCE  THAT

S. 2009                            136                           A. 3009

ARE  LOCATED IN THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE LICENSE
IS LOCATED AND IN THE COUNTIES THAT ARE  CONTIGUOUS  TO  THE  COUNTY  IN
WHICH  THE  MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED, PROVIDED
THOSE  MUNICIPALITIES  HAVE AUTHORIZED THE LICENSEE, IN WRITING, TO SELL
SUCH RAFFLE TICKETS THEREIN.
  (B) AN ORGANIZATION THAT HAS FILED A VERIFIED STATEMENT WITH THE CLERK
OR DEPARTMENT AND THE COMMISSION ATTESTING THAT SUCH ORGANIZATION  SHALL
DERIVE  NET  PROCEEDS OR NET PROFITS FROM RAFFLES IN AN AMOUNT LESS THAN
THIRTY THOUSAND DOLLARS DURING ONE OCCASION OR PART THEREOF THAT IN FACT
DERIVES NET PROCEEDS OR NET PROFITS EXCEEDING  THIRTY  THOUSAND  DOLLARS
DURING  ANY  ONE  OCCASION OR PART THEREOF SHALL BE REQUIRED TO OBTAIN A
LICENSE AS REQUIRED BY THIS TITLE AND SHALL BE SUBJECT TO THE PROVISIONS
OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
  § 1559. RAFFLES; LICENSE NOT REQUIRED. 1. NOTWITHSTANDING THE  LICENS-
ING  REQUIREMENTS  SET FORTH IN THIS TITLE AND THEIR FILING REQUIREMENTS
SET FORTH IN SUBDIVISION FOUR OF SECTION FIFTEEN HUNDRED FIFTY-EIGHT  OF
THIS  TITLE,  AN  AUTHORIZED  ORGANIZATION  MAY CONDUCT A RAFFLE WITHOUT
COMPLYING WITH SUCH LICENSING REQUIREMENTS OR SUCH FILING  REQUIREMENTS,
PROVIDED,  THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS FROM RAFFLES
IN AN AMOUNT LESS THAN FIVE THOUSAND DOLLARS DURING THE CONDUCT  OF  ONE
RAFFLE AND SHALL DERIVE NET PROCEEDS FROM RAFFLES IN AN AMOUNT LESS THAN
THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR.
  2.  NO  PERSON  UNDER  THE AGE OF EIGHTEEN SHALL BE PERMITTED TO PLAY,
OPERATE OR ASSIST IN ANY RAFFLE CONDUCTED PURSUANT TO THIS SECTION.
  3. NO RAFFLE SHALL BE CONDUCTED PURSUANT TO THIS SECTION EXCEPT WITHIN
A MUNICIPALITY IN WHICH THE AUTHORIZED ORGANIZATION  IS  DOMICILED  THAT
HAS  PASSED  A  LOCAL  LAW,  ORDINANCE  OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE,  AND  IN  MUNICIPALITIES
THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE  APPROVING  THE CONDUCT OF GAMES OF CHANCE THAT ARE LOCATED WITHIN
THE COUNTY OR CONTIGUOUS TO THE COUNTY  IN  WHICH  THE  ORGANIZATION  IS
DOMICILED.
  §  1560. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
FEES; DURATION OF LICENSE. 1. THE CLERK  OR  DEPARTMENT  SHALL  MAKE  AN
INVESTIGATION  OF THE QUALIFICATIONS OF EACH APPLICANT AND THE MERITS OF
EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING OF  THE  APPLICA-
TION.
  (A)  ISSUANCE OF LICENSES TO CONDUCT GAMES OF CHANCE. IF SUCH CLERK OR
DEPARTMENT DETERMINES:
  (1) THAT THE APPLICANT IS DULY QUALIFIED TO  BE  LICENSED  TO  CONDUCT
GAMES OF CHANCE UNDER THIS TITLE;
  (2)  THAT  THE  MEMBER  OR  MEMBERS OF THE APPLICANT DESIGNATED IN THE
APPLICATION TO MANAGE GAMES OF CHANCE ARE BONA FIDE  ACTIVE  MEMBERS  OF
THE  APPLICANT  AND  ARE  PERSONS OF GOOD MORAL CHARACTER AND HAVE NEVER
BEEN CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP BETWEEN  ONE
OR  MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY OF CHARITA-
BLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION  SEVEN  HUNDRED
FIFTY-THREE OF THE CORRECTION LAW;
  (3)  THAT  SUCH  GAMES  ARE  TO  BE  CONDUCTED  IN ACCORDANCE WITH THE
PROVISIONS OF THIS TITLE AND IN ACCORDANCE  WITH  THE  RULES  AND  REGU-
LATIONS  OF  THE  COMMISSION AND APPLICABLE LOCAL LAWS OR ORDINANCES AND
THAT THE PROCEEDS THEREOF ARE TO BE DISPOSED  OF  AS  PROVIDED  BY  THIS
TITLE; AND

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  (4)  IS  SATISFIED THAT NO COMMISSION, SALARY, COMPENSATION, REWARD OR
RECOMPENSE WHATSOEVER WILL BE PAID OR  GIVEN  TO  ANY  PERSON  MANAGING,
OPERATING  OR  ASSISTING  THEREIN  EXCEPT  AS  IN  THIS  TITLE OTHERWISE
PROVIDED, THEN SUCH CLERK OR DEPARTMENT SHALL ISSUE  A  LICENSE  TO  THE
APPLICANT  FOR  THE CONDUCT OF GAMES OF CHANCE UPON PAYMENT OF A LICENSE
FEE IN AN AMOUNT ESTABLISHED BY REGULATION OF THE  COMMISSION  FOR  EACH
LICENSE PERIOD.
  (B)  ISSUANCE  OF  LICENSES TO AUTHORIZED GAMES OF CHANCE LESSORS.  IF
SUCH CLERK OR DEPARTMENT DETERMINES:
  (1) THAT THE APPLICANT SEEKING TO LEASE PREMISES FOR  THE  CONDUCT  OF
GAMES  OF  CHANCE  TO A GAMES OF CHANCE LICENSEE IS DULY QUALIFIED TO BE
LICENSED UNDER THIS TITLE;
  (2) THAT THE APPLICANT SATISFIES THE REQUIREMENTS  FOR  AN  AUTHORIZED
ORGANIZATION AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
  (3)  THAT  THE  APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH LICENSE
PERIOD; AND
  (4) THAT SUCH PROPOSED RENT IS FAIR AND REASONABLE;
  (5) THAT THE NET PROCEEDS FROM ANY  RENTAL  WILL  BE  DEVOTED  TO  THE
LAWFUL PURPOSES OF THE APPLICANT;
  (6)  THAT  THERE  IS  NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE
FROM THE LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
  (7) THAT SUCH LEASING OF PREMISES FOR THE CONDUCT OF SUCH GAMES IS  TO
BE  IN  ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, WITH THE RULES AND
REGULATIONS OF THE COMMISSION AND APPLICABLE LOCAL LAWS AND  ORDINANCES,
THEN  SUCH  CLERK  OR  DEPARTMENT  SHALL  ISSUE A LICENSE PERMITTING THE
APPLICANT TO LEASE SAID PREMISES FOR THE CONDUCT OF SUCH  GAMES  TO  THE
GAMES  OF  CHANCE  LICENSEE  OR  LICENSEES  SPECIFIED IN THE APPLICATION
DURING THE PERIOD THEREIN SPECIFIED OR SUCH SHORTER PERIOD AS SUCH CLERK
OR DEPARTMENT DETERMINES, BUT  NOT  TO  EXCEED  TWELVE  LICENSE  PERIODS
DURING  A  CALENDAR  YEAR,  UPON  PAYMENT  OF A LICENSE FEE IN AN AMOUNT
ESTABLISHED BY THE REGULATIONS OF THE COMMISSION. NOTHING  HEREIN  SHALL
BE CONSTRUED TO REQUIRE THE APPLICANT TO BE LICENSED UNDER THIS TITLE TO
CONDUCT GAMES OF CHANCE.
  (C)  ISSUANCE  OF LICENSE UPON SUMMARY APPLICATION. IF, UPON THE BASIS
OF A SUMMARY  APPLICATION  AS  PRESCRIBED  UNDER  SUBDIVISION  THREE  OF
SECTION  FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE, THE CLERK OR DEPART-
MENT DETERMINES THAT THE APPLICANT IS DULY QUALIFIED TO BE  LICENSED  TO
CONDUCT GAMES OF CHANCE UNDER THIS TITLE, SAID CLERK OR DEPARTMENT SHALL
FORTHWITH  ISSUE  SAID LICENSE. IN THE EVENT THE CLERK OR DEPARTMENT HAS
REASON TO BELIEVE THAT THE APPLICANT IS NOT SO QUALIFIED  THE  APPLICANT
SHALL  BE DIRECTED TO FILE AN APPLICATION PURSUANT TO SUBDIVISION ONE OF
SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE.
  2. ON OR BEFORE THE LAST DAY OF EACH MONTH, THE TREASURER OF THE MUNI-
CIPALITY IN WHICH THE LICENSED PROPERTY IS LOCATED SHALL TRANSMIT TO THE
STATE COMPTROLLER A SUM EQUAL TO FIFTY PERCENT OF ALL  AUTHORIZED  GAMES
OF CHANCE LESSOR LICENSE FEES AND A SUM ESTABLISHED BY REGULATION OF THE
COMMISSION  PER  LICENSE  PERIOD  FOR  THE  CONDUCT  OF  GAMES OF CHANCE
COLLECTED BY SUCH CLERK OR DEPARTMENT PURSUANT TO  THIS  SECTION  DURING
THE PRECEDING CALENDAR MONTH.
  3. NO LICENSE SHALL BE ISSUED UNDER THIS SECTION THAT IS EFFECTIVE FOR
A PERIOD OF MORE THAN ONE YEAR.
  § 1561. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
ANCE  OF  A  LICENSE  TO CONDUCT GAMES OF CHANCE OR LEASE PREMISES TO AN
AUTHORIZED ORGANIZATION SHALL BE DENIED  BY  THE  CLERK  OR  DEPARTMENT,
UNTIL AFTER A HEARING, HELD ON DUE NOTICE TO THE APPLICANT, AT WHICH THE

S. 2009                            138                           A. 3009

APPLICANT  SHALL  BE ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE
APPLICANT AND THE MERITS OF THE APPLICATION.
  2.  ANY  LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED, UPON APPLICA-
TION MADE TO SUCH CLERK OR DEPARTMENT THAT ISSUED  IT,  IF  THE  SUBJECT
MATTER  OF  THE PROPOSED AMENDMENT COULD LAWFULLY AND PROPERLY HAVE BEEN
INCLUDED IN THE ORIGINAL LICENSE AND UPON  PAYMENT  OF  SUCH  ADDITIONAL
LICENSE  FEE,  IF  ANY,  AS  WOULD  HAVE  BEEN PAYABLE IF IT HAD BEEN SO
INCLUDED.
  § 1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF  LICENSE.  1.    EACH
LICENSE  TO  CONDUCT  GAMES  OF CHANCE SHALL BE IN SUCH FORM AS SHALL BE
PRESCRIBED IN THE RULES AND REGULATIONS  OF  THE  COMMISSION  AND  SHALL
CONTAIN:
  (A)  A STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE, OF THE NAMES
AND ADDRESSES OF THE MEMBERS OF THE LICENSEE UNDER WHOM THE  GAMES  WILL
BE MANAGED;
  (B)  A  STATEMENT  OF THE PLACE OR PLACES WHERE, AND THE DATE OR DATES
AND TIME OR TIMES WHEN, SUCH GAMES ARE TO BE CONDUCTED;
  (C) A STATEMENT OF THE PURPOSES TO WHICH THE ENTIRE  NET  PROCEEDS  OF
SUCH GAMES ARE TO BE DEVOTED;
  (D)  THE  NAME  OF  EACH SINGLE TYPE OF GAME TO BE CONDUCTED UNDER THE
LICENSE AND THE NUMBER OF MERCHANDISE WHEELS AND RAFFLES, IF ANY, TO  BE
OPERATED; AND
  (E)  ANY OTHER INFORMATION THAT MAY BE REQUIRED BY THE RULES AND REGU-
LATIONS OF THE COMMISSION TO BE CONTAINED THEREIN.
  2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAMES SHALL BE DISPLAYED
CONSPICUOUSLY AT THE PLACE WHERE SUCH GAMES ARE TO BE CONDUCTED  AT  ALL
TIMES DURING THE CONDUCT THEREOF.
  3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING GAMES OF CHANCE SHALL
BE  IN  SUCH FORM AS SHALL BE PRESCRIBED IN THE RULES AND REGULATIONS OF
THE COMMISSION AND SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS  OF
THE  LICENSEE  AND  THE  ADDRESS  OF  THE LEASED PREMISES, THE AMOUNT OF
PERMISSIBLE RENT AND ANY INFORMATION THAT MAY BE REQUIRED BY SAID  RULES
AND  REGULATIONS TO BE CONTAINED THEREIN, AND EACH SUCH LICENSE SHALL BE
CONSPICUOUSLY DISPLAYED UPON SUCH  PREMISES  AT  ALL  TIMES  DURING  THE
CONDUCT OF GAMES OF CHANCE.
  §  1563. CONTROL AND SUPERVISION; SUSPENSION OF IDENTIFICATION NUMBERS
AND LICENSES; INSPECTIONS OF  PREMISES.  1.  THE  MUNICIPAL  OFFICER  OR
DEPARTMENT  SHALL  HAVE AND EXERCISE RIGID CONTROL AND CLOSE SUPERVISION
OVER ALL GAMES OF CHANCE CONDUCTED UNDER SUCH LICENSE, TO THE  END  THAT
THE  SAME ARE CONDUCTED FAIRLY IN ACCORDANCE WITH THE PROVISIONS OF SUCH
LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS PROMULGATED BY  THE
COMMISSION  AND  THE PROVISIONS OF THIS TITLE. SUCH MUNICIPAL OFFICER OR
DEPARTMENT AND THE COMMISSION SHALL HAVE THE POWER AND THE AUTHORITY  TO
SUSPEND TEMPORARILY ANY LICENSE ISSUED BY THE CLERK OR DEPARTMENT AND/OR
IMPOSE  FINES FOR VIOLATIONS NOT TO EXCEED ONE THOUSAND DOLLARS.  TEMPO-
RARY SUSPENSION OF LICENSES SHALL BE FOLLOWED PROMPTLY BY A HEARING, AND
AFTER NOTICE AND HEARING, THE CLERK, DEPARTMENT OR  THE  COMMISSION  MAY
SUSPEND  OR REVOKE THE SAME AND DECLARE THE VIOLATOR INELIGIBLE TO APPLY
FOR A LICENSE FOR A PERIOD NOT EXCEEDING TWELVE MONTHS  THEREAFTER.  ANY
FINES  TENDERED  TO THE CLERK, DEPARTMENT OR THE COMMISSION SHALL NOT BE
PAID FROM FUNDS DERIVED FROM THE CONDUCT OF GAMES OF CHANCE. THE MUNICI-
PAL OFFICER AND THE DEPARTMENT OR THE COMMISSION SHALL ADDITIONALLY HAVE
THE RIGHT OF ENTRY, BY THEIR RESPECTIVE MUNICIPAL OFFICERS  AND  AGENTS,
AT  ALL  TIMES  INTO  ANY  PREMISES  WHERE  ANY  GAME OF CHANCE IS BEING
CONDUCTED OR WHERE IT IS INTENDED THAT ANY SUCH GAME SHALL BE CONDUCTED,
OR WHERE ANY EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE  CONDUCT

S. 2009                            139                           A. 3009

THEREOF  IS  FOUND, FOR THE PURPOSE OF INSPECTING THE SAME. UPON SUSPEN-
SION OR REVOCATION OF ANY LICENSE OR UPON DECLARATION  OF  INELIGIBILITY
TO  APPLY  FOR A LICENSE, THE COMMISSION MAY SUSPEND OR REVOKE THE IDEN-
TIFICATION NUMBER ISSUED PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-THREE
OF  THIS TITLE. AN AGENT OF THE APPROPRIATE MUNICIPAL OFFICER OR DEPART-
MENT SHALL MAKE AN ON-SITE INSPECTION DURING THE CONDUCT OF ALL GAMES OF
CHANCE LICENSED PURSUANT TO THIS TITLE.
  2. A MUNICIPALITY MAY, BY LOCAL LAW OR ORDINANCE ENACTED  PURSUANT  TO
THE  PROVISIONS  OF  SECTION  FIFTEEN  HUNDRED  FIFTY-TWO OF THIS TITLE,
PROVIDE THAT THE POWERS AND DUTIES SET FORTH IN SUBDIVISION ONE OF  THIS
SECTION  SHALL  BE EXERCISED BY THE CHIEF LAW ENFORCEMENT OFFICER OF THE
COUNTY. IN THE EVENT A MUNICIPALITY  EXERCISES  THIS  OPTION,  THE  FEES
PROVIDED  FOR  BY SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN
OF THIS TITLE SHALL BE REMITTED TO THE CHIEF FISCAL OFFICER OF THE COUN-
TY.
  3.  SERVICE  OF  ALCOHOLIC  BEVERAGES.  SUBJECT  TO   THE   APPLICABLE
PROVISIONS  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW, BEER MAY BE OFFERED
FOR SALE DURING THE CONDUCT OF GAMES OF CHANCE ON GAMES OF CHANCE  PREM-
ISES  AS  SUCH  PREMISES  ARE DEFINED IN SECTION FIFTEEN HUNDRED OF THIS
ARTICLE; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL  BE  CONSTRUED  TO
LIMIT  THE  OFFERING  FOR  SALE OF ANY OTHER ALCOHOLIC BEVERAGE IN AREAS
OTHER THAN THE GAMES OF CHANCE PREMISES OR THE SALE OF ANY  OTHER  ALCO-
HOLIC  BEVERAGE IN PREMISES WHERE ONLY THE GAMES OF CHANCE KNOWN AS BELL
JARS OR RAFFLES ARE CONDUCTED.
  § 1564. FREQUENCY OF GAMES. 1. NO GAME OR GAMES  OF  CHANCE  SHALL  BE
CONDUCTED  UNDER  ANY  LICENSE  ISSUED  UNDER THIS TITLE MORE OFTEN THAN
TWELVE TIMES IN ANY CALENDAR YEAR. NO PARTICULAR PREMISES SHALL BE  USED
FOR  THE  CONDUCT  OF  GAMES  OF CHANCE ON MORE THAN TWENTY-FOUR LICENSE
PERIODS DURING ANY ONE CALENDAR YEAR.
  2. GAMES OF CHANCE OTHER THAN BELL JARS AND RAFFLES MAY  BE  CONDUCTED
AT  ANY  TIME, UNLESS THE GAMES OF CHANCE LICENSE PROVIDES OTHERWISE. NO
LICENSE MAY RESTRICT THE  TIMES  IN  WHICH  BELL  JARS  OR  RAFFLES  ARE
CONDUCTED,  SUBJECT  TO  THE  LIMITATIONS ON THE LICENSE PERIOD FOR SUCH
GAMES SET FORTH IN SUBDIVISION EIGHTEEN OF SECTION  FIFTEEN  HUNDRED  OF
THIS ARTICLE.
  § 1565. PERSONS OPERATING GAMES; EQUIPMENT; EXPENSES; COMPENSATION. 1.
NO  PERSON  SHALL  OPERATE  ANY  GAME OF CHANCE UNDER ANY LICENSE ISSUED
UNDER THIS TITLE EXCEPT A BONA FIDE MEMBER OF THE  AUTHORIZED  ORGANIZA-
TION  TO WHICH THE LICENSE IS ISSUED, OR A BONA FIDE MEMBER OF AN ORGAN-
IZATION OR ASSOCIATION THAT IS AN AUXILIARY TO THE LICENSEE  OR  A  BONA
FIDE  MEMBER OF AN ORGANIZATION OR ASSOCIATION OF WHICH SUCH LICENSEE IS
AN AUXILIARY OR A BONA FIDE MEMBER OF  AN  ORGANIZATION  OR  ASSOCIATION
THAT  IS  AFFILIATED  WITH  THE LICENSEE BY BEING, WITH IT, AUXILIARY TO
ANOTHER ORGANIZATION OR ASSOCIATION. NOTHING HEREIN SHALL  BE  CONSTRUED
TO  LIMIT  THE NUMBER OF GAMES OF CHANCE LICENSEES FOR WHOM SUCH PERSONS
MAY OPERATE GAMES OF CHANCE NOR TO PREVENT  NON-MEMBERS  FROM  ASSISTING
THE LICENSEE IN ANY ACTIVITY OTHER THAN MANAGING OR OPERATING GAMES. FOR
THE  PURPOSE  OF  THE  SALE  OF TICKETS FOR THE GAME OF RAFFLE, THE TERM
"OPERATE" SHALL NOT INCLUDE THE SALE  OF  SUCH  TICKETS  BY  PERSONS  OF
LINEAL OR COLLATERAL CONSANGUINITY TO MEMBERS OF AN AUTHORIZED ORGANIZA-
TION LICENSED TO CONDUCT A RAFFLE.
  2. NO GAME OF CHANCE SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
AS  SHALL  BE OWNED OR LEASED BY THE AUTHORIZED ORGANIZATION SO LICENSED
OR USED WITHOUT PAYMENT OF ANY COMPENSATION THEREFOR  BY  THE  LICENSEE.
HOWEVER,  IN  NO  EVENT  SHALL  BELL JAR TICKETS BE TRANSFERRED FROM ONE

S. 2009                            140                           A. 3009

AUTHORIZED ORGANIZATION TO ANOTHER,  WITH  OR  WITHOUT  PAYMENT  OF  ANY
COMPENSATION THEREOF.
  3. THE HEAD OR HEADS OF THE AUTHORIZED ORGANIZATION SHALL UPON REQUEST
CERTIFY,  UNDER  OATH, THAT THE PERSONS OPERATING ANY GAME OF CHANCE ARE
BONA FIDE MEMBERS OF SUCH AUTHORIZED ORGANIZATION, AUXILIARY  OR  AFFIL-
IATED ORGANIZATION.
  4.  UPON  REQUEST  BY  A  MUNICIPAL OFFICER OR THE DEPARTMENT ANY SUCH
PERSON INVOLVED IN SUCH GAMES OF CHANCE SHALL CERTIFY THAT HE OR SHE HAS
NO CRIMINAL RECORD OR SHALL  DISCLOSE  PREVIOUS  CRIMINAL  OFFENSES  FOR
CONSIDERATION  OF  THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED FIFTY-
THREE OF THE CORRECTION LAW.
  5. NO ITEMS OF EXPENSE SHALL BE INCURRED OR PAID  IN  CONNECTION  WITH
THE  CONDUCTING  OF  ANY  GAME  OF CHANCE PURSUANT TO ANY LICENSE ISSUED
UNDER THIS TITLE EXCEPT THOSE THAT ARE REASONABLE  AND  ARE  NECESSARILY
EXPENDED  FOR  GAMES  OF CHANCE SUPPLIES AND EQUIPMENT, PRIZES, SECURITY
PERSONNEL, STATED RENTAL IF  ANY,  BOOKKEEPING  OR  ACCOUNTING  SERVICES
ACCORDING  TO  A  SCHEDULE OF COMPENSATION PRESCRIBED BY THE COMMISSION,
JANITORIAL SERVICES AND UTILITY SUPPLIES IF ANY, AND LICENSE  FEES,  AND
THE  COST  OF BUS TRANSPORTATION, IF AUTHORIZED BY SUCH CLERK OR DEPART-
MENT.
  6. NO COMMISSION, SALARY, COMPENSATION, REWARD OR RECOMPENSE SHALL  BE
PAID  OR  GIVEN TO ANY PERSON FOR THE SALE OR ASSISTING WITH THE SALE OF
RAFFLE TICKETS.
  § 1566. CHARGE FOR ADMISSION  AND  PARTICIPATION;  AMOUNT  OF  PRIZES;
AWARD  OF  PRIZES. 1. A FEE MAY BE CHARGED BY ANY LICENSEE FOR ADMISSION
TO ANY GAME OR GAMES OF CHANCE CONDUCTED UNDER ANY LICENSE ISSUED  UNDER
THIS TITLE.  THE CLERK OR DEPARTMENT MAY IN ITS DISCRETION FIX A MINIMUM
FEE.
  2.  WITH THE EXCEPTION OF BELL JARS, COIN BOARDS, SEAL CARDS, MERCHAN-
DISE BOARDS AND RAFFLES, EVERY WINNER  SHALL  BE  DETERMINED  AND  EVERY
PRIZE  SHALL  BE  AWARDED  AND DELIVERED WITHIN THE SAME CALENDAR DAY AS
THAT UPON WHICH THE GAME WAS PLAYED.
  3. A PLAYER MAY PURCHASE A CHANCE WITH  CASH  OR,  IF  THE  AUTHORIZED
ORGANIZATION WISHES, WITH A PERSONAL CHECK, CREDIT CARD OR DEBIT CARD.
  §  1567.  STATEMENT OF RECEIPTS AND EXPENSES; ADDITIONAL LICENSE FEES.
1.  WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY LICENSE  PERIOD  OTHER
THAN  A  LICENSE  PERIOD FOR A RAFFLE, OR AS OTHERWISE PRESCRIBED BY THE
COMMISSION, THE AUTHORIZED ORGANIZATION THAT CONDUCTED THE SAME, AND ITS
MEMBERS WHO WERE IN CHARGE THEREOF, AND WHEN APPLICABLE  THE  AUTHORIZED
GAMES  OF  CHANCE  LESSOR  THAT RENTED ITS PREMISES THEREFOR, SHALL EACH
FURNISH TO THE CLERK OR DEPARTMENT A STATEMENT SUBSCRIBED BY THE  MEMBER
IN  CHARGE  AND  AFFIRMED  BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF
PERJURY, SHOWING THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM  AND
EACH  ITEM  OF  EXPENSE  INCURRED, OR PAID, AND EACH ITEM OF EXPENDITURE
MADE OR TO BE MADE OTHER THAN PRIZES,  THE  NAME  AND  ADDRESS  OF  EACH
PERSON  TO  WHOM  EACH  SUCH  ITEM OF EXPENSE HAS BEEN PAID, OR IS TO BE
PAID, WITH A DETAILED DESCRIPTION OF THE MERCHANDISE  PURCHASED  OR  THE
SERVICES RENDERED THEREFOR, THE NET PROCEEDS DERIVED FROM THE CONDUCT OF
GAMES  OF  CHANCE  DURING SUCH LICENSE PERIOD, AND THE USE TO WHICH SUCH
PROCEEDS HAVE BEEN OR ARE TO BE APPLIED. IT SHALL BE THE  DUTY  OF  EACH
LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY
TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH STATEMENT.
  2. WITHIN THIRTY DAYS AFTER THE CONCLUSION OF AN OCCASION DURING WHICH
A  RAFFLE  WAS  CONDUCTED,  THE  AUTHORIZED ORGANIZATION CONDUCTING SUCH
RAFFLE AND THE MEMBERS IN CHARGE OF SUCH RAFFLE, AND,  WHEN  APPLICABLE,
THE AUTHORIZED GAMES OF CHANCE LESSOR THAT RENTED ITS PREMISES THEREFOR,

S. 2009                            141                           A. 3009

SHALL  EACH  FURNISH  TO  THE  CLERK OR DEPARTMENT A STATEMENT ON A FORM
PRESCRIBED BY THE COMMISSION, SUBSCRIBED BY THE  MEMBER  IN  CHARGE  AND
AFFIRMED BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF PERJURY, SHOWING:
  (A) THE NUMBER OF TICKETS PRINTED;
  (B) THE NUMBER OF TICKETS SOLD;
  (C) THE PRICE AND THE NUMBER OF TICKETS RETURNED TO OR RETAINED BY THE
AUTHORIZED ORGANIZATION AS UNSOLD;
  (D)  A  DESCRIPTION  AND  STATEMENT  OF THE FAIR MARKET VALUE FOR EACH
PRIZE ACTUALLY AWARDED;
  (E) THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM;
  (F) EACH ITEM OF EXPENDITURE MADE OR TO BE MADE OTHER THAN PRIZES;
  (G) THE NAME AND ADDRESS OF EACH PERSON TO  WHOM  EACH  SUCH  ITEM  OF
EXPENSE HAS BEEN PAID, OR IS TO BE PAID;
  (H)  A  DETAILED  DESCRIPTION  OF  THE  MERCHANDISE  PURCHASED  OR THE
SERVICES RENDERED THEREFOR;
  (I) THE NET PROCEEDS DERIVED FROM THE RAFFLE AT SUCH OCCASION; AND
  (J) THE USE TO WHICH THE PROCEEDS HAVE BEEN OR ARE TO BE  APPLIED.  IT
SHALL  BE  THE DUTY OF EACH LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND
RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH
STATEMENT, PROVIDED, HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS  OR  NET
PROFITS  DERIVED  FROM  THE CONDUCT OF A RAFFLE OR RAFFLES ARE LESS THAN
THIRTY THOUSAND DOLLARS DURING ANY  ONE  OCCASION,  IN  SUCH  CASE,  THE
REPORTING  REQUIREMENT  SHALL  BE  SATISFIED BY THE FILING WITHIN THIRTY
DAYS OF THE CONCLUSION OF SUCH OCCASION A VERIFIED STATEMENT  PRESCRIBED
BY  THE  COMMISSION  ATTESTING TO THE AMOUNT OF SUCH NET PROCEEDS OR NET
PROFITS AND THE DISTRIBUTION THEREOF FOR LAWFUL PURPOSES WITH THE  CLERK
OR  DEPARTMENT  AND  A  COPY  WITH THE COMMISSION, AND PROVIDED FURTHER,
HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS DERIVED FROM THE CONDUCT OF A
RAFFLE OR RAFFLES ARE LESS THAN FIVE THOUSAND  DOLLARS  DURING  ANY  ONE
OCCASION AND LESS THAN THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR,
NO REPORTING SHALL BE REQUIRED.
  3.  ANY AUTHORIZED ORGANIZATION REQUIRED TO FILE AN ANNUAL REPORT WITH
THE SECRETARY OF STATE PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE  LAW
OR THE ATTORNEY GENERAL PURSUANT TO ARTICLE EIGHT OF THE ESTATES, POWERS
AND  TRUSTS  LAW  SHALL  INCLUDE  WITH  SUCH ANNUAL REPORT A COPY OF THE
STATEMENT REQUIRED TO BE FILED WITH THE CLERK OR DEPARTMENT PURSUANT  TO
SUBDIVISION ONE OR TWO OF THIS SECTION.
  4.  UPON THE FILING OF SUCH STATEMENT OF RECEIPTS PURSUANT TO SUBDIVI-
SION ONE OR TWO OF THIS SECTION, THE AUTHORIZED ORGANIZATION  FURNISHING
THE  SAME  SHALL PAY TO THE CLERK OR DEPARTMENT AS AND FOR AN ADDITIONAL
LICENSE FEE A SUM BASED UPON THE REPORTED NET PROCEEDS, IF ANY, FOR  THE
LICENSE  PERIOD,  OR IN THE CASE OF RAFFLES, FOR THE OCCASION COVERED BY
SUCH STATEMENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS  SHALL
BE  ESTABLISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE ACTUAL
COST TO MUNICIPALITIES OR COUNTIES OF ADMINISTERING  THE  PROVISIONS  OF
THIS  TITLE,  BUT  SUCH  ADDITIONAL  LICENSE  FEE  SHALL NOT EXCEED FIVE
PERCENT OF THE NET PROCEEDS FOR SUCH LICENSE PERIOD. THE  PROVISIONS  OF
THIS  SUBDIVISION  SHALL  NOT APPLY TO THE NET PROCEEDS FROM THE SALE OF
BELL JAR TICKETS. NO FEE SHALL BE REQUIRED WHERE THE NET PROCEEDS OR NET
PROFITS DERIVED FROM THE CONDUCT OF A RAFFLE OR RAFFLES  ARE  LESS  THAN
THIRTY THOUSAND DOLLARS DURING ANY ONE OCCASION.
  §  1568. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS AND
EMPLOYEES; DISCLOSURE OF INFORMATION. THE CLERK OR  DEPARTMENT  AND  THE
COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED THE BOOKS
AND RECORDS OF:

S. 2009                            142                           A. 3009

  1. ANY AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN LICENSED TO CONDUCT
GAMES OF CHANCE, SO FAR AS THEY MAY RELATE TO GAMES OF CHANCE, INCLUDING
THE  MAINTENANCE,  CONTROL  AND DISPOSITION OF NET PROCEEDS DERIVED FROM
GAMES OF CHANCE OR FROM THE USE OF ITS PREMISES FOR GAMES OF CHANCE, AND
TO  EXAMINE  ANY  MANAGER,  OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE
THEREOF UNDER OATH IN RELATION TO THE CONDUCT OF ANY SUCH GAME UNDER ANY
SUCH LICENSE, THE USE OF ITS PREMISES FOR GAMES OF CHANCE, OR THE DISPO-
SITION OF NET PROCEEDS DERIVED FROM GAMES OF CHANCE, AS THE CASE MAY BE;
OR
  2. ANY AUTHORIZED GAMES OF CHANCE LESSOR, SO FAR  AS  SUCH  BOOKS  AND
RECORDS MAY RELATE TO LEASING PREMISES FOR GAMES OF CHANCE, AND TO EXAM-
INE  SUCH  LESSOR  OR  ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE
THEREOF UNDER OATH IN RELATION  TO  SUCH  LEASING.  ANY  INFORMATION  SO
RECEIVED  SHALL  NOT  BE DISCLOSED EXCEPT SO FAR AS MAY BE NECESSARY FOR
THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS TITLE.
  § 1569. APPEALS FOR THE DECISION OF  A  MUNICIPAL  OFFICER,  CLERK  OR
DEPARTMENT  TO  THE  COMMISSION.  ANY  APPLICANT  FOR, OR HOLDER OF, ANY
LICENSE ISSUED OR TO BE ISSUED UNDER THIS TITLE AGGRIEVED BY ANY  ACTION
OF  A  MUNICIPAL OFFICER, CLERK OR DEPARTMENT, TO WHICH SUCH APPLICATION
HAS BEEN MADE OR BY WHICH SUCH LICENSE HAS BEEN ISSUED,  MAY  APPEAL  TO
THE  COMMISSION  FROM THE DETERMINATION OF SAID MUNICIPAL OFFICER, CLERK
OR DEPARTMENT BY FILING WITH SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT
A WRITTEN NOTICE OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR
ACTION APPEALED FROM, AND UPON THE HEARING OF SUCH APPEAL, THE EVIDENCE,
IF ANY, TAKEN BEFORE SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT AND ANY
ADDITIONAL EVIDENCE MAY BE PRODUCED AND SHALL BE CONSIDERED IN  ARRIVING
AT  A  DETERMINATION  OF  THE  MATTERS  IN  ISSUE, AND THE ACTION OF THE
COMMISSION UPON SAID APPEAL SHALL BE BINDING UPON SUCH  MUNICIPAL  OFFI-
CER, CLERK OR DEPARTMENT AND ALL PARTIES TO SAID APPEAL.
  §  1570.  EXEMPTION  FROM  PROSECUTION.  NO PERSON, FIRM, PARTNERSHIP,
CORPORATION OR ORGANIZATION LAWFULLY CONDUCTING, OR PARTICIPATING IN THE
CONDUCT OF, GAMES OF CHANCE, OR PERMITTING THE CONDUCT UPON ANY PREMISES
OWNED OR LEASED BY HIM, HER OR IT  UNDER  ANY  LICENSE  LAWFULLY  ISSUED
PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROSECUTION OR CONVICTION FOR
VIOLATION  OF  ANY  PROVISION  OF ARTICLE TWO HUNDRED TWENTY-FIVE OF THE
PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO THE EXTENT THAT SUCH  CONDUCT
IS  SPECIFICALLY  AUTHORIZED  BY THIS TITLE, BUT THIS IMMUNITY SHALL NOT
EXTEND TO ANY PERSON OR CORPORATION KNOWINGLY CONDUCTING OR  PARTICIPAT-
ING  IN THE CONDUCT OF GAMES OF CHANCE UNDER ANY LICENSE OBTAINED BY ANY
FALSE PRETENSE OR BY ANY FALSE STATEMENT MADE  IN  ANY  APPLICATION  FOR
LICENSE  OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY PREMISES OWNED
OR LEASED BY HIM, HER OR IT OF ANY GAME OF CHANCE  CONDUCTED  UNDER  ANY
LICENSE  KNOWN TO HIM, HER OR IT TO HAVE BEEN OBTAINED BY ANY SUCH FALSE
PRETENSE OR STATEMENT.
  § 1571. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY  TO  APPLY  FOR
LICENSE.  ANY PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION WHO
OR THAT SHALL:
  1. MAKE ANY MATERIAL  FALSE  STATEMENT  IN  ANY  APPLICATION  FOR  ANY
LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
  2. PAY OR RECEIVE, FOR THE USE OF ANY PREMISES FOR CONDUCTING GAMES OF
CHANCE,  A  RENTAL  IN EXCESS OF THE AMOUNT SPECIFIED AS THE PERMISSIBLE
RENT IN THE LICENSE PROVIDED FOR IN SUBDIVISION THREE OF SECTION FIFTEEN
HUNDRED SIXTY-TWO OF THIS TITLE;
  3. FAIL TO KEEP SUCH BOOKS AND RECORDS AS SHALL FULLY AND TRULY RECORD
ALL TRANSACTIONS CONNECTED WITH THE CONDUCTING OF GAMES OF CHANCE OR THE
LEASING OF PREMISES TO BE USED FOR THE CONDUCT OF GAMES OF CHANCE;

S. 2009                            143                           A. 3009

  4. FALSIFY OR MAKE ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO  FAR  AS
THEY  RELATE  IN  ANY  MANNER  TO THE CONDUCT OF GAMES OF CHANCE, TO THE
DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE  RENTS
RECEIVED BY ANY AUTHORIZED ORGANIZATION;
  5. DIVERT OR PAY ANY PORTION OF THE NET PROCEEDS OF ANY GAME OF CHANCE
TO  ANY PERSON, FIRM, PARTNERSHIP, CORPORATION, EXCEPT IN FURTHERANCE OF
ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; SHALL BE GUIL-
TY OF A MISDEMEANOR AND SHALL FORFEIT  ANY  LICENSE  ISSUED  UNDER  THIS
TITLE  AND  BE INELIGIBLE TO APPLY FOR A LICENSE UNDER THIS TITLE FOR AT
LEAST ONE YEAR THEREAFTER.
  § 1572. UNLAWFUL GAMES OF CHANCE. 1. ANY PERSON,  ASSOCIATION,  CORPO-
RATION  OR ORGANIZATION HOLDING, OPERATING OR CONDUCTING A GAME OR GAMES
OF CHANCE IS GUILTY OF A MISDEMEANOR, EXCEPT WHEN OPERATING, HOLDING  OR
CONDUCTING:
  (A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
  (B)  ON  BEHALF  OF A BONA FIDE ORGANIZATION OF PERSONS SIXTY YEARS OF
AGE OR OVER, COMMONLY REFERRED TO AS SENIOR  CITIZENS,  SOLELY  FOR  THE
PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS WHERE:
  (1)  THE  ORGANIZATION  HAS APPLIED FOR AND RECEIVED AN IDENTIFICATION
NUMBER FROM THE COMMISSION;
  (2) NO PLAYER OR OTHER PERSON FURNISHES  ANYTHING  OF  VALUE  FOR  THE
OPPORTUNITY TO PARTICIPATE;
  (3) THE PRIZES AWARDED OR TO BE AWARDED ARE NOMINAL;
  (4) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZATION
PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
  (5)  NO  PERSON  IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
THE GAME OR GAMES; OR
  (C) A RAFFLE PURSUANT TO SECTION FIFTEEN HUNDRED  FIFTY-NINE  OF  THIS
TITLE.
  2.  THE  PROVISIONS  OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE  THIS  TITLE  IS
INOPERATIVE.
  §  1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
IN SECTION FIFTEEN HUNDRED SEVENTY-TWO OF THIS TITLE, THE PROVISIONS  OF
THIS TITLE SHALL REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND UNTIL
A  PROPOSITION  THEREFOR  SUBMITTED  AT A GENERAL OR SPECIAL ELECTION IN
SUCH MUNICIPALITY SHALL BE APPROVED BY A VOTE OF  THE  MAJORITY  OF  THE
QUALIFIED ELECTORS IN SUCH MUNICIPALITY VOTING THEREON.
  §  1574.  AMENDMENT  AND REPEAL OF LOCAL LAWS AND ORDINANCES. ANY SUCH
LOCAL LAW OR ORDINANCE MAY BE AMENDED, FROM TIME TO TIME, OR REPEALED BY
THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY OF  THE  MUNICIPALITY
THAT  ENACTED IT, BY A TWO-THIRDS VOTE OF SUCH LEGISLATIVE BODY AND SUCH
AMENDMENT OR REPEAL, AS THE CASE MAY BE, MAY BE MADE EFFECTIVE AND OPER-
ATIVE NOT EARLIER THAN THIRTY DAYS FOLLOWING THE EFFECTIVE DATE  OF  THE
LOCAL  LAW  OR ORDINANCE EFFECTING SUCH AMENDMENT OR REPEAL, AS THE CASE
MAY BE, AND THE APPROVAL OF A MAJORITY OF THE ELECTORS OF  SUCH  MUNICI-
PALITY  SHALL  NOT  BE  A CONDITION PREREQUISITE TO THE TAKING EFFECT OF
SUCH LOCAL LAW OR ORDINANCE.
  § 1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS. 1.   DISTRIB-
UTION;  MANUFACTURERS. FOR BUSINESS CONDUCTED IN THIS STATE, MANUFACTUR-
ERS LICENSED BY THE COMMISSION TO SELL BELL JAR TICKETS SHALL SELL  SUCH
TICKETS  ONLY  TO DISTRIBUTORS LICENSED BY THE COMMISSION. MANUFACTURERS
OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND COIN BOARDS  MAY
SUBMIT  SAMPLES,  ARTISTS'  RENDERINGS  OR COLOR PHOTOCOPIES OF PROPOSED
BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS,  COIN  BOARDS,  PAYOUT
CARDS AND FLARES FOR REVIEW AND APPROVAL BY THE COMMISSION. WITHIN THIR-

S. 2009                            144                           A. 3009

TY  DAYS  OF  RECEIPT  OF SUCH SAMPLE OR RENDERING, THE COMMISSION SHALL
APPROVE OR DENY SUCH BELL JAR TICKETS. FOLLOWING APPROVAL OF A RENDERING
OF A BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD OR COIN BOARD BY  THE
COMMISSION,  THE MANUFACTURER SHALL SUBMIT TO THE COMMISSION A SAMPLE OF
THE PRINTED BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD,  COIN  BOARD,
PAYOUT  CARD  AND  FLARE  FOR  SUCH GAME. SUCH SAMPLE SHALL BE SUBMITTED
PRIOR TO THE SALE OF THE GAME TO ANY LICENSED DISTRIBUTOR FOR RESALE  IN
THIS STATE. FOR COIN BOARDS AND MERCHANDISE BOARDS, NOTHING HEREIN SHALL
REQUIRE  THE  SUBMITTAL  OF  ACTUAL  COINS OR MERCHANDISE AS PART OF THE
APPROVAL PROCESS. ANY LICENSED MANUFACTURER WHO WILLFULLY  VIOLATES  THE
PROVISIONS OF THIS SECTION SHALL:
  (A)  UPON  SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
OF THIRTY DAYS;
  (B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD  AS  RECOM-
MENDED BY THE COMMISSION; AND
  (C)  UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS  E  FELONY.  ANY
UNLICENSED  MANUFACTURER  WHO  VIOLATES  THE  PROVISIONS OF THIS SECTION
SHALL BE GUILTY OF A CLASS E FELONY.
  2. BAR CODES. THE MANUFACTURER SHALL AFFIX TO THE FLARE OF  EACH  BELL
JAR  GAME  A  BAR  CODE  THAT PROVIDES ALL INFORMATION PRESCRIBED BY THE
COMMISSION AND SHALL REQUIRE THAT THE BAR CODE INCLUDE THE SERIAL NUMBER
OF THE GAME THE FLARE DESCRIBES. A MANUFACTURER SHALL ALSO AFFIX TO  THE
OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR TICK-
ETS  A  BAR  CODE PROVIDING ALL INFORMATION PRESCRIBED BY THE COMMISSION
AND CONTAINING THE SAME INFORMATION AS  THE  BAR  CODE  AFFIXED  TO  THE
FLARE.  THE  COMMISSION  MAY ALSO PRESCRIBE ADDITIONAL BAR CODE REQUIRE-
MENTS. NO PERSON MAY ALTER THE BAR CODE THAT APPEARS ON THE FLARE OR  ON
THE  OUTSIDE  OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR
TICKETS. POSSESSION OF A DEAL OF BELL JAR TICKETS THAT HAS  A  BAR  CODE
DIFFERENT  FROM  THE  SERIAL  NUMBER OF THE DEAL INSIDE THE CONTAINER OR
WRAPPING AS EVIDENCED ON THE FLARE IS  PRIMA  FACIE  EVIDENCE  THAT  THE
POSSESSOR HAS ALTERED THE BAR CODE ON THE CONTAINER OR WRAPPING.
  3.  BELL  JAR FLARES. (A) A MANUFACTURER SHALL NOT SHIP OR CAUSE TO BE
SHIPPED INTO THIS STATE ANY DEAL OF BELL JAR TICKETS THAT DOES NOT  HAVE
ITS  OWN  INDIVIDUAL  FLARE  AS  REQUIRED  FOR  THAT DEAL BY RULE OF THE
COMMISSION.  A PERSON OTHER THAN A LICENSED MANUFACTURER SHALL NOT MANU-
FACTURE, ALTER, MODIFY OR OTHERWISE CHANGE A FLARE FOR A  DEAL  OF  BELL
JAR  TICKETS EXCEPT AS AUTHORIZED BY THIS TITLE OR RULES AND REGULATIONS
PROMULGATED BY THE COMMISSION.
  (B) THE FLARE FOR EACH DEAL OF BELL JAR TICKETS SOLD BY A MANUFACTURER
IN THIS STATE SHALL BE PLACED INSIDE THE WRAPPING OF THE DEAL  THAT  THE
FLARE DESCRIBES.
  (C) THE BAR CODE AFFIXED TO THE FLARE OF EACH BELL JAR GAME SHALL BEAR
THE SERIAL NUMBER OF SUCH GAME AS PRESCRIBED BY THE COMMISSION.
  (D) THE FLARE OF EACH BELL JAR GAME SHALL HAVE AFFIXED A BAR CODE THAT
PROVIDES:
  (1) THE GAME CODE;
  (2) THE SERIAL NUMBER OF THE GAME;
  (3) THE NAME OF THE MANUFACTURER; AND
  (4) OTHER INFORMATION THE COMMISSION BY RULE MAY REQUIRE.
  THE  SERIAL  NUMBER  INCLUDED ON THE BAR CODE SHALL BE THE SAME AS THE
SERIAL NUMBER OF THE TICKETS INCLUDED IN THE DEAL.  A  MANUFACTURER  WHO
MANUFACTURES  A  DEAL  OF BELL JAR TICKETS SHALL AFFIX TO THE OUTSIDE OF

S. 2009                            145                           A. 3009

THE CONTAINER OR WRAPPING CONTAINING THE BELL JAR TICKETS THE  SAME  BAR
CODE THAT IS AFFIXED TO THE FLARE FOR THAT DEAL.
  (E)  NO PERSON SHALL ALTER THE BAR CODE THAT APPEARS ON THE OUTSIDE OF
A  CONTAINER  OR  WRAPPING  CONTAINING  A  DEAL  OF  BELL  JAR  TICKETS.
POSSESSION  OF  A DEAL OF BELL JAR TICKETS THAT HAS A BAR CODE DIFFERENT
FROM THE BAR CODE OF THE DEAL INSIDE THE CONTAINER OR WRAPPING IS  PRIMA
FACIE EVIDENCE THAT THE POSSESSOR HAS ALTERED THE BAR CODE ON THE BOX.
  4.  REPORTS  OF  SALES.  A MANUFACTURER WHO SELLS BELL JAR TICKETS FOR
RESALE IN  THIS  STATE  SHALL  FILE  WITH  THE  COMMISSION,  ON  A  FORM
PRESCRIBED  BY  THE COMMISSION, A REPORT OF ALL BELL JAR TICKETS SOLD TO
DISTRIBUTORS IN THE STATE.  THE REPORT SHALL BE FILED  QUARTERLY  ON  OR
BEFORE  THE TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE QUARTER
IN WHICH THE SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT  THE  REPORT
BE SUBMITTED VIA ELECTRONIC MEDIA OR ELECTRONIC DATA TRANSFER.
  5.  INSPECTION.  THE  COMMISSION  MAY  INSPECT  THE  PREMISES,  BOOKS,
RECORDS, AND INVENTORY OF  A  MANUFACTURER  WITHOUT  NOTICE  DURING  THE
NORMAL BUSINESS HOURS OF THE MANUFACTURER.
  §  1576.  DISTRIBUTOR  OF BELL JARS; REPORTS AND RECORDS. 1.  DISTRIB-
UTION; DISTRIBUTORS. ANY DISTRIBUTOR LICENSED IN ACCORDANCE WITH SECTION
FIFTEEN HUNDRED FIFTY-FIVE OF THIS TITLE TO DISTRIBUTE BELL JAR  TICKETS
SHALL PURCHASE BELL JAR TICKETS ONLY FROM LICENSED MANUFACTURERS AND MAY
MANUFACTURE  COIN  BOARDS  AND  MERCHANDISE BOARDS ONLY AS AUTHORIZED IN
SUBDIVISION TWO OF THIS SECTION. LICENSED DISTRIBUTORS OF BELL JAR TICK-
ETS SHALL SELL SUCH TICKETS ONLY TO NOT-FOR-PROFIT, CHARITABLE OR  RELI-
GIOUS ORGANIZATIONS REGISTERED BY THE COMMISSION. ANY LICENSED DISTRIBU-
TOR WHO WILLFULLY VIOLATES THE PROVISIONS OF THIS SECTION SHALL:
  (A)  UPON  SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
OF THIRTY DAYS;
  (B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD  AS  RECOM-
MENDED BY THE COMMISSION; AND
  (C)  UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS  E  FELONY.  ANY
UNLICENSED  DISTRIBUTOR  WHO  VIOLATES THIS SECTION SHALL BE GUILTY OF A
CLASS E FELONY.
  2. COIN BOARDS AND MERCHANDISE BOARDS. DISTRIBUTORS OF BELL JAR  TICK-
ETS  MAY  MANUFACTURE  COIN  BOARDS  AND MERCHANDISE BOARDS ONLY IF SUCH
BOARDS HAVE BEEN APPROVED BY THE COMMISSION AND HAVE A BAR CODE  AFFIXED
TO THEM SETTING FORTH ALL INFORMATION REQUIRED BY THE COMMISSION. EXCEPT
THAT FOR COIN BOARDS AND MERCHANDISE BOARDS, DELINEATION OF THE PRIZE OR
PRIZE  VALUE NEED NOT BE INCLUDED ON THE GAME TICKET SOLD IN CONJUNCTION
WITH A COIN BOARD OR MERCHANDISE BOARD.   IN LIEU OF  SUCH  REQUIREMENT,
THE  DISTRIBUTOR  SHALL BE REQUIRED TO DISCLOSE THE PRIZE LEVELS AND THE
NUMBER OF WINNERS AT EACH LEVEL AND SHALL  PRINT  CLEARLY  ON  THE  GAME
TICKET  THAT  A  TICKET  HOLDER MAY OBTAIN THE PRIZE AND PRIZE VALUE FOR
EACH PRIZE LEVEL BY REFERENCING THE FLARE. SUCH  COIN  BOARDS  SHALL  BE
SOLD  ONLY BY LICENSED DISTRIBUTORS TO LICENSED AUTHORIZED ORGANIZATIONS
REGISTERED BY THE COMMISSION IN ACCORDANCE WITH THE PROVISIONS  OF  THIS
TITLE.
  3.  BUSINESS  RECORDS. A DISTRIBUTOR SHALL KEEP AT EACH PLACE OF BUSI-
NESS COMPLETE AND ACCURATE RECORDS FOR THAT PLACE OF BUSINESS, INCLUDING
ITEMIZED INVOICES OF BELL JAR TICKETS HELD AND  PURCHASED.  THE  RECORDS
MUST  SHOW  THE  NAMES AND ADDRESSES OF PURCHASERS, THE INVENTORY AT THE
CLOSE OF EACH PERIOD FOR WHICH A RETURN IS REQUIRED, ALL BELL JAR  TICK-
ETS  ON  HAND  AND  OTHER PERTINENT PAPERS AND DOCUMENTS RELATING TO THE
PURCHASE, SALE OR DISPOSITION OF BELL JAR TICKETS AS MAY BE REQUIRED  BY

S. 2009                            146                           A. 3009

THE  COMMISSION.  BOOKS, RECORDS, ITEMIZED INVOICES AND OTHER PAPERS AND
DOCUMENTS REQUIRED BY THIS SECTION SHALL BE KEPT  FOR  A  PERIOD  OF  AT
LEAST  FOUR  YEARS  AFTER  THE DATE OF THE DOCUMENTS, OR THE DATE OF THE
ENTRIES  APPEARING  IN  THE RECORDS, UNLESS THE COMMISSION AUTHORIZES IN
WRITING THEIR DESTRUCTION OR DISPOSAL AT AN EARLIER DATE. A  PERSON  WHO
VIOLATES THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
  4.  SALES  RECORDS.  A DISTRIBUTOR SHALL MAINTAIN A RECORD OF ALL BELL
JAR TICKETS THAT IT SELLS. THE RECORD SHALL INCLUDE,  BUT  NEED  NOT  BE
LIMITED TO:
  (A)  THE  IDENTITY  OF  THE  MANUFACTURER  FROM  WHOM  THE DISTRIBUTOR
PURCHASED THE PRODUCT;
  (B) THE SERIAL NUMBER OF THE PRODUCT;
  (C) THE NAME, ADDRESS AND LICENSE  OR  EXEMPT  PERMIT  NUMBER  OF  THE
ORGANIZATION OR PERSON TO WHICH THE SALE WAS MADE;
  (D) THE DATE OF THE SALE;
  (E) THE NAME OF THE PERSON WHO ORDERED THE PRODUCT;
  (F) THE NAME OF THE PERSON WHO RECEIVED THE PRODUCT;
  (G) THE TYPE OF PRODUCT;
  (H) THE SERIAL NUMBER OF THE PRODUCT;
  (I)  THE  ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
DISTRIBUTOR AND  THE  ACCOUNT  NUMBER  IDENTIFYING  THE  SALE  FROM  THE
DISTRIBUTOR TO THE LICENSED ORGANIZATION; AND
  (J)  THE  NAME,  FORM NUMBER OR OTHER IDENTIFYING INFORMATION FOR EACH
GAME.
  5. INVOICES. A DISTRIBUTOR SHALL SUPPLY WITH EACH SALE OF A  BELL  JAR
PRODUCT AN ITEMIZED INVOICE SHOWING:
  (A) THE DISTRIBUTOR'S NAME AND ADDRESS;
  (B) THE PURCHASER'S NAME, ADDRESS, AND LICENSE NUMBER;
  (C) THE DATE OF THE SALE;
  (D)  THE  ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
DISTRIBUTOR;
  (E) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM  THE  DISTRIBUTOR  TO
THE LICENSED ORGANIZATION; AND
  (F) THE DESCRIPTION OF THE DEALS, INCLUDING THE FORM NUMBER, THE SERI-
AL  NUMBER  AND  THE  IDEAL GROSS FROM EVERY DEAL OF BELL JAR OR SIMILAR
GAME.
  6. REPORTS. A DISTRIBUTOR SHALL REPORT QUARTERLY TO THE COMMISSION, ON
A FORM PRESCRIBED BY THE COMMISSION, ITS SALES OF EACH TYPE OF BELL  JAR
DEAL  OR  TICKETS. THIS REPORT SHALL BE FILED QUARTERLY ON OR BEFORE THE
TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE  QUARTER  IN  WHICH
THE  SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT A DISTRIBUTOR SUBMIT
THE QUARTERLY REPORT AND INVOICES REQUIRED BY THIS SECTION VIA ELECTRON-
IC MEDIA OR ELECTRONIC DATA TRANSFER.
  7. THE COMMISSION MAY INSPECT THE PREMISES, BOOKS, RECORDS AND  INVEN-
TORY OF A DISTRIBUTOR WITHOUT NOTICE DURING THE NORMAL BUSINESS HOURS OF
THE DISTRIBUTOR.
  8.  CERTIFIED  PHYSICAL  INVENTORY.  THE COMMISSION MAY, UPON REQUEST,
REQUIRE A DISTRIBUTOR TO FURNISH A CERTIFIED PHYSICAL INVENTORY  OF  ALL
BELL  JAR  TICKETS IN STOCK. THE INVENTORY SHALL CONTAIN THE INFORMATION
REQUESTED BY THE COMMISSION.
  § 1577. TRANSFER RESTRICTIONS. NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS
ORGANIZATIONS AUTHORIZED TO SELL BELL JAR  TICKETS  IN  ACCORDANCE  WITH
THIS  TITLE  SHALL  PURCHASE  BELL  JAR  TICKETS  ONLY FROM DISTRIBUTORS
LICENSED BY THE COMMISSION. NO NOT-FOR-PROFIT, CHARITABLE  OR  RELIGIOUS
ORGANIZATION  SHALL  SELL, DONATE OR OTHERWISE TRANSFER BELL JAR TICKETS
TO ANY OTHER NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS ORGANIZATION.

S. 2009                            147                           A. 3009

  § 1578. BELL JARS COMPLIANCE AND ENFORCEMENT. 1. IN THE CASE  OF  BELL
JARS,  THE  LICENSEE, UPON FILING FINANCIAL STATEMENTS OF BELL JAR OPER-
ATIONS, SHALL ALSO TENDER TO THE COMMISSION A SUM IN THE AMOUNT OF  FIVE
PERCENT  OF  THE  NET  PROCEEDS  FROM THE SALE OF BELL JAR TICKETS, SEAL
CARDS,  MERCHANDISE  BOARDS AND COIN BOARDS, IF ANY, FOR THAT PORTION OF
LICENSE PERIOD COVERED BY SUCH STATEMENT.
  2. UNSOLD TICKETS OF THE BELL JAR DEAL SHALL BE KEPT ON  FILE  BY  THE
SELLING  ORGANIZATION  FOR  INSPECTION BY THE COMMISSION FOR A PERIOD OF
ONE YEAR FOLLOWING THE DATE UPON WHICH THE RELEVANT FINANCIAL  STATEMENT
WAS RECEIVED BY THE COMMISSION.
  3.  ONE-HALF OF ONE PERCENT OF THE FEE SET FORTH IN SUBDIVISION ONE OF
THIS SECTION RECEIVED FROM AUTHORIZED VOLUNTEER FIRE COMPANIES SHALL  BE
PAID  TO  THE  NEW  YORK STATE EMERGENCY SERVICES REVOLVING LOAN ACCOUNT
ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-PP  OF  THE  STATE  FINANCE
LAW.
  4.  THE COMMISSION SHALL SUBMIT TO THE DIRECTOR OF THE DIVISION OF THE
BUDGET AN ANNUAL PLAN THAT DETAILS THE AMOUNT OF  MONEY  THE  COMMISSION
DEEMS  NECESSARY  TO  MAINTAIN OPERATIONS, COMPLIANCE AND ENFORCEMENT OF
THE PROVISIONS OF THIS TITLE AND  THE  COLLECTION  OF  THE  LICENSE  FEE
AUTHORIZED  BY THIS SECTION.  CONTINGENT UPON THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, THE  COMMISSION  SHALL  PAY  INTO  AN
ACCOUNT, TO BE KNOWN AS THE BELL JAR COLLECTION ACCOUNT, UNDER THE JOINT
CUSTODY  OF  THE  COMPTROLLER  AND  THE  COMMISSION, THE TOTAL AMOUNT OF
LICENSE FEES COLLECTED PURSUANT TO THIS SECTION. WITH  THE  APPROVAL  OF
THE  DIRECTOR  OF THE DIVISION OF THE BUDGET, MONIES TO BE USED TO MAIN-
TAIN THE OPERATIONS NECESSARY TO ENFORCE THE PROVISIONS  OF  THIS  TITLE
AND  THE  COLLECTION OF THE LICENSE FEE IMPOSED BY THIS SECTION SHALL BE
PAID OUT OF SUCH ACCOUNT ON THE AUDIT AND WARRANT OF THE COMPTROLLER  ON
VOUCHERS  CERTIFIED  OR  APPROVED BY THE DIRECTOR OF THE DIVISION OF THE
BUDGET OR THE DIRECTOR'S DULY DESIGNATED OFFICIAL. THOSE MONIES THAT ARE
NOT USED TO MAINTAIN OPERATIONS NECESSARY TO ENFORCE THE  PROVISIONS  OF
THIS  TITLE  AND  THE  COLLECTION  OF THE LICENSE FEE AUTHORIZED BY THIS
SECTION SHALL BE PAID OUT OF SUCH AMOUNT ON THE AUDIT AND WARRANT OF THE
STATE COMPTROLLER AND SHALL BE CREDITED TO THE GENERAL FUND.
  § 3. Section 129 of the racing, pari-mutuel wagering and breeding law,
as added by section 1 of part A of chapter 60 of the laws  of  2012,  is
amended to read as follows:
  §  129.  Construction  of other laws or provisions. Unless the context
[shall require] REQUIRES otherwise, the terms "division of the lottery",
"state quarter horse  racing  commission",  "state  racing  commission",
"state  harness racing commission", "state racing and wagering board" or
"board" wherever occurring in any of the provisions of this  chapter  or
of any other law, or, in any official books, records, instruments, rules
or papers, shall hereafter mean and refer to the state gaming commission
created  by  section  one hundred two of this article. The provisions of
article three of this chapter shall be inapplicable to  article  two  of
this chapter; and the provisions of such article two shall be inapplica-
ble to such article three, except that section two hundred thirty-one of
such  article  two shall apply to such article three. UNLESS THE CONTEXT
REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 19-B OF THE EXECUTIVE LAW"
WHEREVER OCCURRING IN ANY LAW,  OR,  IN  ANY  OFFICIAL  BOOKS,  RECORDS,
INSTRUMENTS,  RULES  OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO TITLES
ONE AND TWO OF ARTICLE FIFTEEN  OF  THIS  CHAPTER.  UNLESS  THE  CONTEXT
REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 14-H OF THE GENERAL MUNIC-
IPAL  LAW"  WHEREVER  OCCURRING  IN  ANY LAW, OR, IN ANY OFFICIAL BOOKS,
RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO

S. 2009                            148                           A. 3009

TITLES ONE AND THREE OF ARTICLE FIFTEEN  OF  THIS  CHAPTER.  UNLESS  THE
CONTEXT REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 9-A OF THE GENERAL
MUNICIPAL LAW" WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS,
RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
TITLES ONE AND FOUR OF ARTICLE FIFTEEN OF THIS CHAPTER.
  §  4.  Paragraph  (b)  of  subdivision 2 of section 103 of the racing,
pari-mutuel wagering and breeding law, as added by section 1 of  part  A
of chapter 60 of the laws of 2012, is amended as follows:
  (b)  Charitable  gaming.  The  division  of charitable gaming shall be
responsible for the supervision  and  administration  of  the  games  of
chance  licensing  law,  bingo  licensing  law  and bingo control law as
prescribed by [articles nine-A and fourteen-H of the  general  municipal
law  and  nineteen-B  of  the  executive  law]  ARTICLE  FIFTEEN OF THIS
CHAPTER.
  § 5. Subdivision 1 and paragraph (b) of subdivision 3 of  section  151
of  the  social services law, subdivision 1 as amended and paragraph (b)
of subdivision 3 as added by section 2 of part F of chapter  58  of  the
laws of 2014, are amended to read as follows:
  1. Unauthorized transactions. Except as otherwise provided in subdivi-
sion  two  of  this  section, no person, firm, establishment, entity, or
corporation (a) licensed under the provisions of the alcoholic  beverage
control  law  to  sell  liquor  and/or  wine  at retail for off-premises
consumption; (b) licensed to sell beer at wholesale and also  authorized
to  sell  beer  at  retail for off-premises consumption; (c) licensed or
authorized to conduct pari-mutuel wagering activity  under  the  racing,
pari-mutuel  wagering  and  breeding law; (d) licensed to participate in
charitable gaming under [article fourteen-H of  the  general  municipal]
TITLE  THREE  OF ARTICLE FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND
BREEDING law; (e) licensed to participate in the operation  of  a  video
lottery  facility  under section one thousand six hundred seventeen-a of
the tax law; (f) licensed to operate a  gaming  facility  under  section
[one  thousand three] THIRTEEN hundred eleven of the racing, pari-mutuel
wagering and breeding law; or (g) providing adult-oriented entertainment
in which performers disrobe or perform in an unclothed state for  enter-
tainment,  or  making available the venue in which performers disrobe or
perform in an unclothed state for entertainment, shall  cash  or  accept
any public assistance check or electronic benefit transfer device issued
by a public welfare official or department, or agent thereof, as and for
public assistance.
  (b)  A  violation of the provisions of subdivision one of this section
by any person, corporation or entity licensed to operate a gaming facil-
ity under section one thousand three hundred eleven of the racing, pari-
mutuel wagering and breeding law; licensed under  section  one  thousand
six  hundred  seventeen-a of the tax law to participate in the operation
of a video lottery facility; licensed or authorized to conduct  pari-mu-
tuel  wagering  under the racing, pari-mutuel wagering and breeding law;
or licensed to participate in charitable  gaming  under  [article  four-
teen-H  of  the general municipal] TITLE THREE OF ARTICLE FIFTEEN OF THE
RACING, PARI-MUTUEL  WAGERING  AND  BREEDING  law,  shall  subject  such
person, corporation or entity to disciplinary action pursuant to section
one  hundred  four  of the racing, pari-mutuel wagering and breeding law
and section one thousand six hundred seven of the  tax  law,  which  may
include  revocation,  cancellation  or  suspension  of  such  license or
authorization.

S. 2009                            149                           A. 3009

  § 6. Paragraph 3 of subdivision (c) of section 290 of the tax law,  as
amended  by  chapter  547  of  the  laws  of 1987, is amended to read as
follows:
  (3)  Any  income  derived  from the conduct of games of chance or from
rental of premises for the conduct of games  of  chance  pursuant  to  a
license  granted  under  TITLE  FOUR  OF  article [nine-A of the general
municipal] FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING  law
shall not be subject to tax under this article.
  §  7.  This  act shall take effect on the ninetieth day after it shall
have become a law.

                                 PART NN

  Section 1. Section 207 of the racing, pari-mutuel wagering and  breed-
ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and
c  of  subdivision 1 as added by section 4, paragraph c of subdivision 1
as added by section 5 and subdivision 5 as added by section 6 of chapter
457 of the laws of 2012, and paragraph d of subdivision 1 as amended  by
section  1  of  part  C of chapter 73 of the laws of 2016, is amended to
read as follows:
  § 207. Board of directors of a franchised  corporation.  1.    a.  The
board  of directors, to be called the New York racing association [reor-
ganization] board, shall consist of [seventeen] FIFTEEN  members[,  five
of  whom  shall  be  elected by the present class A directors of The New
York Racing Association, Inc., eight to be] WHO SHALL HAVE EQUAL  VOTING
RIGHTS:  SIX  appointed by the governor[, two to] EACH OF WHOM MUST BE A
RESIDENT OF NEW YORK STATE, AND ONE OF WHOM SHALL be appointed  [by]  ON
THE RECOMMENDATION OF the temporary president of the senate and [two to]
ONE OF WHOM SHALL be appointed [by] ON THE RECOMMENDATION OF the speaker
of  the  assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW
YORK RACING ASSOCIATION REORGANIZATION BOARD  OF  DIRECTORS  CONSTITUTED
PURSUANT TO CHAPTER FOUR HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND
TWELVE,  WHICH  SHALL  CONTINUE TO EXIST UNTIL SUCH TIME AS THE APPOINT-
MENTS REQUIRED HEREUNDER ARE MADE; AND ONE WHO SHALL  BE  THE  PRESIDENT
AND  CHIEF  EXECUTIVE  OFFICER OF THE FRANCHISED CORPORATION, EX OFFICIO
AND WITHOUT TERM LIMITATION. THE NEW YORK RACING ASSOCIATION BOARD SHALL
HAVE TWO EX OFFICIO, NON-VOTING MEMBERS: ONE APPOINTED BY THE  NEW  YORK
THOROUGHBRED BREEDERS, INC., AND ONE APPOINTED BY THE NEW YORK THOROUGH-
BRED  HORSEMEN'S  ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE PERCENT OF
THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPORATION. THE NEW
YORK RACING ASSOCIATION BOARD MAY INCLUDE ADDITIONAL  EX  OFFICIO,  NON-
VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF THE BOARD.
  (i)  The  governor  shall  nominate  a member to serve as chair FOR AN
INITIAL TERM OF THREE YEARS, WHO SHALL SERVE  AT  THE  PLEASURE  OF  THE
GOVERNOR,  subject  to  confirmation  by  majority vote of the board [of
directors. All non-ex officio members shall have equal  voting  rights].
THEREAFTER,  THE  BOARD  SHALL  ELECT  ITS CHAIR, WHO SHALL SERVE AT THE
PLEASURE OF THE BOARD, FROM AMONG ITS MEMBERS.
  (ii) THE TERM OF VOTING MEMBERSHIP ON THE NEW YORK RACING  ASSOCIATION
BOARD  SHALL  BE  THREE YEARS. INDIVIDUAL APPOINTEES SHALL BE LIMITED TO
SERVING AS A VOTING MEMBER THE LESSER OF  THREE  TERMS  OR  NINE  YEARS.
NOTWITHSTANDING THE FOREGOING, THE INITIAL TERM OF TWO MEMBERS APPOINTED
BY THE GOVERNOR AND THREE MEMBERS APPOINTED BY THE NEW YORK RACING ASSO-
CIATION  REORGANIZATION BOARD SHALL EXPIRE MARCH THIRTY-FIRST, TWO THOU-
SAND EIGHTEEN; THE INITIAL TERM OF TWO MEMBERS APPOINTED BY THE NEW YORK
RACING ASSOCIATION REORGANIZATION BOARD AND THREE MEMBERS  APPOINTED  BY

S. 2009                            150                           A. 3009

THE  GOVERNOR SHALL EXPIRE ON MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN;
AND THE REMAINING MEMBERS SHALL SERVE FULL THREE-YEAR TERMS.
  (III) In the event of a member vacancy occurring by death, resignation
or  otherwise, the respective appointing [officer or officers] AUTHORITY
shall appoint a successor  who  shall  hold  office  for  the  unexpired
portion  of  the  term.  [A  vacancy from the members appointed from the
present board of The New York Racing Association, Inc., shall be  filled
by  the  remaining  such members] IN THE CASE OF VACANCIES AMONG MEMBERS
APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING  ASSOCIATION
REORGANIZATION  BOARD  OF DIRECTORS CONSTITUTED PURSUANT TO CHAPTER FOUR
HUNDRED FIFTY-SEVEN OF THE LAWS OF  TWO  THOUSAND  TWELVE,  APPOINTMENTS
THEREAFTER  SHALL  BE  MADE  BY  THE EXECUTIVE COMMITTEE OF THE NEW YORK
RACING ASSOCIATION BOARD AS CONSTITUTED BY THE CHAPTER OF  THE  LAWS  OF
TWO THOUSAND SEVENTEEN THAT AMENDED THIS SECTION.
  b. The franchised corporation shall establish a compensation committee
to fix salary guidelines, such guidelines to be consistent with an oper-
ation  of other first class thoroughbred racing operations in the United
States; a finance AND AUDIT committee, to review  annual  operating  and
capital  budgets  for  each  of  the  three racetracks; a nominating AND
GOVERNANCE committee, to nominate any new directors to be designated  by
the  franchised  corporation  to  replace  its existing directors AND BE
RESPONSIBLE FOR ALL ISSUES AFFECTING THE GOVERNANCE  OF  THE  FRANCHISED
CORPORATION;  AN  EQUINE SAFETY COMMITTEE; A RACING COMMITTEE TO ADDRESS
ALL ISSUES RELATED TO RACING OPERATIONS;  and  an  executive  committee.
Each  of  the compensation, finance, nominating and executive committees
shall include at least one [of] PUBLIC MEMBER FROM AMONG  the  directors
appointed by the governor[, and the executive committee shall include at
least  one  of the directors appointed by the temporary president of the
senate and at least one of the directors appointed by the speaker of the
assembly].
  [b. In addition to these voting members, the board shall have  two  ex
officio  members  to  advise  on  critical  economic  and  equine health
concerns of the racing industry, one appointed by the New York Thorough-
bred Breeders Inc., and one  appointed  by  the  New  York  thoroughbred
horsemen's  association  (or  such  other  entity  as  is  certified and
approved pursuant to section two hundred twenty-eight of this article).
  c. All directors shall serve  at  the  pleasure  of  their  appointing
authority.]
  c. Upon the effective date of this paragraph, the structure of the NEW
YORK  RACING  ASSOCIATION board [of the franchised corporation] shall be
deemed to be incorporated within and made part  of  the  certificate  of
incorporation  of  the  franchised corporation, and no amendment to such
certificate of incorporation shall be necessary to give  effect  to  any
such  provision,  and  any  provision  contained within such certificate
inconsistent in any manner shall be superseded by the provisions of this
section. Such board shall, however, make appropriate conforming  changes
to  all  governing documents of the franchised corporation including but
not limited to corporate by-laws.  Following  such  conforming  changes,
amendments  to the by-laws of the franchised corporation shall [only] be
made ONLY by unanimous vote of the board.
  [d. The board, which shall become  effective  upon  appointment  of  a
majority  of public members, shall terminate five years from its date of
creation.]
  2. Members of the NEW YORK RACING  ASSOCIATION  board  [of  directors]
shall  serve  without  compensation  for  their  services, but [publicly
appointed members of the board] shall be entitled to reimbursement  from

S. 2009                            151                           A. 3009

the franchised corporation for actual and necessary expenses incurred in
the performance of their [official] duties FOR THE BOARD.
  3.  Members  of  the NEW YORK RACING ASSOCIATION board [of directors],
except as otherwise provided by law, may engage  in  PUBLIC  OR  private
employment, or in a profession or business, however no member shall have
any  direct  or  indirect  economic interest in any video lottery gaming
facility, excluding incidental benefits based on purses or awards won in
the ordinary conduct of racing operations, or  any  direct  or  indirect
interest  in  any  development undertaken at the racetracks of the state
racing franchise.
  4. The affirmative vote of a majority  of  members  of  the  NEW  YORK
RACING ASSOCIATION board [of directors] shall be necessary for the tran-
saction  of any business or the exercise of any power or function of the
franchised corporation. The franchised corporation may  delegate  on  an
annual  basis  to one or more of its members, or its officers, agents or
employees, such powers and duties as it may deem proper.
  5. Each voting member of the NEW YORK  RACING  ASSOCIATION  board  [of
directors]  of  the franchised corporation shall annually make a written
disclosure to [the] SUCH board of any interest  held  by  the  director,
such director's spouse or unemancipated child, in any entity undertaking
business  in  the  racing or breeding industry. Such interest disclosure
shall be promptly updated, in writing, in  the  event  of  any  material
change.
  The  NEW  YORK RACING ASSOCIATION board shall establish parameters for
the reporting and disclosure of such director interests.
  6. EACH VOTING  MEMBER  OF  THE  NEW  YORK  RACING  ASSOCIATION  BOARD
APPOINTED  BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
REORGANIZATION BOARD OF DIRECTORS  SHALL  SEEK  A  RACETRACK  MANAGEMENT
LICENSE  ISSUED  BY  THE  GAMING COMMISSION, ANY FEES FOR WHICH SHALL BE
WAIVED BY THE COMMISSION. NO VOTING MEMBER OF THE BOARD REQUIRED BY  THE
FOREGOING  TO  SEEK A RACETRACK MANAGEMENT LICENSE MAY VOTE ON ANY BOARD
MATTER UNTIL SUCH LICENSE IS ISSUED.
  7. FOR PURPOSES OF SECTION TWO HUNDRED TWELVE  OF  THIS  ARTICLE,  THE
ESTABLISHMENT  OF  THE NEW YORK RACING ASSOCIATION, INC. BOARD OF DIREC-
TORS UNDER THIS SECTION SHALL NOT CONSTITUTE THE ASSUMPTION OF THE FRAN-
CHISE BY A SUCCESSOR ENTITY.
  § 2. Subparagraphs (ii), (iii), (vii) and (xvii)  of  paragraph  a  of
subdivision  8  of  section  212 of the racing, pari-mutuel wagering and
breeding law, as added by chapter 18 of the laws of 2008,  are  amended,
subparagraph (xviii) is renumbered subparagraph (xx) and two new subpar-
agraphs (xviii) and (xix) are added to read as follows:
  (ii)  monitor  and  enforce  compliance with definitive documents that
comprise the franchise agreement between the franchised corporation  and
the  state  of New York governing the franchised corporation's operation
of thoroughbred racing and pari-mutuel wagering at the  racetracks.  The
franchise  agreement  shall contain objective performance standards that
shall allow contract review in a manner consistent  with  this  chapter.
The  franchise  oversight  board shall notify the franchised corporation
authorized by this chapter in writing of  any  material  breach  of  the
performance  standards or repeated non-material breaches which the fran-
chise oversight board may determine collectively constitute  a  material
breach  of the performance standards. Prior to taking any action against
such franchised corporation, the franchise oversight board shall provide
the franchised corporation with the reasonable opportunity to  cure  any
material  breach  of  the performance standards or repeated non-material
breaches which the franchise oversight board may determine  collectively

S. 2009                            152                           A. 3009

constitute a material breach of the performance standards.  Upon a writ-
ten  finding  of  a  material  breach  of  the  performance standards or
repeated non-material breaches which the franchise oversight  board  may
determine  collectively  constitute a material breach of the performance
standards, the franchise oversight board may recommend  that  the  fran-
chise agreement be terminated. The franchise oversight board shall refer
such  recommendation to the [racing and wagering board] COMMISSION for a
hearing conducted pursuant to section two  hundred  forty-five  of  this
article for a determination of whether to terminate the franchise agree-
ment with the franchised corporation;
  (iii)  oversee,  monitor  and  review all significant transactions and
operations of the franchised corporation  authorized  by  this  chapter;
provided,  however,  that  nothing  in  this  section shall be deemed to
reduce, diminish or impede the authority of the [state racing and wager-
ing board] COMMISSION to, pursuant  to  article  one  of  this  chapter,
determine  and  enforce  compliance  by  the franchised corporation with
terms of racing laws and regulations. Such oversight shall include,  but
not be limited to:
  (A)  review  and  make recommendations concerning the annual operating
budgets of such franchised corporation;
  (B) review and make recommendations concerning operating revenues  and
the establishment of a financial plan;
  (C)  review  and  make recommendations concerning accounting, internal
control systems and security procedures;
  (D) review  such  franchised  corporation's  revenue  and  expenditure
[polices]  POLICIES which shall include collective bargaining agreements
management and employee compensation plans, vendor contracts and capital
improvement plans;
  (E) review such franchise  corporation's  compliance  with  the  laws,
rules and regulations applicable to its activities;
  (F)  make recommendations for establishing model governance principles
to improve accountability and transparency; and
  (G) receive, review,  approve  or  disapprove  capital  expense  plans
submitted annually by the franchised corporation.
  (vii)  review  and  provide  any  recommendations  on all simulcasting
contracts (buy and sell) that are also subject to prior approval of  the
[racing and wagering board] COMMISSION;
  (xvii)  request and accept the assistance of any state agency, includ-
ing but not limited to, the [racing and wagering board, the division  of
the  lottery] COMMISSION, office of parks, recreation and historic pres-
ervation, the department of environmental conservation and  the  depart-
ment  of  taxation  and finance, in obtaining information related to the
franchised corporation's compliance with  the  terms  of  the  franchise
agreement;[and]
   (XVIII)  WHEN  THE FRANCHISE OVERSIGHT BOARD DETERMINES THE FINANCIAL
POSITION OF THE FRANCHISED CORPORATION HAS DEVIATED MATERIALLY FROM  THE
FRANCHISED CORPORATION'S FINANCIAL PLAN, OR OTHER SUCH RELATED DOCUMENTS
PROVIDED TO THE FRANCHISE OVERSIGHT BOARD, OR WHEN THE IMPLEMENTATION OF
SUCH PLAN WOULD, IN THE OPINION OF THE FRANCHISE OVERSIGHT BOARD, POSE A
SIGNIFICANT  RISK TO THE LIQUIDITY OF THE FRANCHISED CORPORATION, IN ANY
ORDER OR COMBINATION:
  (A) HIRE, AT THE EXPENSE OF THE FRANCHISED CORPORATION, AN INDEPENDENT
FINANCIAL ADVISER TO EVALUATE THE FINANCIAL POSITION OF  THE  FRANCHISED
CORPORATION AND REPORT ON SUCH TO THE FRANCHISE OVERSIGHT BOARD; AND

S. 2009                            153                           A. 3009

  (B)  REQUIRE  THE  FRANCHISED  CORPORATION TO SUBMIT FOR THE FRANCHISE
OVERSIGHT BOARD'S APPROVAL  A  CORRECTIVE  ACTION  PLAN  ADDRESSING  ANY
CONCERNS IDENTIFIED AS RISKS BY THE FRANCHISE OVERSIGHT BOARD.
  (XIX)  WHEN  THE FRANCHISE OVERSIGHT BOARD FINDS THE FRANCHISED CORPO-
RATION HAS EXPERIENCED TWO CONSECUTIVE YEARS OF MATERIAL LOSSES  DUE  TO
CIRCUMSTANCES  WITHIN  THE  CONTROL  OF  THE  FRANCHISED CORPORATION, AS
DETERMINED BY THE FRANCHISE OVERSIGHT BOARD, THE BOARD MAY  BY  MAJORITY
VOTE  REQUEST  THE  DIRECTOR  OF THE BUDGET TO IMPOUND AND ESCROW RACING
SUPPORTING PAYMENTS ACCRUING TO THE BENEFIT  OF  THE  FRANCHISED  CORPO-
RATION  UNTIL  THE FRANCHISED CORPORATION ACHIEVES THE GOALS OF A BOARD-
APPROVED CORRECTIVE ACTION PLAN ADDRESSING CONCERNS  IDENTIFIED  BY  THE
BOARD.  THE  DIRECTOR  OF  THE BUDGET MAY, UPON WARRANT OF THE FRANCHISE
OVERSIGHT BOARD, APPROVE THE USE OF  WITHHELD  RACING  SUPPORT  PAYMENTS
NECESSARY  TO  SATISFY FINANCIAL INSTRUMENTS USED TO FUND BOARD-APPROVAL
CAPITAL INVESTMENTS.
  § 3. Section 203 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008,  is  amended  to  read  as
follows:
  §  203.  Right  to  hold  race meetings and races. 1.  Any corporation
formed under the provisions of  this  article,  if  so  claimed  in  its
certificate  of  organization,  and  if  it  shall  comply  with all the
provisions of this article, and any other corporation  entitled  to  the
benefits  and  privileges of this article as hereinafter provided, shall
have the power and the right to hold one or more running  race  meetings
in  each  year,  and to hold, maintain and conduct running races at such
meetings. At such running race meetings the corporation, or  the  owners
of  horses  engaged in such races, or others who are not participants in
the race, may contribute  purses,  prizes,  premiums  or  stakes  to  be
contested  for,  but no person or persons other than the owner or owners
of a horse or horses contesting in  a  race  shall  have  any  pecuniary
interest in a purse, prize, premium or stake contested for in such race,
or  be  entitled  to  or  receive any portion thereof after such race is
finished, and the whole of such purse, prize, premium or stake shall  be
allotted in accordance with the terms and conditions of such race. Races
conducted  by  a  franchised corporation shall be permitted only between
sunrise and sunset.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN-
CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER  SUNSET  AT
THE BELMONT PARK RACETRACK, BUT ONLY IF SUCH RACES CONCLUDE BEFORE ELEV-
EN  O'CLOCK  POST  MERIDIAN. THE FRANCHISED CORPORATION SHALL COORDINATE
WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED  TO  OPERATE
IN  WESTCHESTER  COUNTY  TO  ENSURE  THAT THE STARTING TIMES OF ALL SUCH
RACES ARE STAGGERED.
  3. A track first licensed after January first, nineteen hundred  nine-
ty,  shall  not  conduct  the  simulcasting of thoroughbred races within
district one, in accordance with article ten of  this  chapter  on  days
that  a  franchised  corporation is not conducting a race meeting. In no
event shall thoroughbred races conducted by a track first licensed after
January first, nineteen hundred ninety be conducted after eight  o'clock
post meridian.
  § 4. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238
of  the  racing,  pari-mutuel  wagering  and breeding law, as amended by
section 2 of part BB of chapter 60 of the laws of 2016,  is  amended  to
read as follows:
  (i)  The  pari-mutuel  tax  rate  authorized  by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-

S. 2009                            154                           A. 3009

fies the gaming commission by August fifteenth of each  year  that  such
pari-mutuel  tax rate is effective of its intent to conduct a race meet-
ing at Aqueduct racetrack during the months of December, January, Febru-
ary,  March  and April. For purposes of this paragraph such race meeting
shall consist of not less than ninety-five days of racing UNLESS  OTHER-
WISE  AGREED  TO  IN WRITING BY THE NEW YORK THOROUGHBRED BREEDERS INC.,
THE NEW YORK THOROUGHBRED HORSEMEN'S ASSOCIATION (OR SUCH  OTHER  ENTITY
AS  IS  CERTIFIED  AND  APPROVED PURSUANT TO SECTION TWO HUNDRED TWENTY-
EIGHT OF THIS ARTICLE) AND APPROVED BY THE COMMISSION.  Not  later  than
May  first of each year that such pari-mutuel tax rate is effective, the
gaming commission shall determine whether a  race  meeting  at  Aqueduct
racetrack consisted of the number of days as required by this paragraph.
In  determining  the  number  of  race  days, cancellation of a race day
because of an act of God that the gaming commission approves or  because
of  weather  conditions  that  are  unsafe or hazardous which the gaming
commission approves shall not be construed as a  failure  to  conduct  a
race  day.  Additionally,  cancellation of a race day because of circum-
stances beyond the control of such franchised corporation for which  the
gaming  commission gives approval shall not be construed as a failure to
conduct a race day. If the gaming commission determines that the  number
of  days  of racing as required by this paragraph have not occurred then
the pari-mutuel tax rate in paragraph  (a)  of  this  subdivision  shall
revert  to  the  pari-mutuel tax rates in effect prior to January first,
nineteen hundred ninety-five.
  § 5. This act shall take effect April 1, 2017; provided, however, that
section one of this act shall take effect  upon  the  appointment  of  a
majority  of  board members; provided, further, that the state franchise
oversight board shall notify the legislative  bill  drafting  commission
upon  the  occurrence  of such appointments in order that the commission
may maintain an accurate and timely effective data base of the  official
text of the laws of the state of New York in furtherance of effectuating
the  provisions of section 44 of the legislative law and section 70-b of
the public officers law; provided further that the amendments to section
212 of the racing, pari-mutuel wagering and breeding law made by section
two of this act shall not affect the repeal of such section and shall be
deemed repealed therewith.

                                 PART OO

  Section 1. Paragraph (a) of subdivision  1  of  section  1003  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 1
of part FF of chapter 60 of the laws of 2016,  is  amended  to  read  as
follows:
  (a)  Any  racing  association  or  corporation  or  regional off-track
betting corporation, authorized to conduct  pari-mutuel  wagering  under
this  chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to  the
conditions  provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such  form  as
may  be  prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No  license
shall be issued by the commission authorizing the simulcast transmission
of  thoroughbred  races  from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per  simulcast  facility
and  for  account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or

S. 2009                            155                           A. 3009

a licensed racetrack within the state, twenty thousand dollars per  year
payable  by  the licensee to the commission for deposit into the general
fund. Except as provided in  this  section,  the  commission  shall  not
approve any application to conduct simulcasting into individual or group
residences,  homes  or  other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting  into
residences,  homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of  the  follow-
ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is  authorized
by  this  chapter  at  one  or more simulcast facilities for each of the
contracting off-track betting corporations which  shall  include  wagers
made  in  accordance  with  section  one  thousand fifteen, one thousand
sixteen and one thousand seventeen of  this  article;  provided  further
that  the  contract  provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those  in  effect  on
January  first,  two  thousand  five;  (ii)  that each off-track betting
corporation having within its  geographic  boundaries  such  residences,
homes  or  other  areas  technically  capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of  revenues
shall  be  subject  to  contractual agreement of the parties except that
statutory payments to  non-contracting  parties,  if  any,  may  not  be
reduced;  provided,  however,  that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall  not  apply.  Any  agreement  authorizing  an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth,  two  thousand  [seventeen] EIGHTEEN; provided, however, that
any party to such agreement may elect to terminate such  agreement  upon
conveying written notice to all other parties of such agreement at least
forty-five  days  prior  to  the  effective date of the termination, via
registered mail. Any party to an agreement receiving such notice  of  an
intent  to  terminate, may request the commission to mediate between the
parties new terms and conditions in a replacement agreement between  the
parties  as will permit continuation of an in-home experiment until June
thirtieth, two thousand [seventeen] EIGHTEEN; and (iv) no in-home simul-
casting in the thoroughbred special betting district shall occur without
the approval of the regional thoroughbred track.
  § 2. Subparagraph (iii) of paragraph d of  subdivision  3  of  section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section  2  of  part FF of chapter 60 of the laws of 2016, is amended to
read as follows:
  (iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for  the  period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [seventeen] EIGHTEEN, the amount used exclusive-
ly  for  purses to be awarded at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and  one-half
percent  of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference  in  total  commissions
determined by comparing the total commissions available after July twen-
ty-first,  nineteen  hundred  ninety-five  to the total commissions that

S. 2009                            156                           A. 3009

would have been available to such  track  prior  to  July  twenty-first,
nineteen hundred ninety-five.
  §  3.  The  opening  paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by  section  3
of  part  FF  of  chapter  60 of the laws of 2016, is amended to read as
follows:
  The provisions of this section shall govern the simulcasting of  races
conducted  at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga  thoroughbred  racetrack  until  June
thirtieth,  two  thousand [seventeen] EIGHTEEN and on any day regardless
of whether or not a franchised corporation is conducting a race  meeting
in Saratoga county at Saratoga thoroughbred racetrack after June thirti-
eth,  two  thousand  [seventeen] EIGHTEEN.   On any day on which a fran-
chised corporation has not scheduled a racing program but a thoroughbred
racing corporation located within the state is conducting racing,  every
off-track  betting  corporation  branch  office  and  every simulcasting
facility licensed in accordance with section one  thousand  seven  (that
have  entered  into  a  written agreement with such facility's represen-
tative horsemen's organization, as  approved  by  the  commission),  one
thousand eight, or one thousand nine of this article shall be authorized
to accept wagers and display the live simulcast signal from thoroughbred
tracks  located  in  another  state  or  foreign  country subject to the
following provisions:
  § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part FF of  chapter  60  of
the laws of 2016, is amended to read as follows:
  1.  The  provisions  of  this section shall govern the simulcasting of
races conducted at harness tracks located in another  state  or  country
during  the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [seventeen] EIGHTEEN.  This section shall super-
sede all inconsistent provisions of this chapter.
  § 5. The opening paragraph of subdivision 1 of  section  1016  of  the
racing,  pari-mutuel  wagering and breeding law, as amended by section 5
of part FF of chapter 60 of the laws of 2016,  is  amended  to  read  as
follows:
  The  provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country  on
any  day  during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [seventeen] EIGHTEEN.   Every off-track  betting
corporation  branch  office  and every simulcasting facility licensed in
accordance with section one thousand seven  that  have  entered  into  a
written  agreement with such facility's representative horsemen's organ-
ization as approved by the commission, one thousand eight or  one  thou-
sand  nine  of  this  article  shall  be authorized to accept wagers and
display the live  full-card  simulcast  signal  of  thoroughbred  tracks
(which  may  include  quarter  horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located in another state or foreign country, subject  to  the  following
provisions;  provided,  however,  no  such  written  agreement  shall be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
  § 6. The opening paragraph of section 1018 of the racing,  pari-mutuel
wagering and breeding law, as amended by section 6 of part FF of chapter
60 of the laws of 2016, is amended to read as follows:

S. 2009                            157                           A. 3009

  Notwithstanding  any  other  provision of this chapter, for the period
July twenty-fifth, two thousand one through September eighth, two  thou-
sand  [sixteen] SEVENTEEN, when a franchised corporation is conducting a
race meeting within the state at Saratoga Race Course,  every  off-track
betting  corporation  branch  office  and  every  simulcasting  facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative  horsemen's
organization  as  approved by the commission), one thousand eight or one
thousand nine of this article shall be authorized to accept  wagers  and
display  the  live  simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on  races
run  at  all  in-state  thoroughbred  tracks which are conducting racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
  § 7. Section 32 of chapter 281 of  the  laws  of  1994,  amending  the
racing,  pari-mutuel  wagering and breeding law  and other laws relating
to simulcasting, as amended by section 7 of part FF of chapter 60 of the
laws of 2016, is amended to read as follows:
  § 32. This act shall take effect immediately and the  pari-mutuel  tax
reductions  in  section  six  of  this  act  shall  expire and be deemed
repealed on  July  1,  [2017]  2018;  provided,  however,  that  nothing
contained  herein  shall be deemed to affect the application, qualifica-
tion, expiration, or repeal of any  provision  of  law  amended  by  any
section  of  this act, and such provisions shall be applied or qualified
or shall expire or be deemed repealed in the same manner,  to  the  same
extent  and on the same date as the case may be as otherwise provided by
law; provided further, however, that sections twenty-three  and  twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
  §  8.  Section  54  of  chapter  346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by  section
8  of  part  FF of chapter 60 of the laws of 2016, is amended to read as
follows:
  § 54. This act  shall  take  effect  immediately;  provided,  however,
sections  three  through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire  and
be  deemed repealed on July 1, [2017] 2018; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and  fifty-
two  of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
  § 9. Paragraph (a) of subdivision 1 of  section  238  of  the  racing,
pari-mutuel  wagering  and breeding law, as amended by section 9 of part
FF of chapter 60 of the laws of 2016, is amended to read as follows:
  (a) The  franchised  corporation  authorized  under  this  chapter  to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute  all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for  payment
before  April  first  of  the year following the year of their purchase,
less an amount which shall be established and  retained  by  such  fran-
chised  corporation  of  between  twelve  to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and  four-
teen  to  twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the

S. 2009                            158                           A. 3009

total deposits in pools resulting from on-track exotic bets and  fifteen
to  thirty-six  per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention  rate  to  be
established  is  subject to the prior approval of the gaming commission.
Such rate may not be changed more than once per calendar quarter  to  be
effective  on  the  first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have  the  meanings  set  forth  in  section  five
hundred  nineteen  of  this  chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred  one  of  this  chapter.  For
purposes  of  this  section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one  dollar
five  cents  but  less  than  five dollars, over any multiple of ten for
payoffs greater than five dollars but  less  than  twenty-five  dollars,
over  any  multiple  of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the  amount  so
retained  there  shall  be  paid  by  such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by  the  state
for  the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such  franchised  corporation,  the  following
percentages  of  the  total  pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus  twenty
per  centum  of  the  breaks;  for  exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super  exotic  bets
seven  and  one-half per centum plus fifty per centum of the breaks. For
the period June first, nineteen hundred  ninety-five  through  September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three  per  centum and such tax on multiple wagers shall be two and one-
half per centum, plus twenty per centum of the breaks.  For  the  period
September  tenth,  nineteen  hundred  ninety-nine  through March thirty-
first, two thousand one, such tax on all wagers shall be  two  and  six-
tenths  per  centum  and  for  the  period April first, two thousand one
through December thirty-first, two thousand [seventeen]  EIGHTEEN,  such
tax  on all wagers shall be one and six-tenths per centum, plus, in each
such period, twenty per centum of the breaks. Payment to  the  New  York
state  thoroughbred  breeding  and  development  fund by such franchised
corporation shall be one-half of one per centum of total daily  on-track
pari-mutuel  pools  resulting from regular, multiple and exotic bets and
three per centum of super exotic bets provided, however,  that  for  the
period September tenth, nineteen hundred ninety-nine through March thir-
ty-first,  two thousand one, such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for  the  period  April
first,  two  thousand  one  through  December thirty-first, two thousand
[seventeen] EIGHTEEN, such payment shall  be  seven-tenths  of  one  per
centum of such pools.
  § 10. This act shall take effect immediately.

                                 PART PP

  Section  1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1  of  part
EE of chapter 60 of the laws of 2016, is amended to read as follows:
  (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph,  when  a  vendor track, is located in Sullivan county and within
sixty miles from any gaming facility in a contiguous state  such  vendor

S. 2009                            159                           A. 3009

fee  shall, for a period of [nine] TEN years commencing April first, two
thousand eight, be at a rate of forty-one percent of the  total  revenue
wagered  at  the  vendor  track after payout for prizes pursuant to this
chapter, after which time such rate shall be as for all tracks in clause
(C) of this subparagraph.
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2017.

                                 PART QQ

  Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivi-
sion  b of section 1612 of the tax law, as separately amended by section
1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
is amended to read as follows:
  (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)  and  (G)  of
this  subparagraph, the track operator of a vendor track and in the case
of Aqueduct, the video lottery  terminal  facility  operator,  shall  be
eligible for a vendor's capital award of up to four percent of the total
revenue  wagered at the vendor track after payout for prizes pursuant to
this chapter, which  shall  be  used  exclusively  for  capital  project
investments  to improve the facilities of the vendor track which promote
or encourage increased attendance at the video lottery  gaming  facility
including,  but  not limited to hotels, other lodging facilities, enter-
tainment  facilities,  retail  facilities,  dining  facilities,   events
arenas,  parking  garages  and  other improvements that enhance facility
amenities; provided that such capital investments shall be  approved  by
the  division, in consultation with the state racing and wagering board,
and that such vendor track demonstrates that such  capital  expenditures
will  increase  patronage at such vendor track's facilities and increase
the amount of revenue generated to support state education programs. The
annual amount of such vendor's capital awards that a vendor track  shall
be  eligible  to  receive  shall  be limited to two million five hundred
thousand dollars, except for Aqueduct racetrack, for which  there  shall
be  no  annual limit, provided, however, that any such capital award for
the Aqueduct video lottery  terminal  facility  operator  shall  be  one
percent  of  the  total  revenue  wagered  at the video lottery terminal
facility after payout for prizes pursuant  to  this  chapter  until  the
earlier  of  the  designation  of  one thousand video lottery devices as
hosted pursuant to paragraph four of subdivision a  of  section  sixteen
hundred  seventeen-a  of this chapter or April first, two thousand nine-
teen and shall then be four percent of the total revenue wagered at  the
video lottery terminal facility after payout for prizes pursuant to this
chapter,  provided,  further,  that  such  capital  award  shall only be
provided pursuant to an agreement with  the  operator  to  construct  an
expansion  of  the  facility, hotel, and convention and exhibition space
requiring a minimum capital investment of three hundred million dollars.
Except for tracks having less than one thousand one hundred video gaming
machines, and except for a vendor track located west of State  Route  14
from  Sodus Point to the Pennsylvania border within New York, and except
for Aqueduct racetrack each track operator shall be required  to  co-in-
vest  an  amount of capital expenditure equal to its cumulative vendor's
capital award. For all tracks, except for Aqueduct racetrack, the amount
of any vendor's capital award that is not used during any one year peri-
od may be carried over into subsequent years ending before April  first,
two  thousand [seventeen] EIGHTEEN. Any amount attributable to a capital
expenditure approved prior to  April  first,  two  thousand  [seventeen]

S. 2009                            160                           A. 3009

EIGHTEEN and completed before April first, two thousand [nineteen] TWEN-
TY;  or approved prior to April first, two thousand [twenty-one] TWENTY-
TWO and completed before April first, two thousand [twenty-three]  TWEN-
TY-FOUR  for  a  vendor  track located west of State Route 14 from Sodus
Point to the Pennsylvania border within New York, shall be  eligible  to
receive  the  vendor's capital award. In the event that a vendor track's
capital expenditures, approved by the division prior to April first, two
thousand [seventeen] EIGHTEEN and completed prior to  April  first,  two
thousand [nineteen] TWENTY, exceed the vendor track's cumulative capital
award  during  the  five  year  period  ending April first, two thousand
[seventeen] EIGHTEEN, the vendor shall continue to receive  the  capital
award  after  April  first, two thousand [seventeen] EIGHTEEN until such
approved capital expenditures are paid to the vendor  track  subject  to
any  required  co-investment.  In  no  event shall any vendor track that
receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
be eligible for a vendor's capital award under this section. Any  opera-
tor  of  a  vendor  track  which  has received a vendor's capital award,
choosing to divest the capital improvement toward which  the  award  was
applied,  prior  to  the full depreciation of the capital improvement in
accordance with generally accepted accounting  principles,  shall  reim-
burse  the  state  in amounts equal to the total of any such awards. Any
capital award not approved for a capital expenditure at a video  lottery
gaming  facility by April first, two thousand [seventeen] EIGHTEEN shall
be deposited into the state lottery fund for education aid; and
  § 2. This act shall take effect immediately.

                                 PART RR

  Section 1. Paragraph c of subdivision 3  of  section  97-nnnn  of  the
state  finance  law,  as  added  by  chapter 174 of the laws of 2013, is
amended to read as follows:
  c. ten percent of the moneys  in  such  fund,  as  attributable  to  a
specific  licensed gaming facility, shall be appropriated or transferred
from the commercial  gaming  revenue  fund  among  counties  within  the
region,  as  defined  by  section  one thousand three hundred ten of the
racing, pari-mutuel wagering and breeding law, hosting said facility for
the purpose of real property tax relief and  for  education  assistance.
Such  distribution  shall  be  made  among  the counties on a per capita
basis, subtracting the  population  of  host  municipality  and  county.
PROVIDED,  HOWEVER,  SUCH  AMOUNT  SHALL  BE REDUCED BY ONE MILLION FOUR
HUNDRED THOUSAND DOLLARS IN STATE FISCAL YEAR TWO THOUSAND SEVENTEEN  --
TWO  THOUSAND  EIGHTEEN  AND  BY ONE MILLION FIVE HUNDRED FIFTY THOUSAND
DOLLARS EVERY YEAR THEREAFTER. SUCH FUNDS ATTRIBUTABLE TO THIS REDUCTION
SHALL BE TRANSFERRED TO THE GENERAL FUND  AND  THE  REDUCTION  SHALL  BE
DISTRIBUTED  AMONG SUCH ELIGIBLE COUNTIES PROPORTIONAL TO TOTAL DISTRIB-
UTIONS DURING THE FISCAL YEAR.
  § 2. Subdivision 3 of section  99-h  of  the  state  finance  law,  as
amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
follows:
  3. Moneys of the account, following the segregation of  appropriations
enacted  by  the  legislature, shall be available for purposes including
but not limited to: (a) reimbursements or payments to municipal  govern-
ments  that  host  tribal casinos pursuant to a tribal-state compact for
costs incurred in connection with services provided to such  casinos  or
arising  as a result thereof, for economic development opportunities and
job expansion programs authorized by the executive law; provided, howev-

S. 2009                            161                           A. 3009

er, that for any gaming facility located in the  city  of  Buffalo,  the
city  of  Buffalo  shall receive a minimum of twenty-five percent of the
negotiated percentage of the net drop from electronic gaming devices the
state  receives  pursuant  to the compact, and provided further that for
any gaming facility located in the city  of  Niagara  Falls,  county  of
Niagara a minimum of twenty-five percent of the negotiated percentage of
the  net drop from electronic gaming devices the state receives pursuant
to the compact shall be distributed in accordance with subdivision  four
of  this  section,  and  provided  further  that for any gaming facility
located in the county or counties of Cattaraugus, Chautauqua or  Allega-
ny,  the  municipal  governments of the state hosting the facility shall
collectively receive a minimum of twenty-five percent of the  negotiated
percentage  of  the  net  drop  from electronic gaming devices the state
receives pursuant to the compact; and provided further that pursuant  to
chapter  five hundred ninety of the laws of two thousand four, a minimum
of twenty-five percent of the revenues received by the state pursuant to
the state's compact with the St. Regis Mohawk tribe shall be made avail-
able to the counties of Franklin and St. Lawrence, and affected towns in
such counties. Each such county and its  affected  towns  shall  receive
fifty  percent  of  the moneys made available by the state; and provided
further that the state shall annually make twenty-five  percent  of  the
negotiated  percentage of the net drop from all gaming devices the state
actually receives pursuant to the Oneida Settlement Agreement  confirmed
by  section  eleven  of  the executive law as available to the county of
Oneida, and a sum of three and one-half million dollars to the county of
Madison. Additionally, the state shall distribute for a period of  nine-
teen and one-quarter years, an additional annual sum of two and one-half
million  dollars to the county of Oneida.  Additionally, the state shall
distribute the one-time eleven million dollar payment  received  by  the
state  pursuant  to such agreement with the Oneida Nation of New York to
the county of Madison by wire transfer upon receipt of such  payment  by
the  state;  and  (b)  support  and  services  of treatment programs for
persons suffering from gambling addictions.  Moneys not  segregated  for
such  purposes  shall be transferred to the general fund for the support
of government during the fiscal year in which they are  received.  ADDI-
TIONALLY, THE STATE SHALL DISTRIBUTE AN ADDITIONAL ANNUAL SUM OF TWO AND
ONE-QUARTER  MILLION  DOLLARS  TO A COUNTY IN WHICH A GAMING FACILITY IS
LOCATED BUT DOES NOT RECEIVE A PERCENT OF THE NEGOTIATED  PERCENTAGE  OF
THE  NET  DROP  FROM  GAMING  DEVICES  THE  STATE RECEIVES PURSUANT TO A
COMPACT.
  § 3. Subdivision 3-a of section 99-h of  the  state  finance  law,  as
amended  by  section  4 of part EE of chapter 59 of the laws of 2014, is
amended to read as follows:
  3-a. Ten percent of any of the funds actually received  by  the  state
pursuant to the tribal-state compacts and agreements described in subdi-
vision  two of this section prior to the transfer of unsegregated moneys
to the general fund required by such subdivision, shall  be  distributed
to  counties  in  each  respective exclusivity zone provided they do not
otherwise receive a share of said revenues  pursuant  to  this  section.
Such  distribution  shall  be  made  among such counties on a per capita
basis, excluding the population of  any  municipality  that  receives  a
distribution  pursuant  to  subdivision three of this section. PROVIDED,
HOWEVER, SUCH AMOUNT SHALL BE REDUCED BY SIX HUNDRED THOUSAND DOLLARS IN
STATE FISCAL YEAR TWO THOUSAND SEVENTEEN -- TWO THOUSAND EIGHTEEN AND BY
FIVE HUNDRED THOUSAND DOLLARS EVERY YEAR THEREAFTER. THE REDUCTION SHALL

S. 2009                            162                           A. 3009

BE DISTRIBUTED  AMONG  SUCH  ELIGIBLE  COUNTIES  PROPORTIONAL  TO  TOTAL
DISTRIBUTIONS DURING THE FISCAL YEAR.
  § 4. Paragraph b of subdivision 2 of section 54-l of the state finance
law,  as  amended  by  section  1 of part X of chapter 55 of the laws of
2014, is amended to read as follows:
  b. Within the amounts appropriated therefor,  eligible  municipalities
shall  receive  an  amount  equal  to  seventy  percent of the state aid
payment received in the state fiscal year commencing  April  first,  two
thousand  eight  from  an  appropriation  for aid to municipalities with
video lottery gaming facilities.  PROVIDED, HOWEVER, SUCH  AMOUNT  SHALL
BE  REDUCED  BY  TWO  HUNDRED FIFTY THOUSAND DOLLARS IN THE STATE FISCAL
YEAR COMMENCING APRIL FIRST, TWO THOUSAND SEVENTEEN AND BY  TWO  HUNDRED
THOUSAND DOLLARS EVERY YEAR THEREAFTER. SUCH REDUCTION SHALL BE DISTRIB-
UTED   AMONG  SUCH  ELIGIBLE  MUNICIPALITIES  PROPORTIONAL  TO  PAYMENTS
RECEIVED BY SUCH  ELIGIBLE  MUNICIPALITIES  IN  THE  STATE  FISCAL  YEAR
COMMENCING APRIL FIRST, TWO THOUSAND SIXTEEN.
  §  5. This act shall take effect April 1, 2017 and shall expire and be
deemed repealed March 31, 2020 notwithstanding section 2 of chapter  747
of the laws of 2006, as amended.
  § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  § 3. This act shall take effect immediately  provided,  however,  that
the applicable effective date of Parts A through RR of this act shall be
as specifically set forth in the last section of such Parts.

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

    S. 2009--A                                            A. 3009--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 the alcoholic beverage control law, in relation to the
  creation of a special license to sell alcoholic  beverages  at  retail
  for  consumption  off  the  premises  (Part A); to amend the alcoholic
  beverage control law, in relation to alcohol in certain motion picture
  theatres,  and  providing  for  the  expiration  and  repeal  of  such
  provisions  upon the expiration thereof (Part B); to amend the tax law
  and the administrative code of the city of New York,  in  relation  to
  the  school  tax reduction credit for residents of a city with a popu-
  lation of one million or more; and to repeal section 54-f of the state
  financial law relating thereto (Part C); to amend  the  real  property
  tax  law,  in  relation to the maximum amount of tax savings allowable
  under the STAR program (Part D); to amend the real  property  tax  law
  and  the  tax  law, in relation to making the STAR income verification
  program mandatory; and  repealing  certain  provisions  of  such  laws
  relating  thereto  (Part  E);  to  amend the real property tax law, in
  relation to authorizing partial payments of property taxes  (Part  F);
  to  amend  the  tax  law,  in relation to the STAR personal income tax
  credit (Part G); to amend the real property tax law and the  tax  law,
  in  relation  to  the  applicability of the STAR credit to cooperative
  apartment corporations; and repealing certain provisions  of  the  tax
  law  relating  thereto  (Part  H); to amend chapter 540 of the laws of
  1992, amending the real property tax  law  relating  to  oil  and  gas
  charges,  in  relation to the effectiveness thereof (Part I); to amend
  the state finance law, in relation to the  veterans'  home  assistance
  fund  (Part J); to amend the economic development law and the tax law,
  in relation to life sciences companies (Part K); to amend the economic
  development law,  in  relation  to  the  employee  training  incentive

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12574-05-7

S. 2009--A                          2                         A. 3009--A

  program  (Part  L); to amend the tax law, in relation to extending the
  empire state  film  production  credit  and  empire  state  film  post
  production credit for three years (Part M); to amend the labor law and
  the  tax  law,  in relation to a program to provide tax incentives for
  employers employing at risk youth (Part N); to amend the tax  law,  in
  relation  to  extending  the  alternative  fuels  and electric vehicle
  recharging property credit for five years (Part O); to amend  the  tax
  law,  in  relation to the investment tax credit (Part P); to amend the
  tax law, in relation to the treatment of single member limited liabil-
  ity companies that are disregarded entities in determining eligibility
  for tax credits (Part Q); to amend the tax law, in relation to extend-
  ing the top personal income tax rate for three years;  and  to  repeal
  subparagraph (B) of paragraph 1 of subsection (a), subparagraph (B) of
  paragraph  1  of subsection (b) and subparagraph (B) of paragraph 1 of
  subsection (c) of section 601 of the tax law, relating to the  imposi-
  tion of tax (Part R); to amend the tax law and the administrative code
  of the city of New York, in relation to permanently extending the high
  income charitable contribution deduction limitation (Part S); to amend
  the  tax  law,  in relation to increasing the child and dependent care
  tax credit (Part T); to amend the tax law, in relation to  the  finan-
  cial  institution  data match system for state tax collection purposes
  (Part U); to amend the civil service law and the tax law, in  relation
  to  tax  clearances  for applicants for civil service employment (Part
  V); to amend chapter 266 of the laws of 1986, amending the civil prac-
  tice law and rules and other laws relating to malpractice and  profes-
  sional  medical  conduct,  in  relation  to  apportioning  premium for
  certain policies; to amend part J of chapter 63 of the  laws  of  2001
  amending  chapter 266 of the laws of 1986, amending the civil practice
  law and rules and other laws relating to malpractice and  professional
  medical  conduct, in relation to extending certain provisions concern-
  ing the hospital excess liability pool; and to amend the tax  law,  in
  relation  to  extending  certain  provisions  concerning  the hospital
  excess liability pool and requiring a tax clearance  for  doctors  and
  dentists  to  be  eligible for such excess coverage (Part W); to amend
  chapter 59 of the laws of 2013, amending the tax law relating to serv-
  ing an income execution with respect to individual tax debtors without
  filing a warrant, in relation to  making  the  provisions  authorizing
  service  of income executions on individual tax debtors without filing
  a warrant permanent (Part X); to amend the tax law, in relation to the
  taxation of S corporations; and to repeal certain provisions  of  such
  law  relating  thereto  (Part Y); to amend the tax law, in relation to
  the definition of New York  source  income  (Part  Z);  to  close  the
  nonresident  partnership  asset  sale loophole (Part AA); to amend the
  tax law, in relation to requiring  marketplace  providers  to  collect
  sales  tax (Part BB); to amend the tax law, in relation to closing the
  existing tax loopholes for transactions between related entities under
  article 28 and pursuant to the authority of article  29  of  such  law
  (Part CC); to amend the tax law, in relation to clarifying the imposi-
  tion  of  sales  tax  on  gas  service or electric service of whatever
  nature (Part DD); to amend the tax law and the county law, in relation
  to the imposition of a surcharge on  prepaid  wireless  communications
  service  and devices (Part EE); to amend the public health law and the
  education law, in relation to tobacco products, herbal cigarettes, and
  vapor products; and to amend the tax law, in relation  to  imposing  a
  tax  on  vapor products (Part FF); to amend the tax law in relation to
  the amount of untaxed cigarettes required to seize a  vehicle  and  to

S. 2009--A                          3                         A. 3009--A

  increase  the  penalty  for  the possession or sale of counterfeit tax
  stamps or the device necessary to manufacture such stamps  (Part  GG);
  to  amend the tax law, in relation to authorizing jeopardy assessments
  on cigarette and tobacco product taxes assessed under article 20 ther-
  eof  (Part HH); to amend the tax law, in relation to the imposition of
  a tax on cigars under article 20 thereof (Part II); to amend  the  tax
  law,  in  relation  to  the definition of a conveyance for real estate
  transfer taxes (Part JJ); to amend the tax law,  in  relation  to  the
  additional  real  estate  transfer tax (Part KK); to amend the racing,
  pari-mutuel wagering and breeding law, in relation  to  modifying  the
  funding  of  and improve the operation of drug testing in horse racing
  (Part LL); to amend the racing, pari-mutuel wagering and breeding law,
  the executive law, and the general municipal law, in relation  to  the
  operation  of  charitable gaming; to amend the social services law, in
  relation  to  penalties  for  unauthorized  transactions  relating  to
  certain  public  assistance;  to  amend  the  tax  law, in relation to
  certain income derived from the conduct of certain  games  of  chance;
  and  to repeal certain provisions of the executive law and the general
  municipal law relating thereto (Part MM); to amend the  racing,  pari-
  mutuel  wagering  and  breeding  law,  in relation to allowing for the
  reprivatization of NYRA, and under certain circumstances racing  after
  sunset  and  a reduction in winter racing days (Part NN); to amend the
  racing, pari-mutuel wagering and breeding law, in relation to licenses
  for simulcast facilities, sums relating to track simulcast,  simulcast
  of  out-of state thoroughbred races, simulcasting of races run by out-
  of-state harness tracks and distributions of wagers; to amend  chapter
  281  of the laws of 1994 amending the racing, pari-mutuel wagering and
  breeding law and other laws relating to simulcasting and  chapter  346
  of  the  laws  of  1990  amending the racing, pari-mutuel wagering and
  breeding law and other laws relating to simulcasting and  the  imposi-
  tion  of  certain  taxes,  in relation to extending certain provisions
  thereof; and to amend the racing, pari-mutuel  wagering  and  breeding
  law, in relation to extending certain provisions thereof (Part OO); to
  amend  the  tax  law, in relation to vendor fees paid to vendor tracks
  (Part PP); to amend the tax law, in  relation  to  capital  awards  to
  vendor  tracks  (Part  QQ);  and  to  amend  the state finance law, in
  relation to the distribution of certain gaming aid; and providing  for
  the repeal of such provisions upon expiration thereof (Part RR)

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act enacts into law major  components  of  legislation
which are necessary to implement the state fiscal plan for the 2017-2018
state  fiscal  year.  Each  component  is wholly contained within a Part
identified as Parts A through RR. The effective date for each particular
provision contained within such Part is set forth in the last section of
such Part. Any provision in any section contained within a Part, includ-
ing the effective date of the Part, which makes a reference to a section
"of this act", when used in connection with that  particular  component,
shall  be  deemed  to mean and refer to the corresponding section of the
Part in which it is found. Section three of  this  act  sets  forth  the
general effective date of this act.

                                 PART A

S. 2009--A                          4                         A. 3009--A

  Section  1.  The alcoholic beverage control law is amended by adding a
new section 63-b to read as follows:
  §  63-B.  SPECIAL  LICENSE  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
CONSUMPTION OFF THE PREMISES.  1. ANY PERSON WITH  A  WRITTEN  AGREEMENT
WITH  THE  DEPARTMENT OF AGRICULTURE AND MARKETS TO OPERATE A "TASTE NY"
STORE MAY MAKE APPLICATION TO THE AUTHORITY FOR  A  SPECIAL  LICENSE  TO
SELL  ALCOHOLIC  BEVERAGES  AT  RETAIL  FOR CONSUMPTION OFF THE LICENSED
PREMISES SUBJECT TO THE PROVISIONS OF SUCH WRITTEN AGREEMENT  AND  THOSE
SET  FORTH HEREIN. NOTWITHSTANDING ANY LAW TO THE CONTRARY, NO ALCOHOLIC
BEVERAGE SHALL BE SOLD OR TASTINGS ALLOWED ON THE THRUWAY.
  2. AN APPLICATION FOR A LICENSE UNDER THIS SECTION SHALL  BE  IN  SUCH
FORM  AND  SHALL  CONTAIN  SUCH  INFORMATION AS SHALL BE REQUIRED BY THE
AUTHORITY AND SHALL BE ACCOMPANIED BY A CHECK OR  DRAFT  IN  THE  AMOUNT
REQUIRED BY THIS CHAPTER.
  3.  SECTION  FIFTY-FOUR  OF  THIS  CHAPTER  SHALL CONTROL SO FAR AS IS
APPLICABLE TO THE PROCEDURE IN CONNECTION WITH SUCH APPLICATION.
  4. A LICENSE UNDER THIS SECTION SHALL BE ISSUED TO ALL ELIGIBLE APPLI-
CANTS EXCEPT FOR GOOD CAUSE SHOWN, PROVIDED, HOWEVER, THAT NO MORE  THAN
TEN  SUCH  LICENSES  SHALL  BE  IN EFFECT AT ANY TIME, AND THAT ALL SUCH
LICENSES SHALL BE ISSUED IN A MANNER CONSISTENT  WITH  FEDERAL  LAW  AND
REGULATIONS.    SUCH LICENSE SHALL BE LIMITED TO THE PREMISES SUBJECT TO
THE WRITTEN AGREEMENT WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS.
  5. A LICENSE UNDER THIS SECTION SHALL NOT BE SUBJECT TO THE PROVISIONS
OF SUBDIVISIONS TWO, THREE AND SIX OF SECTION ONE HUNDRED FIVE  OF  THIS
CHAPTER.
  6.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
ISSUED  UNDER  THIS  SECTION MAY OFFER SAMPLES OF ALCOHOLIC BEVERAGES TO
CUSTOMERS TO BE CONSUMED ON THE LICENSED  PREMISES  UPON  THE  FOLLOWING
CONDITIONS:
  (A) NO FEE SHALL BE CHARGED FOR ANY SAMPLE;
  (B) EACH SAMPLE SHALL BE LIMITED;
  (I)  IN  THE CASE OF BEER, WINE PRODUCTS AND CIDER, TO THREE OUNCES OR
LESS;
  (II) IN THE CASE OF WINE, TO TWO OUNCES;
  (III) IN THE CASE OF LIQUOR, TO ONE-QUARTER OUNCE;
  (C) NO SAMPLE SHALL BE PROVIDED TO A CUSTOMER DURING THE HOURS PROHIB-
ITED BY THE PROVISIONS OF SUBDIVISION FIVE OF SECTION ONE HUNDRED SIX OF
THIS CHAPTER; AND
  (D) NO CUSTOMER MAY BE PROVIDED WITH MORE THAN THREE  SAMPLES  IN  ONE
CALENDAR DAY.
  7.  SUBJECT TO ANY FURTHER RESTRICTION CONTAINED IN THE AGREEMENT WITH
THE DEPARTMENT OF AGRICULTURE AND  MARKETS,  THE  HOLDER  OF  A  LICENSE
ISSUED UNDER THIS SECTION SHALL NOT:
  (A)  OFFER  ANY  TASTINGS OF, OR SELL, ANY BEER OR CIDER EXCEPT DURING
THE HOURS IN WHICH BEER MAY BE SOLD FOR CONSUMPTION OFF THE PREMISES  IN
THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED; AND
  (B)  OFFER  ANY TASTINGS OF, OR SELL, ANY LIQUOR OR WINE EXCEPT DURING
THE HOURS IN WHICH LIQUOR AND WINE MAY BE SOLD FOR CONSUMPTION  OFF  THE
PREMISES IN THE COUNTY IN WHICH THE LICENSED PREMISES IS LOCATED.
  8. IN ADDITION TO THE SALE OF ALCOHOLIC BEVERAGES, THE FOLLOWING ITEMS
MAY BE SOLD AT A PREMISES LICENSED UNDER THIS SECTION:
  (A)  NON-ALCOHOLIC  BEVERAGES  FOR CONSUMPTION OFF PREMISES, INCLUDING
BUT NOT LIMITED TO BOTTLED WATER, JUICE AND SODA BEVERAGES;
  (B) FOOD ITEMS GROWN  OR  PRODUCED  IN  THIS  STATE  NOT  SPECIFICALLY
PREPARED FOR IMMEDIATE CONSUMPTION UPON THE PREMISES; AND

S. 2009--A                          5                         A. 3009--A

  (C)  SOUVENIR  ITEMS,  WHICH  SHALL  INCLUDE,  BUT  NOT  BE LIMITED TO
ARTWORK, CRAFTS, CLOTHING, AGRICULTURAL PRODUCTS AND ANY OTHER  ARTICLES
WHICH CAN BE CONSTRUED TO PROPAGATE TOURISM WITHIN THE STATE.
  9.  A  LICENSE  ISSUED UNDER THIS SECTION SHALL BE EFFECTIVE FOR THREE
YEARS AT THREE TIMES THE ANNUAL FEE.
  § 2. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
law,  as  amended  by  section  3 of chapter 297 of the laws of 2016, is
amended to read as follows:
  3. To revoke, cancel or suspend for cause any license or permit issued
under this chapter and/or to impose a civil penalty  for  cause  against
any  holder  of a license or permit issued pursuant to this chapter. Any
civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
dollars  as  against  the holder of any retail permit issued pursuant to
sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
paragraph f of subdivision one of section ninety-nine-b of this chapter,
and  as  against  the  holder  of  any retail license issued pursuant to
sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eight-
y-one-a of this chapter, and the  sum  of  thirty  thousand  dollars  as
against the holder of a license issued pursuant to sections fifty-three,
sixty-one-a,  sixty-one-b, seventy-six, seventy-six-a, and seventy-eight
of this chapter, provided that the civil penalty against the holder of a
wholesale license issued pursuant to section fifty-three of this chapter
shall not exceed the sum of ten thousand  dollars  where  that  licensee
violates  provisions  of  this  chapter during the course of the sale of
beer at retail to a person for consumption at home, and the sum  of  one
hundred  thousand  dollars  as  against the holder of any license issued
pursuant to sections fifty-one, sixty-one, and sixty-two of  this  chap-
ter.  Any  civil penalty so imposed shall be in addition to and separate
and apart from the terms and provisions of the bond required pursuant to
section one hundred twelve of this chapter. Provided that no  appeal  is
pending on the imposition of such civil penalty, in the event such civil
penalty  imposed  by  the  division remains unpaid, in whole or in part,
more than forty-five days after written demand for payment has been sent
by first class mail to the address of the licensed premises, a notice of
impending default judgment shall be sent by  first  class  mail  to  the
licensed premises and by first class mail to the last known home address
of the person who signed the most recent license application. The notice
of  impending  default  judgment  shall  advise the licensee: (a) that a
civil penalty was imposed on the licensee; (b) the date the penalty  was
imposed;  (c)  the  amount  of  the civil penalty; (d) the amount of the
civil penalty that remains unpaid as of the date of the notice; (e)  the
violations for which the civil penalty was imposed; and (f) that a judg-
ment  by  default  will be entered in the supreme court of the county in
which the licensed premises are located, or other court of civil  juris-
diction  or  any  other  place provided for the entry of civil judgments
within the state of New York unless the division receives  full  payment
of  all civil penalties due within twenty days of the date of the notice
of impending default judgment. If  full  payment  shall  not  have  been
received  by the division within thirty days of mailing of the notice of
impending default judgment, the division shall  proceed  to  enter  with
such  court a statement of the default judgment containing the amount of
the penalty or penalties remaining due and unpaid, along with  proof  of
mailing  of the notice of impending default judgment. The filing of such
judgment shall have the full force and effect of a default judgment duly

S. 2009--A                          6                         A. 3009--A

docketed with such court pursuant to the civil practice  law  and  rules
and  shall  in  all  respects  be  governed  by  that chapter and may be
enforced in the same manner and with the same effect as that provided by
law  in respect to execution issued against property upon judgments of a
court of record. A judgment entered pursuant to this  subdivision  shall
remain  in  full  force  and  effect for eight years notwithstanding any
other provision of law.
  § 3. Subdivision 3 of section 17 of  the  alcoholic  beverage  control
law,  as  amended  by  section  4 of chapter 297 of the laws of 2016, is
amended to read as follows:
  3. To revoke, cancel or suspend for cause any license or permit issued
under this chapter and/or to impose a civil penalty  for  cause  against
any  holder  of a license or permit issued pursuant to this chapter. Any
civil penalty so imposed shall  not  exceed  the  sum  of  ten  thousand
dollars  as  against  the holder of any retail permit issued pursuant to
sections ninety-five,  ninety-seven,  ninety-eight,  ninety-nine-d,  and
paragraph f of subdivision one of section ninety-nine-b of this chapter,
and  as  against  the  holder  of  any retail license issued pursuant to
sections fifty-three-a,  fifty-four,  fifty-four-a,  fifty-five,  fifty-
five-a,  sixty-three,  SIXTY-THREE-B,  sixty-four,  sixty-four-a, sixty-
four-b,  sixty-four-c,  seventy-six-f,  seventy-nine,  eighty-one,   and
eighty-one-a  of this chapter, and the sum of thirty thousand dollars as
against the holder of a license issued pursuant to sections fifty-three,
sixty-one-a, sixty-one-b, seventy-six, seventy-six-a  and  seventy-eight
of this chapter, provided that the civil penalty against the holder of a
wholesale license issued pursuant to section fifty-three of this chapter
shall  not  exceed  the  sum of ten thousand dollars where that licensee
violates provisions of this chapter during the course  of  the  sale  of
beer  at  retail to a person for consumption at home, and the sum of one
hundred thousand dollars as against the holder  of  any  license  issued
pursuant to sections fifty-one, sixty-one and sixty-two of this chapter.
Any  civil  penalty  so imposed shall be in addition to and separate and
apart from the terms and provisions of the  bond  required  pursuant  to
section  one  hundred twelve of this chapter. Provided that no appeal is
pending on the imposition of such civil penalty, in the event such civil
penalty imposed by the division remains unpaid, in  whole  or  in  part,
more than forty-five days after written demand for payment has been sent
by first class mail to the address of the licensed premises, a notice of
impending  default  judgment  shall  be  sent by first class mail to the
licensed premises and by first class mail to the last known home address
of the person who signed the most recent license application. The notice
of impending default judgment shall advise  the  licensee:  (a)  that  a
civil  penalty was imposed on the licensee; (b) the date the penalty was
imposed; (c) the amount of the civil penalty;  (d)  the  amount  of  the
civil  penalty that remains unpaid as of the date of the notice; (e) the
violations for which the civil penalty was imposed; and (f) that a judg-
ment by default will be entered in the supreme court of  the  county  in
which  the licensed premises are located, or other court of civil juris-
diction, or any other place provided for the entry  of  civil  judgments
within  the  state of New York unless the division receives full payment
of all civil penalties due within twenty days of the date of the  notice
of  impending  default  judgment.  If  full  payment shall not have been
received by the division within thirty days of mailing of the notice  of
impending  default  judgment,  the  division shall proceed to enter with
such court a statement of the default judgment containing the amount  of
the  penalty  or penalties remaining due and unpaid, along with proof of

S. 2009--A                          7                         A. 3009--A

mailing of the notice of impending default judgment. The filing of  such
judgment shall have the full force and effect of a default judgment duly
docketed  with  such  court pursuant to the civil practice law and rules
and  shall  in  all  respects  be  governed  by  that chapter and may be
enforced in the same manner and with the same effect as that provided by
law in respect to execution issued against property upon judgments of  a
court  of  record. A judgment entered pursuant to this subdivision shall
remain in full force and effect  for  eight  years  notwithstanding  any
other provision of law.
  §  4.  Subdivision 1 of section 56-a of the alcoholic beverage control
law, as amended by chapter 422 of the laws of 2016, is amended  to  read
as follows:
  1.  In addition to the annual fees provided for in this chapter, there
shall be paid to the authority  with  each  initial  application  for  a
license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
a filing fee of four hundred dollars; with each initial application  for
a  license  filed pursuant to section sixty-three, SIXTY-THREE-B, sixty-
four, sixty-four-a or sixty-four-b of this chapter, a filing fee of  two
hundred  dollars;  with  each  initial  application  for a license filed
pursuant to section fifty-three-a, fifty-four, fifty-five, fifty-five-a,
seventy-nine, eighty-one or eighty-one-a of this chapter, a  filing  fee
of one hundred dollars; with each initial application for a permit filed
pursuant  to section ninety-one, ninety-one-a, ninety-two, ninety-two-a,
ninety-three, ninety-three-a, if such permit is to be issued on a calen-
dar year basis, ninety-four, ninety-five, ninety-six or ninety-six-a, or
pursuant to paragraph b, c, e or j of subdivision one of  section  nine-
ty-nine-b  of  this chapter if such permit is to be issued on a calendar
year basis, or for an additional bar pursuant  to  subdivision  four  of
section one hundred of this chapter, a filing fee of twenty dollars; and
with  each application for a permit under section ninety-three-a of this
chapter, other than a permit to be issued  on  a  calendar  year  basis,
section  ninety-seven,  ninety-eight,  ninety-nine,  or ninety-nine-b of
this chapter, other than a permit to be issued pursuant to paragraph  b,
c, e or j of subdivision one of section ninety-nine-b of this chapter on
a calendar year basis, a filing fee of ten dollars.
  §  5.  Subdivision 2 of section 56-a of the alcoholic beverage control
law, as amended by chapter 422 of the laws of 2016, is amended  to  read
as follows:
  2.  In addition to the annual fees provided for in this chapter, there
shall be paid to the authority  with  each  renewal  application  for  a
license  filed  pursuant  to  section fifty-one, fifty-one-a, fifty-two,
fifty-three,  fifty-eight,  fifty-eight-c,   fifty-eight-d,   sixty-one,
sixty-two,  seventy-six, seventy-seven or seventy-eight of this chapter,
a filing fee of one hundred dollars; with each renewal application for a
license filed pursuant to  section  sixty-three,  SIXTY-THREE-B,  sixty-
four,  sixty-four-a  or  sixty-four-b  of  this chapter, a filing fee of
ninety dollars; with each renewal application for a license filed pursu-
ant to section seventy-nine, eighty-one or eighty-one-a of this chapter,
a filing fee of twenty-five dollars; and with each  renewal  application
for  a license or permit filed pursuant to section fifty-three-a, fifty-
four, fifty-five, fifty-five-a,  ninety-one,  ninety-one-a,  ninety-two,
ninety-two-a,  ninety-three, ninety-three-a, if such permit is issued on
a calendar year basis, ninety-four, ninety-five, ninety-six  or  ninety-
six-a  of this chapter or pursuant to paragraph b, c, e or j of subdivi-

S. 2009--A                          8                         A. 3009--A

sion one of section ninety-nine-b, if such permit is issued on a  calen-
dar  year  basis, or with each renewal application for an additional bar
pursuant to subdivision four of section one hundred of this  chapter,  a
filing fee of thirty dollars.
  §  6.  Section  66 of the alcoholic beverage control law is amended by
adding a new subdivision 11 to read as follows:
  11. THE ANNUAL FEE FOR A SPECIAL LICENSE TO SELL  ALCOHOLIC  BEVERAGES
AT  RETAIL  FOR  CONSUMPTION  OFF  THE  LICENSED  PREMISES SHALL BE FIVE
HUNDRED DOLLARS.
  §  7. Section 67 of the alcoholic beverage control law, as amended  by
section  4  of  part  Z of chapter 85 of the laws of 2002, is amended to
read as follows:
  § 67. License fees, duration  of  licenses;  fee  for  part  of  year.
Effective  April  first,  nineteen hundred eighty-three, licenses issued
pursuant to sections sixty-one, sixty-two,  sixty-three,  SIXTY-THREE-B,
sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
effective for three years at three times that annual fee[, except  that,
in implementing the purposes of this section, the liquor authority shall
schedule  the  commencement dates, duration and expiration dates thereof
to provide for an equal cycle of license renewals issued under each such
section through the course of the fiscal year. Effective December first,
nineteen hundred ninety-eight,  licenses  issued  pursuant  to  sections
sixty-four,  sixty-four-a  and  sixty-four-b  of  this  article shall be
effective for two years at two times that annual fee,  except  that,  in
implementing  the  purposes  of this section, the liquor authority shall
schedule the commencement dates, duration and expiration  dates  thereof
to provide for an equal cycle of license renewals issued under each such
section through the course of the fiscal year. Notwithstanding the fore-
going,  commencing  on December first, nineteen hundred ninety-eight and
concluding on July thirty-first, two thousand two, a licensee  issued  a
license  pursuant to section sixty-four, sixty-four-a or sixty-four-b of
this article may elect to remit the fee for such license in equal annual
installments. Such installments shall be due on dates established by the
liquor authority and the failure of a licensee  to  have  remitted  such
annual  installments after a due date shall be a violation of this chap-
ter. For licenses issued for less than the three-year licensing  period,
the  license  fee  shall  be  levied on a pro-rated basis].   The entire
license fee shall be due and payable at the  time  of  application.  The
liquor  authority  may  make such rules as shall be appropriate to carry
out the purpose of this section.
  § 8. Subdivision 8 of section 100 of the  alcoholic  beverage  control
law,  as  added  by chapter 256 of the laws of 1978 and as renumbered by
chapter 466 of the laws of 2015, is amended to read as follows:
  8. Within ten days after filing a new application to  sell  liquor  at
retail    under    section   sixty-three,   SIXTY-THREE-B,   sixty-four,
sixty-four-a or sixty-four-b of this chapter, a notice thereof,  in  the
form  prescribed by the authority, shall be posted by the applicant in a
conspicuous place at the entrance to the proposed premises.  The  appli-
cant  shall  make  reasonable efforts to insure such notice shall remain
posted throughout the pendency of the application. The provisions hereof
shall apply only where no retail  liquor  license  has  previously  been
granted  for the proposed premise and shall, specifically, not be appli-
cable to a proposed sale of an existing business engaged in  the  retail
sale of liquor. The authority may adopt such rules it may deem necessary
to carry out the purpose of this subdivision.

S. 2009--A                          9                         A. 3009--A

  §  9.  This  act shall take effect on the thirtieth day after it shall
have become a law; provided, however, that:
  (a)  the  amendments  to  subdivision 3 of section 17 of the alcoholic
beverage control law made by section two of this act shall be subject to
the expiration and reversion of such section pursuant to  section  4  of
chapter  118  of  the  laws of 2012, as amended, when upon such date the
provisions of section three of this act shall take effect; and
  (b) if chapter 422 of the laws of 2016 shall not have taken effect  on
or  before  such date then sections four and five of this act shall take
effect on the same date and in the same manner as such  chapter  of  the
laws of 2016, takes effect.

                                 PART B

  Section  1.  Section  106  of  the  alcoholic  beverage control law is
amended by adding a new subdivision 16 to read as follows:
  16. A PERSON HOLDING A RETAIL ON-PREMISES LICENSE FOR A MOVIE THEATRE,
OTHER THAN A LICENSE FOR A MOVIE THEATRE THAT MEETS THE  DEFINITIONS  OF
RESTAURANT AND MEALS, AND WHERE ALL SEATING IS AT TABLES WHERE MEALS ARE
SERVED, SHALL:
  (A) FOR EVERY PURCHASE OF AN ALCOHOLIC BEVERAGE, REQUIRE THE PURCHASER
TO  PROVIDE  WRITTEN  EVIDENCE  OF  AGE AS SET FORTH IN PARAGRAPH (B) OF
SUBDIVISION TWO OF SECTION SIXTY-FIVE-B OF THIS CHAPTER; AND
  (B) ALLOW THE PURCHASE OF ONLY ONE ALCOHOLIC BEVERAGE PER TRANSACTION;
AND
  (C) ONLY PERMIT THE SALE OR DELIVERY OF ALCOHOLIC  BEVERAGES  DIRECTLY
TO  AN  INDIVIDUAL  HOLDING  A TICKET FOR A MOTION PICTURE WITH A MOTION
PICTURE ASSOCIATION OF AMERICA RATING OF "PG-13," "R," OR "NC-17"; AND
  (D) NOT COMMENCE THE SALE OF ALCOHOLIC BEVERAGES UNTIL ONE HOUR  PRIOR
TO  THE  START OF THE FIRST MOTION PICTURE, AND CEASE ALL SALES OF ALCO-
HOLIC BEVERAGES AFTER THE CONCLUSION OF THE FINAL MOTION PICTURE.
  § 2. Subdivision 6 of section 64-a of the alcoholic  beverage  control
law,  as  amended by chapter 475 of the laws of 2011, is amended to read
as follows:
  6. No special on-premises license shall be granted except for premises
in which the principal business shall be (a) the sale of food or  bever-
ages at retail for consumption on the premises or (b) the operation of a
legitimate  theatre, INCLUDING A MOTION PICTURE THEATRE THAT IS A BUILD-
ING OR FACILITY WHICH IS REGULARLY USED AND KEPT OPEN PRIMARILY FOR  THE
EXHIBITION  OF  MOTION  PICTURES  FOR  AT LEAST FIVE OUT OF SEVEN DAYS A
WEEK, OR ON A REGULAR SEASONAL BASIS OF  NO  LESS  THAN  SIX  CONTIGUOUS
WEEKS, TO THE GENERAL PUBLIC WHERE ALL AUDITORIUM SEATING IS PERMANENTLY
AFFIXED  TO  THE  FLOOR  AND  AT  LEAST SIXTY-FIVE PERCENT OF THE MOTION
PICTURE THEATRE'S ANNUAL GROSS REVENUES IS THE COMBINED RESULT OF ADMIS-
SION REVENUE FOR THE SHOWING OF MOTION PICTURES AND THE SALE OF FOOD AND
NON-ALCOHOLIC BEVERAGES, or such other  lawful  adult  entertainment  or
recreational  facility as the liquor authority, giving due regard to the
convenience of the public and the strict avoidance of  sales  prohibited
by  this chapter, shall by regulation classify for eligibility. [Nothing
contained in this subdivision shall be deemed to authorize the  issuance
of a license to a motion picture theatre, except those meeting the defi-
nition of restaurant and meals, and where all seating is at tables where
meals are served.]
  §  3.  Subdivision 8 of section 64-a of the alcoholic beverage control
law, as added by chapter 531 of the laws of 1964, is amended to read  as
follows:

S. 2009--A                         10                         A. 3009--A

  8. Every special on-premises licensee shall regularly keep food avail-
able  for  sale  to  its  customers for consumption on the premises. The
availability of sandwiches, soups or other foods, whether  fresh,  proc-
essed,  pre-cooked  or  frozen,  shall  be  deemed  compliance with this
requirement.    FOR MOTION PICTURE THEATRES LICENSED UNDER PARAGRAPH (B)
OF SUBDIVISION SIX OF THIS SECTION, FOOD THAT IS TYPICALLY  FOUND  IN  A
MOTION  PICTURE  THEATRE,  INCLUDING BUT NOT LIMITED TO: POPCORN, CANDY,
AND LIGHT SNACKS, SHALL BE DEEMED TO BE IN COMPLIANCE WITH THIS REQUIRE-
MENT. The licensed premises shall comply at all times with all the regu-
lations of the local department of health.  Nothing  contained  in  this
subdivision,  however,  shall  be  construed to require that any food be
sold or purchased with any liquor, nor shall  any  rule,  regulation  or
standard  be  promulgated or enforced requiring that the sale of food be
substantial or that the receipts of the business  other  than  from  the
sale  of  liquor  equal  any set percentage of total receipts from sales
made therein.
  § 4. Subdivision 9 of section 64-a of the alcoholic  beverage  control
law,  as added by chapter 531 of the laws of 1964, is amended to read as
follows:
  9.  IN THE CASE OF A MOTION PICTURE THEATRE  APPLYING  FOR  A  LICENSE
UNDER  THIS  SECTION,  ANY  MUNICIPALITY  REQUIRED  TO BE NOTIFIED UNDER
SECTION ONE HUNDRED TEN-B OF THIS CHAPTER MAY EXPRESS  AN  OPINION  WITH
RESPECT  TO WHETHER THE APPLICATION SHOULD BE APPROVED, AND SUCH OPINION
MAY BE CONSIDERED IN DETERMINING WHETHER GOOD CAUSE EXISTS TO  DENY  ANY
SUCH APPLICATION.
  10.  The liquor authority may make such rules as it deems necessary to
carry out the provisions of this section.
  § 5. This act shall take effect immediately and shall  expire  and  be
deemed repealed 3 years after such date.

                                 PART C

  Section 1. Section 54-f of the state finance law is REPEALED.
  §  2.  Subsection  (ggg)  of  section  606 of the tax law, as added by
section 1 of part E of chapter 60 of the laws of 2016, and as relettered
by section 1 of part A of chapter 73 of the laws of 2016, is amended  to
read as follows:
  (ggg) School tax reduction credit for residents of a city with a popu-
lation over one million. (1) For taxable years beginning after two thou-
sand  fifteen, a school tax reduction credit shall be allowed to a resi-
dent individual of the state  who  is  a  resident  of  a  city  with  a
population  over  one  million,  as  provided below. The credit shall be
allowed against the taxes authorized by  this  article  reduced  by  the
credits  permitted  by this article. If the credit exceeds the tax as so
reduced, the excess shall be treated as an  overpayment  of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided however, that  no  interest
will  be  paid thereon. For purposes of this subsection, no credit shall
be granted to an individual with  respect  to  whom  a  deduction  under
subsection  (c) of section one hundred fifty-one of the internal revenue
code is allowable to another taxpayer for the taxable year.
  (2) The amount of the credit under this [paragraph]  SUBSECTION  shall
be  determined  based  upon the taxpayer's income as defined in subpara-
graph (ii) of paragraph (b) of subdivision four of section four  hundred
twenty-five of the real property tax law.

S. 2009--A                         11                         A. 3009--A

  (3)  For  TAXABLE  YEARS BEGINNING IN TWO THOUSAND SIXTEEN, THE CREDIT
SHALL BE DETERMINED AS PROVIDED IN THIS PARAGRAPH, PROVIDED THAT FOR the
purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
of this paragraph with income of more than two  hundred  fifty  thousand
dollars shall not receive a credit.
  (A) Married individuals filing joint returns and surviving spouses. In
the  case of married individuals who make a single return jointly and of
a surviving spouse, the credit shall be one hundred twenty-five dollars.
  (B) All others. In the case of an unmarried individual, a  head  of  a
household  or  a married individual filing a separate return, the credit
shall be sixty-two dollars and fifty cents.
  (4) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SIXTEEN, THE CREDIT
SHALL EQUAL THE "FIXED" AMOUNT  PROVIDED  BY  PARAGRAPH  (4-A)  OF  THIS
SUBSECTION  PLUS THE "RATE REDUCTION" AMOUNT PROVIDED BY PARAGRAPH (4-B)
OF THIS SUBSECTION.
  (4-A) THE "FIXED" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS PROVIDED
IN THIS PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF  MORE  THAN
TWO HUNDRED FIFTY THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
  (A) MARRIED INDIVIDUALS FILING JOINT RETURNS AND SURVIVING SPOUSES. IN
THE  CASE OF MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND OF
A SURVIVING SPOUSE, THE "FIXED"  AMOUNT  OF  THE  CREDIT  SHALL  BE  ONE
HUNDRED TWENTY-FIVE DOLLARS.
  (B)  ALL  OTHERS.  IN THE CASE OF AN UNMARRIED INDIVIDUAL, A HEAD OF A
HOUSEHOLD OR A MARRIED INDIVIDUAL FILING A SEPARATE RETURN, THE  "FIXED"
AMOUNT OF THE CREDIT SHALL BE SIXTY-TWO DOLLARS AND FIFTY CENTS.
  (4-B) THE "RATE REDUCTION" AMOUNT OF THE CREDIT SHALL BE DETERMINED AS
PROVIDED  IN  THIS  PARAGRAPH, PROVIDED THAT ANY TAXPAYER WITH INCOME OF
MORE THAN FIVE HUNDRED THOUSAND DOLLARS SHALL NOT RECEIVE SUCH AMOUNT.
  (A) FOR MARRIED INDIVIDUALS WHO MAKE A SINGLE RETURN JOINTLY AND FOR A
SURVIVING SPOUSE:
IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $21,600                       0.171% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT OVER $500,000     $37 PLUS 0.228% OF EXCESS OVER
                                         $21,600
OVER $500,000                              NOT APPLICABLE
  (B) FOR A HEAD OF HOUSEHOLD:
IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $14,400                       0.171% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT OVER $500,000     $25 PLUS 0.228% OF EXCESS OVER
                                         $14,400
OVER $500,000                              NOT APPLICABLE
  (C) FOR AN UNMARRIED INDIVIDUAL OR A MARRIED INDIVIDUAL FILING
A SEPARATE RETURN:
IF THE CITY TAXABLE INCOME IS:         THE "RATE REDUCTION" AMOUNT IS:
NOT OVER $12,000                       0.171% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT OVER $500,000     $21 PLUS 0.228% OF EXCESS OVER
                                         $12,000
OVER $500,000                              NOT APPLICABLE
  [(3)] (5) Part-year residents. If a taxpayer changes status during the
taxable year from resident to nonresident, or from nonresident to  resi-
dent,  the  school  tax  reduction  credit authorized by this subsection
shall be prorated according to the number of months  in  the  period  of
residence.
  §  3.  Paragraphs  1, 2 and 3 of subsection (a) of section 1304 of the
tax law, as amended by section 2 of part B of chapter 59 of the laws  of
2015, are amended to read as follows:

S. 2009--A                         12                         A. 3009--A

  (1)  Resident  married  individuals  filing joint returns and resident
surviving spouses. The tax under this section for each taxable  year  on
the  city  taxable  income of every city resident married individual who
makes a single return jointly with his or her  spouse  under  subsection
(b)  of  section  thirteen  hundred  six of this article and on the city
taxable income of every city resident surviving spouse shall  be  deter-
mined in accordance with the following tables:

  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:
IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
OVER $45,000                             OVER $21,600
OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
OVER $90,000                             OVER $45,000
OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                          OVER $90,000

(B) FOR TAXABLE YEAR BEGINNING AFTER TWO THOUSAND FOURTEEN
AND BEFORE TWO THOUSAND SEVENTEEN:
If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                             over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess
over $500,000                            over $90,000
Over $500,000                          $16,803 plus 3.4% of excess
                                         over $500,000

  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:
If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                             over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                             over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess
over $500,000                            over $90,000
Over $500,000                          $15,814 plus 3.4% of excess
                                         over $500,000

  (2) Resident heads of households. The tax under this section for  each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
OVER $30,000                             OVER $14,400
OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS

S. 2009--A                         13                         A. 3009--A

OVER $60,000                             OVER $30,000
OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                         OVER $60,000

  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                             over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                            over $60,000
Over $500,000                          $16,869 plus 3.4% of excess
                                         over $500,000

[(B)] (C) For taxable years beginning after two thousand nine and before
two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                             over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                             over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                            over $60,000
Over $500,000                          $15,876 plus 3.4% of excess
                                         Over $500,000

  (3)  Resident  unmarried  individuals,  resident  married  individuals
filing separate returns and resident estates and trusts. The  tax  under
this  section  for each taxable year on the city taxable income of every
city resident individual who is not a city resident  married  individual
who  makes  a  single  return  jointly  with  his  or  her  spouse under
subsection (b) of section thirteen hundred six of this article or a city
resident head of household or a city resident surviving spouse,  and  on
the city taxable income of every city resident estate and trust shall be
determined in accordance with the following tables:

  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
OVER $25,000                             OVER $12,000
OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
OVER $50,000                             OVER $25,000
OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                       OVER $50,000

  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SEVENTEEN:

S. 2009--A                         14                         A. 3009--A

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                             over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                          over $50,000
Over $500,000                          $16,891 plus 3.4%
                                       of excess over $500,000
  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                             over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                             over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                          over $50,000
Over $500,000                          $15,897 plus 3.4%
                                       of excess over $500,000
  § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the
administrative code of the city of New York, as amended by section 3  of
part  B  of  chapter  59  of  the  laws  of 2015, are amended to read as
follows:
  (1) Resident married individuals filing  joint  returns  and  resident
surviving  spouses.  The tax under this section for each taxable year on
the city taxable income of every city resident  married  individual  who
makes  a  single return jointly with his or her spouse under subdivision
(b) of section 11-1751 of this chapter and on the city taxable income of
every city resident surviving spouse shall be determined  in  accordance
with the following tables:

(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $21,600                       2.7% OF THE CITY TAXABLE INCOME
OVER $21,600 BUT NOT                   $583 PLUS 3.3% OF EXCESS
OVER $45,000                           OVER $21,600
OVER $45,000 BUT NOT                   $1,355 PLUS 3.35% OF EXCESS
OVER $90,000                           OVER $45,000
OVER $90,000                           $2,863 PLUS 3.4% OF EXCESS
                                       OVER $90,000
  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SEVENTEEN:

If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                            over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                            over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess

S. 2009--A                         15                         A. 3009--A

over $500,000                           over $90,000
Over $500,000                          $16,803 plus 3.4% of excess
                                        over $500,000
  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $21,600                       2.55% of the city taxable income
Over $21,600 but not                   $551 plus 3.1% of excess
over $45,000                            over $21,600
Over $45,000 but not                   $1,276 plus 3.15% of excess
over $90,000                            over $45,000
Over $90,000 but not                   $2,694 plus 3.2% of excess
over $500,000                           over $90,000
Over $500,000                          $15,814 plus 3.4% of excess
                                        over $500,000

  (2) Resident heads of households. The tax under this section for  each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following tables:
  (A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $14,400                       2.7% OF THE CITY TAXABLE INCOME
OVER $14,400 BUT NOT                   $389 PLUS 3.3% OF EXCESS
OVER $30,000                           OVER $14,400
OVER $30,000 BUT NOT                   $904 PLUS 3.35% OF EXCESS
OVER $60,000                           OVER $30,000
OVER $60,000                           $1,909 PLUS 3.4% OF EXCESS
                                       OVER $60,000
  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                            over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                            over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                           over $60,000
Over $500,000                          $16,869 plus 3.4% of excess
                                        over $500,000

  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $14,400                       2.55% of the city taxable income
Over $14,400 but not                   $367 plus 3.1% of excess
over $30,000                            over $14,400
Over $30,000 but not                   $851 plus 3.15% of excess
over $60,000                            over $30,000
Over $60,000 but not                   $1,796 plus 3.2% of excess
over $500,000                           over $60,000
Over $500,000                          $15,876 plus 3.4% of excess

S. 2009--A                         16                         A. 3009--A

                                        over $500,000

  (3)  Resident  unmarried  individuals,  resident  married  individuals
filing separate returns and resident estates and trusts. The  tax  under
this  section  for each taxable year on the city taxable income of every
city resident individual who is not a married  individual  who  makes  a
single  return  jointly  with his or her spouse under subdivision (b) of
section 11-1751 of this chapter or a city resident head of  a  household
or  a  city resident surviving spouse, and on the city taxable income of
every city resident estate and trust shall be determined  in  accordance
with the following tables:

(A) For taxable years beginning after two thousand [fourteen] SIXTEEN:

IF THE CITY TAXABLE INCOME IS:         THE TAX IS:
NOT OVER $12,000                       2.7% OF THE CITY TAXABLE INCOME
OVER $12,000 BUT NOT                   $324 PLUS 3.3% OF EXCESS
OVER $25,000                            OVER $12,000
OVER $25,000 BUT NOT                   $753 PLUS 3.35% OF EXCESS
OVER $50,000                            OVER $25,000
OVER $50,000                           $1,591 PLUS 3.4% OF EXCESS
                                        OVER $50,000
  (B) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND FOURTEEN AND BEFORE
TWO THOUSAND SIXTEEN:
If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                            over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                            over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                           over $50,000
Over $500,000                          $16,891 plus 3.4% of excess
                                        over $500,000

  [(B)]  (C)  For  taxable  years  beginning after two thousand nine and
before two thousand fifteen:

If the city taxable income is:         The tax is:
Not over $12,000                       2.55% of the city taxable income
Over $12,000 but not                   $306 plus 3.1% of excess
over $25,000                            over $12,000
Over $25,000 but not                   $709 plus 3.15% of excess
over $50,000                            over $25,000
Over $50,000 but not                   $1,497 plus 3.2% of excess
over $500,000                           over $50,000
Over $500,000                          $15,897 plus 3.4% of excess
                                        over $500,000

  § 5. Notwithstanding any provision of law to the contrary, the  method
of  determining  the  amount  to  be deducted and withheld from wages on
account of taxes imposed by or pursuant to the authority of  article  30
of  the  tax law in connection with the implementation of the provisions
of this act shall be prescribed by  the  commissioner  of  taxation  and
finance with due consideration to the effect such withholding tables and
methods would have on the receipt and amount of revenue. The commission-

S. 2009--A                         17                         A. 3009--A

er  of  taxation  and  finance  shall adjust such withholding tables and
methods in regard to taxable years beginning in 2017 and after  in  such
manner  as  to  result,  so  far  as practicable, in withholding from an
employee's  wages  an amount substantially equivalent to the tax reason-
ably estimated to be due for such taxable  years  as  a  result  of  the
provisions  of  this act. Provided, however, for tax year 2017 the with-
holding tables shall reflect  as  accurately  as  practicable  the  full
amount  of  tax  year  2017 liability so that such amount is withheld by
December 31, 2017. In carrying out his or her  duties  and  responsibil-
ities  under  this section, the commissioner of taxation and finance may
prescribe a similar procedure with respect to the taxes required  to  be
deducted  and  withheld  by  local  laws  imposing taxes pursuant to the
authority of articles 30, 30-A and 30-B of the tax law,  the  provisions
of  any  other  law  in  relation  to  such  a procedure to the contrary
notwithstanding.
  § 6. 1. Notwithstanding any provision of law to the contrary, no addi-
tion to tax shall be imposed for failure to pay  the  estimated  tax  in
subsection  (c)  of  section  685  of the tax law and subdivision (c) of
section 11-1785 of the administrative code of the city of New York  with
respect  to  any underpayment of a required installment due prior to, or
within thirty days of, the effective date of this act to the extent that
such underpayment was created or increased by  the  amendments  made  by
this  act, provided, however, that the taxpayer remits the amount of any
underpayment prior to or with his or her next  quarterly  estimated  tax
payment.
  2. The commissioner of taxation and finance shall take steps to publi-
cize  the  necessary  adjustments  to  estimated  tax and, to the extent
reasonably possible, to inform the taxpayer of the tax liability changes
made by this act.
  § 7. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2017.

                                 PART D

  Section 1. Subparagraph (i) of  paragraph  (a)  of  subdivision  2  of
section  1306-a of the real property tax law, as amended by section 6 of
part N of chapter 58 of the laws of 2011, is amended to read as follows:
  (i) The tax savings for each parcel receiving the exemption authorized
by section four hundred twenty-five of this chapter shall be computed by
subtracting the amount actually  levied  against  the  parcel  from  the
amount  that  would  have been levied if not for the exemption, provided
however, that [beginning with] FOR the two thousand eleven-two  thousand
twelve THROUGH TWO THOUSAND SIXTEEN-TWO THOUSAND SEVENTEEN school [year]
YEARS, the tax savings applicable to any "portion" (which as used herein
shall  mean  that  part  of  an  assessing  unit located within a school
district) shall not exceed the tax savings applicable to that portion in
the prior school year multiplied by one hundred two  percent,  with  the
result  rounded  to the nearest dollar; AND PROVIDED FURTHER THAT BEGIN-
NING WITH THE TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGHTEEN SCHOOL  YEAR,
THE  TAX  SAVINGS  APPLICABLE  TO  ANY  PORTION SHALL NOT EXCEED THE TAX
SAVINGS FOR THE PRIOR YEAR. The tax savings attributable  to  the  basic
and  enhanced exemptions shall be calculated separately. It shall be the
responsibility of the commissioner to calculate tax savings  limitations
for purposes of this subdivision.
  § 2. This act shall take effect immediately.

S. 2009--A                         18                         A. 3009--A

                                 PART E

  Section  1.  Subparagraph  (ii)  of  paragraph (b) of subdivision 4 of
section 425 of the real property tax law, as amended  by  section  3  of
part E of chapter 83 of the laws of 2002, is amended to read as follows:
  (ii)  The  term "income" as used herein shall mean the "adjusted gross
income" for federal income tax purposes as reported on  the  applicant's
federal  or  state income tax return for the applicable income tax year,
subject to any subsequent amendments or revisions, reduced  by  distrib-
utions,  to  the  extent  included  in  federal  adjusted  gross income,
received from an individual retirement account and an individual retire-
ment annuity; provided that if no such return was filed for the applica-
ble income tax year, "income" shall mean the adjusted gross income  that
would  have  been so reported if such a return had been filed.  PROVIDED
FURTHER, THAT EFFECTIVE WITH EXEMPTION APPLICATIONS FOR FINAL ASSESSMENT
ROLLS TO BE COMPLETED IN TWO THOUSAND EIGHTEEN, WHERE  AN  INCOME-ELIGI-
BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
MORE INDIVIDUALS WHO DID NOT FILE A RETURN FOR THE APPLICABLE INCOME TAX
YEAR,  THEN IN ORDER FOR THE APPLICATION TO BE CONSIDERED COMPLETE, EACH
SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE  DEPARTMENT  SHOWING  THE
SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME TAX YEAR, AND THE
AMOUNT  OR  AMOUNTS  THEREOF,  THAT  WOULD  HAVE BEEN REPORTED ON SUCH A
RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT  SHALL  BE  FILED  AT  SUCH
TIME,  AND  IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY THE DEPART-
MENT, AND SHALL BE SUBJECT TO THE SECRECY PROVISIONS OF THE TAX  LAW  TO
THE  SAME EXTENT THAT A PERSONAL INCOME TAX RETURN WOULD BE. THE DEPART-
MENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAILABLE FOR THE FILING  OF
SUCH STATEMENTS.
  §  2.  Subparagraph  (iv) of paragraph (b) of subdivision 4 of section
425 of the real property tax law, as amended by chapter 451 of the  laws
of 2015, is amended to read as follows:
  (iv)  (A)  Effective  with  applications for the enhanced exemption on
final assessment rolls to be completed in two thousand [three] EIGHTEEN,
the application form shall indicate that [the] ALL owners of the proper-
ty and any owners' spouses residing on the premises [may  authorize  the
assessor to] MUST have their income eligibility verified annually [ther-
eafter]  by  the [state] department [of taxation and finance, in lieu of
furnishing copies of the applicable income tax return  or  returns  with
the  application.  If the owners of the property and any owners' spouses
residing on the premises elect to participate  in  this  program,  which
shall  be  known as the STAR income verification program, they] AND must
furnish their taxpayer identification numbers  in  order  to  facilitate
matching  with records of the department. [Thereafter, their] THE income
eligibility  OF  SUCH  PERSONS  shall  be  verified  annually   by   the
department, and the assessor shall not request income documentation from
them[,  unless  such  department  advises  the assessor that they do not
satisfy the applicable income eligibility requirements, or  that  it  is
unable to determine whether they satisfy those requirements]. All APPLI-
CANTS  FOR  THE  ENHANCED  EXEMPTION  AND  ALL  assessing units shall be
required to participate in this program, WHICH SHALL  BE  KNOWN  AS  THE
STAR INCOME VERIFICATION PROGRAM.
  (B) WHERE THE COMMISSIONER FINDS THAT THE ENHANCED EXEMPTION SHOULD BE
REPLACED WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE
TO THE ENHANCED EXEMPTION HAS BEEN EXCEEDED, HE OR SHE SHALL PROVIDE THE
PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
SIONER EVIDENCE TO THE CONTRARY. WHERE THE COMMISSIONER FINDS  THAT  THE

S. 2009--A                         19                         A. 3009--A

ENHANCED  EXEMPTION  SHOULD  BE REMOVED OR DENIED WITHOUT BEING REPLACED
WITH A BASIC EXEMPTION BECAUSE THE INCOME LIMITATION APPLICABLE  TO  THE
BASIC  EXEMPTION  HAS  ALSO  BEEN  EXCEEDED, HE OR SHE SHALL PROVIDE THE
PROPERTY  OWNERS WITH NOTICE AND AN OPPORTUNITY TO SUBMIT TO THE COMMIS-
SIONER EVIDENCE TO THE CONTRARY. IN EITHER CASE, IF THE OWNERS  FAIL  TO
RESPOND  TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING THEREOF,
OR IF THEIR RESPONSE DOES NOT SHOW TO  THE  COMMISSIONER'S  SATISFACTION
THAT THE PROPERTY IS ELIGIBLE FOR THE EXEMPTION CLAIMED, THE COMMISSION-
ER  SHALL  DIRECT THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL
OF THE ASSESSMENT ROLL OR  TAX  ROLL  TO  EITHER  REPLACE  THE  ENHANCED
EXEMPTION  WITH  A  BASIC  EXEMPTION,  OR TO REMOVE OR DENY THE ENHANCED
EXEMPTION WITHOUT REPLACING IT WITH A BASIC EXEMPTION,  AS  APPROPRIATE.
THE  COMMISSIONER  SHALL  FURTHER DIRECT SUCH PERSON TO CORRECT THE ROLL
ACCORDINGLY. SUCH A DIRECTIVE SHALL BE  BINDING  UPON  THE  ASSESSOR  OR
OTHER  PERSON  HAVING  CUSTODY  OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL, AND SHALL BE IMPLEMENTED BY  SUCH  PERSON  WITHOUT  THE  NEED  FOR
FURTHER DOCUMENTATION OR APPROVAL.
  (C)  NOTWITHSTANDING  ANY PROVISION OF LAW TO THE CONTRARY, NEITHER AN
ASSESSOR NOR A BOARD OF ASSESSMENT REVIEW HAS THE AUTHORITY TO  CONSIDER
AN  OBJECTION  TO  THE  REPLACEMENT OR REMOVAL OR DENIAL OF AN EXEMPTION
PURSUANT TO THIS SUBDIVISION, NOR MAY SUCH AN ACTION BE  REVIEWED  IN  A
PROCEEDING  TO  REVIEW  AN  ASSESSMENT PURSUANT TO TITLE ONE OR ONE-A OF
ARTICLE SEVEN OF THIS CHAPTER. SUCH AN ACTION  MAY  ONLY  BE  CHALLENGED
BEFORE  THE DEPARTMENT OF TAXATION AND FINANCE. IF A TAXPAYER IS DISSAT-
ISFIED WITH THE  DEPARTMENT'S  FINAL  DETERMINATION,  THE  TAXPAYER  MAY
APPEAL  THAT  DETERMINATION  TO  THE  STATE  BOARD  OF REAL PROPERTY TAX
SERVICES IN A FORM AND MANNER TO BE PRESCRIBED BY THE COMMISSIONER. SUCH
APPEAL SHALL BE FILED WITHIN FORTY-FIVE DAYS FROM THE  ISSUANCE  OF  THE
DEPARTMENT'S FINAL DETERMINATION. IF DISSATISFIED WITH THE STATE BOARD'S
DETERMINATION, THE TAXPAYER MAY SEEK JUDICIAL REVIEW THEREOF PURSUANT TO
ARTICLE  SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES. THE TAXPAYER
SHALL OTHERWISE HAVE NO RIGHT TO CHALLENGE SUCH FINAL DETERMINATION IN A
COURT ACTION, ADMINISTRATIVE PROCEEDING  OR  ANY  OTHER  FORM  OF  LEGAL
RECOURSE  AGAINST  THE  COMMISSIONER,  THE  DEPARTMENT  OF  TAXATION AND
FINANCE, THE STATE BOARD OF REAL PROPERTY TAX SERVICES, THE ASSESSOR  OR
OTHER  PERSON  HAVING  CUSTODY  OR CONTROL OF THE ASSESSMENT ROLL OR TAX
ROLL REGARDING SUCH ACTION.
  § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision  4  of
section 425 of the real property tax law are REPEALED.
  §  4.  Paragraphs  (b)  and (c) of subdivision 5 of section 425 of the
real property tax law are REPEALED.
  § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper-
ty tax law, as amended by section 5 of part E of chapter 83 of the  laws
of  2002  and  subparagraph (i) as further amended by subdivision (b) of
section 1 of part W of chapter 56 of the laws of  2010,  is  amended  to
read as follows:
  (d) Third party notice. (i) A senior citizen eligible for the enhanced
exemption  may  request  that  a notice be sent to an adult third party.
Such request shall be made on a form prescribed by the commissioner  and
shall  be  submitted  to the assessor of the assessing unit in which the
eligible taxpayer resides no later than  sixty  days  before  the  first
taxable  status  date to which it is to apply. Such form shall provide a
section whereby the designated third party shall consent to such  desig-
nation.  Such  request  shall be effective upon receipt by the assessor.
The assessor shall maintain a list of all eligible property  owners  who

S. 2009--A                         20                         A. 3009--A

have  requested  notices  pursuant to this paragraph AND SHALL FURNISH A
COPY OF SUCH LIST TO THE DEPARTMENT UPON REQUEST.
  (ii)  [In  the case of a senior citizen who has not elected to partic-
ipate in the STAR income verification program, a notice shall be sent to
the designated third party at least thirty days prior  to  each  ensuing
taxable  status  date;  provided that no such notice need be sent in the
first year if the request was not received  by  the  assessor  at  least
sixty  days before the applicable taxable status date. Such notice shall
read substantially as follows:
  "On behalf of (identify senior citizen or citizens), you  are  advised
that  his,  her,  or  their  renewal  application  for the enhanced STAR
exemption must be filed with the assessor no later  than  (enter  date).
You  are  encouraged  to  remind  him, her, or them of that fact, and to
offer assistance if needed, although you are under no  legal  obligation
to do so. Your cooperation and assistance are greatly appreciated."
  (iii)  In  the case of a senior citizen who has elected to participate
in the STAR income verification program, a] A notice shall  be  sent  to
the  designated  third party whenever the assessor OR DEPARTMENT sends a
notice to the senior citizen  regarding  the  possible  removal  of  the
enhanced  STAR  exemption.    WHEN  THE  EXEMPTION IS SUBJECT TO REMOVAL
BECAUSE THE COMMISSIONER HAS  DETERMINED  THAT  THE  INCOME  ELIGIBILITY
REQUIREMENT  IS  NOT  SATISFIED,  SUCH NOTICE SHALL BE SENT TO THE THIRD
PARTY BY THE DEPARTMENT.  WHEN  THE  EXEMPTION  IS  SUBJECT  TO  REMOVAL
BECAUSE  THE ASSESSOR HAS DETERMINED THAT ANY OTHER ELIGIBILITY REQUIRE-
MENT IS NOT SATISFIED, SUCH NOTICE SHALL BE SENT TO THE THIRD  PARTY  BY
THE ASSESSOR. Such notice shall read substantially as follows:
  "On  behalf  of (identify senior citizen or citizens), you are advised
that his, her, or their enhanced STAR exemption  is  at  risk  of  being
removed.  You are encouraged to make sure that he, she or they are aware
of that fact, and to offer assistance if needed, although you are  under
no legal obligation to do so. Your cooperation and assistance are great-
ly appreciated."
  [(iv)]  (III)  The  obligation to mail such notices shall cease if the
eligible taxpayer cancels the request  or  ceases  to  qualify  for  the
enhanced STAR exemption.
  § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper-
ty tax law is REPEALED.
  §  7.  Subdivision 9-b of section 425 of the real property tax law, as
added by section 8 of part E of chapter 83 of the laws of 2002 and para-
graph (b) as amended by chapter 742 of the  laws  of  2005  and  further
amended  by  subdivision (b) of section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
  9-b. Duration of exemption; enhanced exemption. (a) [In  the  case  of
persons  who have elected to participate in the STAR income verification
program, the] THE enhanced exemption,  once  granted,  shall  remain  in
effect until discontinued in the manner provided in this section.
  (b) [In the case of persons who have not elected to participate in the
STAR income verification program, the enhanced exemption shall apply for
a  term  of  one  year. To continue receiving such enhanced exemption, a
renewal application must be filed  annually  with  the  assessor  on  or
before  the  applicable  taxable status date on a form prescribed by the
commissioner. Provided, however, that if a renewal application is not so
filed, the assessor shall discontinue the enhanced exemption  but  shall
grant  the  basic  exemption,  subject  to the provisions of subdivision
eleven of this section.

S. 2009--A                         21                         A. 3009--A

  (c) Whether or not the recipients of an enhanced STAR  exemption  have
elected to participate in the STAR income verification program, the] THE
assessor  [may  review  their]  SHALL REVIEW THE continued compliance OF
RECIPIENTS OF THE ENHANCED EXEMPTION with the applicable  ownership  and
residency  requirements  to  the same extent as if they were receiving a
basic STAR exemption.
  [(d) Notwithstanding the foregoing provisions of this subdivision, the
enhanced exemption shall be continued without a renewal  application  as
long  as  the  property continues to be eligible for the senior citizens
exemption authorized by section four hundred sixty-seven of this title.]
  § 8. Section 425 of the real property tax law is amended by  adding  a
new subdivision 14-a to read as follows:
  14-A.  IMPLEMENTATION  OF  CERTAIN  ELIGIBILITY DETERMINATIONS. WHEN A
TAXPAYER'S ELIGIBILITY FOR EXEMPTION UNDER THIS  SECTION  FOR  A  SCHOOL
YEAR IS AFFECTED BY A DETERMINATION MADE IN ACCORDANCE WITH SUBPARAGRAPH
(IV)  OF  PARAGRAPH (B) OF SUBDIVISION FOUR OF THIS SECTION OR PARAGRAPH
(C) OR (D) OF SUBDIVISION FOURTEEN OF THIS  SECTION,  AND  THE  DETERMI-
NATION IS MADE AFTER THE SCHOOL DISTRICT TAXES FOR THAT SCHOOL YEAR HAVE
BEEN LEVIED, THE PROVISIONS OF THIS SUBDIVISION SHALL BE APPLICABLE.
  (A)   IF  THE  DETERMINATION  RESTORES  OR  INCREASES  THE  TAXPAYER'S
EXEMPTION FOR THAT SCHOOL YEAR, THE COMMISSIONER IS AUTHORIZED TO  REMIT
THE  EXCESS  DIRECTLY  TO THE PROPERTY OWNER UPON RECEIVING CONFIRMATION
THAT THE TAXPAYER'S ORIGINAL SCHOOL TAX BILL HAS BEEN PAID IN FULL.  THE
AMOUNTS  PAYABLE  BY THE COMMISSIONER UNDER THIS PARAGRAPH SHALL BE PAID
FROM THE ACCOUNT ESTABLISHED FOR THE PAYMENT OF STAR  BENEFITS  TO  LATE
REGISTRANTS  PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH (A) OF SUBDIVI-
SION FOURTEEN OF THIS SECTION.  WHEN  THE  COMMISSIONER  IMPLEMENTS  THE
DETERMINATION IN THIS MANNER, HE OR SHE SHALL SO NOTIFY THE ASSESSOR AND
COUNTY  DIRECTOR  OF REAL PROPERTY TAX SERVICES, BUT NO CORRECTION SHALL
BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND  NO
REFUND  SHALL  BE ISSUED BY THE SCHOOL AUTHORITIES TO THE PROPERTY OWNER
OR HIS OR HER AGENT FOR THE EXCESSIVE AMOUNT OF SCHOOL  TAXES  PAID  FOR
THAT SCHOOL YEAR.
  (B)  IF  THE DETERMINATION REMOVES, DENIES OR DECREASES THE TAXPAYER'S
EXEMPTION FOR THAT  SCHOOL  YEAR,  THE  COMMISSIONER  IS  AUTHORIZED  TO
COLLECT THE SHORTFALL DIRECTLY FROM THE OWNERS OF THE PROPERTY, TOGETHER
WITH  INTEREST, BY UTILIZING ANY OF THE PROCEDURES FOR COLLECTION, LEVY,
AND LIEN OF PERSONAL INCOME TAX SET FORTH IN ARTICLE TWENTY-TWO  OF  THE
TAX  LAW,  AND  ANY  OTHER  RELEVANT  PROCEDURES  REFERENCED  WITHIN THE
PROVISIONS OF SUCH ARTICLE. WHEN THE COMMISSIONER IMPLEMENTS THE  DETER-
MINATION  IN  THIS  MANNER,  HE  OR SHE SHALL SO NOTIFY THE ASSESSOR AND
COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES, BUT NO  CORRECTION  SHALL
BE  MADE TO THE ASSESSMENT ROLL OR TAX ROLL FOR THAT SCHOOL YEAR, AND NO
CORRECTED SCHOOL TAX BILL SHALL BE SENT TO THE TAXPAYER FOR THAT  SCHOOL
YEAR.
  § 9. Section 171-o of the tax law is REPEALED.
  §  10.  Subparagraph (B) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter  73  of
the laws of 2016, is amended to read as follows:
  (B)  "Affiliated  income"  shall  mean  for purposes of the basic STAR
credit, the combined income of all of  the  owners  of  the  parcel  who
resided  primarily  thereon  as  of December thirty-first of the taxable
year, and of any owners' spouses residing primarily thereon as  of  such
date,  and for purposes of the enhanced STAR credit, the combined income
of all of the owners of the parcel as of December  thirty-first  of  the
taxable  year,  and of any owners' spouses residing primarily thereon as

S. 2009--A                         22                         A. 3009--A

of such date; provided that for  both  purposes  the  income  to  be  so
combined  shall  be  the "adjusted gross income" for the taxable year as
reported for federal income tax purposes, or that would be  reported  as
adjusted gross income if a federal income tax return were required to be
filed,  reduced  by  distributions,  to  the  extent included in federal
adjusted gross income, received from an  individual  retirement  account
and  an  individual retirement annuity.   FOR TAXABLE YEARS BEGINNING ON
AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, WHERE  AN  INCOME-ELIGI-
BILITY DETERMINATION IS WHOLLY OR PARTLY BASED UPON THE INCOME OF ONE OR
MORE  INDIVIDUALS  WHO  DID  NOT  FILE  A RETURN PURSUANT TO SECTION SIX
HUNDRED FIFTY-ONE OF THIS ARTICLE FOR THE APPLICABLE  INCOME  TAX  YEAR,
THEN  IN  ORDER  TO  BE  ELIGIBLE  FOR  THE  CREDIT  AUTHORIZED  BY THIS
SUBSECTION, EACH SUCH INDIVIDUAL MUST FILE A STATEMENT WITH THE  DEPART-
MENT  SHOWING THE SOURCE OR SOURCES OF HIS OR HER INCOME FOR THAT INCOME
TAX YEAR, AND THE AMOUNT  OR  AMOUNTS  THEREOF,  THAT  WOULD  HAVE  BEEN
REPORTED ON SUCH A RETURN IF ONE HAD BEEN FILED. SUCH STATEMENT SHALL BE
FILED AT SUCH TIME, AND IN SUCH FORM AND MANNER, AS MAY BE PRESCRIBED BY
THE  DEPARTMENT,  AND  SHALL BE SUBJECT TO THE PROVISIONS OF SECTION SIX
HUNDRED NINETY-SEVEN OF THIS ARTICLE TO THE SAME EXTENT  THAT  A  RETURN
WOULD  BE.  THE DEPARTMENT SHALL MAKE SUCH FORMS AND INSTRUCTIONS AVAIL-
ABLE FOR THE FILING OF SUCH STATEMENTS. Provided further,  that  if  the
qualified  taxpayer was an owner of the property during the taxable year
but did not own it on December thirty-first of the  taxable  year,  then
the  determination  as  to whether the income of an individual should be
included in "affiliated income" shall be based upon the ownership and/or
residency status of that individual as of the first  day  of  the  month
during which the qualified taxpayer ceased to be an owner of the proper-
ty, rather than as of December thirty-first of the taxable year.
  §  11.  No application for an enhanced exemption on a final assessment
roll to be completed in 2018 may be approved if the applicants have  not
enrolled in the STAR income verification program established by subpara-
graph  (iv) of paragraph (b) of subdivision 4 of section 425 of the real
property tax law as amended by section two of this  act,  regardless  of
when  the  application  was filed. The assessor shall notify such appli-
cants that participation in that program has become  mandatory  for  all
applicants  and  that  their applications cannot be approved unless they
enroll therein. The commissioner of taxation and finance shall provide a
form for assessors to use, at their option, when making  this  notifica-
tion.
  § 12. This act shall take effect immediately.

                                 PART F

  Section  1.  Section  928-a  of the real property tax law, as added by
chapter 680 of the laws of 1994, subdivision 1  as  further  amended  by
subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010
and  subdivision  2  as  amended  by chapter 199 of the laws of 1997, is
amended to read as follows:
  §  928-a.  Partial  payment  of  taxes.  1.  (A)  Notwithstanding  the
provisions  of any general or special law to the contrary, [the board of
supervisors or the county legislature of any county  may  by  resolution
authorize  the  collecting  officers  in  one  or more of the classes of
municipal corporations described  herein]  EACH  COLLECTING  OFFICER  IS
HEREBY  AUTHORIZED  to  accept  from  any  taxpayer  at any time partial
payments for or on account  of  taxes,  special  ad  valorem  levies  or
special assessments [in such amount or manner and apply such payments on

S. 2009--A                         23                         A. 3009--A

account  thereof in such manner as may be prescribed by such resolution;
provided, however, that such resolution], UNLESS THE GOVERNING  BODY  OF
THE  MUNICIPAL  CORPORATION THAT EMPLOYS THE COLLECTING OFFICER HAS: (I)
PASSED A RESOLUTION DISALLOWING PARTIAL PAYMENTS OR (II) PASSED A RESOL-
UTION  LIMITING  THE  CONDITIONS  UNDER  WHICH  PARTIAL PAYMENTS WILL BE
ACCEPTED, IN WHICH CASE PARTIAL PAYMENTS SHALL BE ACCEPTED IN ACCORDANCE
WITH THE CONDITIONS SET FORTH IN THE RESOLUTION.
  (B) SUCH RESOLUTION MAY REQUIRE A SERVICE CHARGE  NOT  TO  EXCEED  TEN
DOLLARS  TO BE PAID WITH EACH PARTIAL PAYMENT. SUCH SERVICE CHARGE SHALL
BELONG TO THE MUNICIPAL CORPORATION THAT EMPLOYS THE COLLECTING OFFICER.
  (C) WHERE A STATEMENT OF TAXES CONTAINS SEPARATE CHARGES FOR  SEPARATE
PURPOSES, ANY PARTIAL PAYMENTS SHALL BE APPLIED PROPORTIONATELY THERETO.
  (D)  WHERE SCHOOL DISTRICT TAXES ARE PAYABLE TO THE COLLECTING OFFICER
OF A CITY OR TOWN THAT HAS NOT ACTED TO DISALLOW PARTIAL  PAYMENTS,  THE
GOVERNING  BODY OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION DISALLOWING
PARTIAL PAYMENTS FOR SCHOOL DISTRICT PURPOSES. IF IT HAS  NOT  DONE  SO,
THEN  THE  COLLECTING  OFFICER  SHALL  BE  AUTHORIZED  TO ACCEPT PARTIAL
PAYMENTS OF SCHOOL DISTRICT TAXES UNDER THE SAME CONDITIONS AS MAY APPLY
TO CITY OR TOWN TAXES.
  (E) ANY RESOLUTION ADOPTED PURSUANT TO THIS SECTION shall  be  adopted
AT  LEAST  SIXTY  DAYS  prior to the preparation and delivery of the tax
rolls to the appropriate collecting officers. A copy of  any  resolution
[enacting,  amending  or  repealing  any  such  partial payment program]
ADOPTED PURSUANT TO THIS SECTION, OR AMENDING OR REPEALING A  RESOLUTION
ADOPTED  PURSUANT  TO THIS SECTION, shall be filed with the commissioner
AND, IN THE CASE OF A RESOLUTION ADOPTED BY A SCHOOL DISTRICT, WITH  THE
CITY  OR TOWN CLERK, no later than thirty days after the adoption there-
of.
  2. [Such resolution shall apply to one or more of the following class-
es of municipal corporations: (a) all towns within the county;  (b)  all
cities for which the county enforces the collection of delinquent taxes;
or  (c)  all  villages  for  which the county enforces the collection of
delinquent taxes. If the resolution does not specify the class or class-
es of municipal corporations to which it applies, it shall be deemed  to
apply only to the towns in the county.
  3.]  After any partial payment authorized pursuant to this section has
been paid, interest and penalties shall be charged  against  the  unpaid
balance only. The acceptance of a partial payment by any official pursu-
ant  to  this section shall not be deemed to affect any liens and powers
of any [county]  MUNICIPAL  CORPORATION  conferred  in  any  general  or
special  act,  but such rights and powers shall remain in full force and
effect to enforce collection of the unpaid balance of such  tax  or  tax
liens together with interest, penalties and other lawful charges.
  3.  A  COLLECTING OFFICER WHO IS AUTHORIZED TO ACCEPT PARTIAL PAYMENTS
PURSUANT TO THIS SECTION MAY NOT DECLINE TO DO SO.
  4. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO AUTHORIZE A COLLECT-
ING OFFICER TO ACCEPT A PARTIAL PAYMENT AFTER THE EXPIRATION OF  HIS  OR
HER  WARRANT,  OR  AT ANY OTHER TIME THAT SUCH COLLECTING OFFICER IS NOT
AUTHORIZED TO ACCEPT TAX PAYMENTS.
  § 2. This act shall take effect immediately and  shall  apply  to  the
collection of real property taxes, special ad valorem levies and special
assessments for fiscal years beginning on and after January 1, 2019.

                                 PART G

S. 2009--A                         24                         A. 3009--A

  Section  1.  Paragraph 7 of subsection (eee) of section 606 of the tax
law, as amended by section 8 of part A of chapter  73  of  the  laws  of
2016, is amended to read as follows:
  (7)  Disclosure  of  incomes  AND  OTHER  INFORMATION.   (A) Where the
commissioner has denied a taxpayer's claim for the credit authorized  by
this  subsection  in whole or in part on the grounds that the affiliated
income of the parcel in  question  exceeds  the  applicable  limit,  the
commissioner  shall  have  the  authority to reveal to that taxpayer the
names and incomes of the other taxpayers whose incomes were included  in
the computation of such affiliated income.
  (B)  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, THE NAMES
AND ADDRESSES OF INDIVIDUALS WHO HAVE APPLIED FOR OR ARE  RECEIVING  THE
CREDIT  AUTHORIZED BY THIS SUBSECTION SHALL BE PUBLIC INFORMATION TO THE
SAME EXTENT AS THE NAMES AND ADDRESSES OF INDIVIDUALS WHO  HAVE  APPLIED
FOR  OR  ARE  RECEIVING  THE  STAR  EXEMPTION AUTHORIZED BY SECTION FOUR
HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
  § 2. This act shall take effect immediately.

                                 PART H

  Section 1. Subparagraph (ii) of paragraph  (k)  of  subdivision  2  of
section  425  of  the  real property tax law, as amended by section 2 of
part A of chapter 405 of the  laws  of  1999,  is  amended  to  read  as
follows:
  (ii)  That proportion of the assessment of such real property owned by
a cooperative apartment corporation determined by  the  relationship  of
such  real  property  vested  in  such tenant-stockholder to such entire
parcel and the buildings thereon owned  by  such  cooperative  apartment
corporation in which such tenant-stockholder resides shall be subject to
exemption  from  taxation  pursuant to this section and any exemption so
granted shall be credited by the appropriate  taxing  authority  against
the assessed valuation of such real property. Upon the completion of the
final  assessment  roll,  or  as  soon thereafter as is practicable, the
assessor shall forward to the cooperative apartment corporation a state-
ment setting forth the exemption attributable to each  eligible  tenant-
stockholder.  The  reduction in real property taxes attributable to each
eligible tenant-stockholder shall be credited by the cooperative  apart-
ment  corporation  against the amount of such taxes otherwise payable by
or chargeable  to  such  tenant-stockholder.  THE  ASSESSOR  SHALL  ALSO
FORWARD TO THE COMMISSIONER, AT THE TIME AND IN THE MANNER PRESCRIBED BY
THE  COMMISSIONER,  A STATEMENT SETTING FORTH THE TAXABLE ASSESSED VALUE
ATTRIBUTABLE  TO  EACH  TENANT-STOCKHOLDER,  WITHOUT   REGARD   TO   THE
EXEMPTION,  AND  SUCH  OTHER  INFORMATION AS THE COMMISSIONER SHALL DEEM
NECESSARY TO PROPERLY CALCULATE THE STAR CREDIT AUTHORIZED BY SUBSECTION
(EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW FOR THOSE  TENANT-STOCK-
HOLDERS WHO QUALIFY FOR IT.
  §  2.  Subparagraph  (E) of paragraph 1 of subsection (eee) of section
606 of the tax law, as amended by section 8 of part A of chapter  73  of
the laws of 2016, is amended to read as follows:
  (E)  "Qualifying  taxes"  means  the  school  district taxes that were
levied upon the taxpayer's primary residence for the  associated  fiscal
year  that  were  actually paid by the taxpayer during the taxable year;
or, in the case of a city school district that  is  subject  to  article
fifty-two  of  the  education law, the combined city and school district
taxes that were levied upon the taxpayer's  primary  residence  for  the
associated  fiscal  year  that were actually paid by the taxpayer during

S. 2009--A                         25                         A. 3009--A

the taxable year. PROVIDED, HOWEVER, THAT IN THE CASE OF  A  COOPERATIVE
APARTMENT, "QUALIFYING TAXES" MEANS THE SCHOOL DISTRICT TAXES THAT WOULD
HAVE  BEEN  LEVIED UPON THE TENANT-STOCKHOLDER'S PRIMARY RESIDENCE IF IT
WERE SEPARATELY ASSESSED, AS DETERMINED BY THE COMMISSIONER BASED ON THE
STATEMENT  PROVIDED  BY  THE  ASSESSOR  PURSUANT TO SUBPARAGRAPH (II) OF
PARAGRAPH (K) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE  OF
THE  REAL  PROPERTY  TAX  LAW, OR IN THE CASE OF A COOPERATIVE APARTMENT
CORPORATION THAT IS DESCRIBED IN SUBPARAGRAPH (IV) OF PARAGRAPH  (K)  OF
SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY
TAX LAW, ONE THIRD OF SUCH AMOUNT. In no case shall the term "qualifying
taxes" be construed to include penalties or interest.
  §  3.  Subparagraph  (A) of paragraph 6 of subsection (eee) of section
606 of the tax law is REPEALED.
  § 4. This act shall take effect immediately, provided that section one
of this act shall apply to final assessment rolls used  to  levy  school
taxes for school years beginning on and after July 1, 2017, and provided
further  that  sections two and three of this act shall apply to taxable
years beginning on and after January 1, 2017.

                                 PART I

  Section 1. Section 2 of chapter 540 of the laws of 1992, amending  the
real  property  tax  law  relating to oil and gas charges, as amended by
section 1 of part C of chapter 59 of the laws of  2014,  is  amended  to
read as follows:
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 1992; provided,
however that any charges imposed by section 593 of the real property tax
law as added by section one of this act shall first be  due  for  values
for assessment rolls with tentative completion dates after July 1, 1992,
and  provided  further,  that  this  act  shall remain in full force and
effect until March 31, [2018] 2021, at which time  section  593  of  the
real  property  tax  law  as  added  by section one of this act shall be
repealed.
  § 2. This act shall take effect immediately.

                                 PART J

  Section 1. Subdivision 5 of section 81 of the state  finance  law,  as
added by chapter 432 of the laws of 2016, is amended to read as follows:
  5.  Moneys  shall be payable from the fund on the audit and warrant of
the comptroller on vouchers approved and certified by  the  commissioner
of health, for veterans' homes operated by the department of health, and
by the [commissioner of education] CHANCELLOR OF THE STATE UNIVERSITY OF
NEW YORK, for the veterans' home operated by the state university of New
York.
  §  2.  This  act  shall take effect immediately and shall be deemed to
have been in full force and effect on and after November 14, 2016.

                                 PART K

  Section 1. Section 352 of the economic development law,  as  added  by
section  1 of part MM of chapter 59 of the laws of 2010, subdivisions 7,
8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19,  20  and  21  as  amended  and
subdivision 11 as added by section 1 of part K of chapter 59 of the laws
of 2015, is amended to read as follows:

S. 2009--A                         26                         A. 3009--A

  § 352. Definitions. For the purposes of this article:
  1.  "Agriculture"  means  both agricultural production (establishments
performing the complete farm or ranch operation, such as farm  owner-op-
erators,  tenant  farm  operators,  and  sharecroppers) and agricultural
support (establishments that perform one or more  activities  associated
with farm operation, such as soil preparation, planting, harvesting, and
management, on a contract or fee basis).
  2. "Back office operations" means a business function that may include
one  or  more of the following activities: customer service, information
technology and data processing, human resources, accounting and  related
administrative functions.
  3. "Benefit-cost ratio" means the following calculation: the numerator
is the sum of (i) the value of all remuneration projected to be paid for
all  net new jobs during the period of participation in the program, and
(ii) the value of capital investments to be made by the business  enter-
prise during the period of participation in the program, and the denomi-
nator  is  the amount of total tax benefits under this article that will
be used and refunded.
  4. "Certificate of eligibility"  means  the  document  issued  by  the
department  to  an  applicant  that  has  completed an application to be
admitted into the excelsior jobs program and has been accepted into  the
program  by  the  department. Possession of a certificate of eligibility
does not by itself guarantee the eligibility to claim the tax credit.
  5. "Certificate of tax credit" means the document issued to a  partic-
ipant  by  the  department,  after  the department has verified that the
participant has met all applicable eligibility criteria in this article.
The certificate shall be issued annually if such criteria are  satisfied
and  shall specify the exact amount of each of the tax credit components
under this article that a participant may  claim,  pursuant  to  section
three  hundred fifty-five of this article, and shall specify the taxable
year in which such credit may be claimed.
  6. "Distribution center" means a large scale facility involving  proc-
essing,  repackaging  and/or movement of finished or semi-finished goods
to retail locations across a multi-state area.
  7. "Entertainment company" means a corporation,  partnership,  limited
partnership,  or  other  entity principally engaged in the production or
post production of (i) motion pictures,  which  shall  include  feature-
length  films  and  television  films,  (ii) instructional videos, (iii)
televised commercial advertisements, (iv) animated  films  or  cartoons,
(v) music videos, (vi) television programs, which shall include, but not
be  limited  to,  television series, television pilots, and single tele-
vision episodes, or (vii) programs primarily intended for  radio  broad-
cast. "Entertainment company" shall not include an entity (i) principal-
ly engaged in the live performance of events, including, but not limited
to,  theatrical  productions,  concerts,  circuses, and sporting events,
(ii) principally engaged in the production of content intended primarily
for industrial, corporate or institutional end-users, (iii)  principally
engaged  in  the  production  of  fundraising films or programs, or (iv)
engaged in the production of content  for  which  records  are  required
under  section  2257  of  title 18, United States code, to be maintained
with respect to any performer in such production.
  8. "Financial services data centers  or  financial  services  customer
back  office  operations"  means  operations  that  manage  the  data or
accounts of existing customers or provide product or service information
and support to customers  of  financial  services  companies,  including
banks,  other  lenders,  securities and commodities brokers and dealers,

S. 2009--A                         27                         A. 3009--A

investment banks,  portfolio  managers,  trust  offices,  and  insurance
companies.
  9. "Investment zone" shall mean an area within the state that had been
designated under paragraph (i) of subdivision (a) and subdivision (d) of
section  nine  hundred fifty-eight of the general municipal law that was
wholly contained within up to  four  distinct  and  separate  contiguous
areas  as  of the date immediately preceding the date the designation of
such area expired pursuant to section nine  hundred  sixty-nine  of  the
general municipal law.
  10. "LIFE SCIENCES" MEANS THE FIELD OF BIOTECHNOLOGY, PHARMACEUTICALS,
BIOMEDICAL  TECHNOLOGIES, LIFE SYSTEMS TECHNOLOGIES, HEALTH INFORMATICS,
HEALTH ROBOTICS OR BIOMEDICAL DEVICES.
  11. "LIFE SCIENCES COMPANY" MEANS A BUSINESS ENTITY OR AN ORGANIZATION
OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN  THE  VARIOUS
STAGES  OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMERCIALIZA-
TION RELATED TO ANY LIFE SCIENCES FIELD.
  12. "Manufacturing" means the process of working  raw  materials  into
products  suitable for use or which gives new shapes, new quality or new
combinations to matter which has already gone  through  some  artificial
process  by  the  use  of machinery, tools, appliances, or other similar
equipment. "Manufacturing" does not include an operation  that  involves
only  the  assembly  of  components,  provided, however, the assembly of
motor vehicles or other high value-added products  shall  be  considered
manufacturing.
  [11.]  13.  "Music  production"  means  the  process of creating sound
recordings of at least eight minutes,  recorded  in  professional  sound
studios,  intended  for  commercial release. "Music production" does not
include recording of live concerts, or  recordings  that  are  primarily
spoken  word or wildlife or nature sounds, or produced for instructional
use or advertising or promotional purposes.
  [12.] 14. "Net new jobs" means:
  (a) jobs created in this state that (i) are new to the state,
  (ii) have not been transferred from employment with  another  business
located in this state including from a related person in this state,
  (iii)  are  either full-time wage-paying jobs or equivalent to a full-
time wage-paying job requiring at least thirty-five hours per week, and
  (iv) are filled for more than six months; or
  (b) jobs obtained by an entertainment company in this state (i)  as  a
result  of  the termination of a licensing agreement with another enter-
tainment company, (ii) that the commissioner determines to be at risk of
leaving the state as a direct result of the termination, (iii) that  are
either full-time wage-paying jobs or equivalent to a full-time wage-pay-
ing job requiring at least thirty-five hours per week, and (iv) that are
filled for more than six months.
  [13.] 15. "Participant" means a business entity that:
  (a)  has  completed  an application prescribed by the department to be
admitted into the program;
  (b) has been issued a certificate of eligibility by the department;
  (c) has demonstrated that it meets the eligibility criteria in section
three hundred fifty-three and subdivision two of section  three  hundred
fifty-four of this article; and
  (d) has been certified as a participant by the commissioner.
  [14.]  16. "Preliminary schedule of benefits" means the maximum aggre-
gate amount of each component of the tax credit that  a  participant  in
the excelsior jobs program is eligible to receive pursuant to this arti-
cle.  The schedule shall indicate the annual amount of each component of

S. 2009--A                         28                         A. 3009--A

the credit a participant may claim in each of its ten years of eligibil-
ity.    The  preliminary  schedule  of  benefits  shall be issued by the
department when the department approves the  application  for  admission
into  the  program.  The  commissioner may amend that schedule, provided
that the commissioner complies with the credit  caps  in  section  three
hundred fifty-nine of this article.
  [15.] 17. "Qualified investment" means an investment in tangible prop-
erty  (including  a  building  or  a structural component of a building)
owned by a business enterprise which:
  (a) is depreciable pursuant to section one hundred sixty-seven of  the
internal revenue code;
  (b) has a useful life of four years or more;
  (c)  is  acquired by purchase as defined in section one hundred seven-
ty-nine (d) of the internal revenue code;
  (d) has a situs in this state; and
  (e) is placed in service in the state on or after the date the certif-
icate of eligibility is issued to the business enterprise.
  [16.] 18. "Regionally significant project" means  (a)  a  manufacturer
creating at least fifty net new jobs in the state and making significant
capital investment in the state; (b) a business creating at least twenty
net  new jobs in agriculture in the state and making significant capital
investment in the state, (c) a  financial  services  firm,  distribution
center, or back office operation creating at least three hundred net new
jobs  in  the  state  and  making  significant capital investment in the
state, (d) a scientific research and development firm creating at  least
twenty net new jobs in the state, and making significant capital invest-
ment  in the state, (E) A LIFE SCIENCES COMPANY CREATING AT LEAST TWENTY
NET NEW JOBS IN THE STATE AND MAKING SIGNIFICANT CAPITAL  INVESTMENT  IN
THE STATE or [(e)] (F) an entertainment company creating or obtaining at
least two hundred net new jobs in the state and making significant capi-
tal  investment in the state. Other businesses creating three hundred or
more net new jobs in the state and making significant capital investment
in the state may be considered  eligible  as  a  regionally  significant
project  by  the commissioner as well. The commissioner shall promulgate
regulations pursuant to section three hundred fifty-six of this  article
to determine what constitutes significant capital investment for each of
the project categories indicated in this subdivision and what additional
criteria a business must meet to be eligible as a regionally significant
project,  including,  but  not  limited to, whether a business exports a
substantial portion of its products or services outside of the state  or
outside of a metropolitan statistical area or county within the state.
  [17.]  19.  "Related  person"  means  a  "related  person" pursuant to
subparagraph (c) of paragraph three of subsection (b)  of  section  four
hundred sixty-five of the internal revenue code.
  [18.]  20. "Remuneration" means wages and benefits paid to an employee
by a participant in the excelsior jobs program.
  [19.] 21. "Research and development expenditures" mean the expenses of
the business enterprise that are qualified research expenses  under  the
federal  research  and development credit under section forty-one of the
internal revenue code and are attributable to  activities  conducted  in
the  state.  If the federal research and development credit has expired,
then the research and development expenditures shall be calculated as if
the federal research and development credit structure and definition  in
effect in federal tax year two thousand nine were still in effect.
  [20.]  22.  "Scientific  research  and  development"  means conducting
research and experimental development in the physical, engineering,  and

S. 2009--A                         29                         A. 3009--A

life  sciences,  including  but not limited to agriculture, electronics,
environmental, biology,  botany,  biotechnology,  computers,  chemistry,
food, fisheries, forests, geology, health, mathematics, medicine, ocean-
ography,  pharmacy, physics, veterinary, and other allied subjects.  For
the purposes of this article, scientific research and  development  does
not include medical or veterinary laboratory testing facilities.
  [21.]  23. "Software development" means the creation of coded computer
instructions or production or post-production of video games, as defined
in subdivision one-a of section six hundred eleven of the general  busi-
ness law, other than those embedded and used exclusively in advertising,
promotional  websites  or  microsites,  and  also  includes new media as
defined by the commissioner in regulations.
  § 2. Subdivisions 1 and 3 of section 353 of the  economic  development
law,  as  amended  by  section  2 of part K of chapter 59 of the laws of
2015, are amended to read as follows:
  1. To be a participant in the excelsior jobs program, a business enti-
ty shall operate in New York state predominantly:
  (a) as a financial services data center or a financial  services  back
office operation;
  (b) in manufacturing;
  (c) in software development and new media;
  (d) in scientific research and development;
  (e) in agriculture;
  (f)  in  the  creation  or  expansion of back office operations in the
state;
  (g) in a distribution center;
  (h) in an  industry  with  significant  potential  for  private-sector
economic  growth  and  development  in  this state as established by the
commissioner in regulations promulgated pursuant  to  this  article.  In
promulgating  such  regulations  the  commissioner shall include job and
investment criteria;
  (i) as an entertainment company; [or]
  (j) in music production; OR
  (K) AS A LIFE SCIENCES COMPANY.
  3. For the purposes of this article, in order to  participate  in  the
excelsior  jobs  program,  a  business entity operating predominantly in
manufacturing must create at least ten net new jobs; a  business  entity
operating predominately in agriculture must create at least five net new
jobs;  a  business entity operating predominantly as a financial service
data center or financial services customer back  office  operation  must
create at least fifty net new jobs; a business entity operating predomi-
nantly  in scientific research and development must create at least five
net new jobs; a business  entity  operating  predominantly  in  software
development  must  create  at least five net new jobs; a business entity
creating or expanding back office operations must create at least  fifty
net  new  jobs;  a  business  entity  operating  predominately  in music
production must create at least five net new  jobs;  a  business  entity
operating  predominantly  as  an  entertainment  company  must create or
obtain at least one hundred net new jobs; or a business entity operating
predominantly as a distribution center in the state must create at least
seventy-five net new jobs,  notwithstanding  subdivision  five  of  this
section; OR A BUSINESS ENTITY OPERATING PREDOMINATELY AS A LIFE SCIENCES
COMPANY  MUST  CREATE  AT  LEAST FIVE NET NEW JOBS; or a business entity
must be a regionally significant project as defined in this article; or

S. 2009--A                         30                         A. 3009--A

  § 3. Subdivision 4 of section 353 of the economic development law,  as
amended  by  section  1  of part C of chapter 68 of the laws of 2013, is
amended to read as follows:
  4.  A business entity operating predominantly in one of the industries
referenced in paragraphs (a) through (h) OR IN PARAGRAPH (K) of subdivi-
sion one of this section but which does not meet the job requirements of
subdivision three of this section must have at least  twenty-five  full-
time job equivalents unless such business is a business entity operating
predominantly  in manufacturing then it must have at least ten full-time
job equivalents and must demonstrate that its benefit-cost ratio  is  at
least ten to one.
  §  4. Subdivision 5 of section 354 of the economic development law, as
amended by section 2 of part O of chapter 60 of the  laws  of  2016,  is
amended to read as follows:
  5.  A participant may claim tax benefits commencing in the first taxa-
ble year that the business enterprise  receives  a  certificate  of  tax
credit  or  the first taxable year listed on its preliminary schedule of
benefits, whichever is later. A participant may claim such benefits  for
the  next  nine consecutive taxable years, provided that the participant
demonstrates to the department that it continues to satisfy  the  eligi-
bility  criteria  specified in section three hundred fifty-three of this
article and subdivision two of this section in  each  of  those  taxable
years, and provided that no tax credits may be allowed for taxable years
beginning on or after January first, two thousand [twenty-seven] THIRTY.
If,  in  any given year, a participant who has satisfied the eligibility
criteria specified in section three hundred fifty-three of this  article
realizes  job  creation less than the estimated amount, the credit shall
be reduced by the proportion of actual job  creation  to  the  estimated
amount,  provided the proportion is at least seventy-five percent of the
jobs estimated.
  § 5. Section 359 of  the  economic  development  law,  as  amended  by
section  1  of  part  O of chapter 60 of the laws of 2016, is amended to
read as follows:
  § 359. Cap on tax credit. The total amount of tax  credits  listed  on
certificates  of  tax  credit issued by the commissioner for any taxable
year may not exceed the limitations set forth in this section.  One-half
of  any  amount of tax credits not awarded for a particular taxable year
in years two thousand eleven through two  thousand  twenty-four  may  be
used by the commissioner to award tax credits in another taxable year.

Credit components in the aggregate           With respect to taxable
shall not exceed:                            years beginning in:

          $ 50 million                               2011
          $ 100 million                              2012
          $ 150 million                              2013
          $ 200 million                              2014
          $ 250 million                              2015
          $ 183 million                              2016
          $ 183 million                              2017
          $ 183 million                              2018
          $ 183 million                              2019
          $ 183 million                              2020
          $ 183 million                              2021
          $ 133 million                              2022
          $ 83 million                               2023

S. 2009--A                         31                         A. 3009--A

          $ 36 million                               2024

  Twenty-five  percent  of  tax credits shall be allocated to businesses
accepted into the  program  under  subdivision  four  of  section  three
hundred  fifty-three  of  this  article  and seventy-five percent of tax
credits shall be allocated to businesses accepted into the program under
subdivision three of section three hundred fifty-three of this article.
  Provided, however, if by September thirtieth of a calendar  year,  the
department  has  not  allocated  the full amount of credits available in
that year to either: (i) businesses  accepted  into  the  program  under
subdivision four of section three hundred fifty-three of this article or
(ii)  businesses  accepted  into  the program under subdivision three of
section three hundred fifty-three of this article, the commissioner  may
allocate  any  remaining  tax  credits  to businesses referenced in this
paragraph as needed; provided, however, that under no circumstances  may
the  aggregate  statutory  cap  for  all  program years be exceeded. One
hundred percent of the unawarded amounts remaining at  the  end  of  two
thousand twenty-four may be allocated in subsequent years, notwithstand-
ing  the  fifty  percent  limitation  on  any amounts of tax credits not
awarded in taxable years two thousand eleven through two thousand  twen-
ty-four.  Provided,  however,  no tax credits may be allowed for taxable
years beginning on or after January first, two  thousand  [twenty-seven]
THIRTY.
  §  6.  Subdivision  (b)  of  section  31 of the tax law, as amended by
section 3 of part O of chapter 60 of the laws of  2016,  is  amended  to
read as follows:
  (b) To be eligible for the excelsior jobs program credit, the taxpayer
shall  have  been issued a "certificate of tax credit" by the department
of economic development pursuant to subdivision four  of  section  three
hundred  fifty-four  of  the economic development law, which certificate
shall set forth the amount of each credit component that may be  claimed
for  the  taxable year. A taxpayer may claim such credit for ten consec-
utive taxable years commencing  in  the  first  taxable  year  that  the
taxpayer  receives a certificate of tax credit or the first taxable year
listed on its preliminary schedule  of  benefits,  whichever  is  later,
provided  that no tax credits may be allowed for taxable years beginning
on or after January first, two  thousand  [twenty-seven]  THIRTY.    The
taxpayer shall be allowed to claim only the amount listed on the certif-
icate  of  tax  credit  for  that taxable year. Such certificate must be
attached to the taxpayer's return. No cost or expense paid  or  incurred
by  the  taxpayer shall be the basis for more than one component of this
credit or any other tax credit, except  as  provided  in  section  three
hundred fifty-five of the economic development law.
  §  7.  The  tax  law  is amended by adding a new section 43 to read as
follows:
  § 43. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVEL-
OPMENT TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A  TAXPAYER  THAT  IS  A
QUALIFIED  LIFE  SCIENCES  COMPANY, OR THAT IS A SOLE PROPRIETOR OF OR A
PARTNER IN A PARTNERSHIP THAT IS A QUALIFIED LIFE SCIENCES COMPANY OR  A
SHAREHOLDER  OF  A  NEW  YORK  S  CORPORATION  THAT  IS A QUALIFIED LIFE
SCIENCES COMPANY, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR  TWENTY-
TWO  OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSU-
ANT TO THE PROVISIONS REFERRED TO IN SUBDIVISION (E)  OF  THIS  SECTION,
FOR  A  PERIOD  OF FIVE YEARS, AS PROVIDED IN CLAUSE (B) OF SUBPARAGRAPH
(II) OF THIS PARAGRAPH, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION,
PROVIDED  THAT NO CREDIT SHALL BE ALLOWED FOR TAXABLE YEARS BEGINNING ON

S. 2009--A                         32                         A. 3009--A

OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT. SUCH  CREDIT  MAY  BE
CLAIMED  IN  THE TAXABLE YEAR SPECIFIED ON THE CERTIFICATE OF TAX CREDIT
ISSUED TO THE QUALIFIED LIFE SCIENCES COMPANY.
  (II)(A) FOR A QUALIFIED LIFE SCIENCES COMPANY THAT EMPLOYS TEN OR MORE
PERSONS DURING THE TAXABLE YEAR, THE AMOUNT OF THE CREDIT SHALL BE EQUAL
TO  FIFTEEN  PERCENT  OF SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH
AND DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.  FOR  A
QUALIFIED  LIFE  SCIENCES  COMPANY  THAT  EMPLOYS  LESS THAN TEN PERSONS
DURING THE TAXABLE YEAR, THE AMOUNT OF THE  CREDIT  SHALL  BE  EQUAL  TO
TWENTY  PERCENT  OF  SUCH QUALIFIED LIFE SCIENCES COMPANY'S RESEARCH AND
DEVELOPMENT EXPENDITURES IN THIS STATE FOR THE TAXABLE YEAR.
  (B) THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST TAXABLE
YEAR DURING WHICH THE CRITERIA SET FORTH IN THIS  PARAGRAPH  ARE  SATIS-
FIED,  AND WITH RESPECT TO EACH OF THE FOUR TAXABLE YEARS NEXT FOLLOWING
(BUT ONLY, WITH RESPECT TO EACH OF SUCH  YEARS,  IF  SUCH  CRITERIA  ARE
SATISFIED).    SUBSEQUENT CERTIFICATIONS OF THE LIFE SCIENCES COMPANY BY
THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  PURSUANT  TO  THIS  SUBDIVISION
SHALL  NOT EXTEND THE FIVE TAXABLE YEAR TIME LIMITATION ON THE ALLOWANCE
OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE.
  (III) THE TOTAL  AMOUNT  OF  CREDIT  ALLOWABLE  TO  A  QUALIFIED  LIFE
SCIENCES  COMPANY, OR, IF THE LIFE SCIENCES COMPANY IS PROPERLY INCLUDED
OR REQUIRED TO BE INCLUDED IN A COMBINED REPORT, TO THE COMBINED  GROUP,
TAKEN  IN THE AGGREGATE, SHALL NOT EXCEED FIVE HUNDRED THOUSAND DOLLARS.
IF THE LIFE SCIENCES COMPANY IS A PARTNER IN A PARTNERSHIP OR SHAREHOLD-
ER OF A NEW YORK S CORPORATION, THEN THE TOTAL AMOUNT OF  CREDIT  ALLOW-
ABLE  SHALL  BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT OF
CREDIT ALLOWABLE TO ALL THE PARTNERS OR SHAREHOLDERS OF EACH SUCH  ENTI-
TY,  TAKEN  IN  THE  AGGREGATE,  DOES  NOT  EXCEED FIVE HUNDRED THOUSAND
DOLLARS.
  (IV) NO  RESEARCH  AND  DEVELOPMENT  EXPENDITURES  MADE  BY  THE  LIFE
SCIENCES  COMPANY  AND USED EITHER AS THE BASIS FOR THE ALLOWANCE OF THE
CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVISION OR USED IN  THE  CALCU-
LATION OF THE CREDIT PROVIDED PURSUANT TO THIS SUBDIVISION SHALL BE USED
TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER OR BE USED IN
THE CALCULATION OF ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
  (2)  MAXIMUM  AMOUNT  OF  CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX  UNDER  ARTI-
CLES  NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL BE
TEN MILLION DOLLARS, AND SHALL BE ALLOTTED FROM THE FUNDS AVAILABLE  FOR
TAX  CREDITS  UNDER  ARTICLE  SEVENTEEN OF THE ECONOMIC DEVELOPMENT LAW.
SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT OF
ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE
DATE OF FILING AN APPLICATION FOR ALLOCATION OF LIFE  SCIENCES  RESEARCH
AND  DEVELOPMENT TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT OF
ALLOCATED CREDITS APPLIED FOR IN ANY PARTICULAR YEAR EXCEEDS THE  AGGRE-
GATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDIVISION,
SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY
OF THE SUBSEQUENT YEAR.
  (B) ANGEL INVESTOR TAX CREDIT. (1) ALLOWANCE OF CREDIT. (I) A TAXPAYER
THAT IS A QUALIFIED ANGEL INVESTOR, OR THAT IS A SOLE PROPRIETOR OF OR A
PARTNER  IN A PARTNERSHIP THAT IS A QUALIFIED ANGEL INVESTOR OR A SHARE-
HOLDER OF A NEW YORK S CORPORATION THAT IS A QUALIFIED  ANGEL  INVESTOR,
AND  IS  SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP-
TER, SHALL BE ALLOWED  A  CREDIT  AGAINST  SUCH  TAX,  PURSUANT  TO  THE
PROVISIONS  REFERRED TO IN SUBDIVISION (E) OF THIS SECTION, FOR A PERIOD
OF TEN YEARS, TO BE COMPUTED AS PROVIDED IN THIS  SUBDIVISION,  PROVIDED

S. 2009--A                         33                         A. 3009--A

THAT  NO CREDIT SHALL BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT.  SUCH CREDIT SHALL BE  CLAIMED
IN  THE  TAXABLE  YEAR  SPECIFIED ON THE CERTIFICATE OF ANGEL INVESTMENT
ISSUED TO THE QUALIFIED ANGEL INVESTOR.
  (II) THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF
EACH ANGEL INVESTMENT MADE DURING THE TAXABLE YEAR.
  (III) THE TOTAL AMOUNT OF CREDIT ALLOWABLE TO A QUALIFIED ANGEL INVES-
TOR,  OR,  IF  THE  QUALIFIED  ANGEL  INVESTOR  IS  PROPERLY INCLUDED OR
REQUIRED TO BE INCLUDED IN A COMBINED REPORT,  TO  THE  COMBINED  GROUP,
TAKEN  IN  THE  AGGREGATE,  SHALL  NOT EXCEED TWO HUNDRED FIFTY THOUSAND
DOLLARS. IF THE ANGEL INVESTOR IS A PARTNER IN A PARTNERSHIP  OR  SHARE-
HOLDER  OF  A  NEW  YORK  S CORPORATION, THEN THE TOTAL AMOUNT OF CREDIT
ALLOWABLE SHALL BE APPLIED AT THE ENTITY LEVEL, SO THAT THE TOTAL AMOUNT
OF CREDIT ALLOWABLE TO ALL THE PARTNERS OR  SHAREHOLDERS  OF  EACH  SUCH
ENTITY,  TAKEN IN THE AGGREGATE, DOES NOT EXCEED TWO HUNDRED FIFTY THOU-
SAND DOLLARS.
  (IV) NO INVESTMENT MADE BY THE TAXPAYER AND USED EITHER AS  THE  BASIS
FOR  THE  ALLOWANCE OF THE CREDIT PROVIDED FOR PURSUANT TO THIS SUBDIVI-
SION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED PURSUANT TO  THIS
SUBDIVISION  SHALL BE USED TO CLAIM ANY OTHER CREDIT ALLOWED PURSUANT TO
THIS CHAPTER OR USED IN THE CALCULATION  OF  ANY  OTHER  CREDIT  ALLOWED
PURSUANT TO THIS CHAPTER.
  (2)  RECAPTURE. (I) IF THE CERTIFICATE OF ANGEL INVESTMENT OF AN ANGEL
INVESTOR ISSUED BY THE DEPARTMENT OF  ECONOMIC  DEVELOPMENT  UNDER  THIS
SECTION IS REVOKED BY SUCH DEPARTMENT BECAUSE THE INVESTMENT MADE BY THE
ANGEL  INVESTOR  DOES NOT MEET THE ELIGIBILITY REQUIREMENTS SET FORTH IN
THIS SECTION AND IN REGULATION, THE AMOUNT OF CREDIT DESCRIBED  IN  THIS
SUBDIVISION  AND CLAIMED BY SUCH ANGEL INVESTOR PRIOR TO THAT REVOCATION
SHALL BE ADDED BACK AS TAX IN THE TAXABLE YEAR IN WHICH ANY SUCH REVOCA-
TION BECOMES FINAL.
  (II) WHERE A TAXPAYER SELLS, TRANSFERS OR OTHERWISE DISPOSES OF CORPO-
RATE STOCK, A PARTNERSHIP INTEREST OR OTHER OWNERSHIP  INTEREST  ARISING
FROM  THE  MAKING OF AN ANGEL INVESTMENT THAT WAS THE BASIS, IN WHOLE OR
IN PART, FOR THE ALLOWANCE OF THE CREDIT PROVIDED FOR UNDER THIS  SUBDI-
VISION, OR WHERE AN INVESTMENT THAT WAS THE BASIS FOR SUCH ALLOWANCE IS,
IN WHOLE OR IN PART, RECOVERED BY SUCH TAXPAYER, AND SUCH DISPOSITION OR
RECOVERY  OCCURS  DURING  THE  TAXABLE YEAR OR WITHIN FORTY-EIGHT MONTHS
FROM THE CLOSE OF THE TAXABLE YEAR WITH RESPECT TO WHICH SUCH CREDIT  IS
ALLOWED, THE TAXPAYER SHALL ADD BACK AS TAX, WITH RESPECT TO THE TAXABLE
YEAR  IN WHICH THE DISPOSITION OR RECOVERY DESCRIBED ABOVE OCCURRED, THE
AMOUNT OF THE CREDIT ORIGINALLY CLAIMED BY THE TAXPAYER.
  (3) MAXIMUM AMOUNT OF CREDITS. THE AGGREGATE  AMOUNT  OF  TAX  CREDITS
ALLOWED  UNDER  THIS SUBDIVISION TO TAXPAYERS SUBJECT TO TAX UNDER ARTI-
CLES NINE-A AND TWENTY-TWO OF THIS CHAPTER IN ANY TAXABLE YEAR SHALL  BE
FIVE  MILLION  DOLLARS.  SUCH AGGREGATE AMOUNT OF CREDITS SHALL BE ALLO-
CATED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT AMONG TAXPAYERS IN ORDER
OF PRIORITY BASED UPON THE DATE OF FILING AN APPLICATION FOR  ALLOCATION
OF  ANGEL  INVESTOR TAX CREDIT WITH SUCH DEPARTMENT. IF THE TOTAL AMOUNT
OF ALLOCATED CREDITS APPLIED FOR IN  ANY  PARTICULAR  YEAR  EXCEEDS  THE
AGGREGATE  AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS SUBDI-
VISION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR  ON  THE
FIRST DAY OF THE SUBSEQUENT YEAR.
  (C)  DEFINITIONS.  AS  USED  IN THIS SECTION THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "ANGEL INVESTMENT" MEANS AN INVESTMENT IN THE FORM OF  A  CONTRIB-
UTION  TO  THE  CAPITAL OF THE QUALIFIED LIFE SCIENCES COMPANY, PROVIDED

S. 2009--A                         34                         A. 3009--A

THAT SUCH INVESTMENT IS AT RISK AND IS NOT  SECURED  OR  GUARANTEED.  AN
"ANGEL  INVESTMENT"  DOES NOT INCLUDE ANY LOANS, OR INVESTMENTS IN HEDGE
FUNDS OR COMMODITY FUNDS WITH INSTITUTIONAL INVESTORS  OR  WITH  INVEST-
MENTS  IN  A  BUSINESS  INVOLVED  IN  RETAIL,  REAL ESTATE, PROFESSIONAL
SERVICES, GAMING OR FINANCIAL SERVICES.
  (2) "ANGEL INVESTOR" MEANS AN ACCREDITED INVESTOR, AS DEFINED  BY  THE
UNITED  STATE  SECURITIES  AND  EXCHANGE  COMMISSION PURSUANT TO SECTION
SEVENTY-SEVEN-B OF TITLE FIFTEEN OF THE UNITED STATES CODE, OR A NETWORK
OF ACCREDITED INVESTORS, THAT REVIEWS NEW  OR  PROPOSED  BUSINESSES  FOR
POTENTIAL  INVESTMENT  AND  THAT  MAY  SEEK  ACTIVE INVOLVEMENT, SUCH AS
CONSULTING AND MENTORING, IN A LIFE SCIENCES COMPANY.  "ANGEL  INVESTOR"
DOES  NOT  INCLUDE  A  PERSON CONTROLLING, DIRECTLY OR INDIRECTLY, FIFTY
PERCENT OR MORE OF THE LIFE SCIENCES COMPANY INVESTED IN  BY  THE  ANGEL
INVESTOR  OR WHO IS INVOLVED IN THE LIFE SCIENCES COMPANY IN A FULL-TIME
PROFESSIONAL CAPACITY, AND DOES NOT INCLUDE A CORPORATION OF WHICH  SUCH
LIFE  SCIENCES COMPANY IS A DIRECT OR INDIRECT SUBSIDIARY, AS DEFINED IN
SECTION TWO HUNDRED EIGHT OF THIS CHAPTER.
  (3) "CERTIFICATE OF ANGEL INVESTMENT" MEANS THE DOCUMENT ISSUED  TO  A
QUALIFIED  ANGEL  INVESTOR BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR
EACH ANGEL INVESTMENT MADE BY THE QUALIFIED ANGEL  INVESTOR,  AFTER  THE
DEPARTMENT OR ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH ANGEL INVESTOR
HAS  MET  ALL APPLICABLE CRITERIA IN THIS SECTION TO BE ELIGIBLE FOR THE
ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
INCLUDING BUT NOT LIMITED TO CERTIFYING THAT THE LIFE  SCIENCES  COMPANY
IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALIFIED LIFE
SCIENCES  COMPANY.  THE  CERTIFICATE  SHALL  BE  ISSUED ANNUALLY IF SUCH
CRITERIA ARE SATISFIED AND SHALL SPECIFY THE EXACT AMOUNT OF EACH  ANGEL
INVESTMENT  MADE  BY THE ANGEL INVESTOR AND THE AMOUNT OF THE TAX CREDIT
THAT MAY BE CLAIMED BY SUCH ANGEL INVESTOR, PURSUANT TO SUBDIVISION  (B)
OF THIS SECTION, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH SUCH CREDIT
MAY BE CLAIMED.
  (4)  "CERTIFICATE OF TAX CREDIT" MEANS THE DOCUMENT ISSUED TO A QUALI-
FIED LIFE SCIENCES COMPANY BY THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,
AFTER THE DEPARTMENT OF ECONOMIC DEVELOPMENT HAS VERIFIED THAT SUCH LIFE
SCIENCES  COMPANY  HAS MET ALL APPLICABLE CRITERIA IN THIS SECTION TO BE
ELIGIBLE FOR THE LIFE  SCIENCES  RESEARCH  AND  DEVELOPMENT  TAX  CREDIT
ALLOWED UNDER SUBDIVISION (A) OF THIS SECTION, INCLUDING BUT NOT LIMITED
TO  VERIFYING  THAT  THE  LIFE  SCIENCES  COMPANY IS A NEW BUSINESS. THE
CERTIFICATE SHALL BE ISSUED ANNUALLY IF SUCH CRITERIA ARE SATISFIED  AND
SHALL  SPECIFY THE EXACT AMOUNT OF THE LIFE SCIENCES RESEARCH AND DEVEL-
OPMENT TAX CREDIT THAT MAY BE CLAIMED BY SUCH  QUALIFIED  LIFE  SCIENCES
COMPANY,  PURSUANT TO SUBDIVISION (A) OF THIS SECTION, AND SHALL SPECIFY
THE TAXABLE YEAR IN WHICH SUCH CREDIT MAY BE CLAIMED.
  (5) "NEW BUSINESS" MEANS ANY BUSINESS THAT QUALIFIES AS A NEW BUSINESS
UNDER EITHER PARAGRAPH (F) OF SUBDIVISION ONE  OF  SECTION  TWO  HUNDRED
TEN-B  OR  PARAGRAPH TEN OF SUBSECTION ONE OF SECTION SIX HUNDRED SIX OF
THIS CHAPTER.
  (6) "QUALIFIED ANGEL INVESTOR" MEANS AN ANGEL  INVESTOR  CERTIFIED  BY
THE DEPARTMENT OF ECONOMIC DEVELOPMENT AS AN ANGEL INVESTOR.
  (7)  "QUALIFIED  LIFE SCIENCES COMPANY" MEANS A LIFE SCIENCES COMPANY,
AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED  FIFTY-TWO  OF
THE  ECONOMIC DEVELOPMENT LAW, THAT HAS BEEN CERTIFIED BY THE DEPARTMENT
OF ECONOMIC DEVELOPMENT AS A LIFE SCIENCES COMPANY AND IS  A  NEW  BUSI-
NESS.  PROVIDED  THAT,  FOR  PURPOSES  OF  THE ANGEL INVESTOR TAX CREDIT
PROVIDED PURSUANT TO SUBDIVISION (B) OF THIS SECTION, A  QUALIFIED  LIFE
SCIENCES  COMPANY  SHALL  AT  THE  TIME THAT THE ANGEL INVESTOR MAKES AN

S. 2009--A                         35                         A. 3009--A

INITIAL ANGEL INVESTMENT IN SUCH LIFE SCIENCES COMPANY EMPLOY TWENTY  OR
FEWER  PERSONS  DURING  THE  TAXABLE YEAR AND SHALL HAVE HAD, DURING THE
IMMEDIATELY PRECEDING TAXABLE YEAR, GROSS RECEIPTS OF NOT  GREATER  THAN
FIVE  HUNDRED  THOUSAND DOLLARS.   PROVIDED HOWEVER, FOR PURPOSES OF THE
CREDITS AUTHORIZED UNDER THIS SECTION, THE DEPARTMENT OF ECONOMIC DEVEL-
OPMENT SHALL NOT CERTIFY AS A LIFE  SCIENCES  COMPANY  ANY  CORPORATION,
PARTNERSHIP,  LIMITED  PARTNERSHIP, OR OTHER ENTITY THAT HAS BEEN WITHIN
THE IMMEDIATELY PRECEDING SIXTY MONTHS A RELATED  PERSON  TO  AN  ENTITY
THAT  IS  A LIFE SCIENCES COMPANY OR AN ENTITY THAT IS ENGAGED IN SCIEN-
TIFIC RESEARCH AND DEVELOPMENT AS DEFINED IN SUBDIVISION  TWENTY-TWO  OF
SECTION THREE HUNDRED FIFTY-TWO OF THE ECONOMIC DEVELOPMENT LAW.
  (8)  "RESEARCH  AND DEVELOPMENT EXPENDITURES" MEANS QUALIFIED RESEARCH
EXPENSES AS DEFINED IN SUBSECTION (B) OF  SECTION  41  OF  THE  INTERNAL
REVENUE  CODE,  PROVIDED, HOWEVER, THAT SUCH QUALIFIED RESEARCH EXPENSES
SHALL NOT INCLUDE AMOUNTS UNDER  SUBPARAGRAPH  (B)  OF  PARAGRAPH  1  OF
SUBSECTION (B) OF SECTION 41 OF THE INTERNAL REVENUE CODE AND AS FURTHER
DESCRIBED IN PARAGRAPH 3 OF SUBSECTION (B) OF SECTION 41 OF THE INTERNAL
REVENUE  CODE.  IF  SECTION 41 OF THE INTERNAL REVENUE CODE HAS EXPIRED,
THEN THE RESEARCH AND DEVELOPMENT EXPENSES SHALL BE CALCULATED AS IF THE
FEDERAL RESEARCH AND DEVELOPMENT  CREDIT  STRUCTURE  AND  DEFINITION  IN
EFFECT IN SECTION 41 IN FEDERAL TAX YEAR TWO THOUSAND NINE WERE STILL IN
EFFECT.
  (9) "RELATED PERSON" MEANS A RELATED PERSON AS DEFINED IN SUBPARAGRAPH
(C)  OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION 465 OF THE INTERNAL
REVENUE CODE. FOR THIS PURPOSE, A  "RELATED  PERSON"  SHALL  INCLUDE  AN
ENTITY  THAT  WOULD  HAVE  QUALIFIED AS A "RELATED PERSON" IF IT HAD NOT
BEEN DISSOLVED, LIQUIDATED, MERGED  WITH  ANOTHER  ENTITY  OR  OTHERWISE
CEASED TO EXIST OR OPERATE.
  (D)(1)  FOR  PURPOSES OF THIS SECTION, IN ORDER TO BE ELIGIBLE FOR THE
LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX CREDIT ALLOWED UNDER SUBDIVI-
SION (A) OF THIS SECTION, A LIFE  SCIENCES  COMPANY  MUST  BE  ISSUED  A
CERTIFICATE  OF  TAX  CREDIT  BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT.
THE DEPARTMENT OF ECONOMIC  DEVELOPMENT  SHALL  VERIFY  THAT  SUCH  LIFE
SCIENCES  COMPANY  HAS  MET  ALL APPLICABLE ELIGIBILITY CRITERIA IN THIS
SECTION BEFORE ISSUING A CERTIFICATE OF TAX CREDIT,  INCLUDING  BUT  NOT
LIMITED TO VERIFYING THAT THE LIFE SCIENCES COMPANY IS A NEW BUSINESS.
  (2)  FOR  PURPOSES  OF  THIS  SECTION, IN ORDER TO BE ELIGIBLE FOR THE
ANGEL INVESTOR TAX CREDIT ALLOWED UNDER SUBDIVISION (B) OF THIS SECTION,
AN ANGEL INVESTOR MUST BE ISSUED A CERTIFICATE OF  ANGEL  INVESTMENT  BY
THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT FOR EACH ANGEL INVESTMENT FOR
WHICH THE CREDIT IS CLAIMED.   THE DEPARTMENT  OF  ECONOMIC  DEVELOPMENT
SHALL VERIFY THAT SUCH ANGEL INVESTOR HAS MET ALL APPLICABLE ELIGIBILITY
CRITERIA  IN  THIS SECTION BEFORE ISSUING A CERTIFICATE OF ANGEL INVEST-
MENT, INCLUDING BUT NOT LIMITED TO CERTIFYING  THAT  THE  LIFE  SCIENCES
COMPANY IN WHICH THE ANGEL INVESTOR HAS MADE SUCH INVESTMENT IS A QUALI-
FIED LIFE SCIENCES COMPANY.
  (3)  THE  COMMISSIONER  OF ECONOMIC DEVELOPMENT, AFTER CONSULTING WITH
THE COMMISSIONER, SHALL PROMULGATE REGULATIONS BY OCTOBER  THIRTY-FIRST,
TWO THOUSAND SEVENTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX
CREDITS  ALLOWED  UNDER  THIS  SECTION. SUCH RULES AND REGULATIONS SHALL
INCLUDE PROVISIONS DESCRIBING THE APPLICATION PROCESS FOR  EACH  CREDIT,
THE DUE DATES FOR SUCH APPLICATIONS, THE ELIGIBILITY STANDARDS FOR QUAL-
IFIED  LIFE  SCIENCES  COMPANIES,  THE  STANDARDS WHICH SHALL BE USED TO
EVALUATE THE APPLICATIONS, THE DOCUMENTATION THAT WILL  BE  PROVIDED  TO
TAXPAYERS  TO  SUBSTANTIATE  TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS
ALLOCATED TO SUCH TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED  NECES-

S. 2009--A                         36                         A. 3009--A

SARY  AND  APPROPRIATE.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO THE
CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGU-
LATIONS MAY BE ADOPTED ON AN EMERGENCY BASIS IF NECESSARY TO  MEET  SUCH
OCTOBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN DEADLINE.
  (E)  CROSS-REFERENCES.  FOR APPLICATION OF THE CREDITS PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 52.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (HHH).
  (F) NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER, (I)  EMPLOYEES  AND
OFFICERS  OF  THE  DEPARTMENT OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
SHALL BE ALLOWED AND ARE DIRECTED  TO  SHARE  AND  EXCHANGE  INFORMATION
REGARDING  THE CREDITS APPLIED FOR, ALLOWED, OR CLAIMED PURSUANT TO THIS
SECTION AND TAXPAYERS WHO ARE APPLYING FOR CREDITS OR WHO  ARE  CLAIMING
CREDITS, INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM CREDIT CLAIM
FORMS  SUBMITTED  TO  THE  DEPARTMENT AND APPLICATIONS FOR CERTIFICATION
SUBMITTED TO THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT,  AND  (II)  THE
COMMISSIONER AND THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC DEVELOP-
MENT  MAY RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THESE
CREDITS AND THE AMOUNT OF THE CREDIT EARNED BY THE  TAXPAYER.  PROVIDED,
HOWEVER,  IF  A  TAXPAYER CLAIMS EITHER OF THESE CREDITS BECAUSE IT IS A
MEMBER OF A LIMITED LIABILITY COMPANY OR A  PARTNER  IN  A  PARTNERSHIP,
ONLY  THE  AMOUNT  OF  CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF
CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED.
  (G) FOR PURPOSES OF THE CREDITS ALLOWED UNDER THIS SECTION, THE NUMBER
OF PERSONS EMPLOYED BY A QUALIFIED  LIFE  SCIENCES  COMPANY  DURING  THE
TAXABLE  YEAR  SHALL  BE  DETERMINED  BY ASCERTAINING THE NUMBER OF SUCH
INDIVIDUALS EMPLOYED FULL-TIME BY SUCH COMPANY, EXCLUDING GENERAL EXECU-
TIVE OFFICERS, ON THE THIRTY-FIRST DAY OF MARCH, THE  THIRTIETH  DAY  OF
JUNE,  THE THIRTIETH DAY OF SEPTEMBER AND THE THIRTY-FIRST DAY OF DECEM-
BER DURING EACH TAXABLE YEAR, BY ADDING  TOGETHER  THE  NUMBER  OF  SUCH
INDIVIDUALS  ASCERTAINED  ON  EACH OF SUCH DATES AND DIVIDING THE SUM SO
OBTAINED BY THE NUMBER OF SUCH DATES OCCURRING WITHIN SUCH TAXABLE YEAR.
AN INDIVIDUAL EMPLOYED FULL-TIME MEANS AN EMPLOYEE IN A  JOB  CONSISTING
OF AT LEAST THIRTY-FIVE HOURS PER WEEK, OR TWO OR MORE EMPLOYEES WHO ARE
IN  JOBS  THAT  TOGETHER  CONSTITUTE THE EQUIVALENT OF A JOB OF AT LEAST
THIRTY-FIVE HOURS PER WEEK (FULL-TIME EQUIVALENT).
  § 8. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 52 to read as follows:
  52. LIFE SCIENCES TAX CREDITS. (A) LIFE SCIENCES RESEARCH AND DEVELOP-
MENT  TAX  CREDIT.  (1) ALLOWANCE OF CREDIT. A TAXPAYER THAT IS ELIGIBLE
PURSUANT TO SUBDIVISION (A) OF SECTION FORTY-THREE OF THIS CHAPTER SHALL
BE ALLOWED A CREDIT TO BE  COMPUTED  AS  PROVIDED  IN  SUCH  SUBDIVISION
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR
ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN
THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED  TEN  OF  THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF
THE CREDIT ALLOWABLE UNDER THIS PARAGRAPH FOR ANY TAXABLE  YEAR  REDUCES
THE  TAX  TO  SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON
THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVER-
PAYMENT OF TAX TO  BE  CREDITED  OR  REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.

S. 2009--A                         37                         A. 3009--A

  (B)  ANGEL  INVESTOR  TAX  CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
THAT IS ELIGIBLE PURSUANT TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF
THIS  CHAPTER  SHALL  BE  ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS PARAGRAPH FOR
ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN
THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED  TEN  OF  THIS ARTICLE. PROVIDED, HOWEVER, THAT IF THE AMOUNT OF
THE CREDIT ALLOWABLE UNDER THIS PARAGRAPH FOR ANY TAXABLE  YEAR  REDUCES
THE  TAX  TO  SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON
THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREATED AS AN OVER-
PAYMENT OF TAX TO  BE  CREDITED  OR  REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.
  §  9. Section 606 of the tax law is amended by adding a new subsection
(hhh) to read as follows:
  (HHH) LIFE SCIENCES TAX CREDITS.    (1)  LIFE  SCIENCES  RESEARCH  AND
DEVELOPMENT  TAX  CREDIT.  (A)  ALLOWANCE  OF  CREDIT. A TAXPAYER WHO IS
ELIGIBLE PURSUANT TO SUBDIVISION (A)  OF  SECTION  FORTY-THREE  OF  THIS
CHAPTER  SHALL  BE  ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH
SUBDIVISION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS PARAGRAPH FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR  SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED  OR  REFUNDED  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  (2) ANGEL INVESTOR TAX CREDIT. (A) A TAXPAYER WHO IS ELIGIBLE PURSUANT
TO SUBDIVISION (B) OF SECTION  FORTY-THREE  OF  THIS  CHAPTER  SHALL  BE
ALLOWED  A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SUBDIVISION AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS PARAGRAPH FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR  SUCH
YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
ED  OR  REFUNDED  AS  PROVIDED IN SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  § 10. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding two new clauses (xliii)  and  (xliv)
to read as follows:
(XLIII) LIFE SCIENCES RESEARCH AND      AMOUNT OF CREDIT UNDER PARAGRAPH
DEVELOPMENT TAX CREDIT UNDER            (A) OF SUBDIVISION FIFTY-TWO OF
PARAGRAPH ONE OF SUBSECTION (HHH)       SECTION TWO HUNDRED TEN-B

(XLIV) ANGEL INVESTOR TAX               AMOUNT OF CREDIT UNDER PARAGRAPH
CREDIT UNDER PARAGRAPH TWO OF           (B) OF SUBDIVISION FIFTY-TWO OF
SUBSECTION (HHH)                        SECTION TWO HUNDRED TEN-B
  § 11. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on or after January 1, 2018.

                                 PART L

  Section  1.  Section  441 of the economic development law, as added by
section 1 of part O of chapter 59 of the laws of  2015,  is  amended  to
read as follows:

S. 2009--A                         38                         A. 3009--A

  § 441. Definitions. As used in this article, the following terms shall
have the following meanings:
  1.  "Approved provider" means an entity meeting such criteria as shall
be established by the commissioner in rules and regulations  promulgated
pursuant  to this article, that may provide eligible training to employ-
ees of a business entity participating in the employee  training  incen-
tive program; provided that, for internship programs, the business enti-
ty  shall  be  an  approved provider or an approved provider in contract
with such business entity. Such criteria shall ensure that any  approved
provider  possess adequate credentials to provide the training described
in an application by a business entity to the  commissioner  to  partic-
ipate in the employee training incentive program.
  2. "Commissioner" means the commissioner of economic development.
  3.  "Eligible  training"  means  (a)  training provided by an approved
provider that is:
  (i) to upgrade, retrain or improve the productivity of employees;
  (ii) provided to employees [filling  net  new  jobs,  or  to  existing
employees]  in  connection  with  a  significant capital investment by a
participating business entity;
  (iii) determined by the commissioner to satisfy a business need on the
part of a participating business entity;
  (iv) not designed to train or upgrade skills as required by a  federal
or state entity;
  (v) not training the completion of which may result in the awarding of
a license or certificate required by law in order to perform a job func-
tion; and
  (vi) not culturally focused training; or
  (b)  an  internship  program  in  advanced technology OR LIFE SCIENCES
approved by the commissioner and provided by an approved provider, on or
after August first, two thousand  fifteen,  to  provide  employment  and
experience  opportunities  for  current  students, recent graduates, and
recent members of the armed forces.
  4.["Net new job" means a job created in this state that:
  (a) is new to the state;
  (b) has not been transferred from  employment  with  another  business
located  in  this state through an acquisition, merger, consolidation or
other reorganization of businesses  or  the  acquisition  of  assets  of
another  business,  and  has not been transferred from employment with a
related person in this state;
  (c) is either a full-time wage-paying job or equivalent to a full-time
wage-paying job requiring at least thirty-five hours per week;
  (d) is filled for more than six months;
  (e) is filled by a person who has received eligible training; and
  (f) is comprised of tasks the performance of which required the person
filling the job to undergo eligible training.] "LIFE SCIENCES" MEANS THE
FIELD OF BIOTECHNOLOGY, PHARMACEUTICALS, BIOMEDICAL  TECHNOLOGIES,  LIFE
SYSTEMS  TECHNOLOGIES, HEALTH INFORMATICS, HEALTH ROBOTICS OR BIOMEDICAL
DEVICES. "LIFE SCIENCES COMPANY" IS A BUSINESS ENTITY OR AN ORGANIZATION
OR INSTITUTION THAT DEVOTES THE MAJORITY OF ITS EFFORTS IN  THE  VARIOUS
STAGES  OF RESEARCH, DEVELOPMENT, TECHNOLOGY TRANSFER AND COMMERCIALIZA-
TION RELATED TO ANY LIFE SCIENCES FIELD.
  5. "Significant capital investment" means a capital investment [of  at
least  one  million dollars] in new business processes or equipment, THE
COST OF WHICH IS EQUAL TO OR EXCEEDS TEN DOLLARS FOR EVERY ONE DOLLAR OF
TAX CREDIT ALLOWED TO AN ELIGIBLE BUSINESS  ENTITY  UNDER  THIS  PROGRAM

S. 2009--A                         39                         A. 3009--A

PURSUANT TO SUBDIVISION FIFTY OF SECTION TWO HUNDRED TEN-B OR SUBSECTION
(DDD) OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
  6.  "Strategic  industry"  means  an industry in this state, as estab-
lished by the commissioner in regulations promulgated pursuant  to  this
article, based upon the following criteria:
  (a) shortages of workers trained to work within the industry;
  (b)  technological  disruption  in the industry, requiring significant
capital investment for existing businesses to remain competitive;
  (c) the ability of businesses in the industry to relocate  outside  of
the state in order to attract talent;
  (d)  the  potential  to  recruit minorities and women to be trained to
work in the industry in which they are traditionally underrepresented;
  (e) the potential to create jobs  in  economically  distressed  areas,
which  shall  be  based  on  criteria  indicative  of economic distress,
including poverty rates, numbers of persons receiving public assistance,
and unemployment rates; or
  (f) such other criteria as shall be developed by the  commissioner  in
consultation with the commissioner of labor.
  § 2.  Section 442 of the economic development law, as added by section
1  of  part  O  of chapter 59 of the laws of 2015, is amended to read as
follows:
  § 442. Eligibility criteria. In order to participate in  the  employee
training incentive program, a business entity must satisfy the following
criteria:
  1.  (a) The business entity must operate in the state predominantly in
a strategic industry;
  (b) The business entity must demonstrate that it is obtaining eligible
training from an approved provider;
  (c) The business entity must [create at least ten  net  new  jobs  or]
make  a  significant  capital investment in connection with the eligible
training; and
  (d) The  business  entity  must  be  in  compliance  with  all  worker
protection  and  environmental  laws  and  regulations. In addition, the
business entity may not owe past  due  state  taxes  or  local  property
taxes; or
  2.  (a)  The business entity, or an approved provider in contract with
such business entity, must be approved by the  commissioner  to  provide
eligible training in the form of an internship program in advanced tech-
nology OR AT A LIFE SCIENCES COMPANY pursuant to paragraph (b) of subdi-
vision three of section four hundred forty-one of this article;
  (b) The business entity must be located in the state;
  (c)  The  business  entity  must  be  in  compliance  with  all worker
protection and environmental laws  and  regulations.  In  addition,  the
business  entity  must  not  have past due state taxes or local property
taxes;
  (d) The internship program shall not displace regular employees;
  (e) The business entity must have less than one hundred employees; and
  (f) Participation of an individual in an internship program shall  not
last more than a total of twelve months.
  § 3. This act shall take effect immediately.

                                 PART M

  Section  1.  Paragraph  5  of subdivision (a) of section 24 of the tax
law, as amended by chapter 420 of the laws of 2016, is amended  to  read
as follows:

S. 2009--A                         40                         A. 3009--A

  (5)  For  the  period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
paragraph  two of this subdivision, a taxpayer shall be allowed a credit
equal to the product (or pro rata share of the product, in the case of a
member of a partnership) of ten percent and the amount of wages or sala-
ries  paid to individuals directly employed (excluding those employed as
writers, directors, music directors, producers and performers, including
background actors with no scripted lines) by a qualified film production
company or a qualified independent film production company for  services
performed  by those individuals in one of the counties specified in this
paragraph in connection with a qualified film with a minimum  budget  of
five  hundred  thousand dollars. For purposes of this additional credit,
the services must be performed in one or more of the following counties:
Albany, Allegany,  Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung,
Chenango,  Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex,
Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis,
Livingston, Madison,  Monroe,  Montgomery,  Niagara,  Oneida,  Onondaga,
Ontario,  Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga,
Schenectady,  Schoharie,  Schuyler,  Seneca,  St.   Lawrence,   Steuben,
[Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne,
Wyoming,  or Yates. The aggregate amount of tax credits allowed pursuant
to the authority of this paragraph shall be five  million  dollars  each
year  during the period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO of the annual allocation made available to the  program
pursuant  to  paragraph  four  of  subdivision (e) of this section. Such
aggregate amount of credits shall be allocated by the governor's  office
for  motion  picture and television development among taxpayers in order
of priority based upon the date of filing an application for  allocation
of film production credit with such office. If the total amount of allo-
cated  credits  applied for under this paragraph in any year exceeds the
aggregate amount of tax credits allowed for such year under  this  para-
graph,  such  excess  shall be treated as having been applied for on the
first day of the next year. If the total amount of allocated tax credits
applied for under this paragraph at the conclusion of any year  is  less
than five million dollars, the remainder shall be treated as part of the
annual  allocation  made  available to the program pursuant to paragraph
four of subdivision (e) of this section. However, in no  event  may  the
total  of  the  credits  allocated  under this paragraph and the credits
allocated under paragraph [five] SIX of subdivision (a) of section thir-
ty-one of this article exceed five million dollars in  any  year  during
the  period two thousand fifteen through two thousand [nineteen] TWENTY-
TWO.
  § 2. Paragraph 4 of subdivision (e) of section 24 of the tax  law,  as
amended  by  section 1-a of part P of chapter 60 of the laws of 2016, is
amended to read as follows:
  (4) Additional pool 2 - The aggregate amount of tax credits allowed in
subdivision (a) of this section shall be increased by an additional four
hundred twenty million dollars in each year starting in two thousand ten
through two  thousand  [nineteen]  TWENTY-TWO  provided  however,  seven
million  dollars  of  the  annual  allocation shall be available for the
empire state film post production credit pursuant to section  thirty-one
of  this  article in two thousand thirteen and two thousand fourteen and
twenty-five million dollars of the annual allocation shall be  available
for  the  empire  state  film post production credit pursuant to section
thirty-one of this article in each year starting in two thousand fifteen
through two thousand [nineteen] TWENTY-TWO. This amount shall  be  allo-

S. 2009--A                         41                         A. 3009--A

cated  by the governor's office for motion picture and television devel-
opment among taxpayers  in  accordance  with  subdivision  (a)  of  this
section. If the commissioner of economic development determines that the
aggregate amount of tax credits available from additional pool 2 for the
empire  state film production tax credit have been previously allocated,
and determines that the pending applications  from  eligible  applicants
for the empire state film post production tax credit pursuant to section
thirty-one  of  this  article  is insufficient to utilize the balance of
unallocated empire state film post  production  tax  credits  from  such
pool,  the  remainder,  after  such pending applications are considered,
shall be made available for allocation in  the  empire  state  film  tax
credit  pursuant  to  this  section,  subdivision  twenty of section two
hundred ten-B and subsection (gg) of section six  hundred  six  of  this
chapter.  Also,  if  the commissioner of economic development determines
that the aggregate amount of tax credits available from additional  pool
2  for the empire state film post production tax credit have been previ-
ously allocated, and  determines  that  the  pending  applications  from
eligible  applicants  for  the  empire  state film production tax credit
pursuant to this section is insufficient to utilize the balance of unal-
located film production tax credits from such pool, then all or part  of
the  remainder, after such pending applications are considered, shall be
made available for allocation for the empire state film post  production
credit  pursuant  to this section, subdivision thirty-two of section two
hundred ten-B and subsection (qq) of section six  hundred  six  of  this
chapter.  The governor's office for motion picture and television devel-
opment must notify taxpayers of their allocation year  and  include  the
allocation  year on the certificate of tax credit. Taxpayers eligible to
claim a credit must report the allocation year directly on their  empire
state  film production credit tax form for each year a credit is claimed
and include a copy of the certificate with their tax return. In the case
of a qualified film that receives  funds  from  additional  pool  2,  no
empire state film production credit shall be claimed before the later of
the  taxable  year  the production of the qualified film is complete, or
the taxable year immediately following the allocation year for which the
film has been allocated credit  by  the  governor's  office  for  motion
picture and television development.
  §  3.  Paragraph 6 of subdivision (a) of section 31 of the tax law, as
amended by section 2 of part JJ of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  (6)  For  the  period two thousand fifteen through two thousand [nine-
teen] TWENTY-TWO, in addition to the amount  of  credit  established  in
paragraph  two  of  subdivision (a) of this section, a taxpayer shall be
allowed a credit equal to the product (or pro rata share of the product,
in the case of a member of a partnership) of ten percent and the  amount
of  wages  or  salaries paid to individuals directly employed (excluding
those employed as writers, directors,  music  directors,  producers  and
performers,  including  background  actors  with  no scripted lines) for
services performed by those individuals in one of the counties specified
in this paragraph in connection with the post production work on a qual-
ified film with a minimum budget of five hundred thousand dollars  at  a
qualified post production facility in one of the counties listed in this
paragraph.  For purposes of this additional credit, the services must be
performed in one or more of the following  counties:  Albany,  Allegany,
Broome,  Cattaraugus,  Cayuga,  Chautauqua,  Chemung, Chenango, Clinton,
Cortland, Delaware, Erie, Essex, Franklin,  Fulton,  Genesee,  Hamilton,
Herkimer,  Jefferson,  Lewis,  Livingston,  Madison, Monroe, Montgomery,

S. 2009--A                         42                         A. 3009--A

Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego,  Schenecta-
dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins,
Wayne,  Wyoming,  or  Yates. The aggregate amount of tax credits allowed
pursuant  to  the  authority  of  this  paragraph  shall be five million
dollars each year during the period two  thousand  fifteen  through  two
thousand  [nineteen]  TWENTY-TWO of the annual allocation made available
to the empire state film post production credit  pursuant  to  paragraph
four  of  subdivision  (e)  of section twenty-four of this article. Such
aggregate amount of credits shall be allocated by the governor's  office
for  motion  picture and television development among taxpayers in order
of priority based upon the date of filing an application for  allocation
of post production credit with such office. If the total amount of allo-
cated  credits  applied for under this paragraph in any year exceeds the
aggregate amount of tax credits allowed for such year under  this  para-
graph,  such  excess  shall be treated as having been applied for on the
first day of the next year. If the total amount of allocated tax credits
applied for under this paragraph at the conclusion of any year  is  less
than five million dollars, the remainder shall be treated as part of the
annual  allocation  for  two  thousand  seventeen  made available to the
empire state film post production credit pursuant to paragraph  four  of
subdivision  (e)  of section twenty-four of this article. However, in no
event may the total of the credits allocated under  this  paragraph  and
the credits allocated under paragraph five of subdivision (a) of section
twenty-four  of  this  article  exceed  five million dollars in any year
during the period two thousand fifteen through two  thousand  [nineteen]
TWENTY-TWO.
  § 4. This act shall take effect immediately.

                                 PART N

  Section  1.  The  section  heading and subdivision (a), paragraph 3 of
subdivision (b), and subdivisions (d) and (e) of  section  25-a  of  the
labor  law,  the section heading and subdivisions (d) and (e) as amended
by section 1 of part AA of chapter 56 of the laws of  2015,  subdivision
(a)  as  amended  by  section  1 of part VV of chapter 60 of the laws of
2016, and paragraph 3 of subdivision (b) as added by section 2  of  part
VV of chapter 60 of the laws of 2016, are amended to read as follows:
  Power  to administer the [urban] NEW YORK youth jobs program tax cred-
it.
  (a) The commissioner is authorized to  establish  and  administer  the
program  established  under  this  section  to provide tax incentives to
employers for employing at risk youth in part-time and  full-time  posi-
tions.  There  will  be  [five]  TEN  distinct  pools of tax incentives.
Program one will cover tax incentives allocated for two thousand  twelve
and  two  thousand thirteen. Program two will cover tax incentives allo-
cated in two thousand fourteen. Program three will cover tax  incentives
allocated  in  two  thousand fifteen. Program four will cover tax incen-
tives allocated in two thousand sixteen. Program  five  will  cover  tax
incentives  allocated in two thousand seventeen.  PROGRAM SIX WILL COVER
TAX INCENTIVES ALLOCATED IN TWO THOUSAND EIGHTEEN.   PROGRAM SEVEN  WILL
COVER  TAX INCENTIVES ALLOCATED IN TWO THOUSAND NINETEEN.  PROGRAM EIGHT
WILL COVER TAX INCENTIVES ALLOCATED IN TWO  THOUSAND  TWENTY.    PROGRAM
NINE  WILL  COVER  TAX  INCENTIVES ALLOCATED IN TWO THOUSAND TWENTY-ONE.
PROGRAM TEN WILL COVER TAX INCENTIVES ALLOCATED IN TWO THOUSAND  TWENTY-
TWO.  The  commissioner  is  authorized  to  allocate  up to twenty-five
million dollars of tax credits under program one, ten million dollars of

S. 2009--A                         43                         A. 3009--A

tax credits under program two, twenty million  dollars  of  tax  credits
under program three, and fifty million dollars of tax credits under each
[of programs four and five] SUBSEQUENT PROGRAM.
  (3)  For  programs  four [and], five, SIX, SEVEN, EIGHT, NINE AND TEN,
the tax credit under each program shall be  allocated  as  follows:  (i)
thirty  million  dollars of tax credit for qualified employees; and (ii)
twenty million dollars of tax credit for individuals who meet all of the
requirements for a qualified employee except for the residency  require-
ment  of  subparagraph  (ii) of paragraph two of this subdivision, which
individuals shall be  deemed  to  meet  the  residency  requirements  of
subparagraph (ii) of paragraph two of this subdivision if they reside in
New York state.
  (d)  To  participate in the program established under this section, an
employer must submit an application (in a form prescribed by the commis-
sioner) to the commissioner after January first, two thousand twelve but
no later than November thirtieth, two thousand twelve for  program  one,
after  January  first,  two thousand fourteen but no later than November
thirtieth, two thousand fourteen for program two, after  January  first,
two  thousand fifteen but no later than November thirtieth, two thousand
fifteen for program three, after January first, two thousand sixteen but
no later than November thirtieth, two thousand sixteen for program four,
[and] after January first, two thousand  seventeen  but  no  later  than
November thirtieth, two thousand seventeen for program five, AFTER JANU-
ARY  FIRST,  TWO THOUSAND EIGHTEEN BUT NO LATER THAN NOVEMBER THIRTIETH,
TWO THOUSAND EIGHTEEN FOR PROGRAM SIX, AFTER JANUARY FIRST, TWO THOUSAND
NINETEEN BUT NO LATER THAN NOVEMBER THIRTIETH, TWO THOUSAND NINETEEN FOR
PROGRAM SEVEN, AFTER JANUARY FIRST, TWO THOUSAND  TWENTY  BUT  NO  LATER
THAN  NOVEMBER  THIRTIETH,  TWO THOUSAND TWENTY FOR PROGRAM EIGHT, AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-ONE BUT NO LATER THAN NOVEMBER  THIR-
TIETH,  TWO  THOUSAND  TWENTY-ONE  FOR  PROGRAM  NINE, AND AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-TWO BUT NO LATER THAN NOVEMBER THIRTIETH, TWO
THOUSAND TWENTY-TWO FOR PROGRAM TEN.  The qualified employees must start
their employment on or after January first, two thousand twelve  but  no
later  than  December thirty-first, two thousand twelve for program one,
on or after January first, two  thousand  fourteen  but  no  later  than
December  thirty-first,  two  thousand  fourteen  for program two, on or
after January first, two thousand fifteen but  no  later  than  December
thirty-first,  two thousand fifteen for program three, on or after Janu-
ary first, two thousand sixteen but no later than December thirty-first,
two thousand sixteen for program four, [and] on or after January  first,
two  thousand  seventeen  but  no  later than December thirty-first, two
thousand seventeen for program five, ON  OR  AFTER  JANUARY  FIRST,  TWO
THOUSAND  EIGHTEEN BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
EIGHTEEN FOR PROGRAM SIX, ON OR AFTER JANUARY FIRST, TWO THOUSAND  NINE-
TEEN  BUT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN FOR
PROGRAM SEVEN, ON OR AFTER JANUARY FIRST, TWO  THOUSAND  TWENTY  BUT  NO
LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY FOR PROGRAM EIGHT,
ON  OR  AFTER  JANUARY  FIRST, TWO THOUSAND TWENTY-ONE BUT NO LATER THAN
DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE FOR PROGRAM NINE, AND  ON
OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-TWO BUT NO LATER THAN DECEM-
BER  THIRTY-FIRST, TWO THOUSAND TWENTY-TWO FOR PROGRAM TEN.  The commis-
sioner shall establish guidelines and criteria that specify requirements
for employers to participate  in  the  program  including  criteria  for
certifying  qualified  employees.  Any regulations that the commissioner
determines are necessary may be adopted on an emergency  basis  notwith-
standing  anything  to  the  contrary  in section two hundred two of the

S. 2009--A                         44                         A. 3009--A

state administrative procedure act. Such requirements  may  include  the
types of industries that the employers are engaged in.  The commissioner
may  give preference to employers that are engaged in demand occupations
or industries, or in regional growth sectors, including those identified
by  the  regional  economic  development councils, such as clean energy,
healthcare, advanced manufacturing and conservation.  In  addition,  the
commissioner  shall  give  preference to employers who offer advancement
and employee benefit packages to the qualified individuals.
  (e) If, after reviewing the application submitted by an employer,  the
commissioner determines that such employer is eligible to participate in
the program established under this section, the commissioner shall issue
the  employer a certificate of eligibility that establishes the employer
as a qualified employer. The certificate of  eligibility  shall  specify
the  maximum  amount  of tax credit that the employer will be allowed to
claim AND THE PROGRAM YEAR UNDER WHICH IT CAN BE CLAIMED.
  § 2. The subdivision heading of subdivision 36 of section 210-B of the
tax law, as amended by section 2 of part AA of chapter 56 of the laws of
2015, is amended to read as follows:
  [Urban] NEW YORK youth jobs program tax credit.
  § 3. The subsection heading of subsection (tt) of section 606  of  the
tax law, as amended by section 3 of part AA of chapter 56 of the laws of
2015, is amended to read as follows:
  [Urban] NEW YORK youth jobs program tax credit.
  §  4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection
(i) of section 606 of the tax law, as amended by section 4 of part AA of
chapter 56 of the laws of 2015, is amended to read as follows:
(xxxiii) [Urban] NEW YORK youth      Amount of credit under
jobs program tax credit              subdivision thirty-six
                                     of section two hundred ten-B
  § 5. This act shall take effect immediately.

                                 PART O

  Section 1. Subdivision 6 of section 187-b of the tax law,  as  amended
by  section 1 of part G of chapter 59 of the laws of 2013, is amended to
read as follows:
  6. Termination. The credit allowed by subdivision two of this  section
shall  not apply in taxable years beginning after December thirty-first,
two thousand [seventeen] TWENTY-TWO.
  § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax  law,
as  added  by section 17 of part A of chapter 59 of the laws of 2014, is
amended to read as follows:
  (f) Termination. The credit allowed by paragraph (b) of this  subdivi-
sion  shall  not apply in taxable years beginning after December thirty-
first, two thousand [seventeen] TWENTY-TWO.
  § 3. Paragraph 6 of subsection (p) of section 606 of the tax  law,  as
amended  by  section  3  of part G of chapter 59 of the laws of 2013, is
amended to read as follows:
  (6) Termination. The credit allowed by this subsection shall not apply
in taxable years beginning after  December  thirty-first,  two  thousand
[seventeen] TWENTY-TWO.
  § 4. This act shall take effect immediately.

                                 PART P

S. 2009--A                         45                         A. 3009--A

  Section  1.  Subparagraph  (i)  of  paragraph  (b) of subdivision 1 of
section 210-B of the tax law, as amended by section  31  of  part  T  of
chapter 59 of the laws of 2015, is amended to read as follows:
  (i)  A  credit shall be allowed under this subdivision with respect to
tangible personal property and other tangible property, including build-
ings and structural components  of  buildings,  which  are:  depreciable
pursuant  to  section  one  hundred  sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one  hundred  seventy-nine  (d)  of  the  internal
revenue code, have a situs in this state and are (A) principally used by
the  taxpayer  in  the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming,  agriculture,  horti-
culture, floriculture, viticulture or commercial fishing, (B) industrial
waste  treatment facilities or air pollution control facilities, used in
the taxpayer's trade or business, (C) research and development property,
or (D) principally used in the ordinary course of the  taxpayer's  trade
or  business  as  a  broker or dealer in connection with the purchase or
sale (which shall include but not be limited to the  issuance,  entering
into,  assumption,  offset,  assignment,  termination,  or  transfer) of
stocks, bonds or other securities as defined  in  section  four  hundred
seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code, (E) principally used in the  ordinary  course  of  the  taxpayer's
trade  or business of providing investment advisory services for a regu-
lated investment company as defined in section eight  hundred  fifty-one
of the Internal Revenue Code, or lending, loan arrangement or loan orig-
ination  services  to  customers in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering  into,
assumption,  offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of  the  Internal
Revenue Code, (F) principally used in the ordinary course of the taxpay-
er's  business  as  an  exchange  registered  as  a  national securities
exchange within the meaning of sections 3(a)(1) and 6(a) of the  Securi-
ties Exchange Act of 1934 or a board of trade as defined in subparagraph
one of paragraph (a) of section fourteen hundred ten of the not-for-pro-
fit  corporation law or as an entity that is wholly owned by one or more
such national securities exchanges or boards of trade and that  provides
automation  or  technical services thereto, or (G) principally used as a
qualified film production facility including qualified  film  production
facilities  having a situs in an empire zone designated as such pursuant
to article eighteen-B of the general municipal law, where  the  taxpayer
is  providing  three  or  more services to any qualified film production
company using the facility, including such services as a studio lighting
grid, lighting and grip equipment, multi-line phone  service,  broadband
information  technology  access,  industrial  scale electrical capacity,
food services, security  services,  and  heating,  ventilation  and  air
conditioning.  For purposes of clauses (D), (E) and (F) of this subpara-
graph, property purchased by a  taxpayer  affiliated  with  a  regulated
broker,  dealer,  registered  investment  advisor,  national  securities
exchange or board of trade, is allowed a credit under  this  subdivision
if  the  property  is  used  by its affiliated regulated broker, dealer,
registered investment advisor, national securities exchange or board  of
trade  in  accordance with this subdivision. For purposes of determining
if the property is principally used in qualifying uses, the uses by  the
taxpayer  described  in  clauses (D) and (E) of this subparagraph may be
aggregated. In addition, the uses by the taxpayer, its affiliated  regu-

S. 2009--A                         46                         A. 3009--A

lated  broker,  dealer and registered investment advisor under either or
both of those clauses may be aggregated. Provided, however,  a  taxpayer
shall  not be allowed the credit provided by clauses (D), (E) and (F) of
this  subparagraph unless the property is first placed in service before
October first, two thousand fifteen and (i) eighty percent  or  more  of
the  employees  performing  the  administrative  and  support  functions
resulting from or related to the qualifying uses of such  equipment  are
located  in  this  state  or  (ii)  the average number of employees that
perform the administrative  and  support  functions  resulting  from  or
related to the qualifying uses of such equipment and are located in this
state  during  the taxable year for which the credit is claimed is equal
to or greater than ninety-five percent of the average number of  employ-
ees  that  perform  these functions and are located in this state during
the thirty-six months immediately preceding the year for which the cred-
it is claimed, or (iii) the number of employees located  in  this  state
during  the  taxable year for which the credit is claimed is equal to or
greater than ninety percent of the number of employees located  in  this
state on December thirty-first, nineteen hundred ninety-eight or, if the
taxpayer  was  not  a calendar year taxpayer in nineteen hundred ninety-
eight, the last day of its first  taxable  year  ending  after  December
thirty-first,  nineteen  hundred  ninety-eight.  If the taxpayer becomes
subject to tax in this state after the taxable year beginning  in  nine-
teen  hundred ninety-eight, then the taxpayer is not required to satisfy
the employment test provided in the preceding sentence of this  subpara-
graph  for  its first taxable year. For purposes of clause (iii) of this
subparagraph the employment test will be based on the number of  employ-
ees  located in this state on the last day of the first taxable year the
taxpayer is subject to tax in this state. If the uses  of  the  property
must be aggregated to determine whether the property is principally used
in  qualifying  uses, then either each affiliate using the property must
satisfy this employment test or this employment test must  be  satisfied
through the aggregation of the employees of the taxpayer, its affiliated
regulated  broker,  dealer,  and registered investment adviser using the
property. For purposes of [this subdivision, the term "goods" shall  not
include  electricity] CLAUSE (A) OF THIS SUBPARAGRAPH, TANGIBLE PERSONAL
PROPERTY AND OTHER TANGIBLE PROPERTY SHALL NOT INCLUDE PROPERTY  PRINCI-
PALLY  USED  BY  THE  TAXPAYER  (I) IN THE PRODUCTION OR DISTRIBUTION OF
ELECTRICITY, NATURAL GAS, STEAM, OR WATER DELIVERED  THROUGH  PIPES  AND
MAINS, OR (II) IN THE CREATION, PRODUCTION OR REPRODUCTION, IN ANY MEDI-
UM, OF A FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS
ASSOCIATED  WITH  SUCH CREATION, PRODUCTION OR REPRODUCTION ARE INCURRED
OUTSIDE OF THIS STATE, OR IN THE DUPLICATION, FOR PURPOSES OF  BROADCAST
IN  ANY  MEDIUM,  OF  A  MASTER OF A FILM, VISUAL OR AUDIO RECORDING, OR
COMMERCIAL,  WHERE  THE  COSTS  ASSOCIATED  WITH  SUCH  DUPLICATION  ARE
INCURRED OUTSIDE OF THIS STATE.
  §  2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606
of the tax law, as amended by chapter  637  of  the  laws  of  2008,  is
amended to read as follows:
  (A)  A  credit  shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including build-
ings and structural components  of  buildings,  which  are:  depreciable
pursuant  to  section  one  hundred  sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one  hundred  seventy-nine  (d)  of  the  internal
revenue code, have a situs in this state and are (i) principally used by
the  taxpayer  in  the production of goods by manufacturing, processing,

S. 2009--A                         47                         A. 3009--A

assembling, refining, mining, extracting, farming,  agriculture,  horti-
culture,  floriculture,  viticulture  or commercial fishing, (ii) indus-
trial waste treatment facilities or air  pollution  control  facilities,
used in the taxpayer's trade or business, (iii) research and development
property, (iv) principally used in the ordinary course of the taxpayer's
trade  or business as a broker or dealer in connection with the purchase
or sale (which shall include but not be limited to the issuance,  enter-
ing  into,  assumption, offset, assignment, termination, or transfer) of
stocks, bonds or other securities as defined  in  section  four  hundred
seventy-five  (c)(2)  of the Internal Revenue Code, or of commodities as
defined in section 475(e) of the Internal Revenue Code, (v)  principally
used  in  the  ordinary  course  of  the taxpayer's trade or business of
providing investment advisory services for a regulated investment compa-
ny as defined in section eight hundred fifty-one of the Internal Revenue
Code, or lending, loan  arrangement  or  loan  origination  services  to
customers  in  connection with the purchase or sale (which shall include
but not be limited to the issuance, entering into,  assumption,  offset,
assignment,  termination,  or  transfer)  of  securities  as  defined in
section four hundred seventy-five (c)(2) of the Internal  Revenue  Code,
or (vi) principally used as a qualified film production facility includ-
ing  qualified  film  production  facilities having a situs in an empire
zone designated as such pursuant to article eighteen-B  of  the  general
municipal law, where the taxpayer is providing three or more services to
any qualified film production company using the facility, including such
services  as a studio lighting grid, lighting and grip equipment, multi-
line phone service, broadband information technology access,  industrial
scale  electrical  capacity, food services, security services, and heat-
ing, ventilation and air conditioning. For purposes of clauses (iv)  and
(v)  of  this  subparagraph, property purchased by a taxpayer affiliated
with a regulated broker, dealer, or  registered  investment  adviser  is
allowed  a  credit  under this subsection if the property is used by its
affiliated regulated broker, dealer or registered investment adviser  in
accordance  with  this  subsection.  For  purposes of determining if the
property is principally used in qualifying uses, the uses by the taxpay-
er described in clauses (iv) and (v) of this subparagraph may be  aggre-
gated.  In  addition, the uses by the taxpayer, its affiliated regulated
broker, dealer and registered investment adviser under either or both of
those clauses may be aggregated. Provided, however, a taxpayer shall not
be allowed the credit provided by clauses (iv) and (v) of this  subpara-
graph  unless (I) eighty percent or more of the employees performing the
administrative and support functions resulting from or  related  to  the
qualifying uses of such equipment are located in this state, or (II) the
average  number of employees that perform the administrative and support
functions resulting from or related  to  the  qualifying  uses  of  such
equipment  and  are  located  in  this state during the taxable year for
which the credit is claimed is equal  to  or  greater  than  ninety-five
percent  of the average number of employees that perform these functions
and are located in this state during the thirty-six  months  immediately
preceding  the year for which the credit is claimed, or (III) the number
of employees located in this state during the taxable year for which the
credit is claimed is equal to or greater  than  ninety  percent  of  the
number  of  employees  located  in  this state on December thirty-first,
nineteen hundred ninety-eight or, if the taxpayer  was  not  a  calendar
year  taxpayer  in  nineteen  hundred  ninety-eight, the last day of its
first taxable year ending after December thirty-first, nineteen  hundred
ninety-eight. If the taxpayer becomes subject to tax in this state after

S. 2009--A                         48                         A. 3009--A

the  taxable  year  beginning in nineteen hundred ninety-eight, then the
taxpayer is not required to satisfy the employment test provided in  the
preceding  sentence of this subparagraph for its first taxable year. For
the  purposes  of  clause (III) of this subparagraph the employment test
will be based on the number of employees located in this  state  on  the
last  day  of  the  first taxable year the taxpayer is subject to tax in
this state. If the uses of the property must be aggregated to  determine
whether the property is principally used in qualifying uses, then either
each  affiliate  using the property must satisfy this employment test or
this employment test must be satisfied through the  aggregation  of  the
employees  of the taxpayer, its affiliated regulated broker, dealer, and
registered investment adviser using the property. For purposes of  [this
subsection,  the  term "goods" shall not include electricity] CLAUSE (I)
OF THIS SUBPARAGRAPH, TANGIBLE  PERSONAL  PROPERTY  AND  OTHER  TANGIBLE
PROPERTY SHALL NOT INCLUDE PROPERTY PRINCIPALLY USED BY THE TAXPAYER (A)
IN THE PRODUCTION OR DISTRIBUTION OF ELECTRICITY, NATURAL GAS, STEAM, OR
WATER  DELIVERED  THROUGH  PIPES  AND  MAINS,  OR  (B)  IN THE CREATION,
PRODUCTION OR REPRODUCTION, IN ANY MEDIUM, OF A FILM,  VISUAL  OR  AUDIO
RECORDING, OR COMMERCIAL, WHERE THE COSTS ASSOCIATED WITH SUCH CREATION,
PRODUCTION OR REPRODUCTION ARE INCURRED OUTSIDE OF THIS STATE, OR IN THE
DUPLICATION,  FOR  PURPOSES OF BROADCAST IN ANY MEDIUM, OF A MASTER OF A
FILM, VISUAL OR AUDIO RECORDING, OR COMMERCIAL, WHERE THE COSTS  ASSOCI-
ATED WITH SUCH DUPLICATION ARE INCURRED OUTSIDE OF THIS STATE.
  § 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.

                                 PART Q

  Section 1. Legislative findings. The legislature finds it necessary to
revise  a  decision of the tax appeals tribunal that disturbed the long-
standing policy of the department of taxation and  finance  that  single
member limited liability companies that are treated as disregarded enti-
ties  for  federal  income  tax purposes also would be treated as disre-
garded entities for purposes of determining eligibility of the owners of
such entities for tax credits allowed  under  article  9,  9-A,  22,  32
(prior  to  its  repeal)  or  33 of the tax law. The decision of the tax
appeals tribunal, if allowed to stand, will result in the denial of  tax
credits,  such  as  empire  zone  tax credits, to taxpayers who in prior
years received those credits.
  § 2. The tax law is amended by adding a new  section  43  to  read  as
follows:
  §  43.  SINGLE  MEMBER LIMITED LIABILITY COMPANIES AND ELIGIBILITY FOR
TAX CREDITS. A LIMITED LIABILITY COMPANY THAT HAS A SINGLE MEMBER AND IS
DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME  TAX
PURPOSES  (WITHOUT REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSI-
TION OF CERTAIN FEDERAL TAXES, INCLUDING  BUT  NOT  LIMITED  TO  CERTAIN
EMPLOYMENT  AND EXCISE TAXES) SHALL BE DISREGARDED AS AN ENTITY SEPARATE
FROM ITS OWNER FOR PURPOSES OF DETERMINING WHETHER OR NOT  THE  TAXPAYER
THAT  IS  THE  SINGLE MEMBER OF SUCH LIMITED LIABILITY COMPANY SATISFIES
THE REQUIREMENTS TO BE ELIGIBLE FOR ANY TAX CREDIT ALLOWED UNDER ARTICLE
NINE, NINE-A, TWENTY-TWO OR THIRTY-THREE  OF  THIS  CHAPTER  OR  ALLOWED
UNDER  ARTICLE  THIRTY-TWO  OF  THIS CHAPTER PRIOR TO THE REPEAL OF SUCH
ARTICLE. SUCH REQUIREMENTS, INCLUDING BUT NOT LIMITED TO  ANY  NECESSARY
CERTIFICATION, EMPLOYMENT OR INVESTMENT THRESHOLDS, PAYMENT OBLIGATIONS,
AND  ANY  TIME  PERIOD FOR ELIGIBILITY, SHALL BE IMPOSED ON THE TAXPAYER
AND THE DETERMINATION OF WHETHER OR  NOT  SUCH  REQUIREMENTS  HAVE  BEEN

S. 2009--A                         49                         A. 3009--A

SATISFIED  AND  THE  COMPUTATION  OF THE CREDIT SHALL BE MADE BY DEEMING
SUCH TAXPAYER AND SUCH LIMITED LIABILITY COMPANY TO BE A SINGLE  ENTITY.
IF  THE TAXPAYER IS THE SINGLE MEMBER OF MORE THAN ONE LIMITED LIABILITY
COMPANY  THAT  IS  DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER, THE
DETERMINATION OF WHETHER OR NOT THE REQUIREMENTS TO BE ELIGIBLE FOR  ANY
TAX  CREDIT  ALLOWED  UNDER  ARTICLE NINE, NINE-A, TWENTY-TWO OR THIRTY-
THREE OF THIS CHAPTER OR ALLOWED UNDER ARTICLE THIRTY-TWO OF THIS  CHAP-
TER  PRIOR  TO  THE  REPEAL  OF SUCH ARTICLE HAVE BEEN SATISFIED AND THE
COMPUTATION OF THE CREDIT SHALL BE MADE BY  DEEMING  SUCH  TAXPAYER  AND
SUCH LIMITED LIABILITY COMPANIES TO BE A SINGLE ENTITY.
  §  3.  This  act shall take effect immediately; provided however, that
section 43 of the tax law, as added by section two of  this  act,  shall
apply  to  all  taxable  years  for which the statute of limitations for
seeking a refund or assessing additional tax is still open.

                                 PART R

  Section 1. Subparagraph (B)  of  paragraph  1  of  subsection  (a)  of
section  601  of  the  tax law is REPEALED and a new subparagraph (B) is
added to read as follows:
  (B)(I) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  EIGHTEEN  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                      INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.33% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,597 PLUS 6.57% OF EXCESS OVER
                                      $161,550
OVER $323,200 BUT NOT OVER $2,155,350 $20,218 PLUS 6.85% OF EXCESS OVER
                                      $323,200
OVER $2,155,350                       $145,720 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (II)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE
                                      INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.21% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,455 PLUS 6.49% OF EXCESS OVER
                                      $161,550
OVER $323,200 BUT NOT OVER $2,155,350 $19,946 PLUS 6.85% OF EXCESS OVER

S. 2009--A                         50                         A. 3009--A

                                      $323,200
OVER $2,155,350                       $145,448 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 6.09% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,313 PLUS 6.41% OF EXCESS OVER
                                      $161,550
OVER $323,200 BUT NOT OVER $2,155,350 $19,674 PLUS 6.85% OF EXCESS OVER
                                      $323,200
OVER $2,155,350                       $145,177 PLUS 8.82% OF EXCESS OVER
                                      $2,155,350
  (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $43,000     $1,202 PLUS 5.9% OF EXCESS OVER
                                      $27,900
OVER $43,000 BUT NOT OVER $161,550    $2,093 PLUS 5.97% OF EXCESS OVER
                                      $43,000
OVER $161,550 BUT NOT OVER $323,200   $9,170 PLUS 6.33% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $19,403 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.85% OF EXCESS OVER
                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $9,021 PLUS 6.25% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $19,124 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (VI) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-THREE  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER

S. 2009--A                         51                         A. 3009--A

                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.73% OF EXCESS OVER
                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $8,860 PLUS 6.17% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $18,834 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (VII)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.61% OF EXCESS OVER
                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $8,700 PLUS 6.09% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $18,544 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  (VIII) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $17,150                      4% OF THE NEW YORK TAXABLE INCOME
OVER $17,150 BUT NOT OVER $23,600     $686 PLUS 4.5% OF EXCESS OVER
                                      $17,150
OVER $23,600 BUT NOT OVER $27,900     $976 PLUS 5.25% OF EXCESS OVER
                                      $23,600
OVER $27,900 BUT NOT OVER $161,550    $1,202 PLUS 5.5% OF EXCESS OVER
                                      $27,900
OVER $161,550 BUT NOT OVER $323,200   $8,553 PLUS 6.00% OF EXCESS OVER
                                      $161,550
OVER $323,200                         $18,252 PLUS 6.85% OF EXCESS OVER
                                      $323,200
  §  2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601
of the tax law is REPEALED and a new subparagraph (B) is added  to  read
as follows:
  (B)(I)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND EIGHTEEN THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.33% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,344 PLUS 6.57% OF EXCESS OVER
                                      $107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,964 PLUS 6.85% OF EXCESS OVER
                                      $269,300
OVER $1,616,450                       $109,244 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450

S. 2009--A                         52                         A. 3009--A

  (II) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE  FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.21% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,253 PLUS 6.49% OF EXCESS OVER
                                      $107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,744 PLUS 6.85% OF EXCESS OVER
                                      $269,300
OVER $1,616,450                       $109,024 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 6.09% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,162 PLUS 6.41% OF EXCESS OVER
                                      $107,650
OVER $269,300 BUT NOT OVER $1,616,450 $16,524 PLUS 6.85% OF EXCESS OVER
                                      $269,300
OVER $1,616,450                       $108,804 PLUS 8.82% OF EXCESS OVER
                                      $1,616,450
  (IV)  FOR  TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND TWENTY-ONE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $32,200     $901 PLUS 5.9% OF EXCESS OVER
                                      $20,900
OVER $32,200 BUT NOT OVER $107,650    $1,568 PLUS 5.97% OF EXCESS OVER
                                      $32,200
OVER $107,650 BUT NOT OVER $269,300   $6,072 PLUS 6.33% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $16,304 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER

S. 2009--A                         53                         A. 3009--A

                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.85% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,976 PLUS 6.25% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $16,079 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (VI)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-THREE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.73% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,872 PLUS 6.17% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $15,845 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (VII) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-FOUR  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.61% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,768 PLUS 6.09% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $15,612 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $12,800                      4% OF THE NEW YORK TAXABLE INCOME
OVER $12,800 BUT NOT OVER $17,650     $512 PLUS 4.5% OF EXCESS OVER
                                      $12,800
OVER $17,650 BUT NOT OVER $20,900     $730 PLUS 5.25% OF EXCESS OVER
                                      $17,650
OVER $20,900 BUT NOT OVER $107,650    $901 PLUS 5.5% OF EXCESS OVER
                                      $20,900
OVER $107,650 BUT NOT OVER $269,300   $5,672 PLUS 6.00% OF EXCESS OVER
                                      $107,650
OVER $269,300                         $15,371 PLUS 6.85% OF EXCESS OVER
                                      $269,300
  § 3. Subparagraph (B) of paragraph 1 of subsection (c) of section  601
of  the  tax law is REPEALED and a new subparagraph (B) is added to read
as follows:
  (B)(I) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  EIGHTEEN  THE
FOLLOWING RATES SHALL APPLY:

S. 2009--A                         54                         A. 3009--A

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.33% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,793 PLUS 6.57% OF EXCESS OVER
                                      $80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,646 PLUS 6.85% OF EXCESS OVER
                                      $215,400
OVER $1,077,550                       $72,703 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (II)  FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.21% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,721 PLUS 6.49% OF EXCESS OVER
                                      $80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,467 PLUS 6.85% OF EXCESS OVER
                                      $215,400
OVER $1,077,550                       $72,524 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (III) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY THE FOLLOWING
RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 6.09% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,650 PLUS 6.41% OF EXCESS OVER
                                      $80,650
OVER $215,400 BUT NOT OVER $1,077,550 $13,288 PLUS 6.85% OF EXCESS OVER
                                      $215,400
OVER $1,077,550                       $72,345 PLUS 8.82% OF EXCESS OVER
                                      $1,077,550
  (IV) FOR TAXABLE  YEARS  BEGINNING  IN  TWO  THOUSAND  TWENTY-ONE  THE
FOLLOWING RATES SHALL APPLY:

S. 2009--A                         55                         A. 3009--A

IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $21,400     $600 PLUS 5.9% OF EXCESS OVER
                                      $13,900
OVER $21,400 BUT NOT OVER $80,650     $1,042 PLUS 5.97% OF EXCESS OVER
                                      $21,400
OVER $80,650 BUT NOT OVER $215,400    $4,579 PLUS 6.33% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $13,109 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  (V) FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND TWENTY-TWO THE FOLLOW-
ING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.85% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,504 PLUS 6.25% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,926 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  (VI)  FOR  TAXABLE  YEARS  BEGINNING  IN TWO THOUSAND TWENTY-THREE THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.73% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,424 PLUS 6.17% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,738 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  (VII) FOR TAXABLE YEARS BEGINNING  IN  TWO  THOUSAND  TWENTY-FOUR  THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.61% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,344 PLUS 6.09% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,550 PLUS 6.85% OF EXCESS OVER
                                      $215,400

S. 2009--A                         56                         A. 3009--A

  (VIII)  FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FOUR THE
FOLLOWING RATES SHALL APPLY:
IF THE NEW YORK TAXABLE INCOME IS:    THE TAX IS:
NOT OVER $8,500                       4% OF THE NEW YORK TAXABLE INCOME
OVER $8,500 BUT NOT OVER $11,700      $340 PLUS 4.5% OF EXCESS OVER
                                      $8,500
OVER $11,700 BUT NOT OVER $13,900     $484 PLUS 5.25% OF EXCESS OVER
                                      $11,700
OVER $13,900 BUT NOT OVER $80,650     $600 PLUS 5.50% OF EXCESS OVER
                                      $13,900
OVER $80,650 BUT NOT OVER $215,400    $4,271 PLUS 6.00% OF EXCESS OVER
                                      $80,650
OVER $215,400                         $12,356 PLUS 6.85% OF EXCESS OVER
                                      $215,400
  §  4.  Subparagraph  (D) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as amended by section 5 of part FF of chapter 59  of
the laws of 2013, is amended to read as follows:
  (D)  The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(a) of this section not subject to the 8.82 percent rate of tax for  the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for  such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (a) of  this  section
less the sum of the tax table benefits in subparagraphs (A), (B) and (C)
of  this  paragraph.  The  fraction for this subparagraph is computed as
follows: the numerator is the lesser of fifty thousand  dollars  or  the
excess  of  New York adjusted gross income for the taxable year over two
million dollars and the denominator  is  fifty  thousand  dollars.  This
subparagraph  shall  apply  only  to taxable years beginning on or after
January first, two thousand twelve and before January first,  two  thou-
sand [eighteen] TWENTY-ONE.
  §  5.  Subparagraph  (C) of paragraph 2 of subsection (d-1) of section
601 of the tax law, as amended by section 6 of part FF of chapter 59  of
the laws of 2013, is amended to read as follows:
  (C)  The tax table benefit is the difference between (i) the amount of
taxable income set forth in the tax table in paragraph one of subsection
(b) of this section not subject to the 8.82 percent rate of tax for  the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for  such amount of taxable income set forth in the tax table applicable
to the taxable year in paragraph one of subsection (b) of  this  section
less  the  sum of the tax table benefits in subparagraphs (A) and (B) of
this paragraph. The  fraction  for  this  subparagraph  is  computed  as
follows:  the  numerator  is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year  over  one
million five hundred thousand dollars and the denominator is fifty thou-
sand dollars. This subparagraph shall apply only to taxable years begin-
ning  on  or after January first, two thousand twelve and before January
first, two thousand [eighteen] TWENTY-ONE.
  § 6. Subparagraph (C) of paragraph 3 of subsection  (d-1)  of  section
601  of the tax law, as amended by section 7 of part FF of chapter 59 of
the laws of 2013, is amended to read as follows:
  (C) The tax table benefit is the difference between (i) the amount  of
taxable income set forth in the tax table in paragraph one of subsection
(c)  of this section not subject to the 8.82 percent rate of tax for the
taxable year multiplied by such rate and (ii) the dollar denominated tax
for such amount of taxable income set forth in the tax table  applicable

S. 2009--A                         57                         A. 3009--A

to  the  taxable year in paragraph one of subsection (c) of this section
less the sum of the tax table benefits in subparagraphs (A) and  (B)  of
this  paragraph.  The  fraction  for  this  subparagraph  is computed as
follows:  the  numerator  is the lesser of fifty thousand dollars or the
excess of New York adjusted gross income for the taxable year  over  one
million  dollars  and  the  denominator  is fifty thousand dollars. This
subparagraph shall apply only to taxable years  beginning  on  or  after
January  first,  two thousand twelve and before January first, two thou-
sand [eighteen] TWENTY-ONE.
  § 7. This act shall take effect immediately.

                                 PART S

  Section 1. Subsection (g) of section 615 of the tax law, as amended by
section 1 of part H of chapter 59 of the laws of  2015,  is  amended  to
read as follows:
  (g)(1)  With  respect  to  an individual whose New York adjusted gross
income is over one million dollars and no more than ten million dollars,
the New York itemized deduction  shall  be  an  amount  equal  to  fifty
percent  of  any charitable contribution deduction allowed under section
one hundred seventy of the internal  revenue  code  [for  taxable  years
beginning after two thousand nine and before two thousand eighteen. With
respect  to  an  individual whose New York adjusted gross income is over
one million dollars, the New York itemized deduction shall be an  amount
equal  to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning in two thousand nine or after  two  thousand  seven-
teen].
  (2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount  equal  to  twenty-five  percent  of  any charitable contribution
deduction allowed under section one  hundred  seventy  of  the  internal
revenue  code  [for  taxable years beginning after two thousand nine and
ending before two thousand eighteen].
  § 2. Subdivision (g) of section 11-1715 of the administrative code  of
the city of New York, as amended by section 2 of part H of chapter 59 of
the laws of 2015, is amended to read as follows:
  (g)  (1)  With  respect to an individual whose New York adjusted gross
income is over one million dollars but no more than ten million dollars,
the New York itemized deduction  shall  be  an  amount  equal  to  fifty
percent  of  any charitable contribution deduction allowed under section
one hundred seventy of the internal  revenue  code  [for  taxable  years
beginning after two thousand nine and before two thousand eighteen. With
respect  to  an  individual whose New York adjusted gross income is over
one million dollars, the New York itemized deduction shall be an  amount
equal  to fifty percent of any charitable contribution deduction allowed
under section one hundred seventy of the internal revenue code for taxa-
ble years beginning in two thousand nine or after  two  thousand  seven-
teen].
  (2) With respect to an individual whose New York adjusted gross income
is over ten million dollars, the New York itemized deduction shall be an
amount  equal  to  twenty-five  percent  of  any charitable contribution
deduction allowed under section one  hundred  seventy  of  the  internal
revenue  code  [for  taxable years beginning after two thousand nine and
ending before two thousand eighteen].
  § 3. This act shall take effect immediately.

S. 2009--A                         58                         A. 3009--A

                                 PART T

  Section  1. Subsection (c) of section 606 of the tax law is amended by
adding a new paragraph (1-a) to read as follows:
  (1-A) FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND SEVENTEEN, FOR  A
TAXPAYER  WITH NEW YORK ADJUSTED GROSS INCOME OF AT LEAST FIFTY THOUSAND
DOLLARS BUT LESS THAN ONE HUNDRED FIFTY THOUSAND DOLLARS, THE APPLICABLE
PERCENTAGE SHALL BE THE APPLICABLE PERCENTAGE OTHERWISE  COMPUTED  UNDER
PARAGRAPH ONE OF THIS SUBSECTION MULTIPLIED BY A FACTOR AS FOLLOWS:
  IF NEW YORK ADJUSTED GROSS
  INCOME IS:                                         THE FACTOR IS:
  AT LEAST $50,000 AND LESS
  THAN $55,000                                       1.1682
  AT LEAST $55,000 AND LESS
  THAN $60,000                                       1.2733
  AT LEAST $60,000 AND LESS
  THAN $65,000                                       2.322
  AT LEAST $65,000 AND LESS
  THAN $150,000                                      3.000
  § 2. This act shall take effect immediately.

                                 PART U

  Section  1. Paragraph (a) of subdivision 1 and paragraph (a) of subdi-
vision 2 of section 1701 of the tax law, as added by section 1  of  part
CC-1 of chapter 57 of the laws of 2008, are amended to read as follows:
  (a) "Debt" means [all] PAST-DUE TAX liabilities, including unpaid tax,
interest,  and  penalty,  that  the  commissioner  is required by law to
collect and that have [been reduced to judgment by the  docketing  of  a
New  York  state  tax warrant in the office of a county clerk located in
the state of New York or by the filing of a copy of the warrant  in  the
office  of the department of state] BECOME FIXED AND FINAL SUCH THAT THE
TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
  (a) To assist the commissioner in the collection of debts, the depart-
ment must develop and operate a financial institution data match  system
for  the purpose of identifying and seizing the non-exempt assets of tax
debtors as identified by the commissioner. The commissioner  is  author-
ized  to  designate  a  third  party to develop and operate this system.
NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS CHAPTER,  THE  COMMISSIONER
IS  AUTHORIZED  TO  DISCLOSE THE DEBT AND THE DEBTOR INFORMATION TO SUCH
THIRD PARTY AND TO FINANCIAL INSTITUTIONS FOR PURPOSES OF  THIS  SYSTEM.
Any  third party designated by the commissioner to develop and operate a
financial data match system must keep all information  it  obtains  from
both  the department and the financial institution confidential, and any
employee, agent or representative of that third party is prohibited from
disclosing that information to anyone other than the department  or  the
financial institution.
  § 2. This act shall take effect immediately.

                                 PART V

  Section  1.  Subdivision  4  of section 50 of the civil service law is
amended by adding a new closing paragraph to read as follows:
  THE DEPARTMENT SHALL REQUIRE A TAX CLEARANCE FROM  THE  DEPARTMENT  OF
TAXATION  AND  FINANCE,  AS PROVIDED FOR IN SECTION ONE HUNDRED SEVENTY-
ONE-W OF THE TAX LAW, FOR EACH APPLICANT AND SHALL REFUSE TO EXAMINE  AN

S. 2009--A                         59                         A. 3009--A

APPLICANT,  OR  AFTER  EXAMINATION  TO  CERTIFY AN ELIGIBLE FOR WHOM TAX
CLEARANCE IS DENIED BY THE DEPARTMENT OF TAXATION AND FINANCE.  A MUNIC-
IPAL COMMISSION, SUBJECT TO THE APPROVAL OF THE GOVERNING BOARD OR  BODY
OF  THE  CITY  OR COUNTY AS THE CASE MAY BE, OR A REGIONAL COMMISSION OR
PERSONNEL OFFICER, PURSUANT TO  GOVERNMENTAL  AGREEMENT,  MAY  ELECT  TO
REQUIRE TAX CLEARANCES FOR APPLICANTS AND TO REFUSE TO EXAMINE AN APPLI-
CANT,  OR AFTER EXAMINATION TO CERTIFY AN ELIGIBLE FOR WHOM A TAX CLEAR-
ANCE IS DENIED BY THE DEPARTMENT  OF  TAXATION  AND  FINANCE.  PROVIDED,
HOWEVER, THAT THE DEPARTMENT AND MUNICIPAL COMMISSIONS SHALL NOT REQUIRE
A  TAX  CLEARANCE  FOR  (1) ANY CURRENT EMPLOYEE; OR (2) A PERSON WHO IS
CONSIDERED AN APPLICANT BY REASON OF (A) A TRANSFER PURSUANT TO  SECTION
SEVENTY  OF  THIS  CHAPTER;  OR  (B) A PERSON WHO IS ON A PREFERRED LIST
SUBJECT TO SECTION EIGHTY-ONE OF THIS CHAPTER; OR  (C)  A  PERSON  WHOSE
NAME  IS  ON  AN  ELIGIBLE  LIST AS DEFINED IN SECTION FIFTY-SIX OF THIS
ARTICLE AND WHO HAS SUCCESSFULLY COMPLETED A PROMOTION EXAM  SUBJECT  TO
SECTION  FIFTY-TWO  OF  THIS ARTICLE. WHERE A TAX CLEARANCE IS REQUIRED,
THE APPLICATION FOR EXAMINATION, OR THE INSTRUCTIONS FOR  SUCH  APPLICA-
TION,  SHALL  CLEARLY  INFORM THE APPLICANT THAT A TAX CLEARANCE WILL BE
PERFORMED AND THAT, IF THE TAX CLEARANCE IS DENIED, THE  APPLICANT  MUST
CONTACT  THE  DEPARTMENT OF TAXATION AND FINANCE TO RESOLVE ANY PAST-DUE
TAX LIABILITIES OR RETURN FILING COMPLIANCE BEFORE THE  APPLICATION  FOR
EXAMINATION  MAY  BE RESUBMITTED. ANY APPLICANT SUBJECT TO TAX CLEARANCE
SHALL BE REQUIRED TO PROVIDE ANY INFORMATION  DEEMED  NECESSARY  BY  THE
DEPARTMENT AND THE DEPARTMENT OF TAXATION AND FINANCE TO EFFICIENTLY AND
ACCURATELY  PROVIDE A TAX CLEARANCE, AND THE FAILURE BY THE APPLICANT TO
PROVIDE SUCH INFORMATION SHALL DISQUALIFY THE APPLICANT.
  § 2. The tax law is amended by adding a new section 171-w to  read  as
follows:
  §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
ANCES. (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX  LIABILITIES"
SHALL  MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE COMMISSIONER,
OR ANY PENALTY OR INTEREST ON SUCH TAX, SURCHARGE, OR FEE,  OWED  BY  AN
INDIVIDUAL  OR  ENTITY.  THE  TERM  "PAST-DUE TAX LIABILITIES" MEANS ANY
UNPAID TAX LIABILITIES THAT HAVE BECOME FIXED AND FINAL  SUCH  THAT  THE
TAXPAYER  NO  LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR JUDICIAL REVIEW.
THE TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF  ITS
AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
(INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
  (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT  ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A TAX CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO  THE  GOVERN-
MENT  ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT  PRAC-
TICABLE,  REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE DEPARTMENT
AND THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX  CLEAR-
ANCE  REQUESTS  TO  THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE  ANY  APPLICANT  DATA  OR
INFORMATION  WITH  THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY  THE  DEPART-
MENT.
  (3)  UPON  RECEIPT  OF  A  TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE  TAX  CLEAR-
ANCE  REQUEST  HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE

S. 2009--A                         60                         A. 3009--A

DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE  NO
THRESHOLD  HAS  BEEN  ESTABLISHED  BY  LAW  OR OTHERWISE, EQUAL TO OR IN
EXCESS OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST  SO
REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
FOR  EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS  A  PERSON  REQUIRED  TO
REGISTER  PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A  TAX
CLEARANCE  IF  IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN  EXCESS  OF  THE  APPLICABLE
THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
  (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
  (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
  (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
SUPPORT  PURSUANT  TO  AN  INCOME  EXECUTION  ISSUED PURSUANT TO SECTION
FIFTY-TWO HUNDRED FORTY-ONE OR FIFTY-TWO HUNDRED FORTY-TWO OF THE  CIVIL
PRACTICE  LAW  AND  RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
GARNISHED BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX  LIABIL-
ITIES  AT  ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD SUPPORT PAYMENTS
OR COMBINED CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO  A  SATISFAC-
TORY  PAYMENT  ARRANGEMENT  UNDER  SECTION  ONE  HUNDRED ELEVEN-B OF THE
SOCIAL SERVICES LAW WITH A SUPPORT COLLECTION UNIT OR  OTHERWISE  MAKING
PERIODIC  PAYMENTS  IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY OF THE
FAMILY COURT ACT. AN APPLICANT MAY CHALLENGE  A  DEPARTMENT  FINDING  OF
FAILURE  TO  COMPLY  WITH  TAX  RETURN  FILING  REQUIREMENTS ONLY ON THE

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GROUNDS THAT ALL REQUIRED TAX RETURNS HAVE BEEN FILED FOR  EACH  OF  THE
PAST THREE YEARS.
  (C)  NOTHING  IN  THIS  SUBDIVISION IS INTENDED TO LIMIT ANY APPLICANT
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE  IS
ELIGIBLE  PURSUANT  TO  THAT  SECTION, OR ESTABLISHING TO THE DEPARTMENT
THAT THE ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS  BEEN  STAYED
BY  THE  FILING  OF  A  PETITION PURSUANT TO THE BANKRUPTCY CODE OF 1978
(TITLE ELEVEN OF THE UNITED STATES CODE).
  (6) NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  THE  DEPARTMENT  MAY
EXCHANGE  WITH  A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT, IN THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS INFORMATION TO ANY OTHER ENTITY  OR  PERSON,  OTHER  THAN  FOR  THE
PURPOSE  OF  INFORMING  THE  APPLICANT THAT A REQUIRED TAX CLEARANCE HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
  (7) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION,  THE  ACTIVITIES  TO
COLLECT  PAST-DUE  TAX LIABILITIES UNDERTAKEN BY THE DEPARTMENT PURSUANT
TO THIS SECTION SHALL NOT IN ANY  WAY  LIMIT,  RESTRICT  OR  IMPAIR  THE
DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
  §  3. This act shall take effect June 1, 2017; provided, however, that
the department of taxation and finance, the department of civil service,
any municipal commission, and any other government  entity  electing  to
receive  a tax clearance from the department of taxation and finance may
work to execute  the  necessary  procedures  and  technical  changes  to
support  the  tax clearance process as described in sections one and two
of this act before that date; provided,  further,  that  this  effective
date  will  not  impact  the administration of any tax clearance program
authorized by another provision of law.

                                 PART W

  Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266
of the laws of 1986, amending the civil practice law and rules and other
laws relating  to  malpractice  and  professional  medical  conduct,  as
amended  by  section  2  of part C of chapter 59 of the laws of 2016, is
amended to read as follows:
  (a) The superintendent of financial services and the  commissioner  of
health  or  their  designee  shall, from funds available in the hospital
excess liability pool created pursuant to subdivision 5 of this section,
purchase a policy or policies for excess insurance coverage, as  author-
ized  by  paragraph 1 of subsection (e) of section 5502 of the insurance
law; or from an insurer, other than an insurer described in section 5502
of the insurance law, duly authorized to write such coverage and actual-
ly writing  medical  malpractice  insurance  in  this  state;  or  shall
purchase equivalent excess coverage in a form previously approved by the
superintendent  of  financial  services for purposes of providing equiv-
alent excess coverage in accordance with section 19 of  chapter  294  of
the  laws of 1985, for medical or dental malpractice occurrences between
July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30,  1988,
between  July  1,  1988 and June 30, 1989, between July 1, 1989 and June
30, 1990, between July 1, 1990 and June 30, 1991, between July  1,  1991
and  June 30, 1992, between July 1, 1992 and June 30, 1993, between July
1, 1993 and June 30, 1994, between July  1,  1994  and  June  30,  1995,
between  July  1,  1995 and June 30, 1996, between July 1, 1996 and June

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30, 1997, between July 1, 1997 and June 30, 1998, between July  1,  1998
and  June 30, 1999, between July 1, 1999 and June 30, 2000, between July
1, 2000 and June 30, 2001, between July  1,  2001  and  June  30,  2002,
between  July  1,  2002 and June 30, 2003, between July 1, 2003 and June
30, 2004, between July 1, 2004 and June 30, 2005, between July  1,  2005
and  June 30, 2006, between July 1, 2006 and June 30, 2007, between July
1, 2007 and June 30, 2008, between July  1,  2008  and  June  30,  2009,
between  July  1,  2009 and June 30, 2010, between July 1, 2010 and June
30, 2011, between July 1, 2011 and June 30, 2012, between July  1,  2012
and  June 30, 2013, between July 1, 2013 and June 30, 2014, between July
1, 2014 and June 30, 2015, between July 1, 2015 and June 30, 2016, [and]
between July 1, 2016 and June 30, 2017, AND BETWEEN  JULY  1,  2017  AND
JUNE  30,  2018  or  reimburse the hospital where the hospital purchases
equivalent excess coverage as defined in subparagraph (i)  of  paragraph
(a) of subdivision 1-a of this section for medical or dental malpractice
occurrences between July 1, 1987 and June 30, 1988, between July 1, 1988
and  June 30, 1989, between July 1, 1989 and June 30, 1990, between July
1, 1990 and June 30, 1991, between July  1,  1991  and  June  30,  1992,
between  July  1,  1992 and June 30, 1993, between July 1, 1993 and June
30, 1994, between July 1, 1994 and June 30, 1995, between July  1,  1995
and  June 30, 1996, between July 1, 1996 and June 30, 1997, between July
1, 1997 and June 30, 1998, between July  1,  1998  and  June  30,  1999,
between  July  1,  1999 and June 30, 2000, between July 1, 2000 and June
30, 2001, between July 1, 2001 and June 30, 2002, between July  1,  2002
and  June 30, 2003, between July 1, 2003 and June 30, 2004, between July
1, 2004 and June 30, 2005, between July  1,  2005  and  June  30,  2006,
between  July  1,  2006 and June 30, 2007, between July 1, 2007 and June
30, 2008, between July 1, 2008 and June 30, 2009, between July  1,  2009
and  June 30, 2010, between July 1, 2010 and June 30, 2011, between July
1, 2011 and June 30, 2012, between July  1,  2012  and  June  30,  2013,
between  July  1,  2013 and June 30, 2014, between July 1, 2014 and June
30, 2015, between July 1, 2015 and June 30, 2016, [and] between July  1,
2016  and  June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 for
physicians or dentists certified as eligible for  each  such  period  or
periods  pursuant to subdivision 2 of this section by a general hospital
licensed pursuant to article 28 of the public health law; provided  that
no  single  insurer  shall  write  more  than fifty percent of the total
excess premium for a given policy year; and provided, however, that such
eligible physicians or dentists must have in force an individual policy,
from an insurer licensed in this state of primary malpractice  insurance
coverage  in  amounts of no less than one million three hundred thousand
dollars for each  claimant  and  three  million  nine  hundred  thousand
dollars  for  all  claimants under that policy during the period of such
excess coverage for  such  occurrences  or  be  endorsed  as  additional
insureds under a hospital professional liability policy which is offered
through a voluntary attending physician ("channeling") program previous-
ly  permitted  by  the  superintendent  of financial services during the
period of such excess coverage for such occurrences; AND  PROVIDED  THAT
SUCH  ELIGIBLE  PHYSICIANS OR DENTISTS HAVE RECEIVED TAX CLEARANCES FROM
THE DEPARTMENT OF TAXATION AND FINANCE PURSUANT TO SECTION 171-W OF  THE
TAX  LAW.  During  such  period, such policy for excess coverage or such
equivalent excess coverage shall, when combined with the physician's  or
dentist's  primary  malpractice  insurance coverage or coverage provided
through a voluntary attending physician ("channeling") program, total an
aggregate level of two million three hundred thousand dollars  for  each
claimant and six million nine hundred thousand dollars for all claimants

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from all such policies with respect to occurrences in each of such years
provided, however, if the cost of primary malpractice insurance coverage
in  excess of one million dollars, but below the excess medical malprac-
tice  insurance coverage provided pursuant to this act, exceeds the rate
of nine percent per annum, then the required level of  primary  malprac-
tice insurance coverage in excess of one million dollars for each claim-
ant  shall  be  in  an amount of not less than the dollar amount of such
coverage available at nine percent per annum; the required level of such
coverage for all claimants under that policy shall be in an  amount  not
less  than  three times the dollar amount of coverage for each claimant;
and excess coverage, when combined with such primary malpractice  insur-
ance  coverage,  shall increase the aggregate level for each claimant by
one million dollars and three million dollars  for  all  claimants;  and
provided  further,  that,  with  respect  to policies of primary medical
malpractice coverage that include occurrences between April 1, 2002  and
June 30, 2002, such requirement that coverage be in amounts no less than
one  million  three hundred thousand dollars for each claimant and three
million nine hundred thousand dollars for all claimants for such  occur-
rences shall be effective April 1, 2002.
  §  2.  Subdivision 3 of section 18 of chapter 266 of the laws of 1986,
amending the civil practice law and rules and  other  laws  relating  to
malpractice and professional medical conduct, as amended by section 3 of
part C of chapter 59 of the laws of 2016, is amended to read as follows:
  (3)(a)  The  superintendent  of financial services shall determine and
certify to each general hospital and to the commissioner of  health  the
cost  of  excess malpractice insurance for medical or dental malpractice
occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988
and June 30, 1989, between July 1, 1989 and June 30, 1990, between  July
1,  1990  and  June  30,  1991,  between July 1, 1991 and June 30, 1992,
between July 1, 1992 and June 30, 1993, between July 1,  1993  and  June
30,  1994,  between July 1, 1994 and June 30, 1995, between July 1, 1995
and June 30, 1996, between July 1, 1996 and June 30, 1997, between  July
1,  1997  and  June  30,  1998,  between July 1, 1998 and June 30, 1999,
between July 1, 1999 and June 30, 2000, between July 1,  2000  and  June
30,  2001,  between July 1, 2001 and June 30, 2002, between July 1, 2002
and June 30, 2003, between July 1, 2003 and June 30, 2004, between  July
1,  2004  and  June  30,  2005,  between July 1, 2005 and June 30, 2006,
between July 1, 2006 and June 30, 2007, between July 1,  2007  and  June
30,  2008,  between July 1, 2008 and June 30, 2009, between July 1, 2009
and June 30, 2010, between July 1, 2010 and June 30, 2011, between  July
1,  2011  and June 30, 2012, between July 1, 2012 and June 30, 2013, and
between July 1, 2013 and June 30, 2014, between July 1,  2014  and  June
30,  2015,  between  July 1, 2015 and June 30, 2016, and between July 1,
2016 and June 30, 2017, AND BETWEEN JULY 1, 2017 AND JUNE 30, 2018 allo-
cable to each general hospital for physicians or dentists  certified  as
eligible  for purchase of a policy for excess insurance coverage by such
general hospital in accordance with subdivision 2 of this  section,  and
may amend such determination and certification as necessary.
  (b)  The  superintendent  of  financial  services  shall determine and
certify to each general hospital and to the commissioner of  health  the
cost  of  excess malpractice insurance or equivalent excess coverage for
medical or dental malpractice occurrences between July 1, 1987 and  June
30,  1988,  between July 1, 1988 and June 30, 1989, between July 1, 1989
and June 30, 1990, between July 1, 1990 and June 30, 1991, between  July
1,  1991  and  June  30,  1992,  between July 1, 1992 and June 30, 1993,
between July 1, 1993 and June 30, 1994, between July 1,  1994  and  June

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30,  1995,  between July 1, 1995 and June 30, 1996, between July 1, 1996
and June 30, 1997, between July 1, 1997 and June 30, 1998, between  July
1,  1998  and  June  30,  1999,  between July 1, 1999 and June 30, 2000,
between  July  1,  2000 and June 30, 2001, between July 1, 2001 and June
30, 2002, between July 1, 2002 and June 30, 2003, between July  1,  2003
and  June 30, 2004, between July 1, 2004 and June 30, 2005, between July
1, 2005 and June 30, 2006, between July  1,  2006  and  June  30,  2007,
between  July  1,  2007 and June 30, 2008, between July 1, 2008 and June
30, 2009, between July 1, 2009 and June 30, 2010, between July  1,  2010
and  June 30, 2011, between July 1, 2011 and June 30, 2012, between July
1, 2012 and June 30, 2013, between July  1,  2013  and  June  30,  2014,
between  July  1,  2014 and June 30, 2015, between July 1, 2015 and June
30, 2016, and between July 1, 2016 and June 30, 2017, AND  BETWEEN  JULY
1,  2017 AND JUNE 30, 2018 allocable to each general hospital for physi-
cians or dentists certified as eligible for purchase  of  a  policy  for
excess  insurance coverage or equivalent excess coverage by such general
hospital in accordance with subdivision 2 of this section, and may amend
such determination and certification as necessary. The superintendent of
financial services shall determine and certify to each general  hospital
and to the commissioner of health the ratable share of such cost alloca-
ble to the period July 1, 1987 to December 31, 1987, to the period Janu-
ary 1, 1988 to June 30, 1988, to the period July 1, 1988 to December 31,
1988, to the period January 1, 1989 to June 30, 1989, to the period July
1,  1989 to December 31, 1989, to the period January 1, 1990 to June 30,
1990, to the period July 1, 1990 to December 31,  1990,  to  the  period
January 1, 1991 to June 30, 1991, to the period July 1, 1991 to December
31,  1991, to the period January 1, 1992 to June 30, 1992, to the period
July 1, 1992 to December 31, 1992, to the period January 1, 1993 to June
30, 1993, to the period July 1, 1993 to December 31, 1993, to the period
January 1, 1994 to June 30, 1994, to the period July 1, 1994 to December
31, 1994, to the period January 1, 1995 to June 30, 1995, to the  period
July 1, 1995 to December 31, 1995, to the period January 1, 1996 to June
30, 1996, to the period July 1, 1996 to December 31, 1996, to the period
January 1, 1997 to June 30, 1997, to the period July 1, 1997 to December
31,  1997, to the period January 1, 1998 to June 30, 1998, to the period
July 1, 1998 to December 31, 1998, to the period January 1, 1999 to June
30, 1999, to the period July 1, 1999 to December 31, 1999, to the period
January 1, 2000 to June 30, 2000, to the period July 1, 2000 to December
31, 2000, to the period January 1, 2001 to June 30, 2001, to the  period
July  1,  2001  to June 30, 2002, to the period July 1, 2002 to June 30,
2003, to the period July 1, 2003 to June 30, 2004, to the period July 1,
2004 to June 30, 2005, to the period July 1, 2005 and June 30, 2006,  to
the  period  July  1, 2006 and June 30, 2007, to the period July 1, 2007
and June 30, 2008, to the period July 1, 2008 and June 30, 2009, to  the
period  July  1,  2009 and June 30, 2010, to the period July 1, 2010 and
June 30, 2011, to the period July 1, 2011 and  June  30,  2012,  to  the
period  July  1,  2012 and June 30, 2013, to the period July 1, 2013 and
June 30, 2014, to the period July 1, 2014 and  June  30,  2015,  to  the
period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June
30, 2017, AND TO THE PERIOD JULY 1, 2017 AND JUNE 30, 2018.
  § 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section
18  of  chapter 266 of the laws of 1986, amending the civil practice law
and rules and  other  laws  relating  to  malpractice  and  professional
medical  conduct, as amended by section 4 of part C of chapter 59 of the
laws of 2016, are amended to read as follows:

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  (a) To the extent funds available to  the  hospital  excess  liability
pool  pursuant to subdivision 5 of this section as amended, and pursuant
to section 6 of part J of chapter 63 of the laws of 2001,  as  may  from
time  to  time  be amended, which amended this subdivision, are insuffi-
cient  to  meet  the  costs  of  excess insurance coverage or equivalent
excess coverage for coverage periods during the period July 1,  1992  to
June  30,  1993, during the period July 1, 1993 to June 30, 1994, during
the period July 1, 1994 to June 30, 1995, during the period July 1, 1995
to June 30, 1996, during the period July  1,  1996  to  June  30,  1997,
during  the period July 1, 1997 to June 30, 1998, during the period July
1, 1998 to June 30, 1999, during the period July 1,  1999  to  June  30,
2000, during the period July 1, 2000 to June 30, 2001, during the period
July  1,  2001  to  October 29, 2001, during the period April 1, 2002 to
June 30, 2002, during the period July 1, 2002 to June 30,  2003,  during
the period July 1, 2003 to June 30, 2004, during the period July 1, 2004
to  June  30,  2005,  during  the  period July 1, 2005 to June 30, 2006,
during the period July 1, 2006 to June 30, 2007, during the period  July
1,  2007  to  June  30, 2008, during the period July 1, 2008 to June 30,
2009, during the period July 1, 2009 to June 30, 2010, during the period
July 1, 2010 to June 30, 2011, during the period July 1,  2011  to  June
30,  2012,  during  the period July 1, 2012 to June 30, 2013, during the
period July 1, 2013 to June 30, 2014, during the period July 1, 2014  to
June  30,  2015,  during the period July 1, 2015 and June 30, 2016, [and
between] DURING THE PERIOD July 1, 2016 and June 30,  2017,  AND  DURING
THE  PERIOD  JULY  1, 2017 AND JUNE 30, 2018 allocated or reallocated in
accordance with paragraph (a) of subdivision  4-a  of  this  section  to
rates  of payment applicable to state governmental agencies, each physi-
cian or dentist for whom a  policy  for  excess  insurance  coverage  or
equivalent excess coverage is purchased for such period shall be respon-
sible for payment to the provider of excess insurance coverage or equiv-
alent excess coverage of an allocable share of such insufficiency, based
on  the  ratio  of the total cost of such coverage for such physician to
the sum of the total cost of such coverage for all physicians applied to
such insufficiency.
  (b) Each provider of excess insurance coverage  or  equivalent  excess
coverage  covering the period July 1, 1992 to June 30, 1993, or covering
the period July 1, 1993 to June 30, 1994, or covering the period July 1,
1994 to June 30, 1995, or covering the period July 1, 1995 to  June  30,
1996,  or covering the period July 1, 1996 to June 30, 1997, or covering
the period July 1, 1997 to June 30, 1998, or covering the period July 1,
1998 to June 30, 1999, or covering the period July 1, 1999 to  June  30,
2000,  or covering the period July 1, 2000 to June 30, 2001, or covering
the period July 1, 2001 to October 29,  2001,  or  covering  the  period
April  1,  2002 to June 30, 2002, or covering the period July 1, 2002 to
June 30, 2003, or covering the period July 1, 2003 to June 30, 2004,  or
covering the period July 1, 2004 to June 30, 2005, or covering the peri-
od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to
June  30, 2007, or covering the period July 1, 2007 to June 30, 2008, or
covering the period July 1, 2008 to June 30, 2009, or covering the peri-
od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to
June 30, 2011, or covering the period July 1, 2011 to June 30, 2012,  or
covering the period July 1, 2012 to June 30, 2013, or covering the peri-
od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to
June  30, 2015, or covering the period July 1, 2015 to June 30, 2016, or
covering the period July 1, 2016 to June 30, 2017, OR COVERING THE PERI-
OD JULY 1, 2017 TO JUNE 30, 2018 shall notify  a  covered  physician  or

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dentist by mail, mailed to the address shown on the last application for
excess  insurance  coverage or equivalent excess coverage, of the amount
due to such provider from such physician or dentist  for  such  coverage
period  determined in accordance with paragraph (a) of this subdivision.
Such amount shall be due from such physician or dentist to such provider
of excess insurance coverage or equivalent excess coverage in a time and
manner determined by the superintendent of financial services.
  (c) If a physician or dentist liable for payment of a portion  of  the
costs  of excess insurance coverage or equivalent excess coverage cover-
ing the period July 1, 1992 to June 30, 1993,  or  covering  the  period
July  1,  1993  to June 30, 1994, or covering the period July 1, 1994 to
June 30, 1995, or covering the period July 1, 1995 to June 30, 1996,  or
covering the period July 1, 1996 to June 30, 1997, or covering the peri-
od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to
June  30, 1999, or covering the period July 1, 1999 to June 30, 2000, or
covering the period July 1, 2000 to June 30, 2001, or covering the peri-
od July 1, 2001 to October 29, 2001, or covering  the  period  April  1,
2002  to  June 30, 2002, or covering the period July 1, 2002 to June 30,
2003, or covering the period July 1, 2003 to June 30, 2004, or  covering
the period July 1, 2004 to June 30, 2005, or covering the period July 1,
2005  to  June 30, 2006, or covering the period July 1, 2006 to June 30,
2007, or covering the period July 1, 2007 to June 30, 2008, or  covering
the period July 1, 2008 to June 30, 2009, or covering the period July 1,
2009  to  June 30, 2010, or covering the period July 1, 2010 to June 30,
2011, or covering the period July 1, 2011 to June 30, 2012, or  covering
the period July 1, 2012 to June 30, 2013, or covering the period July 1,
2013  to  June 30, 2014, or covering the period July 1, 2014 to June 30,
2015, or covering the period July 1, 2015 to June 30, 2016, or  covering
the period July 1, 2016 to June 30, 2017, OR COVERING THE PERIOD JULY 1,
2017  TO  JUNE  30,  2018 determined in accordance with paragraph (a) of
this subdivision fails, refuses or  neglects  to  make  payment  to  the
provider  of  excess insurance coverage or equivalent excess coverage in
such time and manner as determined by the  superintendent  of  financial
services pursuant to paragraph (b) of this subdivision, excess insurance
coverage  or  equivalent excess coverage purchased for such physician or
dentist in accordance with this section for such coverage  period  shall
be  cancelled and shall be null and void as of the first day on or after
the commencement of a policy period  where  the  liability  for  payment
pursuant to this subdivision has not been met.
  (d)  Each  provider  of excess insurance coverage or equivalent excess
coverage shall notify the superintendent of financial services  and  the
commissioner  of  health or their designee of each physician and dentist
eligible for purchase of a  policy  for  excess  insurance  coverage  or
equivalent  excess coverage covering the period July 1, 1992 to June 30,
1993, or covering the period July 1, 1993 to June 30, 1994, or  covering
the period July 1, 1994 to June 30, 1995, or covering the period July 1,
1995  to  June 30, 1996, or covering the period July 1, 1996 to June 30,
1997, or covering the period July 1, 1997 to June 30, 1998, or  covering
the period July 1, 1998 to June 30, 1999, or covering the period July 1,
1999  to  June 30, 2000, or covering the period July 1, 2000 to June 30,
2001, or covering the period July 1, 2001 to October 29, 2001, or cover-
ing the period April 1, 2002 to June 30, 2002, or  covering  the  period
July  1,  2002  to June 30, 2003, or covering the period July 1, 2003 to
June 30, 2004, or covering the period July 1, 2004 to June 30, 2005,  or
covering the period July 1, 2005 to June 30, 2006, or covering the peri-
od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to

S. 2009--A                         67                         A. 3009--A

June  30, 2008, or covering the period July 1, 2008 to June 30, 2009, or
covering the period July 1, 2009 to June 30, 2010, or covering the peri-
od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to
June  30, 2012, or covering the period July 1, 2012 to June 30, 2013, or
covering the period July 1, 2013 to June 30, 2014, or covering the peri-
od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to
June 30, 2016, or covering the period July 1, 2016 to June 30, 2017,  OR
COVERING  THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 that has made payment
to such provider of  excess  insurance  coverage  or  equivalent  excess
coverage  in  accordance  with  paragraph (b) of this subdivision and of
each physician and dentist who has failed, refused or neglected to  make
such payment.
  (e)  A  provider  of  excess  insurance  coverage or equivalent excess
coverage shall refund to the hospital excess liability pool  any  amount
allocable to the period July 1, 1992 to June 30, 1993, and to the period
July  1,  1993  to June 30, 1994, and to the period July 1, 1994 to June
30, 1995, and to the period July 1, 1995 to June 30, 1996,  and  to  the
period  July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to
June 30, 1998, and to the period July 1, 1998 to June 30, 1999,  and  to
the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000
to  June  30,  2001, and to the period July 1, 2001 to October 29, 2001,
and to the period April 1, 2002 to June 30, 2002, and to the period July
1, 2002 to June 30, 2003, and to the period July 1,  2003  to  June  30,
2004, and to the period July 1, 2004 to June 30, 2005, and to the period
July  1,  2005  to June 30, 2006, and to the period July 1, 2006 to June
30, 2007, and to the period July 1, 2007 to June 30, 2008,  and  to  the
period  July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to
June 30, 2010, and to the period July 1, 2010 to June 30, 2011,  and  to
the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012
to  June  30, 2013, and to the period July 1, 2013 to June 30, 2014, and
to the period July 1, 2014 to June 30, 2015, and to the period  July  1,
2015  to  June  30,  2016,  [and] to the period July 1, 2016 to June 30,
2017, AND TO THE PERIOD JULY 1, 2017 TO JUNE 30, 2018 received from  the
hospital excess liability pool for purchase of excess insurance coverage
or  equivalent  excess coverage covering the period July 1, 1992 to June
30, 1993, and covering the period July 1, 1993 to  June  30,  1994,  and
covering  the  period  July  1,  1994 to June 30, 1995, and covering the
period July 1, 1995 to June 30, 1996, and covering the  period  July  1,
1996  to June 30, 1997, and covering the period July 1, 1997 to June 30,
1998, and covering the period July 1, 1998 to June 30, 1999, and  cover-
ing  the  period  July 1, 1999 to June 30, 2000, and covering the period
July 1, 2000 to June 30, 2001, and covering the period July 1,  2001  to
October  29,  2001,  and  covering  the period April 1, 2002 to June 30,
2002, and covering the period July 1, 2002 to June 30, 2003, and  cover-
ing  the  period  July 1, 2003 to June 30, 2004, and covering the period
July 1, 2004 to June 30, 2005, and covering the period July 1,  2005  to
June  30,  2006,  and covering the period July 1, 2006 to June 30, 2007,
and covering the period July 1, 2007 to June 30, 2008, and covering  the
period  July  1,  2008 to June 30, 2009, and covering the period July 1,
2009 to June 30, 2010, and covering the period July 1, 2010 to June  30,
2011,  and covering the period July 1, 2011 to June 30, 2012, and cover-
ing the period July 1, 2012 to June 30, 2013, and  covering  the  period
July  1,  2013 to June 30, 2014, and covering the period July 1, 2014 to
June 30, 2015, and covering the period July 1, 2015 to  June  30,  2016,
and  covering the period July 1, 2016 to June 30, 2017, AND COVERING THE
PERIOD JULY 1, 2017 TO JUNE 30, 2018 for a physician  or  dentist  where

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such   excess  insurance  coverage  or  equivalent  excess  coverage  is
cancelled in accordance with paragraph (c) of this subdivision.
  § 4. Section 40 of chapter 266 of the laws of 1986, amending the civil
practice  law  and  rules  and  other  laws  relating to malpractice and
professional medical conduct, as amended by section 5 of part C of chap-
ter 59 of the laws of 2016, is amended to read as follows:
  § 40. The superintendent of financial services shall  establish  rates
for  policies  providing  coverage  for  physicians and surgeons medical
malpractice for the periods commencing July 1, 1985 and ending June  30,
[2017] 2018; provided, however, that notwithstanding any other provision
of  law,  the superintendent shall not establish or approve any increase
in rates for the period commencing July 1,  2009  and  ending  June  30,
2010.  The  superintendent shall direct insurers to establish segregated
accounts for premiums, payments, reserves and investment income  attrib-
utable to such premium periods and shall require periodic reports by the
insurers  regarding  claims and expenses attributable to such periods to
monitor whether such accounts will be sufficient to meet incurred claims
and expenses. On or after July 1, 1989, the superintendent shall  impose
a  surcharge  on  premiums  to  satisfy  a  projected deficiency that is
attributable to the premium levels established pursuant to this  section
for  such  periods;  provided, however, that such annual surcharge shall
not exceed eight percent of the established rate until  July  1,  [2017]
2018, at which time and thereafter such surcharge shall not exceed twen-
ty-five  percent  of  the  approved  adequate rate, and that such annual
surcharges shall continue for such period of time as shall be sufficient
to satisfy such deficiency. The superintendent  shall  not  impose  such
surcharge  during the period commencing July 1, 2009 and ending June 30,
2010. On and after July  1,  1989,  the  surcharge  prescribed  by  this
section  shall  be  retained by insurers to the extent that they insured
physicians and surgeons during the July 1, 1985 through June 30,  [2017]
2018  policy  periods;  in  the  event  and to the extent physicians and
surgeons were insured by another insurer during such periods, all  or  a
pro  rata  share of the surcharge, as the case may be, shall be remitted
to such other insurer in accordance with rules  and  regulations  to  be
promulgated by the superintendent.  Surcharges collected from physicians
and  surgeons  who  were not insured during such policy periods shall be
apportioned among all insurers in proportion to the premium  written  by
each  insurer  during such policy periods; if a physician or surgeon was
insured by an insurer subject to rates established by the superintendent
during such policy periods, and  at  any  time  thereafter  a  hospital,
health  maintenance organization, employer or institution is responsible
for responding in damages for liability arising out of such  physician's
or  surgeon's  practice  of medicine, such responsible entity shall also
remit to such prior insurer the equivalent amount  that  would  then  be
collected  as  a  surcharge if the physician or surgeon had continued to
remain insured by such prior insurer. In  the  event  any  insurer  that
provided  coverage  during  such  policy  periods is in liquidation, the
property/casualty insurance security fund shall receive the  portion  of
surcharges to which the insurer in liquidation would have been entitled.
The surcharges authorized herein shall be deemed to be income earned for
the  purposes of section 2303 of the insurance law.  The superintendent,
in establishing adequate rates and in determining  any  projected  defi-
ciency  pursuant  to  the requirements of this section and the insurance
law, shall give substantial weight, determined  in  his  discretion  and
judgment,  to  the  prospective  anticipated  effect  of any regulations
promulgated and laws enacted and the  public  benefit  of    stabilizing

S. 2009--A                         69                         A. 3009--A

malpractice rates and minimizing rate level fluctuation during the peri-
od  of  time  necessary for the development of more reliable statistical
experience as to the efficacy of such  laws  and  regulations  affecting
medical, dental or podiatric malpractice enacted or promulgated in 1985,
1986,  by this act and at any other time.  Notwithstanding any provision
of the insurance law, rates already established and to be established by
the superintendent pursuant to this section are deemed adequate if  such
rates  would be adequate when taken together with the maximum authorized
annual surcharges to be imposed for a reasonable period of time  whether
or  not  any  such  annual surcharge has been actually imposed as of the
establishment of such rates.
  § 5. Section 5 and subdivisions (a) and (e) of section 6 of part J  of
chapter  63  of  the  laws  of 2001, amending chapter 266 of the laws of
1986, amending the civil practice law and rules and other laws  relating
to malpractice and professional medical conduct, as amended by section 6
of  part  C  of  chapter  59 of the laws of 2016, are amended to read as
follows:
  § 5. The superintendent of financial services and the commissioner  of
health shall determine, no later than June 15, 2002, June 15, 2003, June
15,  2004,  June  15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,
June 15, 2009, June 15, 2010, June 15, 2011, June  15,  2012,  June  15,
2013,  June 15, 2014, June 15, 2015, June 15, 2016, [and] June 15, 2017,
AND JUNE 15, 2018 the amount of funds available in the  hospital  excess
liability  pool,  created  pursuant  to section 18 of chapter 266 of the
laws of 1986, and whether such funds  are  sufficient  for  purposes  of
purchasing  excess  insurance coverage for eligible participating physi-
cians and dentists during the period July 1, 2001 to June 30,  2002,  or
July 1, 2002 to June 30, 2003, or July 1, 2003 to June 30, 2004, or July
1,  2004  to June 30, 2005, or July 1, 2005 to June 30, 2006, or July 1,
2006 to June 30, 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008
to June 30, 2009, or July 1, 2009 to June 30, 2010, or July 1,  2010  to
June 30, 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June
30,  2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30,
2015, or July 1, 2015 to June 30, 2016, or July  1,  2016  to  June  30,
2017, OR TO JULY 1, 2017 TO JUNE 30, 2018 as applicable.
  (a)  This section shall be effective only upon a determination, pursu-
ant to section five of this act,  by  the  superintendent  of  financial
services  and  the  commissioner  of health, and a certification of such
determination to the state director of the  budget,  the  chair  of  the
senate  committee  on finance and the chair of the assembly committee on
ways and means, that the amount of funds in the hospital excess  liabil-
ity  pool,  created pursuant to section 18 of chapter 266 of the laws of
1986, is insufficient for purposes of purchasing excess insurance cover-
age for eligible participating physicians and dentists during the period
July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July
1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or  July  1,
2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007
to  June  30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to
June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June
30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June  30,
2014,  or  July  1,  2014  to June 30, 2015, or July 1, 2015 to June 30,
2016, or July 1, 2016 to June 30, 2017, OR JULY 1, 2017 TO JUNE 30, 2018
as applicable.
  (e) The commissioner of health  shall  transfer  for  deposit  to  the
hospital excess liability pool created pursuant to section 18 of chapter
266  of  the laws of 1986 such amounts as directed by the superintendent

S. 2009--A                         70                         A. 3009--A

of financial services for the purchase  of  excess  liability  insurance
coverage  for  eligible  participating  physicians  and dentists for the
policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to  June  30,
2003,  or  July  1,  2003  to June 30, 2004, or July 1, 2004 to June 30,
2005, or July 1, 2005 to June 30, 2006, or July  1,  2006  to  June  30,
2007,  as  applicable, and the cost of administering the hospital excess
liability pool for such applicable policy year,  pursuant to the program
established in chapter 266 of the laws of 1986,  as  amended,  no  later
than  June  15,  2002, June 15, 2003, June 15, 2004, June 15, 2005, June
15, 2006, June 15, 2007, June 15, 2008, June 15, 2009,  June  15,  2010,
June  15,  2011,  June  15, 2012, June 15, 2013, June 15, 2014, June 15,
2015, June 15, 2016, [and] June 15, 2017, AND JUNE 15, 2018 as  applica-
ble.
  § 6. Notwithstanding any law, rule or regulation to the contrary, only
physicians  or  dentists who were eligible, and for whom the superinten-
dent of financial services and the  commissioner  of  health,  or  their
designee, purchased, with funds available in the hospital excess liabil-
ity  pool,  a  full  or partial policy for excess coverage or equivalent
excess coverage for the coverage period ending the  thirtieth  of  June,
two thousand seventeen, shall be eligible to apply for such coverage for
the coverage period beginning the first of July, two thousand seventeen;
provided,  however,  if  the  total number of physicians or dentists for
whom such excess coverage or equivalent excess  coverage  was  purchased
for the policy year ending the thirtieth of June, two thousand seventeen
exceeds the total number of physicians or dentists certified as eligible
for the coverage period beginning the first of July, two thousand seven-
teen,  then the general hospitals may certify additional eligible physi-
cians or dentists in a number equal to such general  hospital's  propor-
tional  share  of  the  total  number of physicians or dentists for whom
excess coverage or equivalent excess coverage was purchased  with  funds
available  in  the hospital excess liability pool as of the thirtieth of
June, two thousand seventeen, as applied to the difference  between  the
number  of  eligible physicians or dentists for whom a policy for excess
coverage or equivalent excess coverage was purchased  for  the  coverage
period  ending  the  thirtieth  of  June, two thousand seventeen and the
number of such eligible physicians or  dentists  who  have  applied  for
excess  coverage  or  equivalent excess coverage for the coverage period
beginning the first of July, two thousand seventeen.
  § 7. The tax law is amended by adding a new section 171-w to  read  as
follows:
  §  171-W. ENFORCEMENT OF DELINQUENT TAX LIABILITIES THROUGH TAX CLEAR-
ANCES.  (1) FOR THE PURPOSES OF THIS SECTION, THE TERM "TAX LIABILITIES"
SHALL MEAN ANY TAX, SURCHARGE, OR FEE ADMINISTERED BY THE  COMMISSIONER,
OR  ANY  PENALTY  OR  INTEREST ON SUCH TAX, SURCHARGE OR FEE, OWED BY AN
INDIVIDUAL OR ENTITY. THE TERM  "PAST-DUE  TAX  LIABILITIES"  MEANS  ANY
UNPAID  TAX  LIABILITIES  THAT HAVE BECOME FIXED AND FINAL SUCH THAT THE
TAXPAYER NO LONGER HAS ANY RIGHT TO ADMINISTRATIVE OR  JUDICIAL  REVIEW.
THE  TERM "GOVERNMENT ENTITY" MEANS THE STATE OF NEW YORK, OR ANY OF ITS
AGENCIES, POLITICAL SUBDIVISIONS, INSTRUMENTALITIES, PUBLIC CORPORATIONS
(INCLUDING A PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT
WITH ANOTHER STATE OR CANADA), OR COMBINATION THEREOF.
  (2) THE COMMISSIONER, OR HIS OR HER DESIGNEE, SHALL COOPERATE WITH ANY
GOVERNMENT ENTITY THAT IS REQUIRED BY LAW OR HAS ELECTED TO REQUIRE  TAX
CLEARANCES TO ESTABLISH PROCEDURES BY WHICH THE DEPARTMENT SHALL RECEIVE
A  TAX  CLEARANCE REQUEST AND TRANSMIT SUCH TAX CLEARANCE TO THE GOVERN-
MENT ENTITY, AND ANY OTHER PROCEDURES DEEMED NECESSARY TO CARRY OUT  THE

S. 2009--A                         71                         A. 3009--A

PROVISIONS  OF THIS SECTION. THESE PROCEDURES SHALL, TO THE EXTENT PRAC-
TICABLE, REQUIRE SECURE ELECTRONIC COMMUNICATION BETWEEN THE  DEPARTMENT
AND  THE REQUESTING GOVERNMENT ENTITY FOR THE TRANSMISSION OF TAX CLEAR-
ANCE  REQUESTS  TO  THE DEPARTMENT AND TRANSMISSION OF TAX CLEARANCES TO
THE REQUESTING ENTITY.  NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, A
GOVERNMENT ENTITY SHALL BE AUTHORIZED TO SHARE  ANY  APPLICANT  DATA  OR
INFORMATION  WITH  THE DEPARTMENT THAT IS NECESSARY TO ENSURE THE PROPER
MATCHING OF THE APPLICANT TO THE TAX RECORDS MAINTAINED BY  THE  DEPART-
MENT.
  (3)  UPON  RECEIPT  OF  A  TAX CLEARANCE REQUEST, THE DEPARTMENT SHALL
EXAMINE ITS RECORDS TO DETERMINE WHETHER THE SUBJECT OF THE  TAX  CLEAR-
ANCE  REQUEST  HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN EXCESS OF THE
DOLLAR THRESHOLD APPLICABLE FOR SUCH TAX CLEARANCE REQUEST OR, WHERE  NO
THRESHOLD  HAS  BEEN  ESTABLISHED  BY  LAW  OR OTHERWISE, EQUAL TO OR IN
EXCESS OF  FIVE  HUNDRED  DOLLARS.  WHEN  A  TAX  CLEARANCE  REQUEST  SO
REQUIRES, THE DEPARTMENT SHALL ALSO DETERMINE WHETHER (I) THE SUBJECT OF
SUCH REQUEST HAS COMPLIED WITH APPLICABLE TAX RETURN FILING REQUIREMENTS
FOR  EACH OF THE PAST THREE YEARS; AND/OR (II) WHETHER A SUBJECT OF SUCH
REQUEST THAT IS AN INDIVIDUAL OR ENTITY THAT IS  A  PERSON  REQUIRED  TO
REGISTER  PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER
IS REGISTERED PURSUANT TO SUCH SECTION. THE DEPARTMENT SHALL DENY A  TAX
CLEARANCE  IF  IT DETERMINES THAT THE SUBJECT OF A TAX CLEARANCE REQUEST
HAS PAST-DUE TAX LIABILITIES EQUAL TO OR IN  EXCESS  OF  THE  APPLICABLE
THRESHOLD  OR,  WHEN  THE  TAX  CLEARANCE  REQUEST  SO REQUIRES, HAS NOT
COMPLIED WITH APPLICABLE RETURN FILING AND/OR REGISTRATION REQUIREMENTS.
  (4) IF A TAX CLEARANCE IS DENIED, THE GOVERNMENT ENTITY THAT REQUESTED
THE CLEARANCE SHALL PROVIDE NOTICE  TO  THE  APPLICANT  TO  CONTACT  THE
DEPARTMENT. SUCH NOTICE SHALL BE MADE BY FIRST CLASS MAIL WITH A CERTIF-
ICATE OF MAILING AND A COPY OF SUCH NOTICE ALSO SHALL BE PROVIDED TO THE
DEPARTMENT.  WHEN  THE APPLICANT CONTACTS THE DEPARTMENT, THE DEPARTMENT
SHALL INFORM THE APPLICANT OF THE BASIS FOR THE DENIAL OF THE TAX CLEAR-
ANCE AND SHALL ALSO INFORM THE APPLICANT (I) THAT A TAX CLEARANCE DENIED
DUE TO PAST-DUE TAX LIABILITIES MAY BE ISSUED ONCE  THE  TAXPAYER  FULLY
SATISFIES  PAST-DUE TAX LIABILITIES OR MAKES PAYMENT ARRANGEMENTS SATIS-
FACTORY TO THE COMMISSIONER; (II) THAT A TAX  CLEARANCE  DENIED  DUE  TO
FAILURE  TO FILE TAX RETURNS MAY BE ISSUED ONCE THE APPLICANT HAS SATIS-
FIED THE APPLICABLE RETURN FILING REQUIREMENTS; (III) THAT A TAX  CLEAR-
ANCE  DENIED  FOR FAILURE TO REGISTER PURSUANT TO SECTION ELEVEN HUNDRED
THIRTY-FOUR OF THIS CHAPTER MAY BE ISSUED ONCE THE APPLICANT HAS  REGIS-
TERED PURSUANT TO SUCH SECTION; AND (IV) THE GROUNDS FOR CHALLENGING THE
DENIAL OF A TAX CLEARANCE LISTED IN SUBDIVISION FIVE OF THIS SECTION.
  (5)  (A)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, AND EXCEPT AS
SPECIFICALLY PROVIDED HEREIN, AN APPLICANT DENIED A TAX CLEARANCE  SHALL
HAVE NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR SEEK ANY OTHER
LEGAL  RECOURSE  AGAINST THE DEPARTMENT OR THE GOVERNMENT ENTITY RELATED
TO THE DENIAL OF A TAX CLEARANCE BY THE DEPARTMENT.
  (B) AN APPLICANT SEEKING TO CHALLENGE THE DENIAL OF  A  TAX  CLEARANCE
MUST  PROTEST  TO THE DEPARTMENT OR THE DIVISION OF TAX APPEALS NO LATER
THAN SIXTY DAYS FROM THE DATE OF THE NOTIFICATION TO THE APPLICANT  THAT
THE  TAX  CLEARANCE  WAS DENIED. AN APPLICANT MAY CHALLENGE A DEPARTMENT
FINDING OF PAST-DUE TAX LIABILITIES ONLY ON THE  GROUNDS  THAT  (I)  THE
INDIVIDUAL  OR  ENTITY DENIED THE TAX CLEARANCE IS NOT THE INDIVIDUAL OR
ENTITY WITH THE PAST-DUE TAX LIABILITIES AT ISSUE; (II) THE PAST-DUE TAX
LIABILITIES WERE  SATISFIED;  (III)  THE  APPLICANT'S  WAGES  ARE  BEING
GARNISHED FOR THE PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL
SUPPORT  PURSUANT  TO  AN  INCOME  EXECUTION  ISSUED PURSUANT TO SECTION

S. 2009--A                         72                         A. 3009--A

FIFTY-TWO HUNDRED FORTY-ONE OR FIFTY-TWO HUNDRED FORTY-TWO OF THE  CIVIL
PRACTICE  LAW  AND  RULES OR ANOTHER STATE'S INCOME WITHHOLDING ORDER AS
AUTHORIZED UNDER PART FIVE OF ARTICLE FIVE-B OF THE FAMILY COURT ACT, OR
GARNISHED  BY THE DEPARTMENT FOR THE PAYMENT OF THE PAST-DUE TAX LIABIL-
ITIES AT ISSUE; OR (IV) THE APPLICANT IS MAKING CHILD  SUPPORT  PAYMENTS
OR  COMBINED  CHILD AND SPOUSAL SUPPORT PAYMENTS PURSUANT TO A SATISFAC-
TORY PAYMENT ARRANGEMENT UNDER  SECTION  ONE  HUNDRED  ELEVEN-B  OF  THE
SOCIAL  SERVICES  LAW WITH A SUPPORT COLLECTION UNIT OR OTHERWISE MAKING
PERIODIC PAYMENTS IN ACCORDANCE WITH SECTION FOUR HUNDRED FORTY  OF  THE
FAMILY  COURT  ACT.  AN  APPLICANT MAY CHALLENGE A DEPARTMENT FINDING OF
FAILURE TO COMPLY WITH  TAX  RETURN  FILING  REQUIREMENTS  ONLY  ON  THE
GROUNDS  THAT  ALL  REQUIRED TAX RETURNS HAVE BEEN FILED FOR EACH OF THE
PAST THREE YEARS.
  (C) NOTHING IN THIS SUBDIVISION IS INTENDED  TO  LIMIT  ANY  APPLICANT
FROM SEEKING RELIEF FROM JOINT AND SEVERAL LIABILITY PURSUANT TO SECTION
SIX  HUNDRED FIFTY-FOUR OF THIS CHAPTER, TO THE EXTENT THAT HE OR SHE IS
ELIGIBLE PURSUANT TO THAT SECTION, OR  ESTABLISHING  TO  THE  DEPARTMENT
THAT  THE  ENFORCEMENT OF THE UNDERLYING TAX LIABILITIES HAS BEEN STAYED
BY THE FILING OF A PETITION PURSUANT TO  THE  BANKRUPTCY  CODE  OF  1978
(TITLE ELEVEN OF THE UNITED STATES CODE).
  (6)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW, THE DEPARTMENT MAY
EXCHANGE WITH A GOVERNMENT ENTITY ANY DATA OR INFORMATION THAT,  IN  THE
DISCRETION OF THE COMMISSIONER, IS NECESSARY FOR THE IMPLEMENTATION OF A
TAX CLEARANCE REQUIREMENT. HOWEVER, NO GOVERNMENT ENTITY MAY RE-DISCLOSE
THIS  INFORMATION  TO  ANY  OTHER  ENTITY  OR PERSON, OTHER THAN FOR THE
PURPOSE OF INFORMING THE APPLICANT THAT A  REQUIRED  TAX  CLEARANCE  HAS
BEEN DENIED, UNLESS OTHERWISE PERMITTED BY LAW.
  (7)  EXCEPT  AS  OTHERWISE PROVIDED IN THIS SECTION, THE ACTIVITIES TO
COLLECT PAST-DUE TAX LIABILITIES UNDERTAKEN BY THE  DEPARTMENT  PURSUANT
TO  THIS  SECTION  SHALL  NOT  IN  ANY WAY LIMIT, RESTRICT OR IMPAIR THE
DEPARTMENT FROM EXERCISING ANY OTHER AUTHORITY TO COLLECT OR ENFORCE TAX
LIABILITIES UNDER ANY OTHER APPLICABLE PROVISION OF LAW.
  § 8. This act shall take effect immediately.

                                 PART X

  Section 1. Section 2 of part Q of chapter 59  of  the  laws  of  2013,
amending  the  tax  law,  relating  to  serving an income execution with
respect to individual tax debtors without filing a warrant,  as  amended
by section 1 of part DD of chapter 59 of the laws of 2015, is amended to
read as follows:
  §  2.  This act shall take effect immediately [and shall expire and be
deemed repealed on and after April 1, 2017].
  § 2. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on and after April 1, 2017.

                                 PART Y

  Section  1.  Subdivision 1-A of section 208 of the tax law, as amended
by section 4 of part A of chapter 59 of the laws of 2014, is amended  to
read as follows:
  1-A.  The  term  "New  York  S corporation" means, with respect to any
taxable year, a corporation subject to tax under this article [for which
an election is in effect pursuant  to  subsection  (a)  of  section  six
hundred sixty of this chapter for such year] AND DESCRIBED IN SUBSECTION
(B)  OF  SECTION  SIX  HUNDRED  SIXTY OF THIS CHAPTER, AND any such year

S. 2009--A                         73                         A. 3009--A

shall be denominated a "New York S year"[, and such  election  shall  be
denominated  a "New York S election"]. The term "New York C corporation"
means, with respect to any taxable year, a corporation  subject  to  tax
under  this  article which is not a New York S corporation, and any such
year shall be denominated a "New York C  year".  The  term  "termination
year"  means  any  taxable year of a corporation during which the CORPO-
RATION'S STATUS AS A New York S [election] CORPORATION terminates  on  a
day  other  than  the first day of such year. The portion of the taxable
year ending before the first day for which such termination is effective
shall be denominated the "S short year", and the portion  of  such  year
beginning on such first day shall be denominated the "C short year". The
term  "New  York S termination year" means any termination year which is
[not] also an S termination year for federal purposes.
  § 2. Subdivision 1-B, paragraph (ii)  of  the  opening  paragraph  and
paragraph  (k)  of  subdivision  9  of  section  208  of the tax law are
REPEALED.
  § 3. Subdivision 1 of section 210-A of the  tax  law,  as  amended  by
section  21  of  part T of chapter 59 of the laws of 2015, is amended to
read as follows:
  1. General. Business income and capital shall be  apportioned  to  the
state  by  the apportionment factor determined pursuant to this section.
The apportionment factor is a fraction,  determined  by  including  only
those receipts, net income, net gains, and other items described in this
section  that are included in the computation of the taxpayer's business
income (determined  without  regard  to  the  modification  provided  in
subparagraph  nineteen  of  paragraph (a) of subdivision nine of section
two hundred eight of this article) for the taxable year.  The  numerator
of  the  apportionment  fraction  shall  be  equal to the sum of all the
amounts required to  be  included  in  the  numerator  pursuant  to  the
provisions  of  this  section  and  the denominator of the apportionment
fraction shall be equal to the sum of all the  amounts  required  to  be
included  in the denominator pursuant to the provisions of this section.
FOR A NEW YORK S CORPORATION, THE RECEIPTS INCLUDED IN THE APPORTIONMENT
FRACTION ARE THOSE RECEIPTS, NET INCOME (NOT LESS THAN ZERO), NET  GAINS
(NOT LESS THAN ZERO), AND OTHER ITEMS DESCRIBED IN THIS SECTION THAT ARE
INCLUDED  IN  THE NEW YORK S CORPORATION'S NONSEPARATELY COMPUTED INCOME
AND LOSS OR IN THE NEW YORK S CORPORATION'S SEPARATELY STATED  ITEMS  OF
INCOME  AND LOSS, DETERMINED PURSUANT TO SUBDIVISION (A) OF SECTION 1366
OF THE INTERNAL REVENUE CODE.
  § 4. Section 660 of the tax law, as amended by chapter 606 of the laws
of 1984, subsections (a) and (h) as amended by section 73 of part  A  of
chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended
by section 51 of part A of chapter 389 of the laws of 1997, paragraphs 4
and  5  as  added  and  paragraph  6  of subsection (b) as renumbered by
section 52 of part A of chapter 389 of the laws of 1997, subsection  (d)
as  added by chapter 760 of the laws of 1992, subsections (e) and (f) as
added and subsection (g) as relettered by section 53 of part A of  chap-
ter  389  of  the  laws of 1997, subsection (i) as added by section 1 of
part L of chapter 60 of the laws of 2007, and paragraph 1 of  subsection
(i)  as  amended  by  section  39 of part T of chapter 59 of the laws of
2015, is amended to read as follows:
  § 660. [Election by shareholders of S corporations.] TAX TREATMENT  OF
FEDERAL  S  CORPORATIONS. (a) [Election.] If a corporation is an [eligi-
ble] S corporation DESCRIBED IN SUBSECTION  (B)  OF  THIS  SECTION,  the
shareholders  of  the  corporation [may elect in the manner set forth in
subsection (b) of this section to]  SHALL  take  into  account,  to  the

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extent  provided  for  in  this  article (or in article thirteen of this
chapter, in the case of a shareholder which is  a  taxpayer  under  such
article),  the  S  corporation  items  of  income,  loss,  deduction and
reductions for taxes described in paragraphs two and three of subsection
(f)  of  section thirteen hundred sixty-six of the internal revenue code
which are taken into account for federal income  tax  purposes  for  the
taxable  year.  [No  election  under  this subsection shall be effective
unless all shareholders of the corporation have so elected. An eligible]
  (B) A NEW YORK S corporation is (i) [an S] A corporation THAT HAS MADE
A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL INCOME TAX  PURPOSES
PURSUANT  TO  SECTION 1362 OF THE INTERNAL REVENUE CODE which is subject
to tax under article nine-A of this chapter, or (ii)  [an  S]  A  corpo-
ration THAT HAS MADE A VALID ELECTION TO BE AN S CORPORATION FOR FEDERAL
INCOME  TAX  PURPOSES  PURSUANT  TO SECTION 1362 OF THE INTERNAL REVENUE
CODE which is the parent of  a  qualified  subchapter  S  subsidiary  AS
DEFINED  IN  SUBPARAGRAPH  (B)  OF  PARAGRAPH THREE OF SUBSECTION (B) OF
SECTION THIRTEEN HUNDRED SIXTY-ONE OF THE INTERNAL REVENUE CODE  subject
to  tax  under  article  nine-A[,  where the shareholders of such parent
corporation are entitled to make the election under this  subsection  by
reason  of  subparagraph  three  of paragraph (k) of subdivision nine of
section two hundred eight] of this chapter.
  [(b) Requirements of election. An election  under  subsection  (a)  of
this  section  shall  be made on such form and in such manner as the tax
commission may prescribe by regulation or instruction.
  (1) When made. An election under subsection (a) of this section may be
made at any time during the preceding taxable year of the corporation or
at any time during the taxable year of the corporation and on or  before
the fifteenth day of the third month of such taxable year.
  (2) Certain elections made during first two and one-half months. If an
election made under subsection (a) of this section is made for any taxa-
ble  year  of  the  corporation  during  such  year and on or before the
fifteenth day of the third month of such year, such  election  shall  be
treated as made for the following taxable year if
  (A)  on  one or more days in such taxable year before the day on which
the election was made the corporation did not meet the  requirements  of
subsection  (b)  of  section  thirteen hundred sixty-one of the internal
revenue code or
  (B) one or more of the shareholders who held stock in the  corporation
during  such  taxable  year  and  before  the  election was made did not
consent to the election.
  (3) Elections made after first two and one-half months. If an election
under subsection (a) of this section is made for any taxable year of the
corporation and such election is made after the  fifteenth  day  of  the
third  month  of such taxable year and on or before the fifteenth day of
the third month of the following taxable year, such  election  shall  be
treated as made for the following taxable year.
  (4)  Taxable years of two and one-half months or less. For purposes of
this subsection, an election for a taxable year made not later than  two
months and fifteen days after the first day of the taxable year shall be
treated as timely made during such year.
  (5)  Authority  to  treat  late  elections, etc., as timely. If (A) an
election under subsection (a) of this section is made  for  any  taxable
year  (determined  without regard to paragraph three of this subsection)
after the date prescribed by this subsection for  making  such  election
for  such  taxable  year, or if no such election is made for any taxable
year, and

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  (B) the commissioner determines that there was  reasonable  cause  for
failure to timely make such election, then
  (C)  the  commissioner  may  treat such an election as timely made for
such taxable year (and paragraph three  of  this  subsection  shall  not
apply).
  (6)  Years  for  which  effective. An election under subsection (a) of
this section shall be effective for the taxable year of the  corporation
for  which it is made and for all succeeding taxable years of the corpo-
ration until such election is terminated under subsection  (c)  of  this
section.]
  (c)  Termination. An [election under subsection (a) of this section] S
CORPORATION shall cease to be [effective
  (1)] A NEW YORK S CORPORATION on the day an election to be an S corpo-
ration ceases to be effective for federal income tax  purposes  pursuant
to  subsection (d) of section thirteen hundred sixty-two of the internal
revenue code[, or
  (2) if shareholders holding more than one-half of the shares of  stock
of  the  corporation  on  the day on which the revocation is made revoke
such election in the manner the tax commission may  prescribe  by  regu-
lation,
  (A)  on  the  first day of the taxable year of the corporation, if the
revocation is made during  such  taxable  year  and  on  or  before  the
fifteenth day of the third month thereof, or
  (B) on the first day of the following taxable year of the corporation,
if  the  revocation  is  made  during  the  taxable  year  but after the
fifteenth day of the third month thereof, or
  (C) on and after the date so specified, if the revocation specifies  a
date for revocation which is on or after the day on which the revocation
is made, or
  (3)  if any person who was not a shareholder of the corporation on the
day on which the election is made becomes a shareholder  in  the  corpo-
ration  and  affirmatively  refuses  to  consent to such election in the
manner the tax commission may prescribe by regulation, on the  day  such
person becomes a shareholder].
  (d)  New  York  S termination year. In the case of a New York S termi-
nation year, the amount of any item of S corporation  income,  loss  and
deduction  and  reductions for taxes (as described in paragraphs two and
three of subsection (f) of section thirteen  hundred  sixty-six  of  the
internal  revenue code) required to be taken account of under this arti-
cle shall be adjusted in the same manner that the S corporation's  items
which  are  included  in the shareholder's federal adjusted gross income
are adjusted under subsection (s) of section six hundred twelve.
  (e)  [Inadvertent  invalid  elections.  If  (1)  an   election   under
subsection  (a)  of  this section was not effective for the taxable year
for which made (determined without regard to paragraph two of subsection
(b) of this section) by  reason  of  a  failure  to  obtain  shareholder
consents,
  (2)  the  commissioner  determines that the circumstances resulting in
such ineffectiveness were inadvertent,
  (3) no later than a reasonable period of time after discovery  of  the
circumstances  resulting  in  such  ineffectiveness, steps were taken to
acquire the required shareholder consents, and
  (4) the corporation, and each person who  was  a  shareholder  in  the
corporation  at  any  time  during the period specified pursuant to this
subsection, agrees to make such adjustments (consistent with the  treat-

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ment  of the corporation as a New York S corporation) as may be required
by the commissioner with respect to such period,
  (5) then, notwithstanding the circumstances resulting in such ineffec-
tiveness,  such corporation shall be treated as a New York S corporation
during the period specified by the commissioner.
  (f) Validated federal elections. If (1) an election  under  subsection
(a)  of  this  section  was made for a taxable year or years of a corpo-
ration, which years occur with or within the period for which the feder-
al S election of such corporation has been  validated  pursuant  to  the
provisions  of  subsection  (f) of section thirteen hundred sixty-two of
the internal revenue code, and
  (2) the corporation, and each person who  was  a  shareholder  in  the
corporation at any time during such taxable year or years agrees to make
such  adjustments (consistent with the treatment of the corporation as a
New York S corporation) as may be  required  by  the  commissioner  with
respect to such year or years,
  (3) then such corporation shall be treated as a New York S corporation
during such year or years.
  (g)  Transitional  rule.  Any  election made under this section (as in
effect for  taxable  years  beginning  before  January  first,  nineteen
hundred  eighty-three)  shall  be  treated  as  an  election  made under
subsection (a) of this section.
  (h)] QUALIFIED SUBCHAPTER S SUBSIDIARIES.  IF  AN  S  CORPORATION  HAS
ELECTED TO TREAT ITS WHOLLY OWNED SUBSIDIARY AS A QUALIFIED SUBCHAPTER S
SUBSIDIARY  FOR  FEDERAL  INCOME  TAX  PURPOSES UNDER PARAGRAPH THREE OF
SUBSECTION (B) OF SECTION  1361  OF  THE  INTERNAL  REVENUE  CODE,  SUCH
ELECTION SHALL BE APPLICABLE FOR NEW YORK STATE TAX PURPOSES AND
  (1)  THE  ASSETS,  LIABILITIES, INCOME, DEDUCTIONS, PROPERTY, PAYROLL,
RECEIPTS, CAPITAL, CREDITS, AND ALL OTHER TAX ATTRIBUTES AND ELEMENTS OF
ECONOMIC ACTIVITY OF THE SUBSIDIARY SHALL BE DEEMED TO BE THOSE  OF  THE
PARENT CORPORATION,
  (2)  TRANSACTIONS  BETWEEN  THE PARENT CORPORATION AND THE SUBSIDIARY,
INCLUDING THE PAYMENT OF INTEREST AND DIVIDENDS, SHALL NOT BE TAKEN INTO
ACCOUNT, AND
  (3) GENERAL EXECUTIVE OFFICERS OF THE SUBSIDIARY SHALL BE DEEMED TO BE
GENERAL EXECUTIVE OFFICERS OF THE PARENT CORPORATION.
  (F) Cross reference.  For definitions relating to S corporations,  see
subdivision one-A of section two hundred eight of this chapter.
  [(i)  Mandated  New  York S corporation election.  (1) Notwithstanding
the provisions in subsection (a) of this section,  in  the  case  of  an
eligible  S  corporation  for which the election under subsection (a) of
this section is not in effect for the current taxable year,  the  share-
holders  of  an  eligible  S  corporation  are  deemed to have made that
election effective for the eligible S corporation's entire current taxa-
ble year, if the eligible S  corporation's  investment  income  for  the
current  taxable  year  is  more than fifty percent of its federal gross
income for such year. In determining whether an eligible  S  corporation
is deemed to have made that election, the income of a qualified subchap-
ter  S  subsidiary owned directly or indirectly by the eligible S corpo-
ration shall be included with the income of the eligible S corporation.
  (2) For the purposes of this subsection, the term "eligible  S  corpo-
ration" has the same definition as in subsection (a) of this section.
  (3)  For the purposes of this subsection, the term "investment income"
means the sum of an eligible S corporation's gross income from interest,
dividends, royalties, annuities, rents and gains derived  from  dealings
in  property,  including  the  corporation's  share of such items from a

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partnership, estate or trust, to the extent such items would be includa-
ble in federal gross income for the taxable year.
  (4)  Estimated  tax  payments.  When  making  estimated  tax  payments
required to be made under this chapter in  the  current  tax  year,  the
eligible  S  corporation and its shareholders may rely on the eligible S
corporation's filing status for the prior year. If the eligible S corpo-
ration's filing status changes from the prior tax year  the  corporation
or  the  shareholders, as the case may be, which made the payments shall
be entitled to a refund of such estimated tax payments.  No additions to
tax with respect to any required declarations or payments  of  estimated
tax  imposed  under  this chapter shall be imposed on the corporation or
shareholders, whichever is the taxpayer for the current taxable year, if
the corporation or the shareholders file such declarations and make such
estimated tax payments by January fifteenth of  the  following  calendar
year,  regardless  of whether the taxpayer's tax year is a calendar or a
fiscal year.]
  § 5. Subparagraph (A) of paragraph 18 of subsection (b) of section 612
of the tax law, as amended by chapter 28 of the laws of 1987, is amended
to read as follows:
  (A) [where the election provided for in subsection (a) of section  six
hundred  sixty  is in effect with respect to such corporation] THAT IS A
NEW YORK S CORPORATION, an amount equal to his pro  rata  share  of  the
corporation's reductions for taxes described in paragraphs two and three
of  subsection (f) of section thirteen hundred sixty-six of the internal
revenue code, and
  § 6. Paragraph 19 of subsection (b) of section 612 of the tax  law  is
REPEALED.
  §  7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax
law, paragraph 20 as amended by chapter 606 of  the  laws  of  1984  and
paragraph  21  as  amended  by section 70 of part A of chapter 59 of the
laws of 2014, are amended to read as follows:
  (20) S corporation distributions to the extent not included in federal
gross income for the taxable year because of the application of  section
thirteen hundred sixty-eight, subsection (e) of section thirteen hundred
seventy-one  or  subsection (c) of section thirteen hundred seventy-nine
of the internal revenue  code  which  represent  income  not  previously
subject  to  tax under this article because the election provided for in
subsection (a) of section six hundred sixty IN EFFECT FOR TAXABLE  YEARS
BEGINNING BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN had not been made.
Any  such  distribution treated in the manner described in paragraph two
of subsection (b) of section thirteen hundred sixty-eight of the  inter-
nal  revenue  code  for  federal income tax purposes shall be treated as
ordinary income for purposes of this article.
  (21) In relation to the disposition of  stock  or  indebtedness  of  a
corporation  which  elected  under  subchapter  s  of chapter one of the
internal revenue code for any taxable year of  such  corporation  begin-
ning,  in the case of a corporation taxable under article nine-A of this
chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
JANUARY FIRST, TWO THOUSAND EIGHTEEN, the amount required to be added to
federal adjusted  gross  income  pursuant  to  subsection  (n)  of  this
section.
  §  8. Paragraph 21 of subsection (c) of section 612 of the tax law, as
amended by section 70 of part A of chapter 59 of the laws  of  2014,  is
amended to read as follows:
  (21)  In  relation  to  the  disposition of stock or indebtedness of a
corporation which elected under subchapter  s  of  chapter  one  of  the

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internal  revenue  code  for any taxable year of such corporation begin-
ning, in the case of a corporation taxable under article nine-A of  this
chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
JANUARY  FIRST,  TWO  THOUSAND  EIGHTEEN,  the  amounts  required  to be
subtracted from federal adjusted gross income pursuant to subsection (n)
of this section.
  § 9. Paragraph 22 of subsection (c) of section 612 of the tax  law  is
REPEALED.
  §  10.  Subsection  (e)  of  section 612 of the tax law, as amended by
chapter 166 of the laws of 1991 and paragraph 3 as added by chapter  760
of the laws of 1992, is amended to read as follows:
  (e)  Modifications of partners and shareholders of S corporations. (1)
Partners and shareholders of S corporations [which are not  New  York  C
corporations].  The  amounts  of modifications required to be made under
this section by a partner or  by  a  shareholder  of  an  S  corporation
[(other than an S corporation which is a New York C corporation)], which
relate  to  partnership  or S corporation items of income, gain, loss or
deduction shall be determined under section six hundred  seventeen  and,
in the case of a partner of a partnership doing an insurance business as
a  member  of  the  New York insurance exchange described in section six
thousand two hundred one of the insurance law, under section six hundred
seventeen-a of this article.
  (2) [Shareholders of S corporations which are New York C corporations.
In the case of a shareholder of an S corporation which is a New  York  C
corporation,  the  modifications  under this section which relate to the
corporation's items of income,  loss  and  deduction  shall  not  apply,
except  for  the  modifications  provided  under  paragraph  nineteen of
subsection (b) and  paragraph  twenty-two  of  subsection  (c)  of  this
section.
  (3)]  New  York S termination year. In the case of a New York S termi-
nation year, the  amounts  of  the  modifications  required  under  this
section  which  relate  to  the  S  corporation's items of income, loss,
deduction and reductions for taxes (as described in paragraphs  two  and
three  of  subsection  (f)  of section thirteen hundred sixty-six of the
internal revenue code) shall be adjusted in the same manner that  the  S
corporation's  items  are  adjusted under subsection (s) of [section six
hundred twelve] THIS SECTION.
  § 11. Subsection (n) of section 612 of the  tax  law,  as  amended  by
section  61  of part A of chapter 389 of the laws of 1997, is amended to
read as follows:
  (n) Where gain or loss is recognized for federal income  tax  purposes
upon  the disposition of stock or indebtedness of a corporation electing
under subchapter s of chapter one of the internal revenue code
  (1) There shall be added to federal adjusted gross income  the  amount
of increase in basis with respect to such stock or indebtedness pursuant
to  subsection (a) of section thirteen hundred seventy-six of the inter-
nal revenue code as such section was in effect for taxable years  begin-
ning  before  January  first, nineteen hundred eighty-three and subpara-
graphs (A) and (B)  of  paragraph  one  of  subsection  (a)  of  section
thirteen  hundred sixty-seven of such code, for each taxable year of the
corporation beginning, in the case of a corporation taxable under  arti-
cle  nine-A  of  this  chapter,  after  December  thirty-first, nineteen
hundred eighty AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN,  and  in
the case of a corporation taxable under article thirty-two of this chap-
ter, after December thirty-first, nineteen hundred ninety-six AND BEFORE
JANUARY FIRST, TWO THOUSAND FIFTEEN, for which the election provided for

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in  subsection  (a) of section six hundred sixty of this article was not
in effect, and
  (2) There shall be subtracted from federal adjusted gross income
  (A)  the  amount  of  reduction in basis with respect to such stock or
indebtedness pursuant to subsection  (b)  of  section  thirteen  hundred
seventy-six  of  the internal revenue code as such section was in effect
for taxable years  beginning  before  January  first,  nineteen  hundred
eighty-three   and  subparagraphs  (B)  and  (C)  of  paragraph  two  of
subsection (a) of section thirteen hundred sixty-seven of such code, for
each taxable year of the corporation beginning, in the case of a  corpo-
ration  taxable  under  article  nine-A  of this chapter, after December
thirty-first, nineteen hundred eighty  AND  BEFORE  JANUARY  FIRST,  TWO
THOUSAND  EIGHTEEN, and in the case of a corporation taxable under arti-
cle thirty-two of this chapter, after  December  thirty-first,  nineteen
hundred  ninety-six  AND BEFORE JANUARY FIRST, TWO THOUSAND FIFTEEN, for
which the election provided for in subsection (a) of section six hundred
sixty of this article was not in effect and
  (B) the amount of any  modifications  to  federal  gross  income  with
respect  to such stock pursuant to paragraph twenty of subsection (b) of
this section.
  § 12. Subparagraph (E-1) of paragraph 1 of subsection (b)  of  section
631 of the tax law, as added by section 3 of part C of chapter 57 of the
laws of 2010, is amended to read as follows:
  (E-1)  in  the  case  of  [an]  A NEW YORK S corporation [for which an
election is in effect pursuant to subsection (a) of section six  hundred
sixty  of  this article] that terminates its taxable status in New York,
any income or gain  recognized  on  the  receipt  of  payments  from  an
installment  sale  contract  entered  into  when  the  S corporation was
subject to tax in New York, allocated in a manner  consistent  with  the
applicable  methods  and  rules  for  allocation under article nine-A or
thirty-two of this chapter PRIOR TO ITS REPEAL, in the year that  the  S
corporation sold its assets.
  § 13. The section heading and paragraph 2 of subsection (a) of section
632 of the tax law, the section heading as amended by chapter 606 of the
laws  of 1984, paragraph 2 of subsection (a) as amended by section 71 of
part A of chapter 59 of the laws of 2014 and such section as  renumbered
by chapter 28 of the laws of 1987, are amended to read as follows:
  Nonresident partners and [electing] shareholders of S corporations.
  (2) In determining New York source income of a nonresident shareholder
of  [an]  A  NEW  YORK S corporation [where the election provided for in
subsection (a) of section six  hundred  sixty  of  this  article  is  in
effect],  there  shall  be  included  only  the  portion derived from or
connected with New York sources of such shareholder's pro rata share  of
items  of  S  corporation  income,  loss and deduction entering into his
federal  adjusted  gross  income,  increased  by  reductions  for  taxes
described in paragraphs two and three of subsection (f) of section thir-
teen  hundred  sixty-six  of  the internal revenue code, as such portion
shall be determined under regulations  of  the  commissioner  consistent
with  the  applicable  methods  and  rules  for allocation under article
nine-A of this chapter, regardless  of  whether  or  not  such  item  or
reduction  is included in entire net income under article nine-A for the
tax year. If a nonresident is a shareholder in [an] A NEW YORK S  corpo-
ration [where the election provided for in subsection (a) of section six
hundred  sixty of this article is in effect, and the S corporation] THAT
has distributed an installment obligation under section 453(h)(1)(A)  of
the  Internal  Revenue  Code, then any gain recognized on the receipt of

S. 2009--A                         80                         A. 3009--A

payments from the installment obligation for federal income tax purposes
will be treated as New York source income allocated in a manner consist-
ent with the applicable methods and rules for allocation  under  article
nine-A  of  this chapter in the year that the assets were sold. In addi-
tion, if the shareholders of the NEW YORK S  corporation  have  made  an
election under section 338(h)(10) of the Internal Revenue Code, then any
gain recognized on the deemed asset sale for federal income tax purposes
will be treated as New York source income allocated in a manner consist-
ent  with  the applicable methods and rules for allocation under article
nine-A of this chapter in the year that the shareholder made the section
338(h)(10) election. For purposes of a section 338(h)(10) election, when
a nonresident shareholder exchanges his or her S  corporation  stock  as
part  of  the  deemed  liquidation, any gain or loss recognized shall be
treated as the disposition of an intangible asset and will not  increase
or  offset  any gain recognized on the deemed assets sale as a result of
the section 338(h)(10) election.
  § 14. Subparagraph (A) and the opening paragraph of  subparagraph  (B)
of  paragraph  5  of  subdivision  (a) of section 292 of the tax law, as
added by section 48 of part A of chapter 389 of the laws  of  1997,  are
amended to read as follows:
  (A) In the case of a shareholder of an S corporation,
  (i)  [where the election provided for in subsection (a) of section six
hundred sixty of this chapter is in effect with respect to  such  corpo-
ration] THAT IS A NEW YORK S CORPORATION, there shall be added to feder-
al  unrelated  business taxable income an amount equal to the sharehold-
er's pro rata share of the corporation's reductions for taxes  described
in  paragraphs  two  and  three  of  subsection  (f) of section thirteen
hundred sixty-six of the internal revenue code, and
  (ii) [where such election has not  been  made  with  respect  to  such
corporation,  there  shall be subtracted from federal unrelated business
taxable income any items of income of the corporation included  therein,
and  there  shall  be added to federal unrelated business taxable income
any items of loss or deduction included therein, and
  (iii)] in the case of a New York S termination year, the amount of any
such items of S corporation income, loss, deduction and  reductions  for
taxes shall be adjusted in the manner provided in paragraph two or three
of subsection (s) of section six hundred twelve of this chapter.
  In  the  case  of a shareholder of a corporation which was, for any of
its taxable years beginning  after  nineteen  hundred  ninety-seven  AND
BEFORE  TWO  THOUSAND EIGHTEEN, a federal S corporation but a New York C
corporation:
  § 15. Transition  rules.  Any  prior  net  operating  loss  conversion
subtraction  pool  and  net  operating  loss carryforward that otherwise
would have been allowed under subparagraph (viii) of  paragraph  (a)  of
subdivision  1  of  section  210 of the tax law and subparagraph (ix) of
paragraph (a) of subdivision 1 of section 210 of the  tax  law,  respec-
tively,  for  the 2018 or subsequent taxable years, to any taxpayer that
was a New York C corporation for the 2017 taxable year,  and  becomes  a
New  York  S  corporation  for  the 2018 taxable year as a result of the
amendments made by this act, shall be held in abeyance and be  available
to such taxpayer if its election to be a federal S corporation is termi-
nated.  Further, any credit carryforwards that otherwise would have been
allowed to such a taxpayer under section 210-B of the tax  law  for  the
2018 or subsequent taxable years shall be held in abeyance and be avail-
able  to  such taxpayer if its election to be a federal S corporation is
terminated. However, the taxpayer's taxable years as a New York S corpo-

S. 2009--A                         81                         A. 3009--A

ration shall be counted for purposes of computing any time period appli-
cable to the allowance  of  the  prior  net  operating  loss  conversion
subtraction,  the  net  operating loss deduction or any credit carryfor-
ward.
  §  16. This act shall take effect immediately and shall apply to taxa-
ble years beginning on or after January 1, 2018.

                                 PART Z

  Section 1. Clause 1 of subparagraph (A) of paragraph 1  of  subsection
(b)  of section 631 of the tax law, as added by section 1 of part F-1 of
chapter 57 of the laws of 2009, is amended to read as follows:
  (1) For purposes of this subparagraph, the term "real property located
in this state" includes an interest in a partnership, limited  liability
corporation,  S  corporation,  or non-publicly traded C corporation with
one hundred or fewer shareholders (hereinafter the "entity")  that  owns
real  property  that is located in New York [and has a fair market value
that] OR OWNS SHARES OF STOCK IN A COOPERATIVE HOUSING CORPORATION WHERE
THE COOPERATIVE UNITS RELATING TO THE SHARES ARE LOCATED  IN  NEW  YORK;
PROVIDED,  THAT THE SUM OF THE FAIR MARKET VALUES OF SUCH REAL PROPERTY,
COOPERATIVE SHARES, AND RELATED  COOPERATIVE  UNITS  equals  or  exceeds
fifty  percent  of  all  the assets of the entity on the date of sale or
exchange of the taxpayer's interest in the entity.   Only  those  assets
that the entity owned for at least two years before the date of the sale
or  exchange  of the taxpayer's interest in the entity are to be used in
determining the fair market value of all the assets of the entity on the
date of sale or exchange. The gain or loss derived from New York sources
from the taxpayer's sale or exchange of an interest in an entity that is
subject to the provisions of this subparagraph is the total gain or loss
for federal income tax purposes from that sale or exchange multiplied by
a fraction, the numerator of which is the fair market value of the  real
property,  AND  THE  COOPERATIVE  HOUSING  CORPORATION STOCK AND RELATED
COOPERATIVE UNITS located in New York on the date of  sale  or  exchange
and  the denominator of which is the fair market value of all the assets
of the entity on the date of sale or exchange.
  § 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART AA

  Section 1. Paragraph 1 of subsection (a) of section  632  of  the  tax
law, as amended by chapter 28 of the laws of 1987, is amended to read as
follows:
  (1)  In determining New York source income of a nonresident partner of
any partnership, there shall be included only the portion  derived  from
or  connected with New York sources of such partner's distributive share
of items of partnership income, gain, loss and deduction  entering  into
his  federal  adjusted gross income, as such portion shall be determined
under regulations of the tax commission consistent with  the  applicable
rules  of section six hundred thirty-one OF THIS PART.  IF A NONRESIDENT
IS A PARTNER IN A PARTNERSHIP WHERE A SALE OR TRANSFER OF THE MEMBERSHIP
INTEREST OF THE PARTNER IS SUBJECT TO THE  PROVISIONS  OF  SECTION  ONE-
THOUSAND SIXTY OF THE INTERNAL REVENUE CODE, THEN ANY GAIN RECOGNIZED ON
THE SALE OR TRANSFER FOR FEDERAL INCOME TAX PURPOSES SHALL BE TREATED AS
NEW  YORK SOURCE INCOME ALLOCATED IN A MANNER CONSISTENT WITH THE APPLI-

S. 2009--A                         82                         A. 3009--A

CABLE METHODS AND RULES FOR ALLOCATION UNDER THIS ARTICLE  IN  THE  YEAR
THAT THE ASSETS WERE SOLD OR TRANSFERRED.
  § 2. This act shall take effect immediately

                                 PART BB

  Section  1.  Section  1101  of  the tax law is amended by adding a new
subdivision (e) to read as follows:
  (E) WHEN USED IN THIS ARTICLE FOR THE PURPOSES OF  THE  TAXES  IMPOSED
UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
BY SECTION ELEVEN HUNDRED TEN OF THIS ARTICLE, THE FOLLOWING TERMS SHALL
MEAN:
  (1)  MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT TO AN AGREEMENT WITH
A MARKETPLACE SELLER, FACILITATES SALES OF TANGIBLE PERSONAL PROPERTY BY
SUCH MARKETPLACE SELLER OR SELLERS. A  PERSON  "FACILITATES  A  SALE  OF
TANGIBLE  PERSONAL  PROPERTY"  FOR  PURPOSES  OF THIS PARAGRAPH WHEN THE
PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (I) SUCH PERSON  PROVIDES
THE  FORUM  IN  WHICH, OR BY MEANS OF WHICH, THE SALE TAKES PLACE OR THE
OFFER OF SALE IS ACCEPTED, INCLUDING A SHOP, STORE, OR BOOTH, AN  INTER-
NET  WEBSITE,  CATALOG,  OR  SIMILAR  FORUM;  AND (II) SUCH PERSON OR AN
AFFILIATE OF SUCH PERSON COLLECTS THE RECEIPTS PAID BY A CUSTOMER  TO  A
MARKETPLACE  SELLER  FOR  A  SALE  OF  TANGIBLE  PERSONAL  PROPERTY,  OR
CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RECEIPTS. FOR  PURPOSES  OF
THIS  PARAGRAPH,  TWO PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNER-
SHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT,  IN
THE  OTHER,  OR  WHERE  AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT,
WHETHER DIRECT OR INDIRECT, IS HELD IN EACH OF SUCH PERSONS  BY  ANOTHER
PERSON  OR  BY A GROUP OF OTHER PERSONS THAT ARE AFFILIATED PERSONS WITH
RESPECT TO EACH OTHER. NOTWITHSTANDING ANYTHING  IN  THIS  PARAGRAPH,  A
PERSON WHO FACILITATES SALES EXCLUSIVELY BY MEANS OF THE INTERNET IS NOT
A MARKETPLACE PROVIDER FOR A SALES TAX QUARTER WHEN SUCH PERSON CAN SHOW
THAT  IT  HAS FACILITATED LESS THAN ONE HUNDRED MILLION DOLLARS OF SALES
ANNUALLY FOR EVERY CALENDAR YEAR AFTER TWO THOUSAND FIFTEEN.
  (2) MARKETPLACE SELLER. ANY PERSON, WHETHER  OR  NOT  SUCH  PERSON  IS
REQUIRED  TO  OBTAIN  A  CERTIFICATE  OF  AUTHORITY UNDER SECTION ELEVEN
HUNDRED THIRTY-FOUR OF THIS ARTICLE, WHO HAS AN AGREEMENT WITH A MARKET-
PLACE PROVIDER UNDER WHICH  THE  MARKETPLACE  PROVIDER  WILL  FACILITATE
SALES OF TANGIBLE PERSONAL PROPERTY BY SUCH PERSON WITHIN THE MEANING OF
PARAGRAPH ONE OF THIS SUBDIVISION.
  § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap-
ter 576 of the laws of 1994, is amended to read as follows:
  (1)  "Persons  required to collect tax" or "person required to collect
any tax imposed by this article" shall include: every vendor of tangible
personal property or services; every  recipient  of  amusement  charges;
[and]  every  operator  of  a hotel, AND EVERY MARKETPLACE PROVIDER WITH
RESPECT TO  SALES  OF  TANGIBLE  PERSONAL  PROPERTY  IT  FACILITATES  AS
DESCRIBED  IN PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED
ONE OF THIS ARTICLE. Said terms shall also include any officer, director
or employee of a corporation or of a dissolved corporation, any employee
of a partnership, any employee or manager of a limited liability  compa-
ny, or any employee of an individual proprietorship who as such officer,
director,  employee  or  manager  is under a duty to act for such corpo-
ration, partnership, limited liability company or individual proprietor-
ship in complying with any requirement of this article; and  any  member
of  a partnership or limited liability company.  Provided, however, that
any person who is a vendor solely by reason of  clause  (D)  or  (E)  of

S. 2009--A                         83                         A. 3009--A

subparagraph  (i)  of paragraph (8) of subdivision (b) of section eleven
hundred one OF THIS ARTICLE shall not be a "person required  to  collect
any  tax  imposed  by  this article" until twenty days after the date by
which  such  person  is  required  to file a certificate of registration
pursuant to section eleven hundred thirty-four OF THIS PART.
  § 3. Section 1132 of the tax law is amended by adding a  new  subdivi-
sion (l) to read as follows:
  (L)  (1)  A  MARKETPLACE  PROVIDER, WITH RESPECT TO A SALE OF TANGIBLE
PERSONAL PROPERTY IT FACILITATES: (I) SHALL HAVE ALL THE OBLIGATIONS AND
RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTICLE  TWENTY-NINE  OF  THIS
CHAPTER  AND  UNDER ANY REGULATIONS ADOPTED PURSUANT THERETO, INCLUDING,
BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIFICATE  OF  AUTHORITY,  TO
COLLECT  TAX, FILE RETURNS, REMIT TAX, AND THE RIGHT TO ACCEPT A CERTIF-
ICATE OR OTHER DOCUMENTATION FROM A CUSTOMER SUBSTANTIATING AN EXEMPTION
OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE  THE  REFUND  AUTHORIZED  BY
SUBDIVISION  (E)  OF  THIS SECTION AND THE CREDIT ALLOWED BY SUBDIVISION
(F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF THIS PART SUBJECT  TO  THE
PROVISIONS  OF  SUCH  SUBDIVISION;  AND (II) SHALL KEEP SUCH RECORDS AND
INFORMATION AND COOPERATE WITH THE COMMISSIONER  TO  ENSURE  THE  PROPER
COLLECTION  AND  REMITTANCE  OF  TAX IMPOSED COLLECTED OR REQUIRED TO BE
COLLECTED UNDER THIS ARTICLE AND ARTICLE TWENTY-NINE OF THIS CHAPTER.
  (2) A MARKETPLACE SELLER WHO IS A VENDOR IS RELIEVED FROM THE DUTY  TO
COLLECT TAX IN REGARD TO A PARTICULAR SALE OF TANGIBLE PERSONAL PROPERTY
SUBJECT  TO  TAX UNDER SUBDIVISION (A) OF SECTION ELEVEN HUNDRED FIVE OF
THIS ARTICLE AND SHALL NOT INCLUDE THE RECEIPTS FROM SUCH  SALE  IN  ITS
TAXABLE  RECEIPTS  FOR  PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF
THIS PART IF, IN REGARD TO SUCH SALE: (I)  THE  MARKETPLACE  SELLER  CAN
SHOW  THAT SUCH SALE WAS FACILITATED BY A MARKETPLACE PROVIDER FROM WHOM
SUCH SELLER HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED  CERTIFICATE
OF  COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER, CERTIFYING THAT
THE MARKETPLACE PROVIDER IS REGISTERED TO COLLECT  SALES  TAX  AND  WILL
COLLECT  SALES TAX ON ALL TAXABLE SALES OF TANGIBLE PERSONAL PROPERTY BY
THE MARKETPLACE SELLER FACILITATED BY THE MARKETPLACE PROVIDER, AND WITH
SUCH OTHER INFORMATION AS THE COMMISSIONER MAY PRESCRIBE; AND  (II)  ANY
FAILURE  OF THE MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX
IN REGARD TO SUCH SALE WAS NOT THE RESULT  OF  SUCH  MARKETPLACE  SELLER
PROVIDING  THE  MARKETPLACE  PROVIDER  WITH  INCORRECT INFORMATION. THIS
PROVISION SHALL BE ADMINISTERED IN A MANNER CONSISTENT WITH SUBPARAGRAPH
(I) OF PARAGRAPH ONE OF SUBDIVISION (C) OF THIS SECTION AS IF A  CERTIF-
ICATE  OF COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES
OF SUCH SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF  SUCH
CERTIFICATE  OF  COLLECTION  AND  THE  TIMING  OF  ITS ACCEPTANCE BY THE
MARKETPLACE SELLER. PROVIDED THAT, WITH REGARD TO ANY SALES OF  TANGIBLE
PERSONAL  PROPERTY  BY  A  MARKETPLACE  SELLER THAT ARE FACILITATED BY A
MARKETPLACE PROVIDER WHO IS  AFFILIATED  WITH  SUCH  MARKETPLACE  SELLER
WITHIN THE MEANING OF PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN
HUNDRED  ONE  OF  THIS  ARTICLE,  THE MARKETPLACE SELLER SHALL BE DEEMED
LIABLE AS A PERSON UNDER A DUTY TO ACT FOR SUCH MARKETPLACE PROVIDER FOR
PURPOSES OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS
PART.
  (3) THE COMMISSIONER MAY, IN HIS OR  HER  DISCRETION:  (I)  DEVELOP  A
STANDARD  PROVISION,  OR  APPROVE A PROVISION DEVELOPED BY A MARKETPLACE
PROVIDER, IN WHICH THE MARKETPLACE PROVIDER OBLIGATES ITSELF TO  COLLECT
THE  TAX  ON  BEHALF OF ALL THE MARKETPLACE SELLERS FOR WHOM THE MARKET-
PLACE PROVIDER FACILITATES SALES OF  TANGIBLE  PERSONAL  PROPERTY,  WITH
RESPECT TO ALL SALES THAT IT FACILITATES FOR SUCH SELLERS WHERE DELIVERY

S. 2009--A                         84                         A. 3009--A

OCCURS  IN  THE  STATE; AND (II) PROVIDE BY REGULATION OR OTHERWISE THAT
THE INCLUSION OF SUCH  PROVISION  IN  THE  PUBLICLY-AVAILABLE  AGREEMENT
BETWEEN  THE  MARKETPLACE  PROVIDER AND MARKETPLACE SELLER WILL HAVE THE
SAME  EFFECT  AS  A  MARKETPLACE SELLER'S ACCEPTANCE OF A CERTIFICATE OF
COLLECTION FROM SUCH MARKETPLACE PROVIDER UNDER PARAGRAPH  TWO  OF  THIS
SUBDIVISION.
  §  4.  Section 1133 of the tax law is amended by adding a new subdivi-
sion (f) to read as follows:
  (F) A MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY UNDER THIS SECTION
FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO THE EXTENT THAT  THE
MARKETPLACE PROVIDER CAN SHOW THAT THE ERROR WAS DUE TO INCORRECT INFOR-
MATION  GIVEN  TO  THE  MARKETPLACE  PROVIDER BY THE MARKETPLACE SELLER.
PROVIDED, HOWEVER, THIS SUBDIVISION SHALL NOT APPLY IF  THE  MARKETPLACE
SELLER  AND  MARKETPLACE  PROVIDER  ARE AFFILIATED WITHIN THE MEANING OF
PARAGRAPH ONE OF SUBDIVISION (E) OF SECTION ELEVEN HUNDRED ONE  OF  THIS
ARTICLE.
  § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
amended  by  section  46 of part K of chapter 61 of the laws of 2011, is
amended to read as follows:
  (4) The return of a vendor of tangible personal property  or  services
shall  show  such vendor's receipts from sales and the number of gallons
of any motor fuel or diesel motor fuel sold and also the aggregate value
of tangible personal property and services and number of gallons of such
fuels sold by the vendor, the use of which is subject to tax under  this
article,  and  the  amount  of  tax  payable  thereon  pursuant  to  the
provisions of section eleven hundred  thirty-seven  of  this  part.  The
return  of  a recipient of amusement charges shall show all such charges
and the amount of tax thereon, and the return of an operator required to
collect tax on rents shall show all rents received or  charged  and  the
amount of tax thereon.  THE RETURN OF A MARKETPLACE SELLER SHALL EXCLUDE
THE  RECEIPTS FROM A SALE OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
MARKETPLACE PROVIDER IF, IN REGARD TO SUCH  SALE:  (A)  THE  MARKETPLACE
SELLER  HAS  TIMELY  RECEIVED IN GOOD FAITH A PROPERLY COMPLETED CERTIF-
ICATE OF COLLECTION FROM THE MARKETPLACE  PROVIDER  OR  THE  MARKETPLACE
PROVIDER  HAS  INCLUDED  A PROVISION APPROVED BY THE COMMISSIONER IN THE
PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE MARKETPLACE  PROVIDER  AND  THE
MARKETPLACE  SELLER  AS  DESCRIBED  IN SUBDIVISION (1) OF SECTION ELEVEN
HUNDRED THIRTY-TWO OF THIS PART, AND (B) THE INFORMATION PROVIDED BY THE
MARKETPLACE SELLER TO  THE  MARKETPLACE  PROVIDER  ABOUT  SUCH  TANGIBLE
PERSONAL PROPERTY IS ACCURATE.
  §  6.  Section 1142 of the tax law is amended by adding a new subdivi-
sion 15 to read as follows:
  15. TO PUBLISH A LIST  ON  THE  DEPARTMENT'S  WEBSITE  OF  MARKETPLACE
PROVIDERS WHOSE CERTIFICATE OF AUTHORITY HAS BEEN REVOKED AND, IF NECES-
SARY  TO  PROTECT  SALES TAX REVENUE, PROVIDE BY REGULATION OR OTHERWISE
THAT A MARKETPLACE SELLER WHO IS A VENDOR WILL BE RELIEVED OF  THE  DUTY
TO  COLLECT TAX FOR SALES OF TANGIBLE PERSONAL PROPERTY FACILITATED BY A
MARKETPLACE PROVIDER ONLY IF, IN ADDITION TO THE  CONDITIONS  PRESCRIBED
BY PARAGRAPH TWO OF SUBDIVISION (1) OF SECTION ELEVEN HUNDRED THIRTY-TWO
OF THIS PART BEING MET, SUCH MARKETPLACE PROVIDER IS NOT ON SUCH LIST AT
THE COMMENCEMENT OF THE CALENDAR YEAR IN WHICH THE SALE WAS MADE.
  §  7. This act shall take effect September 1, 2017, and shall apply to
sales made on or after that date.

                                 PART CC

S. 2009--A                         85                         A. 3009--A

  Section 1. Paragraph 4 of subdivision (b) of section 1101 of  the  tax
law is amended by adding a new subparagraph (v) to read as follows:
  (V)  NOTWITHSTANDING  THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARA-
GRAPH, THE FOLLOWING SALES OF TANGIBLE PERSONAL PROPERTY SHALL BE DEEMED
TO BE RETAIL SALES: (A) A SALE TO  A  SINGLE  MEMBER  LIMITED  LIABILITY
COMPANY  OR  A  SUBSIDIARY FOR RESALE TO ITS MEMBER OR OWNER, WHERE SUCH
SINGLE MEMBER LIMITED LIABILITY COMPANY OR SUBSIDIARY IS DISREGARDED  AS
AN ENTITY SEPARATE FROM ITS OWNER FOR FEDERAL INCOME TAX PURPOSES (WITH-
OUT  REFERENCE TO ANY SPECIAL RULES RELATED TO THE IMPOSITION OF CERTAIN
FEDERAL TAXES), INCLUDING BUT NOT  LIMITED  TO  CERTAIN  EMPLOYMENT  AND
EXCISE  TAXES;  (B) A SALE TO A PARTNERSHIP FOR RESALE TO ONE OR MORE OF
ITS PARTNERS; OR (C) A SALE TO A TRUSTEE OF A TRUST FOR RESALE TO ONE OR
MORE BENEFICIARIES OF SUCH TRUST.
  § 2. Subdivision 2 of section 1118 of  the  tax  law,  as  amended  by
section  4  of subpart B of part S of chapter 57 of the laws of 2010, is
amended to read as follows:
  (2)(A) In respect to the use of property or services purchased by  the
user  while  a nonresident of this state, except in the case of tangible
personal property or services which the user, in the  performance  of  a
contract, incorporates into real property located in the state. A person
while engaged in any manner in carrying on in this state any employment,
trade,  business  or  profession, shall not be deemed a nonresident with
respect to the use in this state of property or services in such employ-
ment, trade, business or profession. This exemption does  not  apply  to
the  use of qualified property where the qualified property is purchased
primarily to carry individuals, whether or not for hire, who are agents,
employees,  officers,  shareholders,  members,  managers,  partners,  or
directors  of  (A)  the  purchaser, where any of those individuals was a
resident of this state when the qualified property was purchased or  (B)
any  affiliated  person  that was a resident when the qualified property
was purchased. For purposes of this subdivision: (i) persons are  affil-
iated persons with respect to each other where one of the persons has an
ownership  interest  of  more than five percent, whether direct or indi-
rect, in the other, or where an ownership interest  of  more  than  five
percent,  whether  direct or indirect, is held in each of the persons by
another person or by a  group  of  other  persons  that  are  affiliated
persons  with  respect  to  each  other; (ii) "qualified property" means
[aircraft,] vessels and motor vehicles; and (iii) "carry" means to  take
any  person from one point to another, whether for the business purposes
or pleasure of that person. For an exc