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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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|---|---|
| Apr 10, 2017 |
signed chap.59 |
| Apr 09, 2017 |
delivered to governor returned to assembly passed senate message of necessity - 3 day message 3rd reading cal.558 substituted for s2009c |
| Apr 08, 2017 |
referred to finance delivered to senate passed assembly message of necessity - 3 day message ordered to third reading rules cal.44 rules report cal.44 reported reported referred to rules print number 3009c |
| Apr 08, 2017 |
amend (t) and recommit to ways and means |
| Mar 13, 2017 |
print number 3009b |
| Mar 13, 2017 |
amend (t) and recommit to ways and means |
| Feb 17, 2017 |
print number 3009a |
| Feb 17, 2017 |
amend (t) and recommit to ways and means |
| Jan 23, 2017 |
referred to ways and means |
Assembly Bill A3009C
Signed By Governor2017-2018 Legislative Session
Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year
download bill text pdfSponsored By
There are no sponsors of this bill.
Archive: Last Bill Status - Signed by Governor
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
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Floor Vote: Apr 9, 2017
aye (53)- Addabbo Jr.
- Akshar
- Alcantara
- Amedore
- Avella
- Bailey
- Bonacic
- Breslin
- Brooks
- Carlucci
- Comrie
- DeFrancisco
- Diaz
- Felder
- Flanagan
- Funke
- Gallivan
- Gianaris
- Golden
- Griffo
- Hamilton
- Hannon
- Helming
- Jacobs
- Kaminsky
- Kennedy
- Klein
- LaValle
- Lanza
- Larkin
- Little
- Marcellino
- Marchione
- Montgomery
- Murphy
- O'Mara
- Parker
- Peralta
- Persaud
- Phillips
- Ranzenhofer
- Ritchie
- Robach
- Sanders Jr.
- Savino
- Serino
- Serrano
- Seward
- Stavisky
- Stewart-Cousins
- Tedisco
- Valesky
- Young
nay (4)
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Bill Amendments
2017-A3009 - Details
- See Senate Version of this Bill:
- S2009
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3009 - Summary
Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F)
2017-A3009 - Bill Text download pdf
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;
S. 2009 115 A. 3009
(2) A PERSON WHO IS OR HAS BEEN A PROFESSIONAL GAMBLER OR GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
(3) A PUBLIC OFFICER OR EMPLOYEE;
(4) AN OPERATOR OR PROPRIETOR OF A COMMERCIAL HALL DULY LICENSED UNDER
THE BINGO LICENSING LAW; AND
(5) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
ONE, TWO, THREE OR FOUR OF THIS PARAGRAPH, OR A PERSON MARRIED OR
RELATED IN THE FIRST DEGREE TO SUCH A PERSON, HAS GREATER THAN A TEN
PERCENT PROPRIETARY, EQUITABLE OR CREDIT INTEREST OR IN WHICH SUCH A
PERSON IS ACTIVE OR EMPLOYED.
(D) THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED
THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE, OR ANY LICENSEE,
UNDER THIS SECTION. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED
EXCEPT SO FAR AS MAY BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE
PROVISIONS OF THIS ARTICLE.
(E) ANY SOLICITATION OF AN ORGANIZATION LICENSED TO CONDUCT BINGO
GAMES, TO PURCHASE OR INDUCE THE PURCHASE OF BINGO SUPPLIES AND EQUIP-
MENT, OR ANY REPRESENTATION, STATEMENT OR INQUIRY DESIGNED OR REASONABLY
TENDING TO INFLUENCE SUCH AN ORGANIZATION TO PURCHASE THE SAME, OTHER
THAN BY A PERSON LICENSED OR OTHERWISE AUTHORIZED PURSUANT TO THIS
SECTION SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
(F) ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN ANY
APPLICATION FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE OR
WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR OF ANY
LICENSE ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT ANY
LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
(G) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION SHALL BE MADE
AS BETWEEN THE LICENSEE AND THE COMMISSION IN RESPECT OF THE GROSS SALES
ACTUALLY RECORDED DURING THE LICENSE PERIOD AND THE FEE PAID THEREFOR,
AND ANY DEFICIENCY OF FEE THEREBY SHOWN TO BE DUE SHALL BE PAID BY THE
LICENSEE AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID SHALL BE
CREDITED TO SAID LICENSEE IN SUCH MANNER AS THE COMMISSION BY THE RULES
AND REGULATIONS SHALL PRESCRIBE.
3. THE COMMISSION SHALL HAVE THE POWER TO APPROVE AND ESTABLISH A
STANDARD SET OF BINGO CARDS COMPRISING A CONSECUTIVELY NUMBERED SERIES
AND SHALL BY RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH SUCH
CARDS ARE TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
OF ANY CARD OR CARDS OTHER THAN THOSE CONTAINED IN THE STANDARD SET OF
BINGO CARDS SHALL CONSTITUTE A VIOLATION OF THIS SECTION. LICENSED
AUTHORIZED ORGANIZATIONS SHALL NOT BE REQUIRED TO USE NOR TO MAINTAIN
SUCH CARDS SERIATIM EXCEPTING THAT THE SAME MAY BE REQUIRED IN THE
CONDUCT OF LIMITED-PERIOD BINGO GAMES.
§ 1514. HEARINGS; IMMUNITY. 1. A HEARING UPON ANY INVESTIGATION OR
REVIEW AUTHORIZED BY THIS ARTICLE MAY BE CONDUCTED BY TWO OR MORE
MEMBERS OF THE COMMISSION OR BY A HEARING OFFICER DULY DESIGNATED BY THE
COMMISSION, AS THE COMMISSION SHALL DETERMINE.
2. A PERSON WHO HAS VIOLATED ANY PROVISION OF THIS ARTICLE, OR OF THE
RULES AND REGULATIONS OF THE COMMISSION, OR ANY TERM OF ANY LICENSE
ISSUED UNDER THIS ARTICLE OR SUCH RULES AND REGULATIONS, IS A COMPETENT
WITNESS AGAINST ANOTHER PERSON SO CHARGED. IN ANY HEARING UPON ANY
INVESTIGATION OR REVIEW AUTHORIZED BY THIS ARTICLE, FOR OR RELATING TO A
VIOLATION OF ANY PROVISION OF SAID ARTICLE OR OF THE RULES AND REGU-
LATIONS OF THE COMMISSION OR OF THE TERM OF ANY SUCH LICENSE, THE
S. 2009 116 A. 3009
COMMISSION MAY CONFER IMMUNITY UPON SUCH WITNESS IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 50.20 OF THE CRIMINAL PROCEDURE LAW. SUCH IMMUNI-
TY SHALL BE CONFERRED ONLY UPON THE VOTE OF AT LEAST THREE MEMBERS OF
THE COMMISSION AND ONLY AFTER AFFORDING THE ATTORNEY GENERAL AND THE
APPROPRIATE DISTRICT ATTORNEY A REASONABLE OPPORTUNITY TO BE HEARD WITH
RESPECT TO ANY OBJECTIONS THAT THEY OR EITHER OF THEM MAY HAVE TO THE
GRANTING OF SUCH IMMUNITY.
§ 1515. PLACE OF INVESTIGATIONS AND HEARINGS; WITNESSES; BOOKS AND
DOCUMENTS. THE COMMISSION MAY CONDUCT INVESTIGATIONS AND HEARINGS WITHIN
OR WITHOUT THE STATE AND SHALL HAVE POWER TO COMPEL THE ATTENDANCE OF
WITNESSES, THE PRODUCTION OF BOOKS, RECORDS, DOCUMENTS AND OTHER
EVIDENCE BY THE ISSUANCE OF A SUBPOENA SIGNED BY A PERSON AUTHORIZED BY
THE COMMISSION TO DO SO.
§ 1516. PRIVILEGE AGAINST SELF-INCRIMINATION. THE WILLFUL REFUSAL TO
ANSWER A MATERIAL QUESTION OR THE ASSERTION OF PRIVILEGE AGAINST SELF-
INCRIMINATION DURING A HEARING UPON ANY INVESTIGATION OR REVIEW AUTHOR-
IZED BY THIS ARTICLE BY ANY LICENSEE OR ANY PERSON IDENTIFIED WITH ANY
LICENSEE AS AN OFFICER, DIRECTOR, STOCKHOLDER, PARTNER, MEMBER, EMPLOYEE
OR AGENT THEREOF SHALL CONSTITUTE SUFFICIENT CAUSE FOR THE REVOCATION OR
SUSPENSION OF ANY LICENSE ISSUED UNDER THIS TITLE OR UNDER THE LICENSING
LAW, AS THE COMMISSION OR AS THE MUNICIPAL GOVERNING BODY MAY DETERMINE.
§ 1517. FILING AND AVAILABILITY OF RULES AND REGULATIONS. A COPY OF
EVERY RULE AND REGULATION ADOPTED AND PROMULGATED BY THE COMMISSION
SHALL BE MADE AVAILABLE TO THE VARIOUS MUNICIPALITIES OPERATING UNDER
THE BINGO LICENSING LAW.
§ 1518. MUNICIPALITY TO FILE COPIES OF LOCAL LAWS AND ORDINANCES;
REPORTS. EACH MUNICIPALITY IN WHICH THE BINGO LICENSING LAW IS ADOPTED
SHALL FILE WITH THE COMMISSION A COPY OF EACH LOCAL LAW OR ORDINANCE
ENACTED PURSUANT THERETO WITHIN TEN DAYS AFTER THE SAME HAS BEEN
APPROVED BY A MAJORITY OF THE ELECTORS VOTING ON A PROPOSITION SUBMITTED
AT A GENERAL OR SPECIAL ELECTION, OR WITHIN TEN DAYS AFTER THE SAME HAS
BEEN AMENDED OR REPEALED BY THE COMMON COUNCIL OR OTHER LOCAL LEGISLA-
TIVE BODY AND ON OR BEFORE FEBRUARY FIRST OF EACH YEAR, AND AT ANY OTHER
TIME OR TIMES THAT THE COMMISSION MAY DETERMINE, MAKE A REPORT TO THE
COMMISSION OF THE NUMBER OF LICENSES ISSUED THEREIN UNDER THE BINGO
LICENSING LAW, THE NAMES AND ADDRESSES OF THE LICENSEES, THE AGGREGATE
AMOUNT OF LICENSE FEES COLLECTED, THE NAMES AND ADDRESSES OF ALL PERSONS
DETECTED OF VIOLATING THE BINGO LICENSING LAW, THIS TITLE OR THE RULES
AND REGULATIONS ADOPTED BY THE COMMISSION PURSUANT HERETO, AND OF ALL
PERSONS PROSECUTED FOR SUCH VIOLATIONS AND THE RESULT OF EACH SUCH PROS-
ECUTION, THE PENALTIES IMPOSED THEREIN DURING THE PRECEDING CALENDAR
YEAR, OR THE PERIOD FOR WHICH THE REPORT IS REQUIRED, WHICH REPORT MAY
CONTAIN ANY RECOMMENDATIONS FOR IMPROVEMENT OF THE BINGO LICENSING LAW
OR THE ADMINISTRATION THEREOF THAT THE GOVERNING BODY OF THE MUNICI-
PALITY DEEMS DESIRABLE.
TITLE 3
LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS
SECTION 1520. SHORT TITLE; PURPOSE OF TITLE.
1521. LOCAL OPTION.
1522. LOCAL LAWS AND ORDINANCES.
1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES.
1524. APPLICATION FOR LICENSE.
1525. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF
LICENSE; FEES; DURATION OF LICENSE.
1526. HEARING; AMENDMENT OF LICENSE.
1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
S. 2009 117 A. 3009
1528. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES;
INSPECTION OF PREMISES.
1529. FREQUENCY OF GAME; SALE OF ALCOHOLIC BEVERAGES.
1530. PERSONS OPERATING AND CONDUCTING BINGO GAMES; EQUIPMENT;
EXPENSES; COMPENSATION.
1531. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES.
1532. STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES.
1533. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
ETC.; DISCLOSURE OF INFORMATION.
1534. APPEALS FROM MUNICIPAL GOVERNING BODY TO COMMISSION.
1535. EXEMPTION FROM PROSECUTION.
1536. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY
FOR LICENSE.
1537. UNLAWFUL BINGO.
1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
1540. DELEGATION OF AUTHORITY.
1541. POWERS AND DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
§ 1520. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE KNOWN AND
MAY BE CITED AS THE BINGO LICENSING LAW. THE LEGISLATURE HEREBY DECLARES
THAT THE RAISING OF FUNDS FOR THE PROMOTION OF BONA FIDE CHARITABLE,
EDUCATIONAL, SCIENTIFIC, HEALTH, RELIGIOUS, CIVIC AND PATRIOTIC CAUSES
AND UNDERTAKINGS, WHERE THE BENEFICIARIES ARE INDEFINITE, IS IN THE
PUBLIC INTEREST. IT HEREBY FINDS THAT, AS CONDUCTED PRIOR TO THE EFFEC-
TIVE DATE OF THIS TITLE, BINGO WAS THE SUBJECT OF EXPLOITATION BY
PROFESSIONAL GAMBLERS, PROMOTERS, AND COMMERCIAL INTERESTS. IT IS HEREBY
DECLARED TO BE THE POLICY OF THE LEGISLATURE THAT ALL PHASES OF THE
SUPERVISION, LICENSING AND REGULATION OF BINGO AND OF THE CONDUCT OF
BINGO GAMES, SHOULD BE CLOSELY CONTROLLED AND THAT THE LAWS AND REGU-
LATIONS PERTAINING THERETO SHOULD BE STRICTLY CONSTRUED AND RIGIDLY
ENFORCED; THAT THE CONDUCT OF THE BINGO GAME AND ALL ATTENDANT ACTIV-
ITIES SHOULD BE SO REGULATED AND ADEQUATE CONTROLS SO INSTITUTED AS TO
DISCOURAGE COMMERCIALIZATION IN ALL ITS FORMS, INCLUDING THE RENTAL OF
COMMERCIAL PREMISES FOR BINGO GAMES, AND TO ENSURE A MAXIMUM AVAILABILI-
TY OF THE NET PROCEEDS OF BINGO EXCLUSIVELY FOR APPLICATION TO THE
WORTHY CAUSES AND UNDERTAKINGS SPECIFIED HEREIN; THAT THE ONLY JUSTI-
FICATION FOR THIS TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND
UNDERTAKINGS, AND THAT THE MANDATE OF SECTION NINE OF ARTICLE ONE OF THE
STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY RIGID REGU-
LATION TO PREVENT COMMERCIALIZED GAMBLING, PREVENT PARTICIPATION BY
CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND PREVENT THE DIVERSION OF
FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
§ 1521. LOCAL OPTION. SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF SECTION NINE
OF ARTICLE ONE OF THE CONSTITUTION OF THE STATE, THE LEGISLATURE HEREBY
GIVES AND GRANTS TO EVERY MUNICIPALITY THE RIGHT, POWER AND AUTHORITY TO
AUTHORIZE THE CONDUCT OF BINGO GAMES BY AUTHORIZED ORGANIZATIONS WITHIN
THE TERRITORIAL LIMITS OF SUCH MUNICIPALITY PROVIDED, HOWEVER, THAT
WHERE THE ELECTORS OF A VILLAGE HEREAFTER APPROVE A LOCAL LAW OR ORDI-
NANCE PURSUANT TO SECTION FIFTEEN HUNDRED TWENTY-THREE OF THIS TITLE,
THE RIGHT, POWER AND AUTHORITY UNDER THIS TITLE OF ANY TOWN IN WHICH
SUCH VILLAGE IS LOCATED SHALL NOT EXTEND TO SUCH VILLAGE DURING SUCH
TIME AS SUCH VILLAGE LOCAL LAW OR ORDINANCE IS IN EFFECT.
§ 1522. LOCAL LAWS AND ORDINANCES. 1. THE COMMON COUNCIL OR OTHER
LOCAL LEGISLATIVE BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL LAW OR
S. 2009 118 A. 3009
ORDINANCE, PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED ORGANIZA-
TION, UPON OBTAINING A LICENSE THEREFOR AS PROVIDED IN THIS TITLE, TO
CONDUCT THE GAME OF BINGO WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICI-
PALITY, SUBJECT TO THE PROVISIONS OF SUCH LOCAL LAW OR ORDINANCE, THE
PROVISIONS OF THIS TITLE AND THE PROVISIONS OF THE BINGO CONTROL LAW.
2. NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR EFFECTIVE
UNLESS AND UNTIL IT HAS BEEN APPROVED BY A MAJORITY OF THE ELECTORS
VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION HELD
WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF SUCH
MUNICIPALITY.
3. THE TIME, METHOD AND MANNER OF SUBMISSION, PREPARATION AND
PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE AND
CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
RETURNS AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH LOCAL LAW OR
ORDINANCE SHALL BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
BE SUBMITTED TO THE ELECTORS OF SUCH MUNICIPALITY AT A GENERAL OR
SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
§ 1523. RESTRICTIONS UPON CONDUCT OF BINGO GAMES. THE CONDUCT OF BINGO
GAMES AUTHORIZED BY LOCAL LAW OR ORDINANCE SHALL BE SUBJECT TO THE
FOLLOWING RESTRICTIONS WITHOUT REGARD TO WHETHER SUCH RESTRICTIONS ARE
CONTAINED IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING IN THIS SECTION
SHALL BE CONSTRUED TO PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR
ORDINANCE OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE
CONDUCT OF BINGO GAMES:
1. NO PERSON, FIRM, ASSOCIATION, CORPORATION OR ORGANIZATION, OTHER
THAN A LICENSEE UNDER THE PROVISIONS OF THIS TITLE, SHALL
(A) CONDUCT BINGO; OR
(B) LEASE OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING BINGO A HALL OR
OTHER PREMISES FOR ANY CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT,
WITHOUT OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
2. NO BINGO GAMES SHALL BE HELD, OPERATED OR CONDUCTED ON OR WITHIN
ANY LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
PARTLY, ON THE BASIS OF A PERCENTAGE OF THE RECEIPTS OR NET PROFITS
DERIVED FROM THE OPERATION OF SUCH GAME.
3. NO AUTHORIZED ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
TITLE SHALL PURCHASE, LEASE OR RECEIVE ANY SUPPLIES OR EQUIPMENT SPECIF-
ICALLY DESIGNED OR ADAPTED FOR USE IN THE CONDUCT OF BINGO GAMES FROM
OTHER THAN A SUPPLIER LICENSED UNDER THE BINGO CONTROL LAW OR FROM
ANOTHER AUTHORIZED ORGANIZATION.
4. THE ENTIRE NET PROCEEDS OF ANY GAME OF BINGO AND OF ANY RENTAL
SHALL BE DEVOTED EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE ORGANIZATION
PERMITTED TO CONDUCT THE SAME.
5. NO PRIZE SHALL EXCEED THE SUM OR VALUE OF FIVE THOUSAND DOLLARS IN
ANY SINGLE GAME OF BINGO.
6. NO SERIES OF PRIZES ON ANY ONE BINGO OCCASION SHALL AGGREGATE MORE
THAN FIFTEEN THOUSAND DOLLARS.
7. NO PERSON EXCEPT A BONA FIDE MEMBER OF ANY SUCH ORGANIZATION SHALL
PARTICIPATE IN THE MANAGEMENT OR OPERATION OF SUCH BINGO GAME.
8. NO PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
MANAGEMENT OR OPERATION OF ANY GAME OF BINGO.
9. THE UNAUTHORIZED CONDUCT OF A BINGO GAME AND ANY WILLFUL VIOLATION
OF ANY PROVISION OF ANY LOCAL LAW OR ORDINANCE SHALL CONSTITUTE AND BE
PUNISHABLE AS A MISDEMEANOR.
10. NO PERSON LICENSED TO SELL BINGO SUPPLIES OR EQUIPMENT, OR ANY
AGENT OF SUCH PERSON, SHALL CONDUCT, PARTICIPATE IN OR ASSIST IN THE
S. 2009 119 A. 3009
CONDUCT OF BINGO. NOTHING HEREIN SHALL PROHIBIT A LICENSED DISTRIBUTOR
FROM SELLING, OFFERING FOR SALE OR EXPLAINING A PRODUCT TO AN AUTHORIZED
ORGANIZATION OR INSTALLING OR SERVICING BINGO EQUIPMENT UPON THE PREM-
ISES OF A BINGO GAME LICENSEE.
11. LIMITED-PERIOD BINGO SHALL BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF THIS TITLE AND THE RULES AND REGULATIONS OF THE COMMIS-
SION.
§ 1524. APPLICATION FOR LICENSE. 1. TO CONDUCT BINGO. (A) EACH APPLI-
CANT FOR A LICENSE TO CONDUCT BINGO SHALL, AFTER OBTAINING AN IDENTIFI-
CATION NUMBER FROM THE COMMISSION, FILE WITH THE CLERK OF THE MUNICI-
PALITY AN APPLICATION THEREFOR IN THE FORM PRESCRIBED IN THE RULES AND
REGULATIONS OF THE COMMISSION, DULY EXECUTED AND VERIFIED, IN WHICH SUCH
APPLICANT SHALL STATE:
(1) THE NAME AND ADDRESS OF THE APPLICANT TOGETHER WITH SUFFICIENT
FACTS RELATING TO SUCH APPLICANT'S INCORPORATION AND ORGANIZATION TO
ENABLE THE GOVERNING BODY OF THE MUNICIPALITY TO DETERMINE WHETHER OR
NOT THE APPLICANT IS A BONA FIDE AUTHORIZED ORGANIZATION;
(2) THE NAMES AND ADDRESSES OF THE APPLICANT'S OFFICERS;
(3) THE PLACE OR PLACES WHERE, AND THE DATE OR DATES AND THE TIME OR
TIMES WHEN, THE APPLICANT INTENDS TO CONDUCT BINGO UNDER THE LICENSE
APPLIED FOR;
(4) IN CASE THE APPLICANT INTENDS TO LEASE PREMISES FOR THIS PURPOSE
FROM OTHER THAN AN AUTHORIZED ORGANIZATION, THE NAME AND ADDRESS OF THE
LICENSED BINGO LESSOR OF SUCH PREMISES, AND THE CAPACITY OR POTENTIAL
CAPACITY FOR PUBLIC ASSEMBLY PURPOSES OF SPACE IN ANY PREMISES PRESENTLY
OWNED OR OCCUPIED BY THE APPLICANT;
(5) THE AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
DIRECTLY OR INDIRECTLY FOR EACH OCCASION FOR USE OF THE PREMISES OF
ANOTHER AUTHORIZED ORGANIZATION LICENSED UNDER THIS TITLE TO CONDUCT
BINGO OR FOR USE OF THE PREMISES OF A LICENSED BINGO LESSOR;
(6) ALL OTHER ITEMS OF EXPENSE INTENDED TO BE INCURRED OR PAID IN
CONNECTION WITH THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
BINGO AND THE NAMES AND ADDRESSES OF THE PERSONS TO BE PAID AND THE
PURPOSES FOR WHICH SUCH PERSONS ARE TO BE PAID;
(7) THE SPECIFIC PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
GAMES OF BINGO ARE TO BE DEVOTED AND IN WHAT MANNER;
(8) THAT NO COMMISSION, SALARY, COMPENSATION, REWARD OR RECOMPENSE
WILL BE PAID TO ANY PERSON FOR CONDUCTING SUCH BINGO GAME OR GAMES OR
FOR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE PROVIDED; AND
(9) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY THE RULES AND
REGULATIONS OF THE COMMISSION.
(B) IN EACH APPLICATION THERE SHALL BE DESIGNATED AN ACTIVE MEMBER OR
MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE GAME OR GAMES OF
BINGO WILL BE CONDUCTED AND TO THE APPLICATION SHALL BE APPENDED A
STATEMENT EXECUTED BY THE MEMBER OR MEMBERS SO DESIGNATED, THAT HE, SHE
OR THEY WILL BE RESPONSIBLE FOR THE CONDUCT OF SUCH BINGO GAMES IN
ACCORDANCE WITH THE TERMS OF THE LICENSE AND THE RULES AND REGULATIONS
OF THE COMMISSION AND OF THIS TITLE.
2. BINGO LESSOR. (A) EACH APPLICANT FOR A LICENSE TO LEASE PREMISES TO
A LICENSED ORGANIZATION FOR THE PURPOSES OF CONDUCTING BINGO THEREIN
SHALL FILE WITH THE CLERK OF THE MUNICIPALITY AN APPLICATION THEREFOR IN
A FORM PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION DULY
EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
(1) THE NAME AND ADDRESS OF THE APPLICANT;
(2) DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
THE LICENSE SOUGHT;
S. 2009 120 A. 3009
(3) LAWFUL CAPACITY FOR PUBLIC ASSEMBLY PURPOSES;
(4) COST OF PREMISES AND ASSESSED VALUATION FOR REAL ESTATE TAX
PURPOSES, OR ANNUAL NET LEASE RENT, WHICHEVER IS APPLICABLE;
(5) GROSS RENTALS RECEIVED AND ITEMIZED EXPENSES FOR THE IMMEDIATELY
PRECEDING CALENDAR OR FISCAL YEAR, IF ANY;
(6) GROSS RENTALS, IF ANY, DERIVED FROM BINGO DURING THE LAST PRECED-
ING CALENDAR OR FISCAL YEAR;
(7) COMPUTATION BY WHICH PROPOSED RENTAL SCHEDULE WAS DETERMINED;
(8) NUMBER OF OCCASIONS ON WHICH APPLICANT ANTICIPATES RECEIVING RENT
FOR BINGO DURING THE ENSUING YEAR OR SHORTER PERIOD IF APPLICABLE;
(9) PROPOSED RENT FOR EACH SUCH OCCASION; ESTIMATED GROSS RENTAL
INCOME FROM ALL OTHER SOURCES DURING THE ENSUING YEAR;
(10) ESTIMATED EXPENSES ITEMIZED FOR ENSUING YEAR AND AMOUNT OF EACH
ITEM ALLOCATED TO BINGO RENTALS;
(11) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS WITH THE
SPECIFICATIONS CONTAINED IN THE DEFINITION OF "AUTHORIZED BINGO LESSOR"
SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
(12) SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY THE RULES AND
REGULATIONS OF THE COMMISSION.
(B) AT THE END OF THE LICENSE PERIOD, A RECAPITULATION, IN A MANNER
PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION, SHALL BE MADE
AS BETWEEN THE LICENSEE AND THE MUNICIPAL GOVERNING BODY IN RESPECT OF
THE GROSS RENTAL ACTUALLY RECEIVED DURING THE LICENSE PERIOD AND THE FEE
PAID THEREFOR. THE LICENSEE SHALL PAY ANY DEFICIENCY OF FEE THEREBY
SHOWN TO BE DUE AND ANY EXCESS OF FEE THEREBY SHOWN TO HAVE BEEN PAID
SHALL BE CREDITED TO SUCH LICENSEE, IN SUCH MANNER AS THE COMMISSION BY
RULES AND REGULATIONS SHALL PRESCRIBE.
§ 1525. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
FEES; DURATION OF LICENSE. 1. THE GOVERNING BODY OF THE MUNICIPALITY
SHALL MAKE AN INVESTIGATION OF THE QUALIFICATIONS OF EACH APPLICANT AND
THE MERITS OF EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING OF
THE APPLICATION.
(A) ISSUANCE OF LICENSES TO CONDUCT BINGO. IF THE GOVERNING BODY OF
THE MUNICIPALITY DETERMINES:
(1) THAT THE APPLICANT IS DULY QUALIFIED TO BE LICENSED TO CONDUCT
BINGO UNDER THIS TITLE;
(2) THAT THE MEMBER OR MEMBERS OF THE APPLICANT DESIGNATED IN THE
APPLICATION TO CONDUCT BINGO ARE BONA FIDE ACTIVE MEMBERS OF THE APPLI-
CANT AND ARE PERSONS OF GOOD MORAL CHARACTER AND HAVE NEVER BEEN
CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP BETWEEN ONE OR
MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY OF BINGO,
CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED FIFTY-THREE
OF THE CORRECTION LAW;
(3) THAT SUCH GAMES OF BINGO ARE TO BE CONDUCTED IN ACCORDANCE WITH
THE PROVISIONS OF THIS TITLE AND IN ACCORDANCE WITH THE RULES AND REGU-
LATIONS OF THE COMMISSION;
(4) THAT THE PROCEEDS THEREOF ARE TO BE DISPOSED OF AS PROVIDED BY
THIS TITLE;
(5) IF THE GOVERNING BODY IS SATISFIED THAT NO COMMISSION, SALARY,
COMPENSATION, REWARD OR RECOMPENSE WHATEVER WILL BE PAID OR GIVEN TO ANY
PERSON HOLDING, OPERATING OR CONDUCTING OR ASSISTING IN THE HOLDING,
OPERATION AND CONDUCT OF ANY SUCH GAMES OF BINGO EXCEPT AS IN THIS TITLE
OTHERWISE PROVIDED; AND
(6) THAT NO PRIZE WILL BE OFFERED AND GIVEN IN EXCESS OF THE SUM OR
VALUE OF FIVE THOUSAND DOLLARS IN ANY SINGLE GAME OF BINGO AND THAT THE
AGGREGATE OF ALL PRIZES OFFERED AND GIVEN IN ALL OF SUCH GAMES OF BINGO
S. 2009 121 A. 3009
CONDUCTED ON A SINGLE OCCASION, UNDER SAID LICENSE SHALL NOT EXCEED THE
SUM OR VALUE OF FIFTEEN THOUSAND DOLLARS, THEN THE MUNICIPALITY SHALL
ISSUE A LICENSE TO THE APPLICANT FOR THE CONDUCT OF BINGO UPON PAYMENT
OF A LICENSE FEE FOR EACH BINGO OCCASION, TO BE ESTABLISHED BY REGU-
LATION OF THE COMMISSION. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS PARAGRAPH, THE GOVERNING BODY SHALL REFUSE TO ISSUE A LICENSE TO AN
APPLICANT SEEKING TO CONDUCT BINGO IN PREMISES OF A LICENSED BINGO
LESSOR WHERE SUCH GOVERNING BODY DETERMINES THAT THE PREMISES PRESENTLY
OWNED OR OCCUPIED BY SUCH APPLICANT ARE IN EVERY RESPECT ADEQUATE AND
SUITABLE FOR CONDUCTING BINGO GAMES.
(B) ISSUANCE OF LICENSES TO BINGO LESSORS. IF THE GOVERNING BODY OF
THE MUNICIPALITY DETERMINES THAT:
(1) THE APPLICANT SEEKING TO LEASE A HALL OR PREMISES FOR THE CONDUCT
OF BINGO TO AN AUTHORIZED ORGANIZATION IS DULY QUALIFIED TO BE LICENSED
UNDER THIS TITLE;
(2) THE APPLICANT SATISFIES THE REQUIREMENTS FOR AN AUTHORIZED BINGO
LESSOR AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
(3) AT THE TIME OF THE ISSUANCE OF AN INITIAL LICENSE, THERE IS A
PUBLIC NEED AND THAT PUBLIC ADVANTAGE WILL BE SERVED BY THE ISSUANCE OF
SUCH LICENSE;
(4) THE APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH BINGO OCCASION;
(5) THE COMMISSION HAS APPROVED AS FAIR AND REASONABLE A SCHEDULE OF
MAXIMUM RENTALS FOR EACH SUCH OCCASION;
(6) THERE IS NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE FROM THE
LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
(7) SUCH LEASING OF A HALL OR PREMISES FOR THE CONDUCT OF BINGO IS TO
BE IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE AND IN ACCORDANCE
WITH THE RULES AND REGULATIONS OF THE COMMISSION, SUCH GOVERNING BODY
SHALL ISSUE A LICENSE PERMITTING THE APPLICANT TO LEASE SAID PREMISES
FOR THE CONDUCT OF BINGO TO THE AUTHORIZED ORGANIZATION OR ORGANIZATIONS
SPECIFIED IN THE APPLICATION DURING THE PERIOD THEREIN SPECIFIED OR SUCH
SHORTER PERIOD AS THE GOVERNING BODY OF THE MUNICIPALITY DETERMINES, BUT
NOT TO EXCEED ONE YEAR, UPON PAYMENT OF A LICENSE FEE ESTABLISHED BY
REGULATION OF THE COMMISSION.
2. ON OR BEFORE THE THIRTIETH DAY OF EACH MONTH, THE TREASURER OF THE
MUNICIPALITY SHALL TRANSMIT TO THE STATE COMPTROLLER A SUM EQUAL TO
FIFTY PERCENT OF ALL BINGO LESSOR LICENSE FEES AND AN AMOUNT ESTABLISHED
BY REGULATION OF THE COMMISSION PER OCCASION OF ALL LICENSE FEES FOR THE
CONDUCT OF BINGO COLLECTED BY SUCH MUNICIPALITY PURSUANT TO THIS SECTION
DURING THE PRECEDING CALENDAR MONTH.
3. NO LICENSE SHALL BE ISSUED UNDER THIS TITLE THAT IS EFFECTIVE FOR A
PERIOD OF MORE THAN ONE YEAR. IN THE CASE OF LIMITED-PERIOD BINGO, NO
LICENSE SHALL BE ISSUED AUTHORIZING THE CONDUCT OF SUCH GAMES ON MORE
THAN TWO OCCASIONS IN ANY ONE DAY, NOR SHALL ANY LICENSE BE ISSUED UNDER
THIS TITLE THAT IS EFFECTIVE FOR A PERIOD OF MORE THAN SEVEN OF TWELVE
CONSECUTIVE DAYS IN ANY ONE YEAR. NO LICENSE FOR THE CONDUCT OF LIMIT-
ED-PERIOD BINGO SHALL BE ISSUED IN CITIES HAVING A POPULATION OF ONE
MILLION OR MORE.
§ 1526. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
ANCE OF A LICENSE SHALL BE DENIED BY THE GOVERNING BODY UNTIL AFTER A
HEARING, HELD ON DUE NOTICE TO THE APPLICANT, AT WHICH THE APPLICANT
SHALL BE ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE APPLICANT
AND THE MERITS OF THE APPLICATION.
2. ANY LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED, UPON APPLICA-
TION MADE TO THE GOVERNING BODY OF THE MUNICIPALITY THAT ISSUED SUCH
LICENSE, IF THE SUBJECT MATTER OF THE PROPOSED AMENDMENT COULD LAWFULLY
S. 2009 122 A. 3009
AND PROPERLY HAVE BEEN INCLUDED IN THE ORIGINAL LICENSE AND UPON PAYMENT
OF SUCH ADDITIONAL LICENSE FEE IF ANY, AS WOULD HAVE BEEN PAYABLE IF
SUCH AMENDMENT HAD BEEN SO INCLUDED.
§ 1527. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE. 1. EACH
LICENSE TO CONDUCT BINGO SHALL BE IN SUCH FORM AS THE RULES AND REGU-
LATIONS OF THE COMMISSION PRESCRIBE AND SHALL CONTAIN:
(A) THE NAME AND ADDRESS OF THE LICENSEE;
(B) THE NAMES OF THE MEMBER OR MEMBERS OF THE LICENSEE UNDER WHOM THE
GAMES WILL BE CONDUCTED;
(C) THE PLACE OR PLACES WHERE AND THE DATE OR DATES AND TIME OR TIMES
WHEN SUCH GAMES ARE TO BE CONDUCTED;
(D) THE SPECIFIC PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH
GAMES ARE TO BE DEVOTED; AND
(E) IF ANY PRIZE OR PRIZES ARE TO BE OFFERED AND GIVEN IN CASH, A
STATEMENT OF THE AMOUNTS OF THE PRIZES AUTHORIZED SO TO BE OFFERED AND
GIVEN AND ANY OTHER INFORMATION THAT THE RULES AND REGULATIONS OF THE
COMMISSION MAY REQUIRE.
2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAME OF BINGO SHALL BE
DISPLAYED CONSPICUOUSLY AT THE PLACE WHERE SUCH GAME OF BINGO IS TO BE
CONDUCTED AT ALL TIMES DURING SUCH CONDUCT.
3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING BINGO SHALL BE IN
SUCH FORM AS THE RULES AND REGULATIONS OF THE COMMISSION PRESCRIBE AND
SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE AND
THE ADDRESS OF THE LEASED PREMISES, THE AMOUNT OF PERMISSIBLE RENT AND
ANY OTHER INFORMATION THAT THE RULES AND REGULATIONS OF THE COMMISSION
MAY REQUIRE. EACH SUCH LICENSE SHALL BE DISPLAYED CONSPICUOUSLY UPON
SUCH PREMISES AT ALL TIMES DURING THE CONDUCT OF BINGO.
§ 1528. CONTROL AND SUPERVISION; SUSPENSION OF LICENSES; INSPECTION OF
PREMISES. 1. THE GOVERNING BODY OF ANY MUNICIPALITY ISSUING ANY LICENSE
UNDER THIS TITLE SHALL HAVE AND EXERCISE RIGID CONTROL AND CLOSE SUPER-
VISION OVER ALL GAMES OF BINGO CONDUCTED UNDER SUCH LICENSE, TO THE END
THAT THE SAME ARE FAIRLY CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF
SUCH LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS OF THE COMMIS-
SION AND THE PROVISIONS OF THIS TITLE AND SUCH GOVERNING BODY.
2. THE COMMISSION SHALL HAVE THE POWER AND THE AUTHORITY TO SUSPEND
ANY LICENSE ISSUED BY SUCH GOVERNING BODY AND TO REVOKE THE SAME, AND,
ADDITIONALLY, IN THE CASE OF AN AUTHORIZED BINGO LESSOR, TO IMPOSE A
FINE IN AN AMOUNT NOT EXCEEDING ONE THOUSAND DOLLARS, AFTER NOTICE AND
HEARING, FOR VIOLATION OF ANY SUCH PROVISIONS, AND SHALL HAVE THE RIGHT
OF ENTRY, BY THE COMMISSION'S OFFICERS AND AGENTS, AT ALL TIMES INTO ANY
PREMISES WHERE ANY GAME OF BINGO IS BEING CONDUCTED OR WHERE IT IS
INTENDED THAT ANY SUCH GAME OF BINGO SHALL BE CONDUCTED, OR WHERE ANY
EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE CONDUCT THEREOF IS
FOUND, FOR THE PURPOSE OF INSPECTING THE SAME.
3. IN ADDITION TO THE AUTHORITY GRANTED PURSUANT TO SUBDIVISION TWO OF
THIS SECTION, THE GOVERNING BODY IN A CITY HAVING A POPULATION OF ONE
MILLION OR MORE AND THE COMMISSION MAY IMPOSE A FINE IN AN AMOUNT NOT
EXCEEDING ONE THOUSAND DOLLARS, AFTER NOTICE AND HEARING, ON ANY LICEN-
SEE UNDER THIS TITLE FOR VIOLATION OF ANY PROVISION OF SUCH LICENSE,
THIS TITLE OR RULES AND REGULATIONS OF THE COMMISSION.
§ 1529. FREQUENCY OF GAME; SALE OF ALCOHOLIC BEVERAGES. NO GAME OR
GAMES OF BINGO, EXCEPT LIMITED-PERIOD BINGO, SHALL BE CONDUCTED UNDER
ANY LICENSE ISSUED UNDER THIS TITLE MORE OFTEN THAN ON EIGHTEEN DAYS IN
ANY THREE SUCCESSIVE CALENDAR MONTHS. NO GAME OR GAMES OF LIMITED-PERIOD
BINGO SHALL BE CONDUCTED BETWEEN THE HOURS OF TWELVE MIDNIGHT AND NOON,
AND NO MORE THAN SIXTY GAMES MAY BE CONDUCTED ON ANY SINGLE OCCASION OF
S. 2009 123 A. 3009
LIMITED-PERIOD BINGO. NO GAME OR GAMES OF BINGO SHALL BE CONDUCTED IN
ANY ROOM OR OUTDOOR AREA WHERE ALCOHOLIC BEVERAGES ARE SOLD, SERVED OR
CONSUMED DURING THE PROGRESS OF THE GAME OR GAMES.
§ 1530. PERSONS OPERATING AND CONDUCTING BINGO GAMES; EQUIPMENT;
EXPENSES; COMPENSATION. 1. (A) NO PERSON SHALL HOLD, OPERATE OR CONDUCT
ANY GAME OF BINGO UNDER ANY LICENSE ISSUED UNDER THIS TITLE EXCEPT A
BONA FIDE MEMBER OF THE AUTHORIZED ORGANIZATION TO WHICH THE LICENSE IS
ISSUED. NO PERSON SHALL ASSIST IN THE HOLDING, OPERATING OR CONDUCTING
OF ANY GAME OF BINGO UNDER SUCH LICENSE EXCEPT SUCH A BONA FIDE MEMBER
OR A BONA FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION THAT IS AN
AUXILIARY TO THE LICENSEE OR A BONA FIDE MEMBER OF AN ORGANIZATION OR
ASSOCIATION OF WHICH SUCH LICENSEE IS AN AUXILIARY OR A BONA FIDE MEMBER
OF AN ORGANIZATION OR ASSOCIATION THAT IS AFFILIATED WITH THE LICENSEE
BY BEING, WITH IT, AUXILIARY TO ANOTHER ORGANIZATION OR ASSOCIATION AND
EXCEPT BOOKKEEPERS OR ACCOUNTANTS AS HEREINAFTER PROVIDED, BUT ANY
PERSON MAY ASSIST THE LICENSED ORGANIZATION IN ANY ACTIVITY RELATED TO
THE GAME OF BINGO THAT DOES NOT ACTUALLY INVOLVE THE HOLDING, CONDUCT-
ING, MANAGING OR OPERATING OF SUCH GAME OF BINGO.
(B) NO GAME OF BINGO SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
AS SHALL BE OWNED ABSOLUTELY OR LEASED BY THE AUTHORIZED ORGANIZATION SO
LICENSED OR USED WITHOUT PAYMENT OF ANY COMPENSATION THEREFOR BY THE
LICENSEE.
(C) LEASE TERMS AND CONDITIONS SHALL BE SUBJECT TO THE RULES AND REGU-
LATIONS OF THE COMMISSION.
(D) THIS TITLE SHALL NOT BE CONSTRUED TO AUTHORIZE OR PERMIT AN
AUTHORIZED ORGANIZATION TO ENGAGE IN THE BUSINESS OF LEASING BINGO
SUPPLIES OR EQUIPMENT.
(E) NO ITEMS OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
THE CONDUCTING OF ANY GAME OF BINGO PURSUANT TO ANY LICENSE ISSUED UNDER
THIS TITLE, EXCEPT THOSE THAT ARE REASONABLE AND ARE NECESSARILY
EXPENDED FOR BINGO SUPPLIES AND EQUIPMENT, PRIZES, STATED RENTAL, IF
ANY, BOOKKEEPING OR ACCOUNTING SERVICES ACCORDING TO A SCHEDULE OF
COMPENSATION PRESCRIBED BY THE COMMISSION, JANITORIAL SERVICES AND UTIL-
ITY SUPPLIES, IF ANY, AND LICENSE FEES, AND THE COST OF BUS TRANSPORTA-
TION, IF AUTHORIZED BY THE COMMISSION.
2. NOTWITHSTANDING ANY PROVISION OF THIS TITLE TO THE CONTRARY, A
PERSON WHO IS A BONA FIDE MEMBER OF AN ORGANIZATION LICENSED TO CONDUCT
THE GAME OF BINGO AND IS ALSO A BONA FIDE MEMBER OF ONE OR MORE OTHER
ORGANIZATIONS THAT ARE ALSO LICENSED TO CONDUCT THE GAME OF BINGO, AND
SUCH ORGANIZATIONS ARE NOT AFFILIATES OR AUXILIARIES OF THE OTHERS,
SHALL BE AUTHORIZED TO OPERATE, CONDUCT OR ASSIST IN THE OPERATION OR
CONDUCT OF GAMES OF BINGO HELD BY ANY OF SUCH ORGANIZATIONS LICENSED TO
CONDUCT BINGO.
§ 1531. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES. 1. EXCEPT IN THE CONDUCT OF LIMITED-PERIOD BINGO, THE
REGULATIONS OF THE COMMISSION SHALL ESTABLISH A MAXIMUM AMOUNT TO BE
CHARGED BY ANY LICENSEE FOR ADMISSION TO ANY ROOM OR PLACE IN WHICH ANY
GAME OR GAMES OF BINGO ARE TO BE CONDUCTED UNDER ANY LICENSE ISSUED
UNDER THIS TITLE, WHICH ADMISSION FEE, UPON PAYMENT THEREOF, SHALL ENTI-
TLE THE PERSON PAYING THE SAME TO PARTICIPATE WITHOUT ADDITIONAL CHARGE
IN ALL REGULAR GAMES OF BINGO TO BE PLAYED UNDER SUCH LICENSE ON SUCH
OCCASION.
2. IN THE CONDUCT OF LIMITED-PERIOD BINGO:
(A) NO ADMISSION FEE SHALL BE CHARGED;
(B) NOT MORE THAN AN AMOUNT ESTABLISHED BY REGULATION OF THE COMMIS-
SION SHALL BE CHARGED FOR A SINGLE OPPORTUNITY TO PARTICIPATE IN ANY ONE
S. 2009 124 A. 3009
GAME OF BINGO, WHICH CHARGE, UPON PAYMENT THEREOF, SHALL ENTITLE THE
PERSON PAYING THE SAME TO ONE CARD FOR PARTICIPATION IN ONE SUCH GAME;
AND
(C) NO LICENSEE SHALL SELL MORE THAN FIVE OPPORTUNITIES TO EACH PLAYER
PARTICIPATING IN ANY ONE GAME OF BINGO. EVERY WINNER IN A GAME OF BINGO
SHALL BE DETERMINED AND EVERY PRIZE SHALL BE AWARDED AND DELIVERED WITH-
IN THE SAME CALENDAR DAY AS THAT UPON WHICH THE GAME OF BINGO WAS
PLAYED.
§ 1532. STATEMENT OF RECEIPTS, EXPENSES; ADDITIONAL LICENSE FEES. 1.
WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY OCCASION OF BINGO, THE
AUTHORIZED ORGANIZATION THAT CONDUCTED THE SAME, AND SUCH AUTHORIZED
ORGANIZATION'S MEMBERS WHO WERE IN CHARGE THEREOF, AND WHEN APPLICABLE
THE AUTHORIZED ORGANIZATION THAT RENTED ITS PREMISES THEREFOR, SHALL
EACH FURNISH TO THE CLERK OR THE DEPARTMENT A STATEMENT SUBSCRIBED BY
THE MEMBER IN CHARGE AND AFFIRMED BY SUCH PERSON AS TRUE, UNDER THE
PENALTIES OF PERJURY, SHOWING THE AMOUNT OF THE GROSS RECEIPTS DERIVED
THEREFROM AND EACH ITEM OF EXPENSE INCURRED, OR PAID, AND EACH ITEM OF
EXPENDITURE MADE OR TO BE MADE, THE NAME AND ADDRESS OF EACH PERSON TO
WHOM EACH SUCH ITEM HAS BEEN PAID, OR IS TO BE PAID, WITH A DETAILED
DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE SERVICES RENDERED THERE-
FOR, THE NET PROCEEDS DERIVED FROM SUCH GAME OR RENTAL, AS THE CASE MAY
BE, AND THE USE TO WHICH SUCH PROCEEDS HAVE BEEN OR ARE TO BE APPLIED
AND A LIST OF PRIZES OFFERED AND GIVEN, WITH THE RESPECTIVE VALUES THER-
EOF. A CLERK OR THE DEPARTMENT SHALL MAKE PROVISIONS FOR THE ELECTRONIC
FILING OF SUCH STATEMENT. IT SHALL BE THE DUTY OF EACH LICENSEE TO MAIN-
TAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE
THE PARTICULARS OF EACH SUCH STATEMENT AND WITHIN FIFTEEN DAYS AFTER THE
END OF EACH CALENDAR QUARTER DURING WHICH THERE HAS BEEN ANY OCCASION OF
BINGO, A SUMMARY STATEMENT OF SUCH INFORMATION, IN FORM PRESCRIBED BY
THE COMMISSION, SHALL BE FURNISHED IN THE SAME MANNER TO THE COMMISSION.
2. UPON THE FILING OF SUCH STATEMENT OF RECEIPTS, THE AUTHORIZED
ORGANIZATION FURNISHING THE SAME SHALL PAY TO THE CLERK OF THE MUNICI-
PALITY AS AND FOR AN ADDITIONAL LICENSE FEE A SUM BASED UPON THE
REPORTED NET PROCEEDS, IF ANY, FOR THE OCCASION COVERED BY SUCH STATE-
MENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS SHALL BE ESTAB-
LISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE COST TO MUNICI-
PALITIES OF ADMINISTERING THE PROVISIONS OF THIS ARTICLE.
§ 1533. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF MANAGERS,
ETC.; DISCLOSURE OF INFORMATION. 1. THE GOVERNING BODY OF THE MUNICI-
PALITY AND THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE
EXAMINED THE BOOKS AND RECORDS OF ANY:
(A) AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN LICENSED TO CONDUCT
BINGO, SO FAR AS SUCH BOOKS AND RECORDS MAY RELATE TO BINGO, INCLUDING
THE MAINTENANCE, CONTROL AND DISPOSITION OF NET PROCEEDS DERIVED FROM
BINGO OR FROM THE USE OF ITS PREMISES FOR BINGO, AND TO EXAMINE ANY
MANAGER, OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE THEREOF UNDER OATH
IN RELATION TO THE CONDUCT OF ANY SUCH GAME OF BINGO UNDER ANY SUCH
LICENSE, THE USE OF ITS PREMISES FOR BINGO, OR THE DISPOSITION OF NET
PROCEEDS DERIVED FROM BINGO, AS THE CASE MAY BE; AND
(B) LICENSED AUTHORIZED BINGO LESSOR SO FAR AS SUCH BOOKS AND RECORDS
MAY RELATE TO LEASING PREMISES FOR BINGO AND TO EXAMINE SAID LESSOR OR
ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE THEREOF UNDER OATH IN
RELATION TO SUCH LEASING.
2. ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS
MAY BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS
ARTICLE.
S. 2009 125 A. 3009
§ 1534. APPEALS FROM MUNICIPAL GOVERNING BODY TO COMMISSION. ANY
APPLICANT FOR, OR HOLDER OF, ANY LICENSE ISSUED OR TO BE ISSUED UNDER
THIS TITLE AGGRIEVED BY ANY ACTION OF THE GOVERNING BODY OF THE MUNICI-
PALITY TO WHICH SUCH APPLICATION HAS BEEN MADE OR BY WHICH SUCH LICENSE
HAS BEEN ISSUED, MAY APPEAL TO THE COMMISSION FROM THE DETERMINATION OF
SAID GOVERNING BODY BY FILING WITH THE GOVERNING BODY A WRITTEN NOTICE
OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR ACTION APPEALED
FROM. UPON THE HEARING OF SUCH APPEAL, THE EVIDENCE, IF ANY, TAKEN
BEFORE THE GOVERNING BODY AND ANY ADDITIONAL EVIDENCE MAY BE PRODUCED
AND SHALL BE CONSIDERED IN ARRIVING AT A DETERMINATION OF THE MATTERS IN
ISSUE. ACTION OF THE COMMISSION UPON SAID APPEAL SHALL BE BINDING UPON
SAID GOVERNING BODY AND ALL PARTIES TO SAID APPEAL.
§ 1535. EXEMPTION FROM PROSECUTION. NO PERSON OR CORPORATION LAWFULLY
CONDUCTING, OR PARTICIPATING IN THE CONDUCT OF BINGO OR PERMITTING THE
CONDUCT UPON ANY PREMISES OWNED OR LEASED BY HIM, HER OR IT UNDER ANY
LICENSE LAWFULLY ISSUED PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROS-
ECUTION OR CONVICTION FOR VIOLATION OF ANY PROVISION OF ARTICLE TWO
HUNDRED TWENTY-FIVE OF THE PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO
THE EXTENT THAT SUCH CONDUCT IS SPECIFICALLY AUTHORIZED BY THIS TITLE,
BUT THIS IMMUNITY SHALL NOT EXTEND TO ANY PERSON OR CORPORATION KNOWING-
LY CONDUCTING OR PARTICIPATING IN THE CONDUCT OF BINGO UNDER ANY LICENSE
OBTAINED BY ANY FALSE PRETENSE OR BY ANY FALSE STATEMENT MADE IN ANY
APPLICATION FOR LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY
PREMISES OWNED OR LEASED BY HIM, HER OR IT OF ANY GAME OF BINGO
CONDUCTED UNDER ANY LICENSE KNOWN TO HIM, HER OR IT TO HAVE BEEN
OBTAINED BY ANY SUCH FALSE PRETENSE OR STATEMENT.
§ 1536. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY FOR
LICENSE. ANY PERSON WHO, OR ASSOCIATION OR CORPORATION THAT:
1. MAKES ANY FALSE STATEMENT IN ANY APPLICATION FOR ANY LICENSE
AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
2. PAYS OR RECEIVES, FOR THE USE OF ANY PREMISES FOR CONDUCTING BINGO,
A RENTAL IN EXCESS OF THE AMOUNT SPECIFIED AS THE PERMISSIBLE RENT IN
THE LICENSE PROVIDED FOR IN SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED
TWENTY-FOUR OF THIS TITLE;
3. FAILS TO KEEP BOOKS AND RECORDS THAT FULLY AND TRULY RECORD ALL
TRANSACTIONS CONNECTED WITH THE CONDUCTING OF BINGO OR THE LEASING OF
PREMISES TO BE USED FOR THE CONDUCT OF BINGO;
4. FALSIFIES OR MAKES ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO FAR
AS SUCH BOOKS OR RECORDS RELATE IN ANY MANNER TO THE CONDUCT OF BINGO,
TO THE DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE
RENTS RECEIVED BY ANY AUTHORIZED ORGANIZATION;
5. DIVERTS OR PAYS ANY PORTION OF THE NET PROCEEDS OF ANY GAME OF
BINGO TO ANY PERSON, ASSOCIATION OR CORPORATION, EXCEPT IN FURTHERANCE
OF ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; OR
6. VIOLATES ANY OF THE PROVISIONS OF THIS TITLE OR OF ANY TERM OF ANY
LICENSE ISSUED UNDER THIS TITLE; SHALL BE GUILTY OF A MISDEMEANOR AND
SHALL FORFEIT ANY LICENSE ISSUED UNDER THIS TITLE AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS TITLE FOR ONE YEAR THEREAFTER.
§ 1537. UNLAWFUL BINGO. 1. FOR THE PURPOSES OF THIS SECTION, BINGO
SHALL INCLUDE A GAME OF BINGO WHETHER OR NOT A PERSON WHO PARTICIPATES
AS A PLAYER FURNISHES SOMETHING OF VALUE FOR THE OPPORTUNITY TO PARTIC-
IPATE.
2. ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION, CORPORATION OR ORGAN-
IZATION HOLDING, OPERATING OR CONDUCTING BINGO IS GUILTY OF A MISDEMEA-
NOR, EXCEPT WHEN OPERATING, HOLDING OR CONDUCTING:
S. 2009 126 A. 3009
(A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
OR
(B) WITHIN A MUNICIPALITY THAT HAS AUTHORIZED THE CONDUCT OF BINGO
GAMES BY AUTHORIZED ORGANIZATIONS:
(1) WITHIN THE CONFINES OF A HOME FOR PURPOSES OF AMUSEMENT OR RECRE-
ATION WHERE NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR
THE OPPORTUNITY TO PARTICIPATE AND THE PRIZES AWARDED OR TO BE AWARDED
ARE NOMINAL.
(2) WITHIN ANY APARTMENT, CONDOMINIUM OR COOPERATIVE COMPLEX, RETIRE-
MENT COMMUNITY, OR OTHER GROUP RESIDENTIAL COMPLEX OR FACILITY WHERE:
(I) SPONSORED BY THE OPERATOR OF OR AN ASSOCIATION RELATED TO SUCH
COMPLEX, COMMUNITY OR FACILITY;
(II) SUCH GAMES ARE CONDUCTED SOLELY FOR THE PURPOSE OF AMUSEMENT AND
RECREATION OF ITS RESIDENTS;
(III) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(IV) THE VALUE OF THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
(V) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING ANY
CALENDAR YEAR; AND
(VI) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER OF SUCH COMPLEX,
COMMUNITY OR FACILITY CONDUCTS OR ASSISTS IN CONDUCTING THE GAME OR
GAMES.
(3) ON BEHALF OF ANY BONA FIDE SOCIAL, CHARITABLE, EDUCATIONAL, RECRE-
ATIONAL, FRATERNAL OR AGE-GROUP ORGANIZATION, CLUB OR ASSOCIATION SOLELY
FOR THE PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS OR BENEFICI-
ARIES WHERE:
(I) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(II) THE VALUE OF THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
(III) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING
ANY CALENDAR YEAR;
(IV) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZA-
TION, CLUB OR ASSOCIATION PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
(V) NO PERSON IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
THE GAME OR GAMES.
(4) AS A HOTEL'S, MOTEL'S, RECREATIONAL OR ENTERTAINMENT FACILITY'S OR
COMMON CARRIER'S SOCIAL ACTIVITY SOLELY FOR THE PURPOSE OF AMUSEMENT AND
RECREATION OF ITS PATRONS WHERE:
(I) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(II) THE VALUE OF THE PRIZES DO NOT EXCEED TEN DOLLARS FOR ANY ONE
GAME OR A TOTAL OF ONE HUNDRED FIFTY DOLLARS IN ANY CALENDAR DAY;
(III) SUCH GAMES ARE NOT CONDUCTED ON MORE THAN FIFTEEN DAYS DURING
ANY CALENDAR YEAR;
(IV) NO PERSON OTHER THAN AN EMPLOYEE OR VOLUNTEER CONDUCTS OR ASSISTS
IN CONDUCTING THE GAME OR GAMES; AND
(V) THE GAME OR GAMES ARE NOT CONDUCTED IN THE SAME ROOM WHERE ALCO-
HOLIC BEVERAGES ARE SOLD.
(5) THE COMMISSION AND THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH
BINGO GAMES ARE CONDUCTED PURSUANT TO PARAGRAPH (B) OF SUBDIVISION TWO
OF THIS SECTION SHALL HAVE THE AUTHORITY TO REGULATE THE CONDUCT OF SUCH
GAMES. ANY BINGO GAME OR GAMES, IN WHICH NO PARTICIPANT OR OTHER PERSON
FURNISHES ANYTHING OF VALUE FOR THE OPPORTUNITY TO PARTICIPATE, THAT IS
OR ARE OPERATED IN VIOLATION OF PARAGRAPH (B) OF SUBDIVISION TWO OF THIS
S. 2009 127 A. 3009
SECTION, A CIVIL PENALTY OF NOT MORE THAN ONE HUNDRED DOLLARS MAY BE
IMPOSED FOR THE FIRST SUCH VIOLATION, A CIVIL PENALTY OF NOT MORE THAN
ONE HUNDRED FIFTY DOLLARS MAY BE IMPOSED FOR THE SECOND SUCH VIOLATION
IN A PERIOD OF THREE YEARS AND A CIVIL PENALTY OF NOT MORE THAN TWO
HUNDRED DOLLARS MAY BE IMPOSED FOR THE THIRD OR SUBSEQUENT SUCH
VIOLATION IN A PERIOD OF FIVE YEARS.
3. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE THIS TITLE IS
INOPERATIVE.
§ 1538. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
IN SECTION FIFTEEN HUNDRED FORTY, THE PROVISIONS OF THIS TITLE SHALL
REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND UNTIL A PROPOSITION
THEREFOR SUBMITTED AT A GENERAL OR SPECIAL ELECTION IN SUCH MUNICIPALITY
IS APPROVED BY A VOTE OF THE MAJORITY OF THE QUALIFIED ELECTORS IN SUCH
MUNICIPALITY VOTING THEREON.
§ 1539. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES. 1. ANY
LOCAL LAW OR ORDINANCE CONCERNING BINGO MAY BE AMENDED, FROM TIME TO
TIME, OR REPEALED BY THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY
OF THE MUNICIPALITY THAT ENACTED IT AND SUCH AMENDMENT OR REPEAL, AS THE
CASE MAY BE, MAY BE MADE EFFECTIVE AND OPERATIVE NOT EARLIER THAN THIRTY
DAYS FOLLOWING THE EFFECTIVE DATE OF THE LOCAL LAW OR ORDINANCE EFFECT-
ING SUCH AMENDMENT OR REPEAL, AS THE CASE MAY BE.
2. THE APPROVAL OF A MAJORITY OF THE ELECTORS OF SUCH MUNICIPALITY
SHALL NOT BE A CONDITION PREREQUISITE TO THE TAKING EFFECT OF SUCH LOCAL
LAW OR ORDINANCE.
§ 1540. DELEGATION OF AUTHORITY. THE GOVERNING BODY OF A MUNICIPALITY
MAY DELEGATE TO A MUNICIPAL OFFICER OR OFFICERS DESIGNATED BY SUCH MUNI-
CIPALITY FOR THAT PURPOSE ANY OF THE AUTHORITY GRANTED TO IT HEREBY IN
RELATION TO THE ISSUANCE, AMENDMENT AND CANCELLATION OF LICENSES, THE
CONDUCT OF INVESTIGATIONS AND HEARINGS, THE SUPERVISION OF THE OPERATION
OF THE GAMES AND THE COLLECTION AND TRANSMISSION OF FEES.
§ 1541. POWERS AND DUTIES OF MAYORS OR MANAGERS OF CERTAIN CITIES.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE, WHENEVER THE CHARTER
OF ANY CITY, OR ANY SPECIAL OR LOCAL LAW, PROVIDES THAT THE MAYOR OR
MANAGER OF SUCH CITY IS THE CHIEF LAW ENFORCEMENT OFFICER THEREOF, THEN
AND IN THAT EVENT SUCH MAYOR OR MANAGER, AS THE CASE MAY BE, SHALL HAVE,
EXERCISE AND PERFORM ALL THE POWERS AND DUTIES OTHERWISE PRESCRIBED BY
THIS TITLE TO BE EXERCISED AND PERFORMED BY THE GOVERNING BODY OF SUCH
CITY EXCEPT THOSE PRESCRIBED BY SECTION FIFTEEN HUNDRED TWENTY-TWO OF
THIS TITLE, AND IN ANY SUCH CASE, THE TERM "GOVERNING BODY OF A MUNICI-
PALITY" AS USED IN THIS TITLE SHALL BE DEEMED TO MEAN AND INCLUDE THE
MAYOR OR MANAGER OF ANY SUCH CITY.
TITLE 4
LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN
ORGANIZATIONS
SECTION 1550. SHORT TITLE; PURPOSE OF TITLE.
1551. LOCAL OPTION.
1552. LOCAL LAWS AND ORDINANCES.
1553. POWERS AND DUTIES OF THE COMMISSION.
1554. RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE.
1555. AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT.
1556. DECLARATION OF STATE'S EXEMPTION FROM OPERATION OF
PROVISIONS OF 15 U.S.C. § 1172.
1557. LEGAL SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE.
1558. APPLICATION FOR LICENSE.
1559. RAFFLES; LICENSE NOT REQUIRED.
S. 2009 128 A. 3009
1560. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF
LICENSE; FEES; DURATION OF LICENSE.
1561. HEARING; AMENDMENT OF LICENSE.
1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE.
1563. CONTROL AND SUPERVISION; SUSPENSION OF IDENTIFICATION
NUMBERS AND LICENSES; INSPECTIONS OF PREMISES.
1564. FREQUENCY OF GAMES.
1565. PERSONS OPERATING GAMES; EQUIPMENT; EXPENSES; COMPEN-
SATION.
1566. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES.
1567. STATEMENT OF RECEIPTS AND EXPENSES; ADDITIONAL LICENSE
FEES.
1568. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS
AND EMPLOYEES; DISCLOSURE OF INFORMATION.
1569. APPEALS FOR THE DECISION OF A MUNICIPAL OFFICER, CLERK OR
DEPARTMENT TO THE COMMISSION.
1570. EXEMPTION FROM PROSECUTION.
1571. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY
FOR LICENSE.
1572. UNLAWFUL GAMES OF CHANCE.
1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS.
1574. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES.
1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS.
1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS.
1577. TRANSFER RESTRICTIONS.
1578. BELL JARS COMPLIANCE AND ENFORCEMENT.
§ 1550. SHORT TITLE; PURPOSE OF TITLE. THIS TITLE SHALL BE KNOWN AND
MAY BE CITED AS THE GAMES OF CHANCE LICENSING LAW. THE LEGISLATURE HERE-
BY DECLARES THAT THE RAISING OF FUNDS FOR THE PROMOTION OF BONA FIDE
CHARITABLE, EDUCATIONAL, SCIENTIFIC, HEALTH, RELIGIOUS AND PATRIOTIC
CAUSES AND UNDERTAKINGS, WHERE THE BENEFICIARIES ARE UNDETERMINED, IS IN
THE PUBLIC INTEREST. THE LEGISLATURE HEREBY FINDS THAT, AS CONDUCTED
PRIOR TO THE EFFECTIVE DATE OF THIS TITLE, GAMES OF CHANCE WERE THE
SUBJECT OF EXPLOITATION BY PROFESSIONAL GAMBLERS, PROMOTERS AND COMMER-
CIAL INTERESTS. IT IS HEREBY DECLARED TO BE THE POLICY OF THE LEGISLA-
TURE THAT ALL PHASES OF THE SUPERVISION, LICENSING AND REGULATION OF
GAMES OF CHANCE AND OF THE CONDUCT OF GAMES OF CHANCE SHOULD BE CLOSELY
CONTROLLED AND THAT THE LAWS AND REGULATIONS PERTAINING THERETO SHOULD
BE STRICTLY CONSTRUED AND RIGIDLY ENFORCED; THAT THE CONDUCT OF THE GAME
AND ALL ATTENDANT ACTIVITIES SHOULD BE SO REGULATED AND ADEQUATE
CONTROLS SO INSTITUTED AS TO DISCOURAGE COMMERCIALIZATION OF GAMBLING IN
ALL ITS FORMS, INCLUDING THE RENTAL OF COMMERCIAL PREMISES FOR GAMES OF
CHANCE, AND TO ENSURE A MAXIMUM AVAILABILITY OF THE NET PROCEEDS OF
GAMES OF CHANCE EXCLUSIVELY FOR APPLICATION TO THE WORTHY CAUSES AND
UNDERTAKINGS SPECIFIED HEREIN; THAT THE ONLY JUSTIFICATION FOR THIS
TITLE IS TO FOSTER AND SUPPORT SUCH WORTHY CAUSES AND UNDERTAKINGS, AND
THAT THE MANDATE OF SUBDIVISION TWO OF SECTION NINE OF ARTICLE ONE OF
THE STATE CONSTITUTION, AS AMENDED, SHOULD BE CARRIED OUT BY RIGID REGU-
LATIONS TO PREVENT COMMERCIALIZED GAMBLING, PREVENT PARTICIPATION BY
CRIMINAL AND OTHER UNDESIRABLE ELEMENTS AND PREVENT THE DIVERSION OF
FUNDS FROM THE PURPOSES HEREIN AUTHORIZED.
§ 1551. LOCAL OPTION. SUBJECT TO THE PROVISIONS OF THIS TITLE, AND
PURSUANT TO THE DIRECTION CONTAINED IN SUBDIVISION TWO OF SECTION NINE
OF ARTICLE ONE OF THE STATE CONSTITUTION, THE LEGISLATURE HEREBY GIVES
AND GRANTS TO EVERY MUNICIPALITY THE RIGHT, POWER AND AUTHORITY TO
S. 2009 129 A. 3009
AUTHORIZE THE CONDUCT OF GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS
WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICIPALITY. A LOCAL LAW OR ORDI-
NANCE ADOPTED BY A TOWN SHALL BE OPERATIVE IN ANY VILLAGE OR WITHIN ANY
PART OF ANY VILLAGE LOCATED WITHIN SUCH TOWN IF, AFTER ADOPTION OF SUCH
LOCAL LAW OR ORDINANCE, THE BOARD OF TRUSTEES OF SUCH VILLAGE ADOPTS A
LOCAL LAW OR RESOLUTION SUBJECT TO A PERMISSIVE REFERENDUM AS PROVIDED
IN ARTICLE NINE OF THE VILLAGE LAW AUTHORIZING THE ISSUANCE OF LICENSES
BY THE TOWN FOR GAMES OF CHANCE WITHIN SUCH VILLAGE. SUCH LOCAL LAW OR
RESOLUTION MAY BE REPEALED ONLY BY A LOCAL LAW OR RESOLUTION THAT SHALL
ALSO BE SUBJECT TO A PERMISSIVE REFERENDUM, OR BY ENACTMENT OF A LOCAL
LAW AUTHORIZING GAMES OF CHANCE AS PROVIDED IN SECTION FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE.
§ 1552. LOCAL LAWS AND ORDINANCES. 1. THE COMMON COUNCIL OR OTHER
LOCAL LEGISLATIVE BODY OF ANY MUNICIPALITY MAY, EITHER BY LOCAL LAW OR
ORDINANCE, PROVIDE THAT IT SHALL BE LAWFUL FOR ANY AUTHORIZED ORGANIZA-
TION, UPON OBTAINING A LICENSE THEREFOR AS HEREINAFTER PROVIDED, TO
CONDUCT GAMES OF CHANCE WITHIN THE TERRITORIAL LIMITS OF SUCH MUNICI-
PALITY, SUBJECT TO THE PROVISIONS OF SUCH LOCAL LAW OR ORDINANCE, THE
PROVISIONS OF THIS TITLE AND THE PROVISIONS SET FORTH BY THE COMMISSION.
2. NO SUCH LOCAL LAW OR ORDINANCE SHALL BECOME OPERATIVE OR EFFECTIVE
UNLESS AND UNTIL IT SHALL HAVE BEEN APPROVED BY A MAJORITY OF THE ELEC-
TORS VOTING ON A PROPOSITION SUBMITTED AT A GENERAL OR SPECIAL ELECTION
HELD WITHIN SUCH MUNICIPALITY WHO ARE QUALIFIED TO VOTE FOR OFFICERS OF
SUCH MUNICIPALITY.
3. THE TIME, METHOD AND MANNER OF SUBMISSION, PREPARATION AND
PROVISION OF BALLOTS AND BALLOT LABELS, BALLOTING BY VOTING MACHINE AND
CONDUCTING THE ELECTION, CANVASSING THE RESULT AND MAKING AND FILING THE
RETURNS AND ALL OTHER PROCEDURE WITH REFERENCE TO THE SUBMISSION OF AND
ACTION UPON ANY PROPOSITION FOR THE APPROVAL OF ANY SUCH LOCAL LAW OR
ORDINANCE SHALL BE THE SAME AS IN THE CASE OF ANY OTHER PROPOSITION TO
BE SUBMITTED TO THE ELECTORS OF SUCH MUNICIPALITY AT A GENERAL OR
SPECIAL ELECTION IN SUCH MUNICIPALITY, AS PROVIDED BY LAW.
§ 1553. POWERS AND DUTIES OF THE COMMISSION. THE COMMISSION SHALL HAVE
THE POWER AND IT SHALL BE THE DUTY OF THE COMMISSION TO:
1. SUPERVISE THE ADMINISTRATION OF THE GAMES OF CHANCE LICENSING LAW
AND TO ADOPT, AMEND AND REPEAL RULES AND REGULATIONS GOVERNING THE ISSU-
ANCE AND AMENDMENT OF LICENSES THEREUNDER AND THE CONDUCTING OF GAMES
UNDER SUCH LICENSES, WHICH RULES AND REGULATIONS SHALL HAVE THE FORCE
AND EFFECT OF LAW AND SHALL BE BINDING UPON ALL MUNICIPALITIES ISSUING
LICENSES, AND UPON LICENSEES OF THE COMMISSION, TO THE END THAT SUCH
LICENSES SHALL BE ISSUED TO QUALIFIED LICENSEES ONLY, AND THAT SAID
GAMES SHALL BE FAIRLY AND PROPERLY CONDUCTED FOR THE PURPOSES AND IN THE
MANNER OF THE SAID GAMES OF CHANCE LICENSING LAW PRESCRIBED AND TO
PREVENT THE GAMES OF CHANCE THEREBY AUTHORIZED TO BE CONDUCTED FROM
BEING CONDUCTED FOR COMMERCIAL PURPOSES OR PURPOSES OTHER THAN THOSE
THEREIN AUTHORIZED, PARTICIPATED IN BY CRIMINAL OR OTHER UNDESIRABLE
ELEMENTS AND THE FUNDS DERIVED FROM THE GAMES BEING DIVERTED FROM THE
PURPOSES AUTHORIZED, AND TO PROVIDE UNIFORMITY IN THE ADMINISTRATION OF
SAID LAW THROUGHOUT THE STATE, THE COMMISSION SHALL PRESCRIBE FORMS OF
APPLICATION FOR LICENSES, LICENSEES, AMENDMENT OF LICENSES, REPORTS OF
THE CONDUCT OF GAMES AND OTHER MATTERS INCIDENT TO THE ADMINISTRATION OF
SUCH LAW.
2. CONDUCT, ANYWHERE IN THE STATE, INVESTIGATIONS OF THE ADMINIS-
TRATION, ENFORCEMENT AND POTENTIAL OR ACTUAL VIOLATIONS OF THE GAMES OF
CHANCE LICENSING LAW AND OF THE RULES AND REGULATIONS OF THE COMMISSION.
S. 2009 130 A. 3009
3. REVIEW ALL DETERMINATIONS AND ACTIONS OF THE CLERK OR DEPARTMENT IN
ISSUING AN INITIAL LICENSE AND IT MAY REVIEW THE ISSUANCE OF SUBSEQUENT
LICENSES AND, AFTER HEARING, REVOKE THOSE LICENSES THAT DO NOT IN ALL
RESPECTS MEET THE REQUIREMENTS OF THIS TITLE AND THE RULES AND REGU-
LATIONS OF THE COMMISSION.
4. SUSPEND OR REVOKE A LICENSE, AFTER HEARING, FOR ANY VIOLATION OF
THE PROVISIONS OF THIS TITLE OR THE RULES AND REGULATIONS OF THE COMMIS-
SION.
5. HEAR APPEALS FROM THE DETERMINATIONS AND ACTION OF THE CLERK,
DEPARTMENT OR MUNICIPAL OFFICER IN CONNECTION WITH THE REFUSING TO ISSUE
LICENSES, THE SUSPENSION AND REVOCATION OF LICENSES AND THE IMPOSITION
OF FINES IN THE MANNER PRESCRIBED BY LAW AND THE ACTION AND DETERMI-
NATION OF THE COMMISSION UPON ANY SUCH APPEAL SHALL BE BINDING UPON THE
CLERK, DEPARTMENT OR MUNICIPAL OFFICER AND ALL PARTIES THERETO.
6. CARRY ON CONTINUOUS STUDY OF THE OPERATION OF THE GAMES OF CHANCE
LICENSING LAW TO ASCERTAIN FROM TIME TO TIME DEFECTS THEREIN JEOPARDIZ-
ING OR THREATENING TO JEOPARDIZE THE PURPOSES OF THIS TITLE, AND TO
FORMULATE AND RECOMMEND CHANGES IN SUCH LAW AND IN OTHER LAWS OF THE
STATE THAT THE COMMISSION MAY DETERMINE TO BE NECESSARY FOR THE REALIZA-
TION OF SUCH PURPOSES, AND TO THE SAME END TO MAKE A CONTINUOUS STUDY OF
THE OPERATION AND ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT
IN OTHER STATES OF THE UNITED STATES.
7. SUPERVISE THE DISPOSITION OF ALL FUNDS DERIVED FROM THE CONDUCT OF
GAMES OF CHANCE BY AUTHORIZED ORGANIZATIONS NOT CURRENTLY LICENSED TO
CONDUCT SUCH GAMES.
8. ISSUE AN IDENTIFICATION NUMBER TO AN APPLICANT AUTHORIZED ORGANIZA-
TION IF THE COMMISSION DETERMINES THAT THE APPLICANT SATISFIES THE
REQUIREMENTS OF THE GAMES OF CHANCE LICENSING LAW AND THE RULES AND
REGULATIONS OF THE COMMISSION.
9. APPROVE AND ESTABLISH A STANDARD SET OF GAMES OF CHANCE EQUIPMENT
AND BY RULES AND REGULATIONS PRESCRIBE THE MANNER IN WHICH SUCH EQUIP-
MENT IS TO BE REPRODUCED AND DISTRIBUTED TO LICENSED AUTHORIZED ORGAN-
IZATIONS. THE SALE OR DISTRIBUTION TO A LICENSED AUTHORIZED ORGANIZATION
OF ANY EQUIPMENT OTHER THAN THAT CONTAINED IN THE STANDARD SET OF GAMES
OF CHANCE EQUIPMENT SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
§ 1554. RESTRICTIONS UPON CONDUCT OF GAMES OF CHANCE. THE CONDUCT OF
GAMES OF CHANCE AUTHORIZED BY LOCAL LAW OR ORDINANCE SHALL BE SUBJECT TO
THE FOLLOWING RESTRICTIONS WITHOUT REGARD TO WHETHER THE RESTRICTIONS
ARE CONTAINED IN SUCH LOCAL LAW OR ORDINANCE, BUT NOTHING HEREIN SHALL
BE CONSTRUED TO PREVENT THE INCLUSION WITHIN SUCH LOCAL LAW OR ORDINANCE
OF OTHER PROVISIONS IMPOSING ADDITIONAL RESTRICTIONS UPON THE CONDUCT OF
SUCH GAMES:
1. NO PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION, OTHER
THAN A LICENSEE UNDER THE PROVISIONS OF SECTION FIFTEEN HUNDRED SIXTY OF
THIS TITLE, SHALL
(A) CONDUCT SUCH GAME; OR
(B) LEASE OR OTHERWISE MAKE AVAILABLE FOR CONDUCTING GAMES OF CHANCE
PREMISES FOR ANY CONSIDERATION WHATSOEVER, DIRECT OR INDIRECT, WITHOUT
OBTAINING THE PRIOR WRITTEN APPROVAL OF THE COMMISSION.
2. NO GAME OF CHANCE SHALL BE HELD, OPERATED OR CONDUCTED ON OR WITHIN
ANY LEASED PREMISES IF RENTAL UNDER SUCH LEASE IS TO BE PAID, WHOLLY OR
PARTLY, ON THE BASIS OF A PERCENTAGE OF THE RECEIPTS OR NET PROFITS
DERIVED FROM THE OPERATION OF SUCH GAME.
3. NO AUTHORIZED ORGANIZATION LICENSED UNDER THE PROVISIONS OF THIS
TITLE SHALL PURCHASE, LEASE, OR RECEIVE ANY SUPPLIES OR EQUIPMENT
SPECIFICALLY DESIGNED OR ADAPTED FOR USE IN THE CONDUCT OF GAMES OF
S. 2009 131 A. 3009
CHANCE FROM OTHER THAN A SUPPLIER LICENSED BY THE COMMISSION OR FROM
ANOTHER AUTHORIZED ORGANIZATION. LEASE TERMS AND CONDITIONS SHALL BE
SUBJECT TO RULES AND REGULATIONS OF THE COMMISSION. THE PROVISIONS OF
THIS TITLE SHALL NOT BE CONSTRUED TO AUTHORIZE OR PERMIT AN AUTHORIZED
ORGANIZATION TO ENGAGE IN THE BUSINESS OF LEASING GAMES OF CHANCE,
SUPPLIES OR EQUIPMENT. NO ORGANIZATION SHALL PURCHASE BELL JAR TICKETS,
OR DEALS OF BELL JAR TICKETS, FROM ANY OTHER PERSON OR ORGANIZATION
OTHER THAN THOSE SPECIFICALLY AUTHORIZED UNDER SECTION FIFTEEN HUNDRED
SEVENTY-SIX OF THIS TITLE.
4. THE ENTIRE NET PROCEEDS OF ANY GAME OF CHANCE SHALL BE DEVOTED
EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE ORGANIZATION PERMITTED TO
CONDUCT THE SAME AND THE NET PROCEEDS OF ANY RENTAL DERIVED THEREFROM
SHALL BE DEVOTED EXCLUSIVELY TO THE LAWFUL PURPOSES OF THE AUTHORIZED
GAMES OF CHANCE LESSOR.
5. (A) NO SINGLE PRIZE AWARDED BY GAMES OF CHANCE OTHER THAN RAFFLE
SHALL EXCEED THE SUM OR VALUE OF THREE HUNDRED DOLLARS, EXCEPT THAT FOR
MERCHANDISE WHEELS, NO SINGLE PRIZE SHALL EXCEED THE SUM OR VALUE OF TWO
HUNDRED FIFTY DOLLARS, AND FOR BELL JAR, NO SINGLE PRIZE SHALL EXCEED
THE SUM OR VALUE OF ONE THOUSAND DOLLARS.
(B) NO SINGLE PRIZE AWARDED BY RAFFLE SHALL EXCEED THE SUM OR VALUE OF
THREE HUNDRED THOUSAND DOLLARS.
(C) NO SINGLE WAGER SHALL EXCEED SIX DOLLARS AND FOR BELL JARS, COIN
BOARDS OR MERCHANDISE BOARDS, NO SINGLE PRIZE SHALL EXCEED ONE THOUSAND
DOLLARS, PROVIDED, HOWEVER, THAT SUCH LIMITATION SHALL NOT APPLY TO THE
AMOUNT OF MONEY OR VALUE PAID BY THE PARTICIPANT IN A RAFFLE IN RETURN
FOR A TICKET OR OTHER RECEIPT.
(D) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
BE DETERMINED BY THE COST OF SUCH PRIZE TO THE AUTHORIZED ORGANIZATION
OR, IF DONATED, THE FAIR MARKET VALUE OF SUCH PRIZE.
6. (A) NO AUTHORIZED ORGANIZATION SHALL AWARD A SERIES OF PRIZES
CONSISTING OF CASH OR OF MERCHANDISE WITH AN AGGREGATE VALUE IN EXCESS
OF:
(1) TEN THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF ANY ONE
MERCHANDISE WHEEL; AND
(2) SIX THOUSAND DOLLARS DURING THE SUCCESSIVE OPERATIONS OF ANY BELL
JAR, COIN BOARD OR MERCHANDISE BOARD.
(B) NO SERIES OF PRIZES AWARDED BY RAFFLE SHALL HAVE AN AGGREGATE
VALUE IN EXCESS OF FIVE HUNDRED THOUSAND DOLLARS.
(C) FOR COIN BOARDS AND MERCHANDISE BOARDS, THE VALUE OF A PRIZE SHALL
BE DETERMINED BY ITS COST TO THE AUTHORIZED ORGANIZATION OR, IF DONATED,
ITS FAIR MARKET VALUE.
7. IN ADDITION TO MERCHANDISE WHEELS, RAFFLES AND BELL JARS, NO MORE
THAN FIVE OTHER SINGLE TYPES OF GAMES OF CHANCE SHALL BE CONDUCTED
DURING ANY ONE LICENSE PERIOD.
8. (A) EXCEPT FOR MERCHANDISE WHEELS AND RAFFLES, NO SERIES OF PRIZES
ON ANY ONE OCCASION SHALL AGGREGATE MORE THAN FOUR HUNDRED DOLLARS WHEN
THE LICENSED AUTHORIZED ORGANIZATION CONDUCTS FIVE SINGLE TYPES OF GAMES
OF CHANCE DURING ANY ONE LICENSE PERIOD. EXCEPT FOR MERCHANDISE WHEELS,
RAFFLES AND BELL JARS, NO SERIES OF PRIZES ON ANY ONE OCCASION SHALL
AGGREGATE MORE THAN FIVE HUNDRED DOLLARS WHEN THE LICENSED AUTHORIZED
ORGANIZATION CONDUCTS FEWER THAN FIVE SINGLE TYPES OF GAMES OF CHANCE,
EXCLUSIVE OF MERCHANDISE WHEELS, RAFFLES AND BELL JARS, DURING ANY ONE
LICENSE PERIOD.
(B) NO AUTHORIZED ORGANIZATION SHALL AWARD BY RAFFLE PRIZES WITH AN
AGGREGATE VALUE IN EXCESS OF THREE MILLION DOLLARS DURING ANY ONE
LICENSE PERIOD.
S. 2009 132 A. 3009
9. EXCEPT FOR THE LIMITATIONS ON THE SUM OR VALUE FOR SINGLE PRIZES
AND SERIES OF PRIZES, NO LIMIT SHALL BE IMPOSED ON THE SUM OR VALUE OF
PRIZES AWARDED TO ANY ONE PARTICIPANT DURING ANY OCCASION OR ANY LICENSE
PERIOD.
10. (A) NO PERSON EXCEPT A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
ORGANIZATION SHALL PARTICIPATE IN THE MANAGEMENT OF SUCH GAMES.
(B) NO PERSON EXCEPT A BONA FIDE MEMBER OF THE LICENSED AUTHORIZED
ORGANIZATION, ITS AUXILIARY OR AFFILIATED ORGANIZATION, SHALL PARTIC-
IPATE IN THE OPERATION OF SUCH GAME, AS SET FORTH IN SECTION FIFTEEN
HUNDRED SIXTY-FIVE OF THIS TITLE.
11. NO PERSON SHALL RECEIVE ANY REMUNERATION FOR PARTICIPATING IN THE
MANAGEMENT OR OPERATION OF ANY SUCH GAME.
12. NO AUTHORIZED ORGANIZATION SHALL EXTEND CREDIT TO A PERSON TO
PARTICIPATE IN PLAYING A GAME OF CHANCE.
13. (A) NO GAME OF CHANCE, OTHER THAN A RAFFLE THAT COMPLIES WITH
PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE CONDUCTED ON OTHER THAN THE
PREMISES OF AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF CHANCE
LESSOR.
(B) RAFFLE TICKETS MAY BE SOLD TO THE PUBLIC OUTSIDE THE PREMISES OF
AN AUTHORIZED ORGANIZATION OR AN AUTHORIZED GAMES OF CHANCE LESSOR IF
SUCH SALES OCCUR IN A MUNICIPALITY THAT:
(1) HAS PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE;
(2) IS LOCATED IN THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE
RAFFLE LICENSE IS LOCATED OR IN A COUNTY THAT IS CONTIGUOUS TO THE COUN-
TY IN WHICH THE MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED; AND
(3) HAS NOT OBJECTED TO SUCH SALES AFTER THE COMMISSION GIVES NOTICE
TO SUCH MUNICIPALITY OF AN AUTHORIZED ORGANIZATION'S REQUEST TO SELL
SUCH RAFFLE TICKETS IN SUCH MUNICIPALITY.
(C) THE COMMISSION MAY BY REGULATION PRESCRIBE THE ADVANCE NOTICE AN
AUTHORIZED ORGANIZATION MUST PROVIDE TO THE COMMISSION IN ORDER TO TAKE
ADVANTAGE OF THE PROVISIONS OF PARAGRAPH (B) OF THIS SUBDIVISION, FORMS
IN WHICH SUCH A REQUEST SHALL BE MADE AND THE TIME PERIOD IN WHICH A
MUNICIPALITY MUST COMMUNICATE AN OBJECTION TO THE COMMISSION.
(D) NO SALE OF RAFFLE TICKETS SHALL BE MADE MORE THAN ONE HUNDRED
EIGHTY DAYS PRIOR TO THE DATE SCHEDULED FOR THE OCCASION AT WHICH THE
RAFFLE WILL BE CONDUCTED.
(E) THE WINNER OF ANY SINGLE PRIZE IN A RAFFLE SHALL NOT BE REQUIRED
TO BE PRESENT AT THE TIME SUCH RAFFLE IS CONDUCTED.
14. NO PERSON LICENSED TO MANUFACTURE, DISTRIBUTE OR SELL GAMES OF
CHANCE SUPPLIES OR EQUIPMENT, OR THEIR AGENTS, SHALL CONDUCT, PARTIC-
IPATE IN, OR ASSIST IN THE CONDUCT OF GAMES OF CHANCE. NOTHING HEREIN
SHALL PROHIBIT A LICENSED DISTRIBUTOR FROM SELLING, OFFERING FOR SALE OR
EXPLAINING A PRODUCT TO AN AUTHORIZED ORGANIZATION OR INSTALLING OR
SERVICING GAMES OF CHANCE EQUIPMENT UPON THE PREMISES OF GAMES OF CHANCE
LICENSEES.
15. THE UNAUTHORIZED CONDUCT OF A GAME OF CHANCE SHALL CONSTITUTE AND
BE PUNISHABLE AS A MISDEMEANOR.
16. NO COINS OR MERCHANDISE FROM A COIN BOARD OR MERCHANDISE BOARD
SHALL BE REDEEMABLE OR CONVERTIBLE INTO CASH DIRECTLY OR INDIRECTLY BY
THE AUTHORIZED ORGANIZATION.
17. NO GAME OF CHANCE SHALL INVOLVE WAGERING OF MONEY BY ONE PLAYER
AGAINST ANOTHER PLAYER.
§ 1555. AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT. 1. NO
PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION SHALL SELL OR
S. 2009 133 A. 3009
DISTRIBUTE SUPPLIES OR EQUIPMENT SPECIFICALLY DESIGNED OR ADAPTED FOR
USE IN CONDUCT OF GAMES OF CHANCE WITHOUT HAVING FIRST OBTAINED A
LICENSE THEREFOR UPON WRITTEN APPLICATION MADE, VERIFIED AND FILED WITH
THE COMMISSION IN THE FORM PRESCRIBED BY THE RULES AND REGULATIONS OF
THE COMMISSION. AS A PART OF THE COMMISSION'S DETERMINATION CONCERNING
THE APPLICANT'S SUITABILITY FOR LICENSING AS A GAMES OF CHANCE SUPPLIER,
THE COMMISSION SHALL REQUIRE THE APPLICANT TO FURNISH TO THE COMMISSION
TWO SETS OF FINGERPRINTS. SUCH FINGERPRINTS SHALL BE SUBMITTED TO THE
DIVISION OF CRIMINAL JUSTICE SERVICES FOR A STATE CRIMINAL HISTORY
RECORD CHECK, AS DEFINED IN SUBDIVISION ONE OF SECTION THREE THOUSAND
THIRTY-FIVE OF THE EDUCATION LAW, AND MAY BE SUBMITTED TO THE FEDERAL
BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL HISTORY RECORD CHECK.
MANUFACTURERS OF BELL JAR TICKETS SHALL BE CONSIDERED SUPPLIERS OF SUCH
EQUIPMENT. IN EACH SUCH APPLICATION FOR A LICENSE UNDER THIS SECTION
SHALL BE STATED THE NAME AND ADDRESS OF THE APPLICANT; THE NAMES AND
ADDRESSES OF ITS OFFICERS, DIRECTORS, SHAREHOLDERS OR PARTNERS; THE
AMOUNT OF GROSS RECEIPTS REALIZED ON THE SALE AND RENTAL OF GAMES OF
CHANCE SUPPLIES AND EQUIPMENT TO DULY LICENSED AUTHORIZED ORGANIZATIONS
DURING THE LAST PRECEDING CALENDAR OR FISCAL YEAR, AND SUCH OTHER INFOR-
MATION AS SHALL BE PRESCRIBED BY SUCH RULES AND REGULATIONS. THE FEE FOR
SUCH LICENSE SHALL BE A SUM EQUAL TO AN AMOUNT ESTABLISHED BY COMMISSION
REGULATION PLUS AN AMOUNT EQUAL TO TWO PERCENT OF THE GROSS SALES AND
RENTALS, IF ANY, OF GAMES OF CHANCE EQUIPMENT AND SUPPLIES TO AUTHORIZED
ORGANIZATIONS OR AUTHORIZED GAMES OF CHANCE LESSORS BY THE APPLICANT
DURING THE PRECEDING CALENDAR YEAR, OR FISCAL YEAR IF THE APPLICANT
MAINTAINS HIS ACCOUNTS ON A FISCAL YEAR BASIS. NO LICENSE GRANTED
PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE EFFECTIVE FOR A
PERIOD OF MORE THAN ONE YEAR.
2. THE FOLLOWING SHALL BE INELIGIBLE FOR SUCH A LICENSE:
(A) A PERSON CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP
BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY
OF CHARITABLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN
HUNDRED FIFTY-THREE OF THE CORRECTION LAW;
(B) A PERSON WHO IS OR HAS BEEN A PROFESSIONAL GAMBLER OR GAMBLING
PROMOTER OR WHO FOR OTHER REASONS IS NOT OF GOOD MORAL CHARACTER;
(C) A PUBLIC OFFICER OR EMPLOYEE;
(D) AN AUTHORIZED GAMES OF CHANCE LESSOR; OR
(E) A FIRM OR CORPORATION IN WHICH A PERSON DEFINED IN SUBPARAGRAPH
(A), (B), (C) OR (D) OF THIS SUBDIVISION HAS GREATER THAN A TEN PERCENT
PROPRIETARY, EQUITABLE OR CREDIT INTEREST OR IN WHICH SUCH A PERSON IS
ACTIVE OR EMPLOYED.
3. THE COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED
THE BOOKS AND RECORDS OF ANY APPLICANT FOR A LICENSE UNDER THIS SECTION.
ANY INFORMATION SO RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY
BE NECESSARY FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS
TITLE.
4. ANY SOLICITATION OF AN ORGANIZATION LICENSED TO CONDUCT GAMES OF
CHANCE, TO PURCHASE OR INDUCE THE PURCHASE OF GAMES OF CHANCE SUPPLIES
AND EQUIPMENT, OTHER THAN BY A PERSON LICENSED OR OTHERWISE AUTHORIZED
PURSUANT TO THIS SECTION, SHALL CONSTITUTE A VIOLATION OF THIS SECTION.
5. ANY PERSON WHO WILLFULLY MAKES ANY MATERIAL FALSE STATEMENT IN ANY
APPLICATION FOR A LICENSE AUTHORIZED TO BE ISSUED UNDER THIS SECTION OR
WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION OR OF ANY
LICENSE ISSUED HEREUNDER SHALL BE GUILTY OF A MISDEMEANOR AND, IN ADDI-
TION TO THE PENALTIES IN SUCH CASE MADE AND PROVIDED, SHALL FORFEIT ANY
S. 2009 134 A. 3009
LICENSE ISSUED TO HIM, HER OR IT UNDER THIS SECTION AND BE INELIGIBLE TO
APPLY FOR A LICENSE UNDER THIS SECTION FOR ONE YEAR THEREAFTER.
6. AT THE END OF SUCH PERIOD SPECIFIED IN THE LICENSE, A RECAPITU-
LATION SHALL BE MADE AS BETWEEN THE LICENSEE AND THE COMMISSION IN
RESPECT OF THE GROSS SALES AND RENTALS ACTUALLY RECORDED DURING THAT
PERIOD AND THE FEE PAID THEREFOR, AND ANY DEFICIENCY OF FEE THEREBY
SHOWN TO BE DUE SHALL BE PAID BY THE LICENSEE AND ANY EXCESS OF FEE
THEREBY SHOWN TO HAVE BEEN PAID SHALL BE CREDITED TO SAID LICENSEE IN
SUCH MANNER AS THE COMMISSION BY RULES AND REGULATIONS SHALL PRESCRIBE.
§ 1556. DECLARATION OF STATE'S EXEMPTION FROM OPERATION OF PROVISIONS
OF 15 U.S.C. § 1172. PURSUANT TO SECTION TWO OF AN ACT OF CONGRESS OF
THE UNITED STATES ENTITLED "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBL-
ING DEVICES IN INTERSTATE AND FOREIGN COMMERCE," APPROVED JANUARY
SECOND, NINETEEN HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134,
AND ALSO DESIGNATED AS 15 U.S.C. §§ 1171-1177, THE STATE OF NEW YORK,
ACTING BY AND THROUGH THE DULY ELECTED AND QUALIFIED MEMBERS OF ITS
LEGISLATURE, DOES HEREBY, IN ACCORDANCE WITH AND IN COMPLIANCE WITH THE
PROVISIONS OF SECTION TWO OF SAID ACT OF CONGRESS, DECLARE AND PROCLAIM
THAT IT IS EXEMPT FROM THE PROVISIONS OF SECTION TWO OF SAID ACT OF
CONGRESS.
§ 1557. LEGAL SHIPMENTS OF GAMING DEVICES INTO NEW YORK STATE. ALL
SHIPMENTS INTO THIS STATE OF GAMING DEVICES, EXCLUDING SLOT MACHINES AND
COIN OPERATED GAMBLING DEVICES, AS DEFINED IN SUBDIVISION SEVEN-A OF
SECTION 225.00 OF THE PENAL LAW, THE REGISTERING, RECORDING AND LABELING
OF WHICH HAS BEEN DULY HAD BY THE MANUFACTURER OR DEALER THEREOF IN
ACCORDANCE WITH SECTIONS THREE AND FOUR OF AN ACT OF CONGRESS OF THE
UNITED STATES ENTITLED "AN ACT TO PROHIBIT TRANSPORTATION OF GAMBLING
DEVICES IN INTERSTATE AND FOREIGN COMMERCE," APPROVED JANUARY SECOND,
NINETEEN HUNDRED FIFTY-ONE, BEING CHAPTER 1194, 64 STAT. 1134, AND ALSO
DESIGNATED AS 15 U.S.C. §§ 1171-1177, SHALL BE DEEMED LEGAL SHIPMENTS
THEREOF INTO THIS STATE.
§ 1558. APPLICATION FOR LICENSE. 1. TO CONDUCT GAMES OF CHANCE. (A)
EACH APPLICANT FOR A LICENSE SHALL, AFTER OBTAINING AN IDENTIFICATION
NUMBER FROM THE COMMISSION, FILE WITH THE CLERK OR DEPARTMENT, AN APPLI-
CATION THEREFOR IN A FORM TO BE PRESCRIBED BY THE COMMISSION, DULY
EXECUTED AND VERIFIED, IN WHICH SHALL BE STATED:
(1) THE NAME AND ADDRESS OF THE APPLICANT TOGETHER WITH SUFFICIENT
FACTS RELATING TO ITS INCORPORATION AND ORGANIZATION TO ENABLE SUCH
CLERK OR DEPARTMENT, AS THE CASE MAY BE, TO DETERMINE WHETHER OR NOT IT
IS A BONA FIDE AUTHORIZED ORGANIZATION;
(2) THE NAMES AND ADDRESSES OF ITS OFFICERS; THE PLACE OR PLACES
WHERE, THE DATE OR DATES AND THE TIME OR TIMES WHEN THE APPLICANT
INTENDS TO CONDUCT GAMES UNDER THE LICENSE APPLIED FOR;
(3) THE AMOUNT OF RENT TO BE PAID OR OTHER CONSIDERATION TO BE GIVEN
DIRECTLY OR INDIRECTLY FOR EACH LICENSED PERIOD FOR USE OF THE PREMISES
OF AN AUTHORIZED GAMES OF CHANCE LESSOR;
(4) ALL OTHER ITEMS OF EXPENSE INTENDED TO BE INCURRED OR PAID IN
CONNECTION WITH THE HOLDING, OPERATING AND CONDUCTING OF SUCH GAMES OF
CHANCE AND THE NAMES AND ADDRESSES OF THE PERSONS TO WHOM, AND THE
PURPOSES FOR WHICH, THEY ARE TO BE PAID;
(5) THE PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF SUCH GAMES ARE TO
BE DEVOTED AND IN WHAT MANNER; THAT NO COMMISSION, SALARY, COMPENSATION,
REWARD OR RECOMPENSE WILL BE PAID TO ANY PERSON FOR CONDUCTING SUCH GAME
OR GAMES OR FOR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE
PROVIDED; AND SUCH OTHER INFORMATION AS SHALL BE PRESCRIBED BY SUCH
RULES AND REGULATIONS; AND
S. 2009 135 A. 3009
(6) THE NAME OF EACH SINGLE TYPE OF GAME OF CHANCE TO BE CONDUCTED
UNDER THE LICENSE APPLIED FOR AND THE NUMBER OF MERCHANDISE WHEELS AND
RAFFLES, IF ANY, TO BE OPERATED.
(B) IN EACH APPLICATION THERE SHALL BE DESIGNATED NOT LESS THAN FOUR
BONA FIDE MEMBERS OF THE APPLICANT ORGANIZATION UNDER WHOM THE GAME OR
GAMES OF CHANCE WILL BE MANAGED AND TO THE APPLICATION SHALL BE APPENDED
A STATEMENT EXECUTED BY THE MEMBERS SO DESIGNATED, THAT THEY WILL BE
RESPONSIBLE FOR THE MANAGEMENT OF SUCH GAMES IN ACCORDANCE WITH THE
TERMS OF THE LICENSE, THE RULES AND REGULATIONS OF THE COMMISSION, THIS
TITLE AND THE APPLICABLE LOCAL LAWS OR ORDINANCES.
2. AUTHORIZED GAMES OF CHANCE LESSOR. EACH APPLICANT FOR A LICENSE TO
LEASE PREMISES TO A LICENSED ORGANIZATION FOR THE PURPOSES OF CONDUCTING
GAMES OF CHANCE THEREIN SHALL FILE WITH THE CLERK OR DEPARTMENT AN
APPLICATION THEREFOR, IN A FORM TO BE PRESCRIBED BY THE COMMISSION DULY
EXECUTED AND VERIFIED, WHICH SHALL SET FORTH:
(A) THE NAME AND ADDRESS OF THE APPLICANT;
(B) DESIGNATION AND ADDRESS OF THE PREMISES INTENDED TO BE COVERED BY
THE LICENSE SOUGHT;
(C) A STATEMENT THAT THE APPLICANT IN ALL RESPECTS CONFORMS WITH THE
SPECIFICATIONS CONTAINED IN THE DEFINITION OF "AUTHORIZED ORGANIZATION"
SET FORTH IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE; AND
(D) A STATEMENT OF THE LAWFUL PURPOSES TO WHICH THE NET PROCEEDS FROM
ANY RENTAL ARE TO BE DEVOTED BY THE APPLICANT AND SUCH OTHER INFORMATION
AS SHALL BE PRESCRIBED BY THE COMMISSION.
3. IN COUNTIES OUTSIDE THE CITY OF NEW YORK, MUNICIPALITIES MAY,
PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-TWO OF THIS TITLE, ADOPT AN
ORDINANCE PROVIDING THAT AN AUTHORIZED ORGANIZATION HAVING OBTAINED AN
IDENTIFICATION NUMBER FROM THE COMMISSION, AND HAVING APPLIED FOR NO
MORE THAN ONE LICENSE TO CONDUCT GAMES OF CHANCE DURING THE PERIOD NOT
LESS THAN TWELVE NOR MORE THAN EIGHTEEN MONTHS IMMEDIATELY PRECEDING,
MAY FILE WITH THE CLERK OR DEPARTMENT A SUMMARY APPLICATION IN A FORM TO
BE PRESCRIBED BY THE COMMISSION DULY EXECUTED AND VERIFIED, CONTAINING
THE NAMES AND ADDRESSES OF THE APPLICANT ORGANIZATION AND ITS OFFICERS,
THE DATE, TIME AND PLACE OR PLACES WHERE THE APPLICANT INTENDS TO
CONDUCT GAMES UNDER THE LICENSE APPLIED FOR, THE PURPOSES TO WHICH THE
ENTIRE NET PROCEEDS OF SUCH GAMES ARE TO BE DEVOTED AND THE INFORMATION
AND STATEMENT REQUIRED BY PARAGRAPH (B) OF SUBDIVISION ONE OF THIS
SECTION IN LIEU OF THE APPLICATION REQUIRED UNDER SUBDIVISION ONE OF
THIS SECTION.
4. (A) NOTWITHSTANDING AND IN LIEU OF THE LICENSING REQUIREMENTS SET
FORTH IN THIS TITLE, AN AUTHORIZED ORGANIZATION DEFINED IN SECTION
FIFTEEN HUNDRED OF THIS ARTICLE MAY FILE A VERIFIED STATEMENT, FOR WHICH
NO FEE SHALL BE REQUIRED, WITH THE CLERK OR DEPARTMENT AND THE COMMIS-
SION ATTESTING THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS OR NET
PROFITS FROM RAFFLES IN AN AMOUNT LESS THAN THIRTY THOUSAND DOLLARS
DURING ONE OCCASION OR PART THEREOF AT WHICH RAFFLES ARE TO BE
CONDUCTED. SUCH STATEMENT SHALL BE ON A SINGLE-PAGE FORM PRESCRIBED BY
THE COMMISSION, AND SHALL BE DEEMED A LICENSE TO CONDUCT RAFFLES:
(1) UNDER THIS TITLE; AND
(2) WITHIN THE MUNICIPALITIES IN WHICH THE AUTHORIZED ORGANIZATION IS
DOMICILED THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN
ACCORDANCE WITH SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE, AND IN
MUNICIPALITIES THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN
ACCORDANCE WITH SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED
FIFTY-TWO OF THIS TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE THAT
S. 2009 136 A. 3009
ARE LOCATED IN THE COUNTY IN WHICH THE MUNICIPALITY ISSUING THE LICENSE
IS LOCATED AND IN THE COUNTIES THAT ARE CONTIGUOUS TO THE COUNTY IN
WHICH THE MUNICIPALITY ISSUING THE RAFFLE LICENSE IS LOCATED, PROVIDED
THOSE MUNICIPALITIES HAVE AUTHORIZED THE LICENSEE, IN WRITING, TO SELL
SUCH RAFFLE TICKETS THEREIN.
(B) AN ORGANIZATION THAT HAS FILED A VERIFIED STATEMENT WITH THE CLERK
OR DEPARTMENT AND THE COMMISSION ATTESTING THAT SUCH ORGANIZATION SHALL
DERIVE NET PROCEEDS OR NET PROFITS FROM RAFFLES IN AN AMOUNT LESS THAN
THIRTY THOUSAND DOLLARS DURING ONE OCCASION OR PART THEREOF THAT IN FACT
DERIVES NET PROCEEDS OR NET PROFITS EXCEEDING THIRTY THOUSAND DOLLARS
DURING ANY ONE OCCASION OR PART THEREOF SHALL BE REQUIRED TO OBTAIN A
LICENSE AS REQUIRED BY THIS TITLE AND SHALL BE SUBJECT TO THE PROVISIONS
OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
§ 1559. RAFFLES; LICENSE NOT REQUIRED. 1. NOTWITHSTANDING THE LICENS-
ING REQUIREMENTS SET FORTH IN THIS TITLE AND THEIR FILING REQUIREMENTS
SET FORTH IN SUBDIVISION FOUR OF SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF
THIS TITLE, AN AUTHORIZED ORGANIZATION MAY CONDUCT A RAFFLE WITHOUT
COMPLYING WITH SUCH LICENSING REQUIREMENTS OR SUCH FILING REQUIREMENTS,
PROVIDED, THAT SUCH ORGANIZATION SHALL DERIVE NET PROCEEDS FROM RAFFLES
IN AN AMOUNT LESS THAN FIVE THOUSAND DOLLARS DURING THE CONDUCT OF ONE
RAFFLE AND SHALL DERIVE NET PROCEEDS FROM RAFFLES IN AN AMOUNT LESS THAN
THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR.
2. NO PERSON UNDER THE AGE OF EIGHTEEN SHALL BE PERMITTED TO PLAY,
OPERATE OR ASSIST IN ANY RAFFLE CONDUCTED PURSUANT TO THIS SECTION.
3. NO RAFFLE SHALL BE CONDUCTED PURSUANT TO THIS SECTION EXCEPT WITHIN
A MUNICIPALITY IN WHICH THE AUTHORIZED ORGANIZATION IS DOMICILED THAT
HAS PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE, AND IN MUNICIPALITIES
THAT HAVE PASSED A LOCAL LAW, ORDINANCE OR RESOLUTION IN ACCORDANCE WITH
SECTIONS FIFTEEN HUNDRED FIFTY-ONE AND FIFTEEN HUNDRED FIFTY-TWO OF THIS
TITLE APPROVING THE CONDUCT OF GAMES OF CHANCE THAT ARE LOCATED WITHIN
THE COUNTY OR CONTIGUOUS TO THE COUNTY IN WHICH THE ORGANIZATION IS
DOMICILED.
§ 1560. INVESTIGATION; MATTERS TO BE DETERMINED; ISSUANCE OF LICENSE;
FEES; DURATION OF LICENSE. 1. THE CLERK OR DEPARTMENT SHALL MAKE AN
INVESTIGATION OF THE QUALIFICATIONS OF EACH APPLICANT AND THE MERITS OF
EACH APPLICATION, WITH DUE EXPEDITION AFTER THE FILING OF THE APPLICA-
TION.
(A) ISSUANCE OF LICENSES TO CONDUCT GAMES OF CHANCE. IF SUCH CLERK OR
DEPARTMENT DETERMINES:
(1) THAT THE APPLICANT IS DULY QUALIFIED TO BE LICENSED TO CONDUCT
GAMES OF CHANCE UNDER THIS TITLE;
(2) THAT THE MEMBER OR MEMBERS OF THE APPLICANT DESIGNATED IN THE
APPLICATION TO MANAGE GAMES OF CHANCE ARE BONA FIDE ACTIVE MEMBERS OF
THE APPLICANT AND ARE PERSONS OF GOOD MORAL CHARACTER AND HAVE NEVER
BEEN CONVICTED OF A CRIME IF THERE IS A DIRECT RELATIONSHIP BETWEEN ONE
OR MORE OF THE PREVIOUS CRIMINAL OFFENSES AND THE INTEGRITY OF CHARITA-
BLE GAMING, CONSIDERING THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED
FIFTY-THREE OF THE CORRECTION LAW;
(3) THAT SUCH GAMES ARE TO BE CONDUCTED IN ACCORDANCE WITH THE
PROVISIONS OF THIS TITLE AND IN ACCORDANCE WITH THE RULES AND REGU-
LATIONS OF THE COMMISSION AND APPLICABLE LOCAL LAWS OR ORDINANCES AND
THAT THE PROCEEDS THEREOF ARE TO BE DISPOSED OF AS PROVIDED BY THIS
TITLE; AND
S. 2009 137 A. 3009
(4) IS SATISFIED THAT NO COMMISSION, SALARY, COMPENSATION, REWARD OR
RECOMPENSE WHATSOEVER WILL BE PAID OR GIVEN TO ANY PERSON MANAGING,
OPERATING OR ASSISTING THEREIN EXCEPT AS IN THIS TITLE OTHERWISE
PROVIDED, THEN SUCH CLERK OR DEPARTMENT SHALL ISSUE A LICENSE TO THE
APPLICANT FOR THE CONDUCT OF GAMES OF CHANCE UPON PAYMENT OF A LICENSE
FEE IN AN AMOUNT ESTABLISHED BY REGULATION OF THE COMMISSION FOR EACH
LICENSE PERIOD.
(B) ISSUANCE OF LICENSES TO AUTHORIZED GAMES OF CHANCE LESSORS. IF
SUCH CLERK OR DEPARTMENT DETERMINES:
(1) THAT THE APPLICANT SEEKING TO LEASE PREMISES FOR THE CONDUCT OF
GAMES OF CHANCE TO A GAMES OF CHANCE LICENSEE IS DULY QUALIFIED TO BE
LICENSED UNDER THIS TITLE;
(2) THAT THE APPLICANT SATISFIES THE REQUIREMENTS FOR AN AUTHORIZED
ORGANIZATION AS DEFINED IN SECTION FIFTEEN HUNDRED OF THIS ARTICLE;
(3) THAT THE APPLICANT HAS FILED ITS PROPOSED RENT FOR EACH LICENSE
PERIOD; AND
(4) THAT SUCH PROPOSED RENT IS FAIR AND REASONABLE;
(5) THAT THE NET PROCEEDS FROM ANY RENTAL WILL BE DEVOTED TO THE
LAWFUL PURPOSES OF THE APPLICANT;
(6) THAT THERE IS NO DIVERSION OF THE FUNDS OF THE PROPOSED LESSEE
FROM THE LAWFUL PURPOSES AS DEFINED IN THIS TITLE; AND
(7) THAT SUCH LEASING OF PREMISES FOR THE CONDUCT OF SUCH GAMES IS TO
BE IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE, WITH THE RULES AND
REGULATIONS OF THE COMMISSION AND APPLICABLE LOCAL LAWS AND ORDINANCES,
THEN SUCH CLERK OR DEPARTMENT SHALL ISSUE A LICENSE PERMITTING THE
APPLICANT TO LEASE SAID PREMISES FOR THE CONDUCT OF SUCH GAMES TO THE
GAMES OF CHANCE LICENSEE OR LICENSEES SPECIFIED IN THE APPLICATION
DURING THE PERIOD THEREIN SPECIFIED OR SUCH SHORTER PERIOD AS SUCH CLERK
OR DEPARTMENT DETERMINES, BUT NOT TO EXCEED TWELVE LICENSE PERIODS
DURING A CALENDAR YEAR, UPON PAYMENT OF A LICENSE FEE IN AN AMOUNT
ESTABLISHED BY THE REGULATIONS OF THE COMMISSION. NOTHING HEREIN SHALL
BE CONSTRUED TO REQUIRE THE APPLICANT TO BE LICENSED UNDER THIS TITLE TO
CONDUCT GAMES OF CHANCE.
(C) ISSUANCE OF LICENSE UPON SUMMARY APPLICATION. IF, UPON THE BASIS
OF A SUMMARY APPLICATION AS PRESCRIBED UNDER SUBDIVISION THREE OF
SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE, THE CLERK OR DEPART-
MENT DETERMINES THAT THE APPLICANT IS DULY QUALIFIED TO BE LICENSED TO
CONDUCT GAMES OF CHANCE UNDER THIS TITLE, SAID CLERK OR DEPARTMENT SHALL
FORTHWITH ISSUE SAID LICENSE. IN THE EVENT THE CLERK OR DEPARTMENT HAS
REASON TO BELIEVE THAT THE APPLICANT IS NOT SO QUALIFIED THE APPLICANT
SHALL BE DIRECTED TO FILE AN APPLICATION PURSUANT TO SUBDIVISION ONE OF
SECTION FIFTEEN HUNDRED FIFTY-EIGHT OF THIS TITLE.
2. ON OR BEFORE THE LAST DAY OF EACH MONTH, THE TREASURER OF THE MUNI-
CIPALITY IN WHICH THE LICENSED PROPERTY IS LOCATED SHALL TRANSMIT TO THE
STATE COMPTROLLER A SUM EQUAL TO FIFTY PERCENT OF ALL AUTHORIZED GAMES
OF CHANCE LESSOR LICENSE FEES AND A SUM ESTABLISHED BY REGULATION OF THE
COMMISSION PER LICENSE PERIOD FOR THE CONDUCT OF GAMES OF CHANCE
COLLECTED BY SUCH CLERK OR DEPARTMENT PURSUANT TO THIS SECTION DURING
THE PRECEDING CALENDAR MONTH.
3. NO LICENSE SHALL BE ISSUED UNDER THIS SECTION THAT IS EFFECTIVE FOR
A PERIOD OF MORE THAN ONE YEAR.
§ 1561. HEARING; AMENDMENT OF LICENSE. 1. NO APPLICATION FOR THE ISSU-
ANCE OF A LICENSE TO CONDUCT GAMES OF CHANCE OR LEASE PREMISES TO AN
AUTHORIZED ORGANIZATION SHALL BE DENIED BY THE CLERK OR DEPARTMENT,
UNTIL AFTER A HEARING, HELD ON DUE NOTICE TO THE APPLICANT, AT WHICH THE
S. 2009 138 A. 3009
APPLICANT SHALL BE ENTITLED TO BE HEARD UPON THE QUALIFICATIONS OF THE
APPLICANT AND THE MERITS OF THE APPLICATION.
2. ANY LICENSE ISSUED UNDER THIS TITLE MAY BE AMENDED, UPON APPLICA-
TION MADE TO SUCH CLERK OR DEPARTMENT THAT ISSUED IT, IF THE SUBJECT
MATTER OF THE PROPOSED AMENDMENT COULD LAWFULLY AND PROPERLY HAVE BEEN
INCLUDED IN THE ORIGINAL LICENSE AND UPON PAYMENT OF SUCH ADDITIONAL
LICENSE FEE, IF ANY, AS WOULD HAVE BEEN PAYABLE IF IT HAD BEEN SO
INCLUDED.
§ 1562. FORM AND CONTENTS OF LICENSE; DISPLAY OF LICENSE. 1. EACH
LICENSE TO CONDUCT GAMES OF CHANCE SHALL BE IN SUCH FORM AS SHALL BE
PRESCRIBED IN THE RULES AND REGULATIONS OF THE COMMISSION AND SHALL
CONTAIN:
(A) A STATEMENT OF THE NAME AND ADDRESS OF THE LICENSEE, OF THE NAMES
AND ADDRESSES OF THE MEMBERS OF THE LICENSEE UNDER WHOM THE GAMES WILL
BE MANAGED;
(B) A STATEMENT OF THE PLACE OR PLACES WHERE, AND THE DATE OR DATES
AND TIME OR TIMES WHEN, SUCH GAMES ARE TO BE CONDUCTED;
(C) A STATEMENT OF THE PURPOSES TO WHICH THE ENTIRE NET PROCEEDS OF
SUCH GAMES ARE TO BE DEVOTED;
(D) THE NAME OF EACH SINGLE TYPE OF GAME TO BE CONDUCTED UNDER THE
LICENSE AND THE NUMBER OF MERCHANDISE WHEELS AND RAFFLES, IF ANY, TO BE
OPERATED; AND
(E) ANY OTHER INFORMATION THAT MAY BE REQUIRED BY THE RULES AND REGU-
LATIONS OF THE COMMISSION TO BE CONTAINED THEREIN.
2. EACH LICENSE ISSUED FOR THE CONDUCT OF ANY GAMES SHALL BE DISPLAYED
CONSPICUOUSLY AT THE PLACE WHERE SUCH GAMES ARE TO BE CONDUCTED AT ALL
TIMES DURING THE CONDUCT THEREOF.
3. EACH LICENSE TO LEASE PREMISES FOR CONDUCTING GAMES OF CHANCE SHALL
BE IN SUCH FORM AS SHALL BE PRESCRIBED IN THE RULES AND REGULATIONS OF
THE COMMISSION AND SHALL CONTAIN A STATEMENT OF THE NAME AND ADDRESS OF
THE LICENSEE AND THE ADDRESS OF THE LEASED PREMISES, THE AMOUNT OF
PERMISSIBLE RENT AND ANY INFORMATION THAT MAY BE REQUIRED BY SAID RULES
AND REGULATIONS TO BE CONTAINED THEREIN, AND EACH SUCH LICENSE SHALL BE
CONSPICUOUSLY DISPLAYED UPON SUCH PREMISES AT ALL TIMES DURING THE
CONDUCT OF GAMES OF CHANCE.
§ 1563. CONTROL AND SUPERVISION; SUSPENSION OF IDENTIFICATION NUMBERS
AND LICENSES; INSPECTIONS OF PREMISES. 1. THE MUNICIPAL OFFICER OR
DEPARTMENT SHALL HAVE AND EXERCISE RIGID CONTROL AND CLOSE SUPERVISION
OVER ALL GAMES OF CHANCE CONDUCTED UNDER SUCH LICENSE, TO THE END THAT
THE SAME ARE CONDUCTED FAIRLY IN ACCORDANCE WITH THE PROVISIONS OF SUCH
LICENSE, THE PROVISIONS OF THE RULES AND REGULATIONS PROMULGATED BY THE
COMMISSION AND THE PROVISIONS OF THIS TITLE. SUCH MUNICIPAL OFFICER OR
DEPARTMENT AND THE COMMISSION SHALL HAVE THE POWER AND THE AUTHORITY TO
SUSPEND TEMPORARILY ANY LICENSE ISSUED BY THE CLERK OR DEPARTMENT AND/OR
IMPOSE FINES FOR VIOLATIONS NOT TO EXCEED ONE THOUSAND DOLLARS. TEMPO-
RARY SUSPENSION OF LICENSES SHALL BE FOLLOWED PROMPTLY BY A HEARING, AND
AFTER NOTICE AND HEARING, THE CLERK, DEPARTMENT OR THE COMMISSION MAY
SUSPEND OR REVOKE THE SAME AND DECLARE THE VIOLATOR INELIGIBLE TO APPLY
FOR A LICENSE FOR A PERIOD NOT EXCEEDING TWELVE MONTHS THEREAFTER. ANY
FINES TENDERED TO THE CLERK, DEPARTMENT OR THE COMMISSION SHALL NOT BE
PAID FROM FUNDS DERIVED FROM THE CONDUCT OF GAMES OF CHANCE. THE MUNICI-
PAL OFFICER AND THE DEPARTMENT OR THE COMMISSION SHALL ADDITIONALLY HAVE
THE RIGHT OF ENTRY, BY THEIR RESPECTIVE MUNICIPAL OFFICERS AND AGENTS,
AT ALL TIMES INTO ANY PREMISES WHERE ANY GAME OF CHANCE IS BEING
CONDUCTED OR WHERE IT IS INTENDED THAT ANY SUCH GAME SHALL BE CONDUCTED,
OR WHERE ANY EQUIPMENT BEING USED OR INTENDED TO BE USED IN THE CONDUCT
S. 2009 139 A. 3009
THEREOF IS FOUND, FOR THE PURPOSE OF INSPECTING THE SAME. UPON SUSPEN-
SION OR REVOCATION OF ANY LICENSE OR UPON DECLARATION OF INELIGIBILITY
TO APPLY FOR A LICENSE, THE COMMISSION MAY SUSPEND OR REVOKE THE IDEN-
TIFICATION NUMBER ISSUED PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-THREE
OF THIS TITLE. AN AGENT OF THE APPROPRIATE MUNICIPAL OFFICER OR DEPART-
MENT SHALL MAKE AN ON-SITE INSPECTION DURING THE CONDUCT OF ALL GAMES OF
CHANCE LICENSED PURSUANT TO THIS TITLE.
2. A MUNICIPALITY MAY, BY LOCAL LAW OR ORDINANCE ENACTED PURSUANT TO
THE PROVISIONS OF SECTION FIFTEEN HUNDRED FIFTY-TWO OF THIS TITLE,
PROVIDE THAT THE POWERS AND DUTIES SET FORTH IN SUBDIVISION ONE OF THIS
SECTION SHALL BE EXERCISED BY THE CHIEF LAW ENFORCEMENT OFFICER OF THE
COUNTY. IN THE EVENT A MUNICIPALITY EXERCISES THIS OPTION, THE FEES
PROVIDED FOR BY SUBDIVISION TWO OF SECTION FIFTEEN HUNDRED SIXTY-SEVEN
OF THIS TITLE SHALL BE REMITTED TO THE CHIEF FISCAL OFFICER OF THE COUN-
TY.
3. SERVICE OF ALCOHOLIC BEVERAGES. SUBJECT TO THE APPLICABLE
PROVISIONS OF THE ALCOHOLIC BEVERAGE CONTROL LAW, BEER MAY BE OFFERED
FOR SALE DURING THE CONDUCT OF GAMES OF CHANCE ON GAMES OF CHANCE PREM-
ISES AS SUCH PREMISES ARE DEFINED IN SECTION FIFTEEN HUNDRED OF THIS
ARTICLE; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO
LIMIT THE OFFERING FOR SALE OF ANY OTHER ALCOHOLIC BEVERAGE IN AREAS
OTHER THAN THE GAMES OF CHANCE PREMISES OR THE SALE OF ANY OTHER ALCO-
HOLIC BEVERAGE IN PREMISES WHERE ONLY THE GAMES OF CHANCE KNOWN AS BELL
JARS OR RAFFLES ARE CONDUCTED.
§ 1564. FREQUENCY OF GAMES. 1. NO GAME OR GAMES OF CHANCE SHALL BE
CONDUCTED UNDER ANY LICENSE ISSUED UNDER THIS TITLE MORE OFTEN THAN
TWELVE TIMES IN ANY CALENDAR YEAR. NO PARTICULAR PREMISES SHALL BE USED
FOR THE CONDUCT OF GAMES OF CHANCE ON MORE THAN TWENTY-FOUR LICENSE
PERIODS DURING ANY ONE CALENDAR YEAR.
2. GAMES OF CHANCE OTHER THAN BELL JARS AND RAFFLES MAY BE CONDUCTED
AT ANY TIME, UNLESS THE GAMES OF CHANCE LICENSE PROVIDES OTHERWISE. NO
LICENSE MAY RESTRICT THE TIMES IN WHICH BELL JARS OR RAFFLES ARE
CONDUCTED, SUBJECT TO THE LIMITATIONS ON THE LICENSE PERIOD FOR SUCH
GAMES SET FORTH IN SUBDIVISION EIGHTEEN OF SECTION FIFTEEN HUNDRED OF
THIS ARTICLE.
§ 1565. PERSONS OPERATING GAMES; EQUIPMENT; EXPENSES; COMPENSATION. 1.
NO PERSON SHALL OPERATE ANY GAME OF CHANCE UNDER ANY LICENSE ISSUED
UNDER THIS TITLE EXCEPT A BONA FIDE MEMBER OF THE AUTHORIZED ORGANIZA-
TION TO WHICH THE LICENSE IS ISSUED, OR A BONA FIDE MEMBER OF AN ORGAN-
IZATION OR ASSOCIATION THAT IS AN AUXILIARY TO THE LICENSEE OR A BONA
FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION OF WHICH SUCH LICENSEE IS
AN AUXILIARY OR A BONA FIDE MEMBER OF AN ORGANIZATION OR ASSOCIATION
THAT IS AFFILIATED WITH THE LICENSEE BY BEING, WITH IT, AUXILIARY TO
ANOTHER ORGANIZATION OR ASSOCIATION. NOTHING HEREIN SHALL BE CONSTRUED
TO LIMIT THE NUMBER OF GAMES OF CHANCE LICENSEES FOR WHOM SUCH PERSONS
MAY OPERATE GAMES OF CHANCE NOR TO PREVENT NON-MEMBERS FROM ASSISTING
THE LICENSEE IN ANY ACTIVITY OTHER THAN MANAGING OR OPERATING GAMES. FOR
THE PURPOSE OF THE SALE OF TICKETS FOR THE GAME OF RAFFLE, THE TERM
"OPERATE" SHALL NOT INCLUDE THE SALE OF SUCH TICKETS BY PERSONS OF
LINEAL OR COLLATERAL CONSANGUINITY TO MEMBERS OF AN AUTHORIZED ORGANIZA-
TION LICENSED TO CONDUCT A RAFFLE.
2. NO GAME OF CHANCE SHALL BE CONDUCTED WITH ANY EQUIPMENT EXCEPT SUCH
AS SHALL BE OWNED OR LEASED BY THE AUTHORIZED ORGANIZATION SO LICENSED
OR USED WITHOUT PAYMENT OF ANY COMPENSATION THEREFOR BY THE LICENSEE.
HOWEVER, IN NO EVENT SHALL BELL JAR TICKETS BE TRANSFERRED FROM ONE
S. 2009 140 A. 3009
AUTHORIZED ORGANIZATION TO ANOTHER, WITH OR WITHOUT PAYMENT OF ANY
COMPENSATION THEREOF.
3. THE HEAD OR HEADS OF THE AUTHORIZED ORGANIZATION SHALL UPON REQUEST
CERTIFY, UNDER OATH, THAT THE PERSONS OPERATING ANY GAME OF CHANCE ARE
BONA FIDE MEMBERS OF SUCH AUTHORIZED ORGANIZATION, AUXILIARY OR AFFIL-
IATED ORGANIZATION.
4. UPON REQUEST BY A MUNICIPAL OFFICER OR THE DEPARTMENT ANY SUCH
PERSON INVOLVED IN SUCH GAMES OF CHANCE SHALL CERTIFY THAT HE OR SHE HAS
NO CRIMINAL RECORD OR SHALL DISCLOSE PREVIOUS CRIMINAL OFFENSES FOR
CONSIDERATION OF THE FACTORS SET FORTH IN SECTION SEVEN HUNDRED FIFTY-
THREE OF THE CORRECTION LAW.
5. NO ITEMS OF EXPENSE SHALL BE INCURRED OR PAID IN CONNECTION WITH
THE CONDUCTING OF ANY GAME OF CHANCE PURSUANT TO ANY LICENSE ISSUED
UNDER THIS TITLE EXCEPT THOSE THAT ARE REASONABLE AND ARE NECESSARILY
EXPENDED FOR GAMES OF CHANCE SUPPLIES AND EQUIPMENT, PRIZES, SECURITY
PERSONNEL, STATED RENTAL IF ANY, BOOKKEEPING OR ACCOUNTING SERVICES
ACCORDING TO A SCHEDULE OF COMPENSATION PRESCRIBED BY THE COMMISSION,
JANITORIAL SERVICES AND UTILITY SUPPLIES IF ANY, AND LICENSE FEES, AND
THE COST OF BUS TRANSPORTATION, IF AUTHORIZED BY SUCH CLERK OR DEPART-
MENT.
6. NO COMMISSION, SALARY, COMPENSATION, REWARD OR RECOMPENSE SHALL BE
PAID OR GIVEN TO ANY PERSON FOR THE SALE OR ASSISTING WITH THE SALE OF
RAFFLE TICKETS.
§ 1566. CHARGE FOR ADMISSION AND PARTICIPATION; AMOUNT OF PRIZES;
AWARD OF PRIZES. 1. A FEE MAY BE CHARGED BY ANY LICENSEE FOR ADMISSION
TO ANY GAME OR GAMES OF CHANCE CONDUCTED UNDER ANY LICENSE ISSUED UNDER
THIS TITLE. THE CLERK OR DEPARTMENT MAY IN ITS DISCRETION FIX A MINIMUM
FEE.
2. WITH THE EXCEPTION OF BELL JARS, COIN BOARDS, SEAL CARDS, MERCHAN-
DISE BOARDS AND RAFFLES, EVERY WINNER SHALL BE DETERMINED AND EVERY
PRIZE SHALL BE AWARDED AND DELIVERED WITHIN THE SAME CALENDAR DAY AS
THAT UPON WHICH THE GAME WAS PLAYED.
3. A PLAYER MAY PURCHASE A CHANCE WITH CASH OR, IF THE AUTHORIZED
ORGANIZATION WISHES, WITH A PERSONAL CHECK, CREDIT CARD OR DEBIT CARD.
§ 1567. STATEMENT OF RECEIPTS AND EXPENSES; ADDITIONAL LICENSE FEES.
1. WITHIN SEVEN DAYS AFTER THE CONCLUSION OF ANY LICENSE PERIOD OTHER
THAN A LICENSE PERIOD FOR A RAFFLE, OR AS OTHERWISE PRESCRIBED BY THE
COMMISSION, THE AUTHORIZED ORGANIZATION THAT CONDUCTED THE SAME, AND ITS
MEMBERS WHO WERE IN CHARGE THEREOF, AND WHEN APPLICABLE THE AUTHORIZED
GAMES OF CHANCE LESSOR THAT RENTED ITS PREMISES THEREFOR, SHALL EACH
FURNISH TO THE CLERK OR DEPARTMENT A STATEMENT SUBSCRIBED BY THE MEMBER
IN CHARGE AND AFFIRMED BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF
PERJURY, SHOWING THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM AND
EACH ITEM OF EXPENSE INCURRED, OR PAID, AND EACH ITEM OF EXPENDITURE
MADE OR TO BE MADE OTHER THAN PRIZES, THE NAME AND ADDRESS OF EACH
PERSON TO WHOM EACH SUCH ITEM OF EXPENSE HAS BEEN PAID, OR IS TO BE
PAID, WITH A DETAILED DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE
SERVICES RENDERED THEREFOR, THE NET PROCEEDS DERIVED FROM THE CONDUCT OF
GAMES OF CHANCE DURING SUCH LICENSE PERIOD, AND THE USE TO WHICH SUCH
PROCEEDS HAVE BEEN OR ARE TO BE APPLIED. IT SHALL BE THE DUTY OF EACH
LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND RECORDS AS MAY BE NECESSARY
TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH STATEMENT.
2. WITHIN THIRTY DAYS AFTER THE CONCLUSION OF AN OCCASION DURING WHICH
A RAFFLE WAS CONDUCTED, THE AUTHORIZED ORGANIZATION CONDUCTING SUCH
RAFFLE AND THE MEMBERS IN CHARGE OF SUCH RAFFLE, AND, WHEN APPLICABLE,
THE AUTHORIZED GAMES OF CHANCE LESSOR THAT RENTED ITS PREMISES THEREFOR,
S. 2009 141 A. 3009
SHALL EACH FURNISH TO THE CLERK OR DEPARTMENT A STATEMENT ON A FORM
PRESCRIBED BY THE COMMISSION, SUBSCRIBED BY THE MEMBER IN CHARGE AND
AFFIRMED BY HIM OR HER AS TRUE, UNDER THE PENALTIES OF PERJURY, SHOWING:
(A) THE NUMBER OF TICKETS PRINTED;
(B) THE NUMBER OF TICKETS SOLD;
(C) THE PRICE AND THE NUMBER OF TICKETS RETURNED TO OR RETAINED BY THE
AUTHORIZED ORGANIZATION AS UNSOLD;
(D) A DESCRIPTION AND STATEMENT OF THE FAIR MARKET VALUE FOR EACH
PRIZE ACTUALLY AWARDED;
(E) THE AMOUNT OF THE GROSS RECEIPTS DERIVED THEREFROM;
(F) EACH ITEM OF EXPENDITURE MADE OR TO BE MADE OTHER THAN PRIZES;
(G) THE NAME AND ADDRESS OF EACH PERSON TO WHOM EACH SUCH ITEM OF
EXPENSE HAS BEEN PAID, OR IS TO BE PAID;
(H) A DETAILED DESCRIPTION OF THE MERCHANDISE PURCHASED OR THE
SERVICES RENDERED THEREFOR;
(I) THE NET PROCEEDS DERIVED FROM THE RAFFLE AT SUCH OCCASION; AND
(J) THE USE TO WHICH THE PROCEEDS HAVE BEEN OR ARE TO BE APPLIED. IT
SHALL BE THE DUTY OF EACH LICENSEE TO MAINTAIN AND KEEP SUCH BOOKS AND
RECORDS AS MAY BE NECESSARY TO SUBSTANTIATE THE PARTICULARS OF EACH SUCH
STATEMENT, PROVIDED, HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS OR NET
PROFITS DERIVED FROM THE CONDUCT OF A RAFFLE OR RAFFLES ARE LESS THAN
THIRTY THOUSAND DOLLARS DURING ANY ONE OCCASION, IN SUCH CASE, THE
REPORTING REQUIREMENT SHALL BE SATISFIED BY THE FILING WITHIN THIRTY
DAYS OF THE CONCLUSION OF SUCH OCCASION A VERIFIED STATEMENT PRESCRIBED
BY THE COMMISSION ATTESTING TO THE AMOUNT OF SUCH NET PROCEEDS OR NET
PROFITS AND THE DISTRIBUTION THEREOF FOR LAWFUL PURPOSES WITH THE CLERK
OR DEPARTMENT AND A COPY WITH THE COMMISSION, AND PROVIDED FURTHER,
HOWEVER, WHERE THE CUMULATIVE NET PROCEEDS DERIVED FROM THE CONDUCT OF A
RAFFLE OR RAFFLES ARE LESS THAN FIVE THOUSAND DOLLARS DURING ANY ONE
OCCASION AND LESS THAN THIRTY THOUSAND DOLLARS DURING ONE CALENDAR YEAR,
NO REPORTING SHALL BE REQUIRED.
3. ANY AUTHORIZED ORGANIZATION REQUIRED TO FILE AN ANNUAL REPORT WITH
THE SECRETARY OF STATE PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE LAW
OR THE ATTORNEY GENERAL PURSUANT TO ARTICLE EIGHT OF THE ESTATES, POWERS
AND TRUSTS LAW SHALL INCLUDE WITH SUCH ANNUAL REPORT A COPY OF THE
STATEMENT REQUIRED TO BE FILED WITH THE CLERK OR DEPARTMENT PURSUANT TO
SUBDIVISION ONE OR TWO OF THIS SECTION.
4. UPON THE FILING OF SUCH STATEMENT OF RECEIPTS PURSUANT TO SUBDIVI-
SION ONE OR TWO OF THIS SECTION, THE AUTHORIZED ORGANIZATION FURNISHING
THE SAME SHALL PAY TO THE CLERK OR DEPARTMENT AS AND FOR AN ADDITIONAL
LICENSE FEE A SUM BASED UPON THE REPORTED NET PROCEEDS, IF ANY, FOR THE
LICENSE PERIOD, OR IN THE CASE OF RAFFLES, FOR THE OCCASION COVERED BY
SUCH STATEMENT AND DETERMINED IN ACCORDANCE WITH SUCH SCHEDULE AS SHALL
BE ESTABLISHED FROM TIME TO TIME BY THE COMMISSION TO DEFRAY THE ACTUAL
COST TO MUNICIPALITIES OR COUNTIES OF ADMINISTERING THE PROVISIONS OF
THIS TITLE, BUT SUCH ADDITIONAL LICENSE FEE SHALL NOT EXCEED FIVE
PERCENT OF THE NET PROCEEDS FOR SUCH LICENSE PERIOD. THE PROVISIONS OF
THIS SUBDIVISION SHALL NOT APPLY TO THE NET PROCEEDS FROM THE SALE OF
BELL JAR TICKETS. NO FEE SHALL BE REQUIRED WHERE THE NET PROCEEDS OR NET
PROFITS DERIVED FROM THE CONDUCT OF A RAFFLE OR RAFFLES ARE LESS THAN
THIRTY THOUSAND DOLLARS DURING ANY ONE OCCASION.
§ 1568. EXAMINATION OF BOOKS AND RECORDS; EXAMINATION OF OFFICERS AND
EMPLOYEES; DISCLOSURE OF INFORMATION. THE CLERK OR DEPARTMENT AND THE
COMMISSION SHALL HAVE POWER TO EXAMINE OR CAUSE TO BE EXAMINED THE BOOKS
AND RECORDS OF:
S. 2009 142 A. 3009
1. ANY AUTHORIZED ORGANIZATION THAT IS OR HAS BEEN LICENSED TO CONDUCT
GAMES OF CHANCE, SO FAR AS THEY MAY RELATE TO GAMES OF CHANCE, INCLUDING
THE MAINTENANCE, CONTROL AND DISPOSITION OF NET PROCEEDS DERIVED FROM
GAMES OF CHANCE OR FROM THE USE OF ITS PREMISES FOR GAMES OF CHANCE, AND
TO EXAMINE ANY MANAGER, OFFICER, DIRECTOR, AGENT, MEMBER OR EMPLOYEE
THEREOF UNDER OATH IN RELATION TO THE CONDUCT OF ANY SUCH GAME UNDER ANY
SUCH LICENSE, THE USE OF ITS PREMISES FOR GAMES OF CHANCE, OR THE DISPO-
SITION OF NET PROCEEDS DERIVED FROM GAMES OF CHANCE, AS THE CASE MAY BE;
OR
2. ANY AUTHORIZED GAMES OF CHANCE LESSOR, SO FAR AS SUCH BOOKS AND
RECORDS MAY RELATE TO LEASING PREMISES FOR GAMES OF CHANCE, AND TO EXAM-
INE SUCH LESSOR OR ANY MANAGER, OFFICER, DIRECTOR, AGENT OR EMPLOYEE
THEREOF UNDER OATH IN RELATION TO SUCH LEASING. ANY INFORMATION SO
RECEIVED SHALL NOT BE DISCLOSED EXCEPT SO FAR AS MAY BE NECESSARY FOR
THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THIS TITLE.
§ 1569. APPEALS FOR THE DECISION OF A MUNICIPAL OFFICER, CLERK OR
DEPARTMENT TO THE COMMISSION. ANY APPLICANT FOR, OR HOLDER OF, ANY
LICENSE ISSUED OR TO BE ISSUED UNDER THIS TITLE AGGRIEVED BY ANY ACTION
OF A MUNICIPAL OFFICER, CLERK OR DEPARTMENT, TO WHICH SUCH APPLICATION
HAS BEEN MADE OR BY WHICH SUCH LICENSE HAS BEEN ISSUED, MAY APPEAL TO
THE COMMISSION FROM THE DETERMINATION OF SAID MUNICIPAL OFFICER, CLERK
OR DEPARTMENT BY FILING WITH SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT
A WRITTEN NOTICE OF APPEAL WITHIN THIRTY DAYS AFTER THE DETERMINATION OR
ACTION APPEALED FROM, AND UPON THE HEARING OF SUCH APPEAL, THE EVIDENCE,
IF ANY, TAKEN BEFORE SUCH MUNICIPAL OFFICER, CLERK OR DEPARTMENT AND ANY
ADDITIONAL EVIDENCE MAY BE PRODUCED AND SHALL BE CONSIDERED IN ARRIVING
AT A DETERMINATION OF THE MATTERS IN ISSUE, AND THE ACTION OF THE
COMMISSION UPON SAID APPEAL SHALL BE BINDING UPON SUCH MUNICIPAL OFFI-
CER, CLERK OR DEPARTMENT AND ALL PARTIES TO SAID APPEAL.
§ 1570. EXEMPTION FROM PROSECUTION. NO PERSON, FIRM, PARTNERSHIP,
CORPORATION OR ORGANIZATION LAWFULLY CONDUCTING, OR PARTICIPATING IN THE
CONDUCT OF, GAMES OF CHANCE, OR PERMITTING THE CONDUCT UPON ANY PREMISES
OWNED OR LEASED BY HIM, HER OR IT UNDER ANY LICENSE LAWFULLY ISSUED
PURSUANT TO THIS TITLE, SHALL BE LIABLE TO PROSECUTION OR CONVICTION FOR
VIOLATION OF ANY PROVISION OF ARTICLE TWO HUNDRED TWENTY-FIVE OF THE
PENAL LAW OR ANY OTHER LAW OR ORDINANCE TO THE EXTENT THAT SUCH CONDUCT
IS SPECIFICALLY AUTHORIZED BY THIS TITLE, BUT THIS IMMUNITY SHALL NOT
EXTEND TO ANY PERSON OR CORPORATION KNOWINGLY CONDUCTING OR PARTICIPAT-
ING IN THE CONDUCT OF GAMES OF CHANCE UNDER ANY LICENSE OBTAINED BY ANY
FALSE PRETENSE OR BY ANY FALSE STATEMENT MADE IN ANY APPLICATION FOR
LICENSE OR OTHERWISE, OR PERMITTING THE CONDUCT UPON ANY PREMISES OWNED
OR LEASED BY HIM, HER OR IT OF ANY GAME OF CHANCE CONDUCTED UNDER ANY
LICENSE KNOWN TO HIM, HER OR IT TO HAVE BEEN OBTAINED BY ANY SUCH FALSE
PRETENSE OR STATEMENT.
§ 1571. OFFENSES; FORFEITURE OF LICENSE; INELIGIBILITY TO APPLY FOR
LICENSE. ANY PERSON, FIRM, PARTNERSHIP, CORPORATION OR ORGANIZATION WHO
OR THAT SHALL:
1. MAKE ANY MATERIAL FALSE STATEMENT IN ANY APPLICATION FOR ANY
LICENSE AUTHORIZED TO BE ISSUED UNDER THIS TITLE;
2. PAY OR RECEIVE, FOR THE USE OF ANY PREMISES FOR CONDUCTING GAMES OF
CHANCE, A RENTAL IN EXCESS OF THE AMOUNT SPECIFIED AS THE PERMISSIBLE
RENT IN THE LICENSE PROVIDED FOR IN SUBDIVISION THREE OF SECTION FIFTEEN
HUNDRED SIXTY-TWO OF THIS TITLE;
3. FAIL TO KEEP SUCH BOOKS AND RECORDS AS SHALL FULLY AND TRULY RECORD
ALL TRANSACTIONS CONNECTED WITH THE CONDUCTING OF GAMES OF CHANCE OR THE
LEASING OF PREMISES TO BE USED FOR THE CONDUCT OF GAMES OF CHANCE;
S. 2009 143 A. 3009
4. FALSIFY OR MAKE ANY FALSE ENTRY IN ANY BOOKS OR RECORDS SO FAR AS
THEY RELATE IN ANY MANNER TO THE CONDUCT OF GAMES OF CHANCE, TO THE
DISPOSITION OF THE PROCEEDS THEREOF AND TO THE APPLICATION OF THE RENTS
RECEIVED BY ANY AUTHORIZED ORGANIZATION;
5. DIVERT OR PAY ANY PORTION OF THE NET PROCEEDS OF ANY GAME OF CHANCE
TO ANY PERSON, FIRM, PARTNERSHIP, CORPORATION, EXCEPT IN FURTHERANCE OF
ONE OR MORE OF THE LAWFUL PURPOSES DEFINED IN THIS TITLE; SHALL BE GUIL-
TY OF A MISDEMEANOR AND SHALL FORFEIT ANY LICENSE ISSUED UNDER THIS
TITLE AND BE INELIGIBLE TO APPLY FOR A LICENSE UNDER THIS TITLE FOR AT
LEAST ONE YEAR THEREAFTER.
§ 1572. UNLAWFUL GAMES OF CHANCE. 1. ANY PERSON, ASSOCIATION, CORPO-
RATION OR ORGANIZATION HOLDING, OPERATING OR CONDUCTING A GAME OR GAMES
OF CHANCE IS GUILTY OF A MISDEMEANOR, EXCEPT WHEN OPERATING, HOLDING OR
CONDUCTING:
(A) IN ACCORDANCE WITH A VALID LICENSE ISSUED PURSUANT TO THIS TITLE;
(B) ON BEHALF OF A BONA FIDE ORGANIZATION OF PERSONS SIXTY YEARS OF
AGE OR OVER, COMMONLY REFERRED TO AS SENIOR CITIZENS, SOLELY FOR THE
PURPOSE OF AMUSEMENT AND RECREATION OF ITS MEMBERS WHERE:
(1) THE ORGANIZATION HAS APPLIED FOR AND RECEIVED AN IDENTIFICATION
NUMBER FROM THE COMMISSION;
(2) NO PLAYER OR OTHER PERSON FURNISHES ANYTHING OF VALUE FOR THE
OPPORTUNITY TO PARTICIPATE;
(3) THE PRIZES AWARDED OR TO BE AWARDED ARE NOMINAL;
(4) NO PERSON OTHER THAN A BONA FIDE ACTIVE MEMBER OF THE ORGANIZATION
PARTICIPATES IN THE CONDUCT OF THE GAMES; AND
(5) NO PERSON IS PAID FOR CONDUCTING OR ASSISTING IN THE CONDUCT OF
THE GAME OR GAMES; OR
(C) A RAFFLE PURSUANT TO SECTION FIFTEEN HUNDRED FIFTY-NINE OF THIS
TITLE.
2. THE PROVISIONS OF THIS SECTION SHALL APPLY TO ALL MUNICIPALITIES
WITHIN THIS STATE, INCLUDING THOSE MUNICIPALITIES WHERE THIS TITLE IS
INOPERATIVE.
§ 1573. TITLE INOPERATIVE UNTIL ADOPTED BY VOTERS. EXCEPT AS PROVIDED
IN SECTION FIFTEEN HUNDRED SEVENTY-TWO OF THIS TITLE, THE PROVISIONS OF
THIS TITLE SHALL REMAIN INOPERATIVE IN ANY MUNICIPALITY UNLESS AND UNTIL
A PROPOSITION THEREFOR SUBMITTED AT A GENERAL OR SPECIAL ELECTION IN
SUCH MUNICIPALITY SHALL BE APPROVED BY A VOTE OF THE MAJORITY OF THE
QUALIFIED ELECTORS IN SUCH MUNICIPALITY VOTING THEREON.
§ 1574. AMENDMENT AND REPEAL OF LOCAL LAWS AND ORDINANCES. ANY SUCH
LOCAL LAW OR ORDINANCE MAY BE AMENDED, FROM TIME TO TIME, OR REPEALED BY
THE COMMON COUNCIL OR OTHER LOCAL LEGISLATIVE BODY OF THE MUNICIPALITY
THAT ENACTED IT, BY A TWO-THIRDS VOTE OF SUCH LEGISLATIVE BODY AND SUCH
AMENDMENT OR REPEAL, AS THE CASE MAY BE, MAY BE MADE EFFECTIVE AND OPER-
ATIVE NOT EARLIER THAN THIRTY DAYS FOLLOWING THE EFFECTIVE DATE OF THE
LOCAL LAW OR ORDINANCE EFFECTING SUCH AMENDMENT OR REPEAL, AS THE CASE
MAY BE, AND THE APPROVAL OF A MAJORITY OF THE ELECTORS OF SUCH MUNICI-
PALITY SHALL NOT BE A CONDITION PREREQUISITE TO THE TAKING EFFECT OF
SUCH LOCAL LAW OR ORDINANCE.
§ 1575. MANUFACTURERS OF BELL JARS; REPORTS AND RECORDS. 1. DISTRIB-
UTION; MANUFACTURERS. FOR BUSINESS CONDUCTED IN THIS STATE, MANUFACTUR-
ERS LICENSED BY THE COMMISSION TO SELL BELL JAR TICKETS SHALL SELL SUCH
TICKETS ONLY TO DISTRIBUTORS LICENSED BY THE COMMISSION. MANUFACTURERS
OF BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS AND COIN BOARDS MAY
SUBMIT SAMPLES, ARTISTS' RENDERINGS OR COLOR PHOTOCOPIES OF PROPOSED
BELL JAR TICKETS, SEAL CARDS, MERCHANDISE BOARDS, COIN BOARDS, PAYOUT
CARDS AND FLARES FOR REVIEW AND APPROVAL BY THE COMMISSION. WITHIN THIR-
S. 2009 144 A. 3009
TY DAYS OF RECEIPT OF SUCH SAMPLE OR RENDERING, THE COMMISSION SHALL
APPROVE OR DENY SUCH BELL JAR TICKETS. FOLLOWING APPROVAL OF A RENDERING
OF A BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD OR COIN BOARD BY THE
COMMISSION, THE MANUFACTURER SHALL SUBMIT TO THE COMMISSION A SAMPLE OF
THE PRINTED BELL JAR TICKET, SEAL CARD, MERCHANDISE BOARD, COIN BOARD,
PAYOUT CARD AND FLARE FOR SUCH GAME. SUCH SAMPLE SHALL BE SUBMITTED
PRIOR TO THE SALE OF THE GAME TO ANY LICENSED DISTRIBUTOR FOR RESALE IN
THIS STATE. FOR COIN BOARDS AND MERCHANDISE BOARDS, NOTHING HEREIN SHALL
REQUIRE THE SUBMITTAL OF ACTUAL COINS OR MERCHANDISE AS PART OF THE
APPROVAL PROCESS. ANY LICENSED MANUFACTURER WHO WILLFULLY VIOLATES THE
PROVISIONS OF THIS SECTION SHALL:
(A) UPON SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
OF THIRTY DAYS;
(B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD AS RECOM-
MENDED BY THE COMMISSION; AND
(C) UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS E FELONY. ANY
UNLICENSED MANUFACTURER WHO VIOLATES THE PROVISIONS OF THIS SECTION
SHALL BE GUILTY OF A CLASS E FELONY.
2. BAR CODES. THE MANUFACTURER SHALL AFFIX TO THE FLARE OF EACH BELL
JAR GAME A BAR CODE THAT PROVIDES ALL INFORMATION PRESCRIBED BY THE
COMMISSION AND SHALL REQUIRE THAT THE BAR CODE INCLUDE THE SERIAL NUMBER
OF THE GAME THE FLARE DESCRIBES. A MANUFACTURER SHALL ALSO AFFIX TO THE
OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR TICK-
ETS A BAR CODE PROVIDING ALL INFORMATION PRESCRIBED BY THE COMMISSION
AND CONTAINING THE SAME INFORMATION AS THE BAR CODE AFFIXED TO THE
FLARE. THE COMMISSION MAY ALSO PRESCRIBE ADDITIONAL BAR CODE REQUIRE-
MENTS. NO PERSON MAY ALTER THE BAR CODE THAT APPEARS ON THE FLARE OR ON
THE OUTSIDE OF THE CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR
TICKETS. POSSESSION OF A DEAL OF BELL JAR TICKETS THAT HAS A BAR CODE
DIFFERENT FROM THE SERIAL NUMBER OF THE DEAL INSIDE THE CONTAINER OR
WRAPPING AS EVIDENCED ON THE FLARE IS PRIMA FACIE EVIDENCE THAT THE
POSSESSOR HAS ALTERED THE BAR CODE ON THE CONTAINER OR WRAPPING.
3. BELL JAR FLARES. (A) A MANUFACTURER SHALL NOT SHIP OR CAUSE TO BE
SHIPPED INTO THIS STATE ANY DEAL OF BELL JAR TICKETS THAT DOES NOT HAVE
ITS OWN INDIVIDUAL FLARE AS REQUIRED FOR THAT DEAL BY RULE OF THE
COMMISSION. A PERSON OTHER THAN A LICENSED MANUFACTURER SHALL NOT MANU-
FACTURE, ALTER, MODIFY OR OTHERWISE CHANGE A FLARE FOR A DEAL OF BELL
JAR TICKETS EXCEPT AS AUTHORIZED BY THIS TITLE OR RULES AND REGULATIONS
PROMULGATED BY THE COMMISSION.
(B) THE FLARE FOR EACH DEAL OF BELL JAR TICKETS SOLD BY A MANUFACTURER
IN THIS STATE SHALL BE PLACED INSIDE THE WRAPPING OF THE DEAL THAT THE
FLARE DESCRIBES.
(C) THE BAR CODE AFFIXED TO THE FLARE OF EACH BELL JAR GAME SHALL BEAR
THE SERIAL NUMBER OF SUCH GAME AS PRESCRIBED BY THE COMMISSION.
(D) THE FLARE OF EACH BELL JAR GAME SHALL HAVE AFFIXED A BAR CODE THAT
PROVIDES:
(1) THE GAME CODE;
(2) THE SERIAL NUMBER OF THE GAME;
(3) THE NAME OF THE MANUFACTURER; AND
(4) OTHER INFORMATION THE COMMISSION BY RULE MAY REQUIRE.
THE SERIAL NUMBER INCLUDED ON THE BAR CODE SHALL BE THE SAME AS THE
SERIAL NUMBER OF THE TICKETS INCLUDED IN THE DEAL. A MANUFACTURER WHO
MANUFACTURES A DEAL OF BELL JAR TICKETS SHALL AFFIX TO THE OUTSIDE OF
S. 2009 145 A. 3009
THE CONTAINER OR WRAPPING CONTAINING THE BELL JAR TICKETS THE SAME BAR
CODE THAT IS AFFIXED TO THE FLARE FOR THAT DEAL.
(E) NO PERSON SHALL ALTER THE BAR CODE THAT APPEARS ON THE OUTSIDE OF
A CONTAINER OR WRAPPING CONTAINING A DEAL OF BELL JAR TICKETS.
POSSESSION OF A DEAL OF BELL JAR TICKETS THAT HAS A BAR CODE DIFFERENT
FROM THE BAR CODE OF THE DEAL INSIDE THE CONTAINER OR WRAPPING IS PRIMA
FACIE EVIDENCE THAT THE POSSESSOR HAS ALTERED THE BAR CODE ON THE BOX.
4. REPORTS OF SALES. A MANUFACTURER WHO SELLS BELL JAR TICKETS FOR
RESALE IN THIS STATE SHALL FILE WITH THE COMMISSION, ON A FORM
PRESCRIBED BY THE COMMISSION, A REPORT OF ALL BELL JAR TICKETS SOLD TO
DISTRIBUTORS IN THE STATE. THE REPORT SHALL BE FILED QUARTERLY ON OR
BEFORE THE TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE QUARTER
IN WHICH THE SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT THE REPORT
BE SUBMITTED VIA ELECTRONIC MEDIA OR ELECTRONIC DATA TRANSFER.
5. INSPECTION. THE COMMISSION MAY INSPECT THE PREMISES, BOOKS,
RECORDS, AND INVENTORY OF A MANUFACTURER WITHOUT NOTICE DURING THE
NORMAL BUSINESS HOURS OF THE MANUFACTURER.
§ 1576. DISTRIBUTOR OF BELL JARS; REPORTS AND RECORDS. 1. DISTRIB-
UTION; DISTRIBUTORS. ANY DISTRIBUTOR LICENSED IN ACCORDANCE WITH SECTION
FIFTEEN HUNDRED FIFTY-FIVE OF THIS TITLE TO DISTRIBUTE BELL JAR TICKETS
SHALL PURCHASE BELL JAR TICKETS ONLY FROM LICENSED MANUFACTURERS AND MAY
MANUFACTURE COIN BOARDS AND MERCHANDISE BOARDS ONLY AS AUTHORIZED IN
SUBDIVISION TWO OF THIS SECTION. LICENSED DISTRIBUTORS OF BELL JAR TICK-
ETS SHALL SELL SUCH TICKETS ONLY TO NOT-FOR-PROFIT, CHARITABLE OR RELI-
GIOUS ORGANIZATIONS REGISTERED BY THE COMMISSION. ANY LICENSED DISTRIBU-
TOR WHO WILLFULLY VIOLATES THE PROVISIONS OF THIS SECTION SHALL:
(A) UPON SUCH FIRST OFFENSE, HAVE ITS LICENSE SUSPENDED FOR A PERIOD
OF THIRTY DAYS;
(B) UPON SUCH SECOND OFFENSE, PARTICIPATE IN A HEARING TO BE CONDUCTED
BY THE COMMISSION, AND SURRENDER ITS LICENSE FOR SUCH PERIOD AS RECOM-
MENDED BY THE COMMISSION; AND
(C) UPON SUCH THIRD OR SUBSEQUENT OFFENSE, HAVE ITS LICENSE SUSPENDED
FOR A PERIOD OF ONE YEAR AND SHALL BE GUILTY OF A CLASS E FELONY. ANY
UNLICENSED DISTRIBUTOR WHO VIOLATES THIS SECTION SHALL BE GUILTY OF A
CLASS E FELONY.
2. COIN BOARDS AND MERCHANDISE BOARDS. DISTRIBUTORS OF BELL JAR TICK-
ETS MAY MANUFACTURE COIN BOARDS AND MERCHANDISE BOARDS ONLY IF SUCH
BOARDS HAVE BEEN APPROVED BY THE COMMISSION AND HAVE A BAR CODE AFFIXED
TO THEM SETTING FORTH ALL INFORMATION REQUIRED BY THE COMMISSION. EXCEPT
THAT FOR COIN BOARDS AND MERCHANDISE BOARDS, DELINEATION OF THE PRIZE OR
PRIZE VALUE NEED NOT BE INCLUDED ON THE GAME TICKET SOLD IN CONJUNCTION
WITH A COIN BOARD OR MERCHANDISE BOARD. IN LIEU OF SUCH REQUIREMENT,
THE DISTRIBUTOR SHALL BE REQUIRED TO DISCLOSE THE PRIZE LEVELS AND THE
NUMBER OF WINNERS AT EACH LEVEL AND SHALL PRINT CLEARLY ON THE GAME
TICKET THAT A TICKET HOLDER MAY OBTAIN THE PRIZE AND PRIZE VALUE FOR
EACH PRIZE LEVEL BY REFERENCING THE FLARE. SUCH COIN BOARDS SHALL BE
SOLD ONLY BY LICENSED DISTRIBUTORS TO LICENSED AUTHORIZED ORGANIZATIONS
REGISTERED BY THE COMMISSION IN ACCORDANCE WITH THE PROVISIONS OF THIS
TITLE.
3. BUSINESS RECORDS. A DISTRIBUTOR SHALL KEEP AT EACH PLACE OF BUSI-
NESS COMPLETE AND ACCURATE RECORDS FOR THAT PLACE OF BUSINESS, INCLUDING
ITEMIZED INVOICES OF BELL JAR TICKETS HELD AND PURCHASED. THE RECORDS
MUST SHOW THE NAMES AND ADDRESSES OF PURCHASERS, THE INVENTORY AT THE
CLOSE OF EACH PERIOD FOR WHICH A RETURN IS REQUIRED, ALL BELL JAR TICK-
ETS ON HAND AND OTHER PERTINENT PAPERS AND DOCUMENTS RELATING TO THE
PURCHASE, SALE OR DISPOSITION OF BELL JAR TICKETS AS MAY BE REQUIRED BY
S. 2009 146 A. 3009
THE COMMISSION. BOOKS, RECORDS, ITEMIZED INVOICES AND OTHER PAPERS AND
DOCUMENTS REQUIRED BY THIS SECTION SHALL BE KEPT FOR A PERIOD OF AT
LEAST FOUR YEARS AFTER THE DATE OF THE DOCUMENTS, OR THE DATE OF THE
ENTRIES APPEARING IN THE RECORDS, UNLESS THE COMMISSION AUTHORIZES IN
WRITING THEIR DESTRUCTION OR DISPOSAL AT AN EARLIER DATE. A PERSON WHO
VIOLATES THIS SECTION SHALL BE GUILTY OF A MISDEMEANOR.
4. SALES RECORDS. A DISTRIBUTOR SHALL MAINTAIN A RECORD OF ALL BELL
JAR TICKETS THAT IT SELLS. THE RECORD SHALL INCLUDE, BUT NEED NOT BE
LIMITED TO:
(A) THE IDENTITY OF THE MANUFACTURER FROM WHOM THE DISTRIBUTOR
PURCHASED THE PRODUCT;
(B) THE SERIAL NUMBER OF THE PRODUCT;
(C) THE NAME, ADDRESS AND LICENSE OR EXEMPT PERMIT NUMBER OF THE
ORGANIZATION OR PERSON TO WHICH THE SALE WAS MADE;
(D) THE DATE OF THE SALE;
(E) THE NAME OF THE PERSON WHO ORDERED THE PRODUCT;
(F) THE NAME OF THE PERSON WHO RECEIVED THE PRODUCT;
(G) THE TYPE OF PRODUCT;
(H) THE SERIAL NUMBER OF THE PRODUCT;
(I) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
DISTRIBUTOR AND THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE
DISTRIBUTOR TO THE LICENSED ORGANIZATION; AND
(J) THE NAME, FORM NUMBER OR OTHER IDENTIFYING INFORMATION FOR EACH
GAME.
5. INVOICES. A DISTRIBUTOR SHALL SUPPLY WITH EACH SALE OF A BELL JAR
PRODUCT AN ITEMIZED INVOICE SHOWING:
(A) THE DISTRIBUTOR'S NAME AND ADDRESS;
(B) THE PURCHASER'S NAME, ADDRESS, AND LICENSE NUMBER;
(C) THE DATE OF THE SALE;
(D) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE MANUFACTURER TO
DISTRIBUTOR;
(E) THE ACCOUNT NUMBER IDENTIFYING THE SALE FROM THE DISTRIBUTOR TO
THE LICENSED ORGANIZATION; AND
(F) THE DESCRIPTION OF THE DEALS, INCLUDING THE FORM NUMBER, THE SERI-
AL NUMBER AND THE IDEAL GROSS FROM EVERY DEAL OF BELL JAR OR SIMILAR
GAME.
6. REPORTS. A DISTRIBUTOR SHALL REPORT QUARTERLY TO THE COMMISSION, ON
A FORM PRESCRIBED BY THE COMMISSION, ITS SALES OF EACH TYPE OF BELL JAR
DEAL OR TICKETS. THIS REPORT SHALL BE FILED QUARTERLY ON OR BEFORE THE
TWENTIETH DAY OF THE MONTH SUCCEEDING THE END OF THE QUARTER IN WHICH
THE SALE WAS MADE. THE COMMISSION MAY REQUIRE THAT A DISTRIBUTOR SUBMIT
THE QUARTERLY REPORT AND INVOICES REQUIRED BY THIS SECTION VIA ELECTRON-
IC MEDIA OR ELECTRONIC DATA TRANSFER.
7. THE COMMISSION MAY INSPECT THE PREMISES, BOOKS, RECORDS AND INVEN-
TORY OF A DISTRIBUTOR WITHOUT NOTICE DURING THE NORMAL BUSINESS HOURS OF
THE DISTRIBUTOR.
8. CERTIFIED PHYSICAL INVENTORY. THE COMMISSION MAY, UPON REQUEST,
REQUIRE A DISTRIBUTOR TO FURNISH A CERTIFIED PHYSICAL INVENTORY OF ALL
BELL JAR TICKETS IN STOCK. THE INVENTORY SHALL CONTAIN THE INFORMATION
REQUESTED BY THE COMMISSION.
§ 1577. TRANSFER RESTRICTIONS. NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS
ORGANIZATIONS AUTHORIZED TO SELL BELL JAR TICKETS IN ACCORDANCE WITH
THIS TITLE SHALL PURCHASE BELL JAR TICKETS ONLY FROM DISTRIBUTORS
LICENSED BY THE COMMISSION. NO NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS
ORGANIZATION SHALL SELL, DONATE OR OTHERWISE TRANSFER BELL JAR TICKETS
TO ANY OTHER NOT-FOR-PROFIT, CHARITABLE OR RELIGIOUS ORGANIZATION.
S. 2009 147 A. 3009
§ 1578. BELL JARS COMPLIANCE AND ENFORCEMENT. 1. IN THE CASE OF BELL
JARS, THE LICENSEE, UPON FILING FINANCIAL STATEMENTS OF BELL JAR OPER-
ATIONS, SHALL ALSO TENDER TO THE COMMISSION A SUM IN THE AMOUNT OF FIVE
PERCENT OF THE NET PROCEEDS FROM THE SALE OF BELL JAR TICKETS, SEAL
CARDS, MERCHANDISE BOARDS AND COIN BOARDS, IF ANY, FOR THAT PORTION OF
LICENSE PERIOD COVERED BY SUCH STATEMENT.
2. UNSOLD TICKETS OF THE BELL JAR DEAL SHALL BE KEPT ON FILE BY THE
SELLING ORGANIZATION FOR INSPECTION BY THE COMMISSION FOR A PERIOD OF
ONE YEAR FOLLOWING THE DATE UPON WHICH THE RELEVANT FINANCIAL STATEMENT
WAS RECEIVED BY THE COMMISSION.
3. ONE-HALF OF ONE PERCENT OF THE FEE SET FORTH IN SUBDIVISION ONE OF
THIS SECTION RECEIVED FROM AUTHORIZED VOLUNTEER FIRE COMPANIES SHALL BE
PAID TO THE NEW YORK STATE EMERGENCY SERVICES REVOLVING LOAN ACCOUNT
ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-PP OF THE STATE FINANCE
LAW.
4. THE COMMISSION SHALL SUBMIT TO THE DIRECTOR OF THE DIVISION OF THE
BUDGET AN ANNUAL PLAN THAT DETAILS THE AMOUNT OF MONEY THE COMMISSION
DEEMS NECESSARY TO MAINTAIN OPERATIONS, COMPLIANCE AND ENFORCEMENT OF
THE PROVISIONS OF THIS TITLE AND THE COLLECTION OF THE LICENSE FEE
AUTHORIZED BY THIS SECTION. CONTINGENT UPON THE APPROVAL OF THE DIREC-
TOR OF THE DIVISION OF THE BUDGET, THE COMMISSION SHALL PAY INTO AN
ACCOUNT, TO BE KNOWN AS THE BELL JAR COLLECTION ACCOUNT, UNDER THE JOINT
CUSTODY OF THE COMPTROLLER AND THE COMMISSION, THE TOTAL AMOUNT OF
LICENSE FEES COLLECTED PURSUANT TO THIS SECTION. WITH THE APPROVAL OF
THE DIRECTOR OF THE DIVISION OF THE BUDGET, MONIES TO BE USED TO MAIN-
TAIN THE OPERATIONS NECESSARY TO ENFORCE THE PROVISIONS OF THIS TITLE
AND THE COLLECTION OF THE LICENSE FEE IMPOSED BY THIS SECTION SHALL BE
PAID OUT OF SUCH ACCOUNT ON THE AUDIT AND WARRANT OF THE COMPTROLLER ON
VOUCHERS CERTIFIED OR APPROVED BY THE DIRECTOR OF THE DIVISION OF THE
BUDGET OR THE DIRECTOR'S DULY DESIGNATED OFFICIAL. THOSE MONIES THAT ARE
NOT USED TO MAINTAIN OPERATIONS NECESSARY TO ENFORCE THE PROVISIONS OF
THIS TITLE AND THE COLLECTION OF THE LICENSE FEE AUTHORIZED BY THIS
SECTION SHALL BE PAID OUT OF SUCH AMOUNT ON THE AUDIT AND WARRANT OF THE
STATE COMPTROLLER AND SHALL BE CREDITED TO THE GENERAL FUND.
§ 3. Section 129 of the racing, pari-mutuel wagering and breeding law,
as added by section 1 of part A of chapter 60 of the laws of 2012, is
amended to read as follows:
§ 129. Construction of other laws or provisions. Unless the context
[shall require] REQUIRES otherwise, the terms "division of the lottery",
"state quarter horse racing commission", "state racing commission",
"state harness racing commission", "state racing and wagering board" or
"board" wherever occurring in any of the provisions of this chapter or
of any other law, or, in any official books, records, instruments, rules
or papers, shall hereafter mean and refer to the state gaming commission
created by section one hundred two of this article. The provisions of
article three of this chapter shall be inapplicable to article two of
this chapter; and the provisions of such article two shall be inapplica-
ble to such article three, except that section two hundred thirty-one of
such article two shall apply to such article three. UNLESS THE CONTEXT
REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 19-B OF THE EXECUTIVE LAW"
WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS, RECORDS,
INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO TITLES
ONE AND TWO OF ARTICLE FIFTEEN OF THIS CHAPTER. UNLESS THE CONTEXT
REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 14-H OF THE GENERAL MUNIC-
IPAL LAW" WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS,
RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
S. 2009 148 A. 3009
TITLES ONE AND THREE OF ARTICLE FIFTEEN OF THIS CHAPTER. UNLESS THE
CONTEXT REQUIRES OTHERWISE, ANY REFERENCE TO "ARTICLE 9-A OF THE GENERAL
MUNICIPAL LAW" WHEREVER OCCURRING IN ANY LAW, OR, IN ANY OFFICIAL BOOKS,
RECORDS, INSTRUMENTS, RULES OR PAPERS, SHALL HEREAFTER MEAN AND REFER TO
TITLES ONE AND FOUR OF ARTICLE FIFTEEN OF THIS CHAPTER.
§ 4. Paragraph (b) of subdivision 2 of section 103 of the racing,
pari-mutuel wagering and breeding law, as added by section 1 of part A
of chapter 60 of the laws of 2012, is amended as follows:
(b) Charitable gaming. The division of charitable gaming shall be
responsible for the supervision and administration of the games of
chance licensing law, bingo licensing law and bingo control law as
prescribed by [articles nine-A and fourteen-H of the general municipal
law and nineteen-B of the executive law] ARTICLE FIFTEEN OF THIS
CHAPTER.
§ 5. Subdivision 1 and paragraph (b) of subdivision 3 of section 151
of the social services law, subdivision 1 as amended and paragraph (b)
of subdivision 3 as added by section 2 of part F of chapter 58 of the
laws of 2014, are amended to read as follows:
1. Unauthorized transactions. Except as otherwise provided in subdivi-
sion two of this section, no person, firm, establishment, entity, or
corporation (a) licensed under the provisions of the alcoholic beverage
control law to sell liquor and/or wine at retail for off-premises
consumption; (b) licensed to sell beer at wholesale and also authorized
to sell beer at retail for off-premises consumption; (c) licensed or
authorized to conduct pari-mutuel wagering activity under the racing,
pari-mutuel wagering and breeding law; (d) licensed to participate in
charitable gaming under [article fourteen-H of the general municipal]
TITLE THREE OF ARTICLE FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND
BREEDING law; (e) licensed to participate in the operation of a video
lottery facility under section one thousand six hundred seventeen-a of
the tax law; (f) licensed to operate a gaming facility under section
[one thousand three] THIRTEEN hundred eleven of the racing, pari-mutuel
wagering and breeding law; or (g) providing adult-oriented entertainment
in which performers disrobe or perform in an unclothed state for enter-
tainment, or making available the venue in which performers disrobe or
perform in an unclothed state for entertainment, shall cash or accept
any public assistance check or electronic benefit transfer device issued
by a public welfare official or department, or agent thereof, as and for
public assistance.
(b) A violation of the provisions of subdivision one of this section
by any person, corporation or entity licensed to operate a gaming facil-
ity under section one thousand three hundred eleven of the racing, pari-
mutuel wagering and breeding law; licensed under section one thousand
six hundred seventeen-a of the tax law to participate in the operation
of a video lottery facility; licensed or authorized to conduct pari-mu-
tuel wagering under the racing, pari-mutuel wagering and breeding law;
or licensed to participate in charitable gaming under [article four-
teen-H of the general municipal] TITLE THREE OF ARTICLE FIFTEEN OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING law, shall subject such
person, corporation or entity to disciplinary action pursuant to section
one hundred four of the racing, pari-mutuel wagering and breeding law
and section one thousand six hundred seven of the tax law, which may
include revocation, cancellation or suspension of such license or
authorization.
S. 2009 149 A. 3009
§ 6. Paragraph 3 of subdivision (c) of section 290 of the tax law, as
amended by chapter 547 of the laws of 1987, is amended to read as
follows:
(3) Any income derived from the conduct of games of chance or from
rental of premises for the conduct of games of chance pursuant to a
license granted under TITLE FOUR OF article [nine-A of the general
municipal] FIFTEEN OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING law
shall not be subject to tax under this article.
§ 7. This act shall take effect on the ninetieth day after it shall
have become a law.
PART NN
Section 1. Section 207 of the racing, pari-mutuel wagering and breed-
ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and
c of subdivision 1 as added by section 4, paragraph c of subdivision 1
as added by section 5 and subdivision 5 as added by section 6 of chapter
457 of the laws of 2012, and paragraph d of subdivision 1 as amended by
section 1 of part C of chapter 73 of the laws of 2016, is amended to
read as follows:
§ 207. Board of directors of a franchised corporation. 1. a. The
board of directors, to be called the New York racing association [reor-
ganization] board, shall consist of [seventeen] FIFTEEN members[, five
of whom shall be elected by the present class A directors of The New
York Racing Association, Inc., eight to be] WHO SHALL HAVE EQUAL VOTING
RIGHTS: SIX appointed by the governor[, two to] EACH OF WHOM MUST BE A
RESIDENT OF NEW YORK STATE, AND ONE OF WHOM SHALL be appointed [by] ON
THE RECOMMENDATION OF the temporary president of the senate and [two to]
ONE OF WHOM SHALL be appointed [by] ON THE RECOMMENDATION OF the speaker
of the assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW
YORK RACING ASSOCIATION REORGANIZATION BOARD OF DIRECTORS CONSTITUTED
PURSUANT TO CHAPTER FOUR HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND
TWELVE, WHICH SHALL CONTINUE TO EXIST UNTIL SUCH TIME AS THE APPOINT-
MENTS REQUIRED HEREUNDER ARE MADE; AND ONE WHO SHALL BE THE PRESIDENT
AND CHIEF EXECUTIVE OFFICER OF THE FRANCHISED CORPORATION, EX OFFICIO
AND WITHOUT TERM LIMITATION. THE NEW YORK RACING ASSOCIATION BOARD SHALL
HAVE TWO EX OFFICIO, NON-VOTING MEMBERS: ONE APPOINTED BY THE NEW YORK
THOROUGHBRED BREEDERS, INC., AND ONE APPOINTED BY THE NEW YORK THOROUGH-
BRED HORSEMEN'S ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE PERCENT OF
THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPORATION. THE NEW
YORK RACING ASSOCIATION BOARD MAY INCLUDE ADDITIONAL EX OFFICIO, NON-
VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF THE BOARD.
(i) The governor shall nominate a member to serve as chair FOR AN
INITIAL TERM OF THREE YEARS, WHO SHALL SERVE AT THE PLEASURE OF THE
GOVERNOR, subject to confirmation by majority vote of the board [of
directors. All non-ex officio members shall have equal voting rights].
THEREAFTER, THE BOARD SHALL ELECT ITS CHAIR, WHO SHALL SERVE AT THE
PLEASURE OF THE BOARD, FROM AMONG ITS MEMBERS.
(ii) THE TERM OF VOTING MEMBERSHIP ON THE NEW YORK RACING ASSOCIATION
BOARD SHALL BE THREE YEARS. INDIVIDUAL APPOINTEES SHALL BE LIMITED TO
SERVING AS A VOTING MEMBER THE LESSER OF THREE TERMS OR NINE YEARS.
NOTWITHSTANDING THE FOREGOING, THE INITIAL TERM OF TWO MEMBERS APPOINTED
BY THE GOVERNOR AND THREE MEMBERS APPOINTED BY THE NEW YORK RACING ASSO-
CIATION REORGANIZATION BOARD SHALL EXPIRE MARCH THIRTY-FIRST, TWO THOU-
SAND EIGHTEEN; THE INITIAL TERM OF TWO MEMBERS APPOINTED BY THE NEW YORK
RACING ASSOCIATION REORGANIZATION BOARD AND THREE MEMBERS APPOINTED BY
S. 2009 150 A. 3009
THE GOVERNOR SHALL EXPIRE ON MARCH THIRTY-FIRST, TWO THOUSAND NINETEEN;
AND THE REMAINING MEMBERS SHALL SERVE FULL THREE-YEAR TERMS.
(III) In the event of a member vacancy occurring by death, resignation
or otherwise, the respective appointing [officer or officers] AUTHORITY
shall appoint a successor who shall hold office for the unexpired
portion of the term. [A vacancy from the members appointed from the
present board of The New York Racing Association, Inc., shall be filled
by the remaining such members] IN THE CASE OF VACANCIES AMONG MEMBERS
APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
REORGANIZATION BOARD OF DIRECTORS CONSTITUTED PURSUANT TO CHAPTER FOUR
HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND TWELVE, APPOINTMENTS
THEREAFTER SHALL BE MADE BY THE EXECUTIVE COMMITTEE OF THE NEW YORK
RACING ASSOCIATION BOARD AS CONSTITUTED BY THE CHAPTER OF THE LAWS OF
TWO THOUSAND SEVENTEEN THAT AMENDED THIS SECTION.
b. The franchised corporation shall establish a compensation committee
to fix salary guidelines, such guidelines to be consistent with an oper-
ation of other first class thoroughbred racing operations in the United
States; a finance AND AUDIT committee, to review annual operating and
capital budgets for each of the three racetracks; a nominating AND
GOVERNANCE committee, to nominate any new directors to be designated by
the franchised corporation to replace its existing directors AND BE
RESPONSIBLE FOR ALL ISSUES AFFECTING THE GOVERNANCE OF THE FRANCHISED
CORPORATION; AN EQUINE SAFETY COMMITTEE; A RACING COMMITTEE TO ADDRESS
ALL ISSUES RELATED TO RACING OPERATIONS; and an executive committee.
Each of the compensation, finance, nominating and executive committees
shall include at least one [of] PUBLIC MEMBER FROM AMONG the directors
appointed by the governor[, and the executive committee shall include at
least one of the directors appointed by the temporary president of the
senate and at least one of the directors appointed by the speaker of the
assembly].
[b. In addition to these voting members, the board shall have two ex
officio members to advise on critical economic and equine health
concerns of the racing industry, one appointed by the New York Thorough-
bred Breeders Inc., and one appointed by the New York thoroughbred
horsemen's association (or such other entity as is certified and
approved pursuant to section two hundred twenty-eight of this article).
c. All directors shall serve at the pleasure of their appointing
authority.]
c. Upon the effective date of this paragraph, the structure of the NEW
YORK RACING ASSOCIATION board [of the franchised corporation] shall be
deemed to be incorporated within and made part of the certificate of
incorporation of the franchised corporation, and no amendment to such
certificate of incorporation shall be necessary to give effect to any
such provision, and any provision contained within such certificate
inconsistent in any manner shall be superseded by the provisions of this
section. Such board shall, however, make appropriate conforming changes
to all governing documents of the franchised corporation including but
not limited to corporate by-laws. Following such conforming changes,
amendments to the by-laws of the franchised corporation shall [only] be
made ONLY by unanimous vote of the board.
[d. The board, which shall become effective upon appointment of a
majority of public members, shall terminate five years from its date of
creation.]
2. Members of the NEW YORK RACING ASSOCIATION board [of directors]
shall serve without compensation for their services, but [publicly
appointed members of the board] shall be entitled to reimbursement from
S. 2009 151 A. 3009
the franchised corporation for actual and necessary expenses incurred in
the performance of their [official] duties FOR THE BOARD.
3. Members of the NEW YORK RACING ASSOCIATION board [of directors],
except as otherwise provided by law, may engage in PUBLIC OR private
employment, or in a profession or business, however no member shall have
any direct or indirect economic interest in any video lottery gaming
facility, excluding incidental benefits based on purses or awards won in
the ordinary conduct of racing operations, or any direct or indirect
interest in any development undertaken at the racetracks of the state
racing franchise.
4. The affirmative vote of a majority of members of the NEW YORK
RACING ASSOCIATION board [of directors] shall be necessary for the tran-
saction of any business or the exercise of any power or function of the
franchised corporation. The franchised corporation may delegate on an
annual basis to one or more of its members, or its officers, agents or
employees, such powers and duties as it may deem proper.
5. Each voting member of the NEW YORK RACING ASSOCIATION board [of
directors] of the franchised corporation shall annually make a written
disclosure to [the] SUCH board of any interest held by the director,
such director's spouse or unemancipated child, in any entity undertaking
business in the racing or breeding industry. Such interest disclosure
shall be promptly updated, in writing, in the event of any material
change.
The NEW YORK RACING ASSOCIATION board shall establish parameters for
the reporting and disclosure of such director interests.
6. EACH VOTING MEMBER OF THE NEW YORK RACING ASSOCIATION BOARD
APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
REORGANIZATION BOARD OF DIRECTORS SHALL SEEK A RACETRACK MANAGEMENT
LICENSE ISSUED BY THE GAMING COMMISSION, ANY FEES FOR WHICH SHALL BE
WAIVED BY THE COMMISSION. NO VOTING MEMBER OF THE BOARD REQUIRED BY THE
FOREGOING TO SEEK A RACETRACK MANAGEMENT LICENSE MAY VOTE ON ANY BOARD
MATTER UNTIL SUCH LICENSE IS ISSUED.
7. FOR PURPOSES OF SECTION TWO HUNDRED TWELVE OF THIS ARTICLE, THE
ESTABLISHMENT OF THE NEW YORK RACING ASSOCIATION, INC. BOARD OF DIREC-
TORS UNDER THIS SECTION SHALL NOT CONSTITUTE THE ASSUMPTION OF THE FRAN-
CHISE BY A SUCCESSOR ENTITY.
§ 2. Subparagraphs (ii), (iii), (vii) and (xvii) of paragraph a of
subdivision 8 of section 212 of the racing, pari-mutuel wagering and
breeding law, as added by chapter 18 of the laws of 2008, are amended,
subparagraph (xviii) is renumbered subparagraph (xx) and two new subpar-
agraphs (xviii) and (xix) are added to read as follows:
(ii) monitor and enforce compliance with definitive documents that
comprise the franchise agreement between the franchised corporation and
the state of New York governing the franchised corporation's operation
of thoroughbred racing and pari-mutuel wagering at the racetracks. The
franchise agreement shall contain objective performance standards that
shall allow contract review in a manner consistent with this chapter.
The franchise oversight board shall notify the franchised corporation
authorized by this chapter in writing of any material breach of the
performance standards or repeated non-material breaches which the fran-
chise oversight board may determine collectively constitute a material
breach of the performance standards. Prior to taking any action against
such franchised corporation, the franchise oversight board shall provide
the franchised corporation with the reasonable opportunity to cure any
material breach of the performance standards or repeated non-material
breaches which the franchise oversight board may determine collectively
S. 2009 152 A. 3009
constitute a material breach of the performance standards. Upon a writ-
ten finding of a material breach of the performance standards or
repeated non-material breaches which the franchise oversight board may
determine collectively constitute a material breach of the performance
standards, the franchise oversight board may recommend that the fran-
chise agreement be terminated. The franchise oversight board shall refer
such recommendation to the [racing and wagering board] COMMISSION for a
hearing conducted pursuant to section two hundred forty-five of this
article for a determination of whether to terminate the franchise agree-
ment with the franchised corporation;
(iii) oversee, monitor and review all significant transactions and
operations of the franchised corporation authorized by this chapter;
provided, however, that nothing in this section shall be deemed to
reduce, diminish or impede the authority of the [state racing and wager-
ing board] COMMISSION to, pursuant to article one of this chapter,
determine and enforce compliance by the franchised corporation with
terms of racing laws and regulations. Such oversight shall include, but
not be limited to:
(A) review and make recommendations concerning the annual operating
budgets of such franchised corporation;
(B) review and make recommendations concerning operating revenues and
the establishment of a financial plan;
(C) review and make recommendations concerning accounting, internal
control systems and security procedures;
(D) review such franchised corporation's revenue and expenditure
[polices] POLICIES which shall include collective bargaining agreements
management and employee compensation plans, vendor contracts and capital
improvement plans;
(E) review such franchise corporation's compliance with the laws,
rules and regulations applicable to its activities;
(F) make recommendations for establishing model governance principles
to improve accountability and transparency; and
(G) receive, review, approve or disapprove capital expense plans
submitted annually by the franchised corporation.
(vii) review and provide any recommendations on all simulcasting
contracts (buy and sell) that are also subject to prior approval of the
[racing and wagering board] COMMISSION;
(xvii) request and accept the assistance of any state agency, includ-
ing but not limited to, the [racing and wagering board, the division of
the lottery] COMMISSION, office of parks, recreation and historic pres-
ervation, the department of environmental conservation and the depart-
ment of taxation and finance, in obtaining information related to the
franchised corporation's compliance with the terms of the franchise
agreement;[and]
(XVIII) WHEN THE FRANCHISE OVERSIGHT BOARD DETERMINES THE FINANCIAL
POSITION OF THE FRANCHISED CORPORATION HAS DEVIATED MATERIALLY FROM THE
FRANCHISED CORPORATION'S FINANCIAL PLAN, OR OTHER SUCH RELATED DOCUMENTS
PROVIDED TO THE FRANCHISE OVERSIGHT BOARD, OR WHEN THE IMPLEMENTATION OF
SUCH PLAN WOULD, IN THE OPINION OF THE FRANCHISE OVERSIGHT BOARD, POSE A
SIGNIFICANT RISK TO THE LIQUIDITY OF THE FRANCHISED CORPORATION, IN ANY
ORDER OR COMBINATION:
(A) HIRE, AT THE EXPENSE OF THE FRANCHISED CORPORATION, AN INDEPENDENT
FINANCIAL ADVISER TO EVALUATE THE FINANCIAL POSITION OF THE FRANCHISED
CORPORATION AND REPORT ON SUCH TO THE FRANCHISE OVERSIGHT BOARD; AND
S. 2009 153 A. 3009
(B) REQUIRE THE FRANCHISED CORPORATION TO SUBMIT FOR THE FRANCHISE
OVERSIGHT BOARD'S APPROVAL A CORRECTIVE ACTION PLAN ADDRESSING ANY
CONCERNS IDENTIFIED AS RISKS BY THE FRANCHISE OVERSIGHT BOARD.
(XIX) WHEN THE FRANCHISE OVERSIGHT BOARD FINDS THE FRANCHISED CORPO-
RATION HAS EXPERIENCED TWO CONSECUTIVE YEARS OF MATERIAL LOSSES DUE TO
CIRCUMSTANCES WITHIN THE CONTROL OF THE FRANCHISED CORPORATION, AS
DETERMINED BY THE FRANCHISE OVERSIGHT BOARD, THE BOARD MAY BY MAJORITY
VOTE REQUEST THE DIRECTOR OF THE BUDGET TO IMPOUND AND ESCROW RACING
SUPPORTING PAYMENTS ACCRUING TO THE BENEFIT OF THE FRANCHISED CORPO-
RATION UNTIL THE FRANCHISED CORPORATION ACHIEVES THE GOALS OF A BOARD-
APPROVED CORRECTIVE ACTION PLAN ADDRESSING CONCERNS IDENTIFIED BY THE
BOARD. THE DIRECTOR OF THE BUDGET MAY, UPON WARRANT OF THE FRANCHISE
OVERSIGHT BOARD, APPROVE THE USE OF WITHHELD RACING SUPPORT PAYMENTS
NECESSARY TO SATISFY FINANCIAL INSTRUMENTS USED TO FUND BOARD-APPROVAL
CAPITAL INVESTMENTS.
§ 3. Section 203 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008, is amended to read as
follows:
§ 203. Right to hold race meetings and races. 1. Any corporation
formed under the provisions of this article, if so claimed in its
certificate of organization, and if it shall comply with all the
provisions of this article, and any other corporation entitled to the
benefits and privileges of this article as hereinafter provided, shall
have the power and the right to hold one or more running race meetings
in each year, and to hold, maintain and conduct running races at such
meetings. At such running race meetings the corporation, or the owners
of horses engaged in such races, or others who are not participants in
the race, may contribute purses, prizes, premiums or stakes to be
contested for, but no person or persons other than the owner or owners
of a horse or horses contesting in a race shall have any pecuniary
interest in a purse, prize, premium or stake contested for in such race,
or be entitled to or receive any portion thereof after such race is
finished, and the whole of such purse, prize, premium or stake shall be
allotted in accordance with the terms and conditions of such race. Races
conducted by a franchised corporation shall be permitted only between
sunrise and sunset.
2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A FRAN-
CHISED CORPORATION SHALL BE PERMITTED TO CONDUCT RACES AFTER SUNSET AT
THE BELMONT PARK RACETRACK, BUT ONLY IF SUCH RACES CONCLUDE BEFORE ELEV-
EN O'CLOCK POST MERIDIAN. THE FRANCHISED CORPORATION SHALL COORDINATE
WITH A HARNESS RACING ASSOCIATION OR CORPORATION AUTHORIZED TO OPERATE
IN WESTCHESTER COUNTY TO ENSURE THAT THE STARTING TIMES OF ALL SUCH
RACES ARE STAGGERED.
3. A track first licensed after January first, nineteen hundred nine-
ty, shall not conduct the simulcasting of thoroughbred races within
district one, in accordance with article ten of this chapter on days
that a franchised corporation is not conducting a race meeting. In no
event shall thoroughbred races conducted by a track first licensed after
January first, nineteen hundred ninety be conducted after eight o'clock
post meridian.
§ 4. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238
of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part BB of chapter 60 of the laws of 2016, is amended to
read as follows:
(i) The pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-
S. 2009 154 A. 3009
fies the gaming commission by August fifteenth of each year that such
pari-mutuel tax rate is effective of its intent to conduct a race meet-
ing at Aqueduct racetrack during the months of December, January, Febru-
ary, March and April. For purposes of this paragraph such race meeting
shall consist of not less than ninety-five days of racing UNLESS OTHER-
WISE AGREED TO IN WRITING BY THE NEW YORK THOROUGHBRED BREEDERS INC.,
THE NEW YORK THOROUGHBRED HORSEMEN'S ASSOCIATION (OR SUCH OTHER ENTITY
AS IS CERTIFIED AND APPROVED PURSUANT TO SECTION TWO HUNDRED TWENTY-
EIGHT OF THIS ARTICLE) AND APPROVED BY THE COMMISSION. Not later than
May first of each year that such pari-mutuel tax rate is effective, the
gaming commission shall determine whether a race meeting at Aqueduct
racetrack consisted of the number of days as required by this paragraph.
In determining the number of race days, cancellation of a race day
because of an act of God that the gaming commission approves or because
of weather conditions that are unsafe or hazardous which the gaming
commission approves shall not be construed as a failure to conduct a
race day. Additionally, cancellation of a race day because of circum-
stances beyond the control of such franchised corporation for which the
gaming commission gives approval shall not be construed as a failure to
conduct a race day. If the gaming commission determines that the number
of days of racing as required by this paragraph have not occurred then
the pari-mutuel tax rate in paragraph (a) of this subdivision shall
revert to the pari-mutuel tax rates in effect prior to January first,
nineteen hundred ninety-five.
§ 5. This act shall take effect April 1, 2017; provided, however, that
section one of this act shall take effect upon the appointment of a
majority of board members; provided, further, that the state franchise
oversight board shall notify the legislative bill drafting commission
upon the occurrence of such appointments in order that the commission
may maintain an accurate and timely effective data base of the official
text of the laws of the state of New York in furtherance of effectuating
the provisions of section 44 of the legislative law and section 70-b of
the public officers law; provided further that the amendments to section
212 of the racing, pari-mutuel wagering and breeding law made by section
two of this act shall not affect the repeal of such section and shall be
deemed repealed therewith.
PART OO
Section 1. Paragraph (a) of subdivision 1 of section 1003 of the
racing, pari-mutuel wagering and breeding law, as amended by section 1
of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
(a) Any racing association or corporation or regional off-track
betting corporation, authorized to conduct pari-mutuel wagering under
this chapter, desiring to display the simulcast of horse races on which
pari-mutuel betting shall be permitted in the manner and subject to the
conditions provided for in this article may apply to the commission for
a license so to do. Applications for licenses shall be in such form as
may be prescribed by the commission and shall contain such information
or other material or evidence as the commission may require. No license
shall be issued by the commission authorizing the simulcast transmission
of thoroughbred races from a track located in Suffolk county. The fee
for such licenses shall be five hundred dollars per simulcast facility
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
S. 2009 155 A. 3009
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with section one thousand fifteen, one thousand
sixteen and one thousand seventeen of this article; provided further
that the contract provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those in effect on
January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth, two thousand [seventeen] EIGHTEEN; provided, however, that
any party to such agreement may elect to terminate such agreement upon
conveying written notice to all other parties of such agreement at least
forty-five days prior to the effective date of the termination, via
registered mail. Any party to an agreement receiving such notice of an
intent to terminate, may request the commission to mediate between the
parties new terms and conditions in a replacement agreement between the
parties as will permit continuation of an in-home experiment until June
thirtieth, two thousand [seventeen] EIGHTEEN; and (iv) no in-home simul-
casting in the thoroughbred special betting district shall occur without
the approval of the regional thoroughbred track.
§ 2. Subparagraph (iii) of paragraph d of subdivision 3 of section
1007 of the racing, pari-mutuel wagering and breeding law, as amended by
section 2 of part FF of chapter 60 of the laws of 2016, is amended to
read as follows:
(iii) Of the sums retained by a receiving track located in Westchester
county on races received from a franchised corporation, for the period
commencing January first, two thousand eight and continuing through June
thirtieth, two thousand [seventeen] EIGHTEEN, the amount used exclusive-
ly for purses to be awarded at races conducted by such receiving track
shall be computed as follows: of the sums so retained, two and one-half
percent of the total pools. Such amount shall be increased or decreased
in the amount of fifty percent of the difference in total commissions
determined by comparing the total commissions available after July twen-
ty-first, nineteen hundred ninety-five to the total commissions that
S. 2009 156 A. 3009
would have been available to such track prior to July twenty-first,
nineteen hundred ninety-five.
§ 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is conducting a race meet-
ing in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [seventeen] EIGHTEEN and on any day regardless
of whether or not a franchised corporation is conducting a race meeting
in Saratoga county at Saratoga thoroughbred racetrack after June thirti-
eth, two thousand [seventeen] EIGHTEEN. On any day on which a fran-
chised corporation has not scheduled a racing program but a thoroughbred
racing corporation located within the state is conducting racing, every
off-track betting corporation branch office and every simulcasting
facility licensed in accordance with section one thousand seven (that
have entered into a written agreement with such facility's represen-
tative horsemen's organization, as approved by the commission), one
thousand eight, or one thousand nine of this article shall be authorized
to accept wagers and display the live simulcast signal from thoroughbred
tracks located in another state or foreign country subject to the
following provisions:
§ 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering
and breeding law, as amended by section 4 of part FF of chapter 60 of
the laws of 2016, is amended to read as follows:
1. The provisions of this section shall govern the simulcasting of
races conducted at harness tracks located in another state or country
during the period July first, nineteen hundred ninety-four through June
thirtieth, two thousand [seventeen] EIGHTEEN. This section shall super-
sede all inconsistent provisions of this chapter.
§ 5. The opening paragraph of subdivision 1 of section 1016 of the
racing, pari-mutuel wagering and breeding law, as amended by section 5
of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
The provisions of this section shall govern the simulcasting of races
conducted at thoroughbred tracks located in another state or country on
any day during which a franchised corporation is not conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack until June
thirtieth, two thousand [seventeen] EIGHTEEN. Every off-track betting
corporation branch office and every simulcasting facility licensed in
accordance with section one thousand seven that have entered into a
written agreement with such facility's representative horsemen's organ-
ization as approved by the commission, one thousand eight or one thou-
sand nine of this article shall be authorized to accept wagers and
display the live full-card simulcast signal of thoroughbred tracks
(which may include quarter horse or mixed meetings provided that all
such wagering on such races shall be construed to be thoroughbred races)
located in another state or foreign country, subject to the following
provisions; provided, however, no such written agreement shall be
required of a franchised corporation licensed in accordance with section
one thousand seven of this article:
§ 6. The opening paragraph of section 1018 of the racing, pari-mutuel
wagering and breeding law, as amended by section 6 of part FF of chapter
60 of the laws of 2016, is amended to read as follows:
S. 2009 157 A. 3009
Notwithstanding any other provision of this chapter, for the period
July twenty-fifth, two thousand one through September eighth, two thou-
sand [sixteen] SEVENTEEN, when a franchised corporation is conducting a
race meeting within the state at Saratoga Race Course, every off-track
betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven (that has entered
into a written agreement with such facility's representative horsemen's
organization as approved by the commission), one thousand eight or one
thousand nine of this article shall be authorized to accept wagers and
display the live simulcast signal from thoroughbred tracks located in
another state, provided that such facility shall accept wagers on races
run at all in-state thoroughbred tracks which are conducting racing
programs subject to the following provisions; provided, however, no such
written agreement shall be required of a franchised corporation licensed
in accordance with section one thousand seven of this article.
§ 7. Section 32 of chapter 281 of the laws of 1994, amending the
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting, as amended by section 7 of part FF of chapter 60 of the
laws of 2016, is amended to read as follows:
§ 32. This act shall take effect immediately and the pari-mutuel tax
reductions in section six of this act shall expire and be deemed
repealed on July 1, [2017] 2018; provided, however, that nothing
contained herein shall be deemed to affect the application, qualifica-
tion, expiration, or repeal of any provision of law amended by any
section of this act, and such provisions shall be applied or qualified
or shall expire or be deemed repealed in the same manner, to the same
extent and on the same date as the case may be as otherwise provided by
law; provided further, however, that sections twenty-three and twenty-
five of this act shall remain in full force and effect only until May 1,
1997 and at such time shall be deemed to be repealed.
§ 8. Section 54 of chapter 346 of the laws of 1990, amending the
racing, pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, as amended by section
8 of part FF of chapter 60 of the laws of 2016, is amended to read as
follows:
§ 54. This act shall take effect immediately; provided, however,
sections three through twelve of this act shall take effect on January
1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed-
ing law, as added by section thirty-eight of this act, shall expire and
be deemed repealed on July 1, [2017] 2018; and section eighteen of this
act shall take effect on July 1, 2008 and sections fifty-one and fifty-
two of this act shall take effect as of the same date as chapter 772 of
the laws of 1989 took effect.
§ 9. Paragraph (a) of subdivision 1 of section 238 of the racing,
pari-mutuel wagering and breeding law, as amended by section 9 of part
FF of chapter 60 of the laws of 2016, is amended to read as follows:
(a) The franchised corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat shall
distribute all sums deposited in any pari-mutuel pool to the holders of
winning tickets therein, provided such tickets be presented for payment
before April first of the year following the year of their purchase,
less an amount which shall be established and retained by such fran-
chised corporation of between twelve to seventeen per centum of the
total deposits in pools resulting from on-track regular bets, and four-
teen to twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
S. 2009 158 A. 3009
total deposits in pools resulting from on-track exotic bets and fifteen
to thirty-six per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention rate to be
established is subject to the prior approval of the gaming commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the breaks. For
the period June first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three per centum and such tax on multiple wagers shall be two and one-
half per centum, plus twenty per centum of the breaks. For the period
September tenth, nineteen hundred ninety-nine through March thirty-
first, two thousand one, such tax on all wagers shall be two and six-
tenths per centum and for the period April first, two thousand one
through December thirty-first, two thousand [seventeen] EIGHTEEN, such
tax on all wagers shall be one and six-tenths per centum, plus, in each
such period, twenty per centum of the breaks. Payment to the New York
state thoroughbred breeding and development fund by such franchised
corporation shall be one-half of one per centum of total daily on-track
pari-mutuel pools resulting from regular, multiple and exotic bets and
three per centum of super exotic bets provided, however, that for the
period September tenth, nineteen hundred ninety-nine through March thir-
ty-first, two thousand one, such payment shall be six-tenths of one per
centum of regular, multiple and exotic pools and for the period April
first, two thousand one through December thirty-first, two thousand
[seventeen] EIGHTEEN, such payment shall be seven-tenths of one per
centum of such pools.
§ 10. This act shall take effect immediately.
PART PP
Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as amended by section 1 of part
EE of chapter 60 of the laws of 2016, is amended to read as follows:
(F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
agraph, when a vendor track, is located in Sullivan county and within
sixty miles from any gaming facility in a contiguous state such vendor
S. 2009 159 A. 3009
fee shall, for a period of [nine] TEN years commencing April first, two
thousand eight, be at a rate of forty-one percent of the total revenue
wagered at the vendor track after payout for prizes pursuant to this
chapter, after which time such rate shall be as for all tracks in clause
(C) of this subparagraph.
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2017.
PART QQ
Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi-
sion b of section 1612 of the tax law, as separately amended by section
1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016,
is amended to read as follows:
(H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
this subparagraph, the track operator of a vendor track and in the case
of Aqueduct, the video lottery terminal facility operator, shall be
eligible for a vendor's capital award of up to four percent of the total
revenue wagered at the vendor track after payout for prizes pursuant to
this chapter, which shall be used exclusively for capital project
investments to improve the facilities of the vendor track which promote
or encourage increased attendance at the video lottery gaming facility
including, but not limited to hotels, other lodging facilities, enter-
tainment facilities, retail facilities, dining facilities, events
arenas, parking garages and other improvements that enhance facility
amenities; provided that such capital investments shall be approved by
the division, in consultation with the state racing and wagering board,
and that such vendor track demonstrates that such capital expenditures
will increase patronage at such vendor track's facilities and increase
the amount of revenue generated to support state education programs. The
annual amount of such vendor's capital awards that a vendor track shall
be eligible to receive shall be limited to two million five hundred
thousand dollars, except for Aqueduct racetrack, for which there shall
be no annual limit, provided, however, that any such capital award for
the Aqueduct video lottery terminal facility operator shall be one
percent of the total revenue wagered at the video lottery terminal
facility after payout for prizes pursuant to this chapter until the
earlier of the designation of one thousand video lottery devices as
hosted pursuant to paragraph four of subdivision a of section sixteen
hundred seventeen-a of this chapter or April first, two thousand nine-
teen and shall then be four percent of the total revenue wagered at the
video lottery terminal facility after payout for prizes pursuant to this
chapter, provided, further, that such capital award shall only be
provided pursuant to an agreement with the operator to construct an
expansion of the facility, hotel, and convention and exhibition space
requiring a minimum capital investment of three hundred million dollars.
Except for tracks having less than one thousand one hundred video gaming
machines, and except for a vendor track located west of State Route 14
from Sodus Point to the Pennsylvania border within New York, and except
for Aqueduct racetrack each track operator shall be required to co-in-
vest an amount of capital expenditure equal to its cumulative vendor's
capital award. For all tracks, except for Aqueduct racetrack, the amount
of any vendor's capital award that is not used during any one year peri-
od may be carried over into subsequent years ending before April first,
two thousand [seventeen] EIGHTEEN. Any amount attributable to a capital
expenditure approved prior to April first, two thousand [seventeen]
S. 2009 160 A. 3009
EIGHTEEN and completed before April first, two thousand [nineteen] TWEN-
TY; or approved prior to April first, two thousand [twenty-one] TWENTY-
TWO and completed before April first, two thousand [twenty-three] TWEN-
TY-FOUR for a vendor track located west of State Route 14 from Sodus
Point to the Pennsylvania border within New York, shall be eligible to
receive the vendor's capital award. In the event that a vendor track's
capital expenditures, approved by the division prior to April first, two
thousand [seventeen] EIGHTEEN and completed prior to April first, two
thousand [nineteen] TWENTY, exceed the vendor track's cumulative capital
award during the five year period ending April first, two thousand
[seventeen] EIGHTEEN, the vendor shall continue to receive the capital
award after April first, two thousand [seventeen] EIGHTEEN until such
approved capital expenditures are paid to the vendor track subject to
any required co-investment. In no event shall any vendor track that
receives a vendor fee pursuant to clause (F) or (G) of this subparagraph
be eligible for a vendor's capital award under this section. Any opera-
tor of a vendor track which has received a vendor's capital award,
choosing to divest the capital improvement toward which the award was
applied, prior to the full depreciation of the capital improvement in
accordance with generally accepted accounting principles, shall reim-
burse the state in amounts equal to the total of any such awards. Any
capital award not approved for a capital expenditure at a video lottery
gaming facility by April first, two thousand [seventeen] EIGHTEEN shall
be deposited into the state lottery fund for education aid; and
§ 2. This act shall take effect immediately.
PART RR
Section 1. Paragraph c of subdivision 3 of section 97-nnnn of the
state finance law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
c. ten percent of the moneys in such fund, as attributable to a
specific licensed gaming facility, shall be appropriated or transferred
from the commercial gaming revenue fund among counties within the
region, as defined by section one thousand three hundred ten of the
racing, pari-mutuel wagering and breeding law, hosting said facility for
the purpose of real property tax relief and for education assistance.
Such distribution shall be made among the counties on a per capita
basis, subtracting the population of host municipality and county.
PROVIDED, HOWEVER, SUCH AMOUNT SHALL BE REDUCED BY ONE MILLION FOUR
HUNDRED THOUSAND DOLLARS IN STATE FISCAL YEAR TWO THOUSAND SEVENTEEN --
TWO THOUSAND EIGHTEEN AND BY ONE MILLION FIVE HUNDRED FIFTY THOUSAND
DOLLARS EVERY YEAR THEREAFTER. SUCH FUNDS ATTRIBUTABLE TO THIS REDUCTION
SHALL BE TRANSFERRED TO THE GENERAL FUND AND THE REDUCTION SHALL BE
DISTRIBUTED AMONG SUCH ELIGIBLE COUNTIES PROPORTIONAL TO TOTAL DISTRIB-
UTIONS DURING THE FISCAL YEAR.
§ 2. Subdivision 3 of section 99-h of the state finance law, as
amended by chapter 174 of the laws of 2013, is amended to read as
follows:
3. Moneys of the account, following the segregation of appropriations
enacted by the legislature, shall be available for purposes including
but not limited to: (a) reimbursements or payments to municipal govern-
ments that host tribal casinos pursuant to a tribal-state compact for
costs incurred in connection with services provided to such casinos or
arising as a result thereof, for economic development opportunities and
job expansion programs authorized by the executive law; provided, howev-
S. 2009 161 A. 3009
er, that for any gaming facility located in the city of Buffalo, the
city of Buffalo shall receive a minimum of twenty-five percent of the
negotiated percentage of the net drop from electronic gaming devices the
state receives pursuant to the compact, and provided further that for
any gaming facility located in the city of Niagara Falls, county of
Niagara a minimum of twenty-five percent of the negotiated percentage of
the net drop from electronic gaming devices the state receives pursuant
to the compact shall be distributed in accordance with subdivision four
of this section, and provided further that for any gaming facility
located in the county or counties of Cattaraugus, Chautauqua or Allega-
ny, the municipal governments of the state hosting the facility shall
collectively receive a minimum of twenty-five percent of the negotiated
percentage of the net drop from electronic gaming devices the state
receives pursuant to the compact; and provided further that pursuant to
chapter five hundred ninety of the laws of two thousand four, a minimum
of twenty-five percent of the revenues received by the state pursuant to
the state's compact with the St. Regis Mohawk tribe shall be made avail-
able to the counties of Franklin and St. Lawrence, and affected towns in
such counties. Each such county and its affected towns shall receive
fifty percent of the moneys made available by the state; and provided
further that the state shall annually make twenty-five percent of the
negotiated percentage of the net drop from all gaming devices the state
actually receives pursuant to the Oneida Settlement Agreement confirmed
by section eleven of the executive law as available to the county of
Oneida, and a sum of three and one-half million dollars to the county of
Madison. Additionally, the state shall distribute for a period of nine-
teen and one-quarter years, an additional annual sum of two and one-half
million dollars to the county of Oneida. Additionally, the state shall
distribute the one-time eleven million dollar payment received by the
state pursuant to such agreement with the Oneida Nation of New York to
the county of Madison by wire transfer upon receipt of such payment by
the state; and (b) support and services of treatment programs for
persons suffering from gambling addictions. Moneys not segregated for
such purposes shall be transferred to the general fund for the support
of government during the fiscal year in which they are received. ADDI-
TIONALLY, THE STATE SHALL DISTRIBUTE AN ADDITIONAL ANNUAL SUM OF TWO AND
ONE-QUARTER MILLION DOLLARS TO A COUNTY IN WHICH A GAMING FACILITY IS
LOCATED BUT DOES NOT RECEIVE A PERCENT OF THE NEGOTIATED PERCENTAGE OF
THE NET DROP FROM GAMING DEVICES THE STATE RECEIVES PURSUANT TO A
COMPACT.
§ 3. Subdivision 3-a of section 99-h of the state finance law, as
amended by section 4 of part EE of chapter 59 of the laws of 2014, is
amended to read as follows:
3-a. Ten percent of any of the funds actually received by the state
pursuant to the tribal-state compacts and agreements described in subdi-
vision two of this section prior to the transfer of unsegregated moneys
to the general fund required by such subdivision, shall be distributed
to counties in each respective exclusivity zone provided they do not
otherwise receive a share of said revenues pursuant to this section.
Such distribution shall be made among such counties on a per capita
basis, excluding the population of any municipality that receives a
distribution pursuant to subdivision three of this section. PROVIDED,
HOWEVER, SUCH AMOUNT SHALL BE REDUCED BY SIX HUNDRED THOUSAND DOLLARS IN
STATE FISCAL YEAR TWO THOUSAND SEVENTEEN -- TWO THOUSAND EIGHTEEN AND BY
FIVE HUNDRED THOUSAND DOLLARS EVERY YEAR THEREAFTER. THE REDUCTION SHALL
S. 2009 162 A. 3009
BE DISTRIBUTED AMONG SUCH ELIGIBLE COUNTIES PROPORTIONAL TO TOTAL
DISTRIBUTIONS DURING THE FISCAL YEAR.
§ 4. Paragraph b of subdivision 2 of section 54-l of the state finance
law, as amended by section 1 of part X of chapter 55 of the laws of
2014, is amended to read as follows:
b. Within the amounts appropriated therefor, eligible municipalities
shall receive an amount equal to seventy percent of the state aid
payment received in the state fiscal year commencing April first, two
thousand eight from an appropriation for aid to municipalities with
video lottery gaming facilities. PROVIDED, HOWEVER, SUCH AMOUNT SHALL
BE REDUCED BY TWO HUNDRED FIFTY THOUSAND DOLLARS IN THE STATE FISCAL
YEAR COMMENCING APRIL FIRST, TWO THOUSAND SEVENTEEN AND BY TWO HUNDRED
THOUSAND DOLLARS EVERY YEAR THEREAFTER. SUCH REDUCTION SHALL BE DISTRIB-
UTED AMONG SUCH ELIGIBLE MUNICIPALITIES PROPORTIONAL TO PAYMENTS
RECEIVED BY SUCH ELIGIBLE MUNICIPALITIES IN THE STATE FISCAL YEAR
COMMENCING APRIL FIRST, TWO THOUSAND SIXTEEN.
§ 5. This act shall take effect April 1, 2017 and shall expire and be
deemed repealed March 31, 2020 notwithstanding section 2 of chapter 747
of the laws of 2006, as amended.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Parts A through RR of this act shall be
as specifically set forth in the last section of such Parts.
2017-A3009A - Details
- See Senate Version of this Bill:
- S2009
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3009A - Summary
Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F)
2017-A3009A - Bill Text download pdf
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
S. 2009--A 61 A. 3009--A
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
S. 2009--A 62 A. 3009--A
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
S. 2009--A 63 A. 3009--A
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
S. 2009--A 64 A. 3009--A
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:
S. 2009--A 65 A. 3009--A
(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
S. 2009--A 66 A. 3009--A
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
S. 2009--A 68 A. 3009--A
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
S. 2009--A 74 A. 3009--A
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
S. 2009--A 75 A. 3009--A
(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-
S. 2009--A 76 A. 3009--A
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
S. 2009--A 77 A. 3009--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.]
§ 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
S. 2009--A 78 A. 3009--A
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
S. 2009--A 79 A. 3009--A
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 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
S. 2009--A 86 A. 3009--A
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,
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.
S. 2009--A 87 A. 3009--A
§ 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.
§ 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
S. 2009--A 88 A. 3009--A
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
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.
S. 2009--A 89 A. 3009--A
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
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
S. 2009--A 90 A. 3009--A
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.
§ 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,
S. 2009--A 91 A. 3009--A
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:
(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:
S. 2009--A 92 A. 3009--A
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-
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
S. 2009--A 93 A. 3009--A
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,
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.
S. 2009--A 94 A. 3009--A
Section 8-a. Paragraph (a) of subdivision 3 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:
(a) Imposition of points. If the enforcement officer determines, after
a hearing, that the retail dealer violated subdivision [one] TWO of
section thirteen hundred ninety-nine-cc of this article with respect to
a prohibited sale to a minor, he or she shall, in addition to imposing
any other penalty required or permitted pursuant to this section, assign
two points to the retail dealer's record where the individual who
committed the violation did not hold a certificate of completion from a
state certified tobacco sales training program and one point where the
retail dealer demonstrates that the person who committed the violation
held a certificate of completion from a state certified tobacco sales
training program.
§ 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
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
S. 2009--A 95 A. 3009--A
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
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:
S. 2009--A 96 A. 3009--A
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.
§ 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:
S. 2009--A 97 A. 3009--A
(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,
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-
S. 2009--A 98 A. 3009--A
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
(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.
S. 2009--A 99 A. 3009--A
§ 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
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:
S. 2009--A 100 A. 3009--A
(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:
(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.
S. 2009--A 101 A. 3009--A
§ 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
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
S. 2009--A 102 A. 3009--A
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
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
S. 2009--A 103 A. 3009--A
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,
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-
S. 2009--A 104 A. 3009--A
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
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
S. 2009--A 105 A. 3009--A
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.
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
S. 2009--A 106 A. 3009--A
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.
§ 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:
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
S. 2009--A 107 A. 3009--A
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
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
S. 2009--A 108 A. 3009--A
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
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.
S. 2009--A 109 A. 3009--A
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;
(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:
S. 2009--A 110 A. 3009--A
(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-
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.
S. 2009--A 111 A. 3009--A
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
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.
S. 2009--A 112 A. 3009--A
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;
(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.
S. 2009--A 113 A. 3009--A
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
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
S. 2009--A 114 A. 3009--A
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
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.
S. 2009--A 115 A. 3009--A
(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;
(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
S. 2009--A 116 A. 3009--A
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
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
S. 2009--A 117 A. 3009--A
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.
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
S. 2009--A 118 A. 3009--A
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
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
S. 2009--A 119 A. 3009--A
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
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
S. 2009--A 120 A. 3009--A
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;
(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
S. 2009--A 121 A. 3009--A
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
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;
S. 2009--A 122 A. 3009--A
(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
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
S. 2009--A 123 A. 3009--A
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
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.
S. 2009--A 124 A. 3009--A
(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
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
S. 2009--A 125 A. 3009--A
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.
§ 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
S. 2009--A 126 A. 3009--A
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:
(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.
S. 2009--A 127 A. 3009--A
(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
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.
S. 2009--A 128 A. 3009--A
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.
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.
S. 2009--A 129 A. 3009--A
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
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
S. 2009--A 130 A. 3009--A
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.
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.
S. 2009--A 131 A. 3009--A
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
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.
S. 2009--A 132 A. 3009--A
(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.
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:
S. 2009--A 133 A. 3009--A
(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
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
S. 2009--A 134 A. 3009--A
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
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
S. 2009--A 135 A. 3009--A
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
(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
S. 2009--A 136 A. 3009--A
(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
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
S. 2009--A 137 A. 3009--A
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
(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
S. 2009--A 138 A. 3009--A
(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
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
S. 2009--A 139 A. 3009--A
(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
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-
S. 2009--A 140 A. 3009--A
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
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.
S. 2009--A 141 A. 3009--A
§ 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,
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
S. 2009--A 142 A. 3009--A
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:
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,
S. 2009--A 143 A. 3009--A
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;
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;
S. 2009--A 144 A. 3009--A
(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-
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
S. 2009--A 145 A. 3009--A
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
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-
S. 2009--A 146 A. 3009--A
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
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.
S. 2009--A 147 A. 3009--A
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.
§ 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
S. 2009--A 148 A. 3009--A
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
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
S. 2009--A 149 A. 3009--A
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.
§ 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
S. 2009--A 150 A. 3009--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
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
S. 2009--A 151 A. 3009--A
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
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.
S. 2009--A 152 A. 3009--A
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
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;
S. 2009--A 153 A. 3009--A
(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
(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
S. 2009--A 154 A. 3009--A
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-
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
S. 2009--A 155 A. 3009--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
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
S. 2009--A 156 A. 3009--A
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
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:
S. 2009--A 157 A. 3009--A
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:
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
S. 2009--A 158 A. 3009--A
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
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
S. 2009--A 159 A. 3009--A
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
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,
S. 2009--A 160 A. 3009--A
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]
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
S. 2009--A 161 A. 3009--A
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-
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
S. 2009--A 162 A. 3009--A
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
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.
S. 2009--A 163 A. 3009--A
§ 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.
2017-A3009B - Details
- See Senate Version of this Bill:
- S2009
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3009B - Summary
Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F)
2017-A3009B - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
3009--B
I N A S S E M B L Y
January 23, 2017
___________
A BUDGET BILL, submitted by the Governor pursuant to article seven of
the Constitution -- read once and referred to the Committee on Ways
and Means -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- again reported from said
committee with amendments, ordered reprinted as amended and recommit-
ted to said committee
AN ACT intentionally omitted (Part A); intentionally omitted (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 population of one million or more; and to repeal section
54-f of the state finance law relating thereto (Part C); intentionally
omitted (Part D); intentionally omitted (Part E); to amend the real
property tax law, in relation to authorizing partial payments of prop-
erty taxes (Part F); intentionally omitted (Part G); intentionally
omitted (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); inten-
tionally omitted (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 the tax law, in relation to a
program to provide tax incentives for employers employing at risk
youth (Subpart A); to amend the labor law, in relation to establishing
the empire state apprenticeship tax credit program and granting the
commissioner of the department of labor the power to administer such
program; to amend the tax law, in relation to the empire state appren-
ticeship tax credit (Subpart B) (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); intentionally omitted (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 contrib-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12574-06-7
A. 3009--B 2
ution 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 financial institution data match
system for state tax collection purposes (Part U); intentionally omit-
ted (Part V); intentionally omitted (Part W); to amend 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, in relation to extending the provisions authorizing service
of income executions on individual tax debtors without filing a
warrant (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 amend the tax law, in relation
to closing 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 imposition 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 communi-
cations service and devices (Part EE); to amend the public health law
and the education law, in relation to tobacco products, herbal ciga-
rettes, and vapor products; and to amend the tax law, in relation to
imposing a tax on vapor products (Part FF); intentionally omitted
(Part GG); intentionally omitted (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);
intentionally omitted (Part LL); to amend the executive law and the
general municipal law, in relation to licensing for certain games of
chance (Part MM); to amend the racing, pari-mutuel wagering and breed-
ing law, in relation to allowing for the reprivatization of NYRA and a
reduction in winter racing days (Part NN); to amend the racing, pari-
mutuel wagering and breeding law, in relation to licenses for simul-
cast 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 breed-
ing 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); intentionally omitted (Part RR); to amend the tax
law, in relation to the business income base rate and expanding the
small business subtraction modification (Part SS); to amend the tax
law, in relation to income tax reform (Part TT); to amend the tax law,
in relation to increasing the amount of certain investment tax credits
(Part UU); to amend the economic development law, in relation to
excelsior research and development tax credits (Part VV); to amend the
A. 3009--B 3
economic development law, in relation to eligibility to participate in
the excelsior jobs program (Part WW); to amend the tax law, in
relation to the earned income credit (Part XX); to amend the tax law,
in relation to providing a tax credit for universal visitability; and
providing for the repeal of such provisions upon the expiration there-
of (Part YY); intentionally omitted (Part ZZ); to amend the tax law
and the economic development law, in relation to the creation of the
empire state music production credit and the empire state digital
gaming media production credit; to repeal subdivision 11 of section
352 of the economic development law relating thereto; and providing
for the repeal of certain provisions upon expiration thereof (Part
AAA); to amend the real property tax law and the tax law, in relation
to removing references to the school tax relief credit; and to repeal
certain provisions of such laws relating thereto (Part BBB); to amend
the private housing finance law, in relation to the provision of
rental assistance for low income elderly families, and to amend the
administrative code of the city of New York, in relation to imposing a
tax on conveyances or transfers of residential real property whose
consideration is greater than two million dollars (Part CCC); to amend
the tax law, in relation to a credit for donations to a food bank or
other emergency food program by New York state farmers (Part DDD); to
amend the tax law, in relation to establishing an education loan
interest deduction credit (Part EEE); to amend the tax law, in
relation to providing insurance corporations with a tax credit for
investments made in rural business growth funds; and to amend the
state finance law, in relation to establishing the New York agricul-
ture and rural jobs fund (Part FFF); to amend the racing, pari-mutuel
wagering and breeding law and the workers' compensation law, in
relation to the New York Jockey Injury Compensation Fund, Inc. (Part
GGG); and to amend the tax law, in relation to the operation of video
lottery terminals at Aqueduct racetrack; and providing for the repeal
of certain provisions upon expiration thereof (Part HHH)
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 HHH. The effective date for each partic-
ular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section contained within a
Part, including the effective date of the Part, which makes a reference
to a section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.
PART A
Intentionally Omitted
PART B
Intentionally Omitted
A. 3009--B 4
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.
(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:
A. 3009--B 5
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:
(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
A. 3009--B 6
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
A. 3009--B 7
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:
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
A. 3009--B 8
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
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
A. 3009--B 9
(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 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
A. 3009--B 10
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-
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.
A. 3009--B 11
§ 7. This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2017.
PART D
Intentionally Omitted
PART E
Intentionally Omitted
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 THE account [thereof in such manner as may be prescribed by such
resolution; provided, however, that such resolution], FOLLOWING THE
ADOPTION OF A RESOLUTION BY THE GOVERNING BODY OF THE MUNICIPAL CORPO-
RATION THAT EMPLOYS THE COLLECTING OFFICER ALLOWING PARTIAL PAYMENTS.
SUCH RESOLUTION MAY LIMIT 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 ACTED TO ALLOW PARTIAL PAYMENTS, THE GOVERN-
ING BODY OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION ALLOWING PARTIAL
PAYMENTS FOR SCHOOL DISTRICT PURPOSES. SUCH RESOLUTION MAY LIMIT THE
CONDITIONS UNDER WHICH PARTIAL PAYMENTS MAY BE ACCEPTED. WHERE A SCHOOL
DISTRICT HAS PASSED A RESOLUTION ALLOWING PARTIAL PAYMENTS THE COLLECT-
ING OFFICER SHALL BE AUTHORIZED TO ACCEPT PARTIAL PAYMENTS OF SCHOOL
DISTRICT TAXES UNDER THE SAME CONDITIONS AS MAY APPLY TO CITY OR TOWN
TAXES OR UNDER THE CONDITIONS SPECIFIED IN THE SCHOOL DISTRICT'S RESOL-
UTION.
(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
A. 3009--B 12
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.
5. NOTHING CONTAINED HEREIN SHALL LIMIT THE ABILITY OF A COLLECTING
OFFICER TO ACCEPT PARTIAL PAYMENTS OF TAXES AUTHORIZED UNDER ANY OTHER
GENERAL OR SPECIAL LAW.
§ 2. This act shall take effect immediately.
PART G
Intentionally Omitted
PART H
Intentionally Omitted
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
A. 3009--B 13
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
Intentionally Omitted
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:
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
A. 3009--B 14
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.
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
A. 3009--B 15
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
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
A. 3009--B 16
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-
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.
A. 3009--B 17
§ 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
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. This act enacts into law major components of legislation
which relate to tax incentives. Each component is wholly contained
within a Subpart identified as Subparts A and B. The effective date for
each particular provision contained within such Subpart is set forth in
the last section of such Subpart. Any provision in any section contained
within a Subpart, including the effective date of the Subpart, which
A. 3009--B 18
makes a reference to a section "of this act", when used in connection
with that particular component, shall be deemed to mean and refer to the
corresponding section of the Subpart in which it is found. Section three
of this act sets forth the general effective date of this act.
SUBPART A
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
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] TWENTY-FIVE million dollars of tax credit for qualified employ-
ees; [and] (ii) [twenty] FIFTEEN million dollars of tax credit for indi-
viduals who meet all of the requirements for a qualified employee except
for the residency requirement of subparagraph (ii) of paragraph two of
this subdivision, which individuals shall be deemed to meet the residen-
cy requirements of subparagraph (ii) of paragraph two of this subdivi-
sion if they reside in New York state; AND (III) TEN MILLION DOLLARS OF
TAX CREDIT FOR THE EMPIRE STATE APPRENTICESHIP PROGRAM TAX CREDIT ESTAB-
LISHED UNDER SECTION TWENTY-FIVE-C OF THE LABOR LAW.
(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 Novem-
ber 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
A. 3009--B 19
program four, and after January first, two thousand seventeen but no
later than November thirtieth, two thousand seventeen for program five]
OF EACH PROGRAM YEAR. The qualified employees must start their employ-
ment on or after January first, [two thousand twelve] but no later than
December thirty-first, [two thousand twelve for program one, on or after
January first, two thousand fourteen but no later than December thirty-
first, two thousand fourteen for program two, on or after January first,
two thousand fifteen but no later than December thirty-first, two thou-
sand fifteen for program three, on or after January first, two thousand
sixteen but no later than December thirty-first, two thousand sixteen
for program four, and on or after January first, two thousand seventeen
but no later than December thirty-first, two thousand seventeen for
program five] OF EACH PROGRAM YEAR. The commissioner shall establish
guidelines and criteria that specify requirements for employers to
participate in the program including criteria for certifying qualified
employees, ENSURING THAT THE PROCESS ESTABLISHED WILL MINIMIZE ANY UNDUE
DELAY IN ISSUING THE CERTIFICATE OF ELIGIBILITY. Any regulations that
the commissioner determines are necessary may be adopted on an emergency
basis notwithstanding anything to the contrary in section two hundred
two of the state administrative procedure act. Such requirements may
include the types of industries that the employers are engaged in AND
MAY INCLUDE ON-THE-JOB TRAINING AND SKILL DEVELOPMENT OPPORTUNITIES SUCH
EMPLOYER CAN PROVIDE TO THE QUALIFIED INDIVIDUAL. The commissioner may
give preference to employers that are engaged in demand occupations or
industries, or in regional growth sectors, including BUT NOT LIMITED TO
those identified by the regional economic development councils, such as
clean energy, healthcare, advanced manufacturing and conservation. In
addition, the commissioner shall give preference to employers who offer
advancement and employee benefit packages to the qualified individuals.
(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; provided, however, the
amendments to paragraph 3 of subdivision (b) of section 25-a of the
labor law made by section one of this act shall apply to taxable years
commencing on or after January 1, 2018.
SUBPART B
A. 3009--B 20
Section 1. The labor law is amended by adding a new section 25-c to
read as follows:
§ 25-C. POWER TO ADMINISTER THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
PROGRAM. (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER
THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM TO PROVIDE TAX INCEN-
TIVES TO QUALIFIED AND CERTIFIED EMPLOYERS FOR EMPLOYING QUALIFIED
APPRENTICES PURSUANT TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH THE
DEPARTMENT PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT
HUNDRED ELEVEN OF THIS CHAPTER. THE COMMISSIONER IS AUTHORIZED TO
PROVIDE TAX CREDITS TO BE ALLOCATED UP TO TEN MILLION DOLLARS OF TAX
CREDITS ANNUALLY, BEGINNING TAXABLE YEAR TWO THOUSAND EIGHTEEN AND
ENDING BEFORE TAXABLE YEAR TWO THOUSAND TWENTY-THREE PURSUANT TO SUBPAR-
AGRAPH (III) OF PARAGRAPH THREE OF SUBDIVISION (B) OF SECTION TWENTY-
FIVE-A OF THIS ARTICLE. THOSE EMPLOYERS WHO ARE ELIGIBLE FOR A TAX CRED-
IT UNDER THIS PROGRAM AND HIRE AN APPRENTICE WITHIN THIS TIMEFRAME ARE
ELIGIBLE TO CONTINUE RECEIVING THIS TAX CREDIT UNTIL THE APPRENTICE HAS
COMPLETED THE APPRENTICESHIP FOR A PERIOD OF TIME NOT TO EXCEED FIVE
YEARS. ANY UNUSED ALLOCATION OF THE CREDIT SHALL BE MADE AVAILABLE IN
EACH OF THE SUBSEQUENT TAXABLE YEARS FOR ALL ELIGIBLE YEARS OF THE
APPRENTICESHIP ALLOWED UNDER SUBDIVISIONS (C) AND (D) OF THIS SECTION.
ANY AMOUNT OF TAX CREDITS NOT AWARDED FOR A PARTICULAR YEAR IN YEARS TWO
THOUSAND EIGHTEEN THROUGH TWO THOUSAND TWENTY-TWO MAY BE USED BY THE
COMMISSIONER TO AWARD TAX CREDITS IN ANOTHER TAXABLE YEAR.
(B) DEFINITIONS. (1) THE TERM "APPRENTICESHIP AGREEMENT" MEANS THE
AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED SIXTEEN OF THIS CHAPTER.
(2) THE TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS ENTERED
INTO A REGISTERED APPRENTICESHIP AGREEMENT. FOR THE PURPOSES OF THIS
SECTION A "QUALIFIED EMPLOYER" SHALL NOT INCLUDE AN EMPLOYER THAT IS A
CONTRACTOR OR SUBCONTRACTOR WHO IS A PARTNERSHIP, FIRM, CORPORATION,
LIMITED LIABILITY COMPANY, ASSOCIATION OR OTHER LEGAL ENTITY PERMITTED
BY LAW TO DO BUSINESS WITHIN THE STATE WHO ENGAGES IN CONSTRUCTION AS
DEFINED IN THIS SECTION AND WHOSE APPRENTICESHIP AGREEMENT INCLUDES
SKILLS RELATED TO THE CONSTRUCTION INDUSTRY.
(3) FOR PURPOSES OF THIS SECTION, THE TERM "CONSTRUCTION" MEANS
CONSTRUCTING, RECONSTRUCTING, ALTERING, MAINTAINING, MOVING, REHABILI-
TATING, REPAIRING, RENOVATING, FABRICATING, SERVICING, OR DEMOLITION OF
ANY BUILDING, STRUCTURE, OR IMPROVEMENT, OR COMPONENT, OR RELATING TO
THE EXCAVATION OF OR OTHER DEVELOPMENT OR IMPROVEMENT TO LAND.
(4) THE TERM "CERTIFIED EMPLOYER" MEANS A QUALIFIED EMPLOYER THAT HAS
BEEN CERTIFIED AS ELIGIBLE BY THE COMMISSIONER TO PARTICIPATE IN THE
EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM ESTABLISHED IN THIS
SECTION.
(5) THE TERM "QUALIFIED APPRENTICE" MEANS AN INDIVIDUAL EMPLOYED IN A
FULL TIME POSITION FOR AT LEAST SIX MONTHS OF A TAXABLE YEAR AND WHO HAS
ENTERED INTO AN AGREEMENT WITH A QUALIFIED EMPLOYER PURSUANT TO SECTION
EIGHT HUNDRED SIXTEEN OF THIS CHAPTER.
(6) THE TERM "DISADVANTAGED YOUTH" MEANS AN INDIVIDUAL:
(I) WHO IS BETWEEN THE AGE OF SIXTEEN AND TWENTY-FOUR WHEN THEY BEGIN
THEIR APPRENTICESHIP; AND
(II) WHO IS LOW-INCOME OR AT-RISK, AS THOSE TERMS ARE DEFINED BY THE
COMMISSIONER.
(7) THE TERM "MENTOR" MEANS AN INDIVIDUAL WHO PROVIDES INSTRUCTION,
GUIDANCE, AND SUPPORT TO THE APPRENTICE ON A REGULAR BASIS THROUGHOUT
THEIR APPRENTICESHIP UNTIL THE COMPLETION OF THEIR APPRENTICESHIP AND
FOR THE YEAR AFTER THEY COMPLETE THEIR APPRENTICESHIP AS THE APPRENTICE
SEEKS EMPLOYMENT IN THE FIELD OR INDUSTRY OF THEIR APPRENTICESHIP. THE
A. 3009--B 21
GOAL OF THE MENTOR IS TO HELP TRAIN THE APPRENTICE IN HIS OR HER TRADE
AND TO HELP THE APPRENTICE SUCCESSFULLY COMPLETE THE APPRENTICESHIP AND
TO SECURE AND RETAIN EMPLOYMENT.
(C) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT AGAINST
INCOME TAX FOR EACH QUALIFIED APPRENTICE FOR TAX YEAR EQUAL TO: (1) THE
LESSER OF TWO THOUSAND DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE
FIRST YEAR OF THE APPRENTICESHIP; (2) THE LESSER OF THREE THOUSAND
DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE SECOND YEAR OF THE
APPRENTICESHIP; AND (3) THE LESSER OF FOUR THOUSAND DOLLARS OR THE TOTAL
AMOUNT OF WAGES PAID FOR EACH OF THE THIRD, FOURTH, AND FIFTH YEARS OF
THE APPRENTICESHIP.
(D) (1) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT IN LIEU
OF THE CREDIT AS SPECIFIED IN SUBDIVISION (C) OF THIS SECTION AGAINST
INCOME TAX FOR EACH QUALIFIED APPRENTICE WHO IS CONSIDERED A DISADVAN-
TAGED YOUTH FOR EACH TAX YEAR EQUAL TO: (A) THE LESSER OF FIVE THOUSAND
DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE FIRST YEAR OF THE
APPRENTICESHIP; (B) THE LESSER OF SIX THOUSAND DOLLARS OR THE TOTAL
AMOUNT OF WAGES PAID FOR THE SECOND YEAR OF THE APPRENTICESHIP; AND (C)
THE LESSER OF SEVEN THOUSAND DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID
FOR EACH OF THE THIRD, FOURTH, AND FIFTH YEARS OF THE APPRENTICESHIP. IF
A DISADVANTAGED YOUTH BEGINS AN APPRENTICESHIP BEFORE THE AGE OF TWEN-
TY-FIVE, A CERTIFIED EMPLOYER SHALL BE ELIGIBLE TO CONTINUE TO RECEIVE
THE TAX CREDIT FOR WHICH THE EMPLOYER WAS CERTIFIED UNTIL SAID APPREN-
TICE COMPLETES THE APPRENTICESHIP.
(2) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO AN ENHANCED TAX CREDIT
IF THE EMPLOYER CAN SHOW THAT THE APPRENTICE FOR WHICH THE EMPLOYER
RECEIVED THE TAX CREDIT PURSUANT TO THIS SUBDIVISION IS BEING TRAINED IN
HIS OR HER TRADE BY A MENTOR AS DEFINED IN THIS SECTION. THE ENHANCED
CREDIT SHALL BE AN ADDITIONAL FIVE HUNDRED DOLLARS FOR EACH YEAR OF THE
APPRENTICESHIP IN ADDITION TO THE BASE TAX CREDIT DESCRIBED IN THIS
SUBDIVISION AND SUBDIVISION (C) OF THIS SECTION.
(E) TO PARTICIPATE IN THE PROGRAM ESTABLISHED UNDER THIS SECTION, A
QUALIFIED EMPLOYER MUST SUBMIT AN APPLICATION (IN A FORM PRESCRIBED BY
THE COMMISSIONER) TO THE COMMISSIONER AFTER JANUARY FIRST, BUT NO LATER
THAN NOVEMBER THIRTIETH OF EACH YEAR DURING TAXABLE YEARS THE CREDIT IS
ALLOCATED. A QUALIFIED APPRENTICE MUST START EMPLOYMENT ON OR AFTER
JANUARY FIRST BUT NO LATER THAN DECEMBER THIRTY-FIRST, OF THE YEAR FOR
WHICH THE QUALIFIED EMPLOYER SEEKS THE TAX CREDIT.
(F) AS PART OF SUCH APPLICATION, EACH QUALIFIED EMPLOYER MUST:
(1) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
(2) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
(G) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT
SPECIFY REQUIREMENTS FOR QUALIFIED EMPLOYERS TO PARTICIPATE IN THE
PROGRAM INCLUDING CRITERIA FOR CERTIFYING QUALIFIED APPRENTICES. ANY
REGULATIONS THAT THE COMMISSIONER DETERMINES ARE NECESSARY AND ARE
CONSISTENT WITH THE PURPOSE OF THIS ARTICLE MAY BE ADOPTED ON AN EMER-
GENCY BASIS NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE
ADMINISTRATIVE PROCEDURE ACT.
(H)(I) IF, AFTER REVIEWING THE APPLICATION SUBMITTED BY A QUALIFIED
EMPLOYER, THE COMMISSIONER DETERMINES THAT SUCH QUALIFIED EMPLOYER IS
ELIGIBLE TO PARTICIPATE IN THE PROGRAM ESTABLISHED UNDER THIS SECTION,
THE COMMISSIONER SHALL ISSUE THE QUALIFIED EMPLOYER A CERTIFICATE WITHIN
A. 3009--B 22
NINETY DAYS OF APPLICATION OF ELIGIBILITY THAT ESTABLISHES THE QUALIFIED
EMPLOYER AS A CERTIFIED EMPLOYER. THE CERTIFICATE OF ELIGIBILITY SHALL
SPECIFY THE MAXIMUM AMOUNT OF TAX CREDIT THAT THE CERTIFIED EMPLOYER
WILL BE ALLOWED TO CLAIM.
(II) FOR EACH SUBSEQUENT ANNUAL APPLICATION SUBMITTED BY A QUALIFIED
EMPLOYER WHO WAS CERTIFIED BY THE COMMISSIONER IN A PRIOR TAX YEAR, THE
COMMISSIONER MAY CONSIDER THE FOLLOWING FACTORS WHEN DETERMINING IF THE
QUALIFIED EMPLOYER SHOULD BE RE-CERTIFIED:
(A) THE LENGTH OF THE APPRENTICESHIP AGREEMENT THE EMPLOYER HAS
ENTERED INTO;
(B) HOW MANY APPRENTICES HAVE GRADUATED FROM THE APPRENTICESHIP
PROGRAM TO WHICH THE QUALIFIED APPRENTICE EMPLOYED BY THE EMPLOYER
BELONGS;
(C) HOW MANY APPRENTICES IN THE FIRST, SECOND, THIRD, FOURTH, OR FIFTH
YEAR OF AN APPRENTICESHIP PROGRAM THE QUALIFIED EMPLOYER HAS HIRED; AND
(D) ANY OTHER FACTORS THE COMMISSIONER DEEMS RELEVANT.
(I) A CERTIFIED EMPLOYER THAT EMPLOYS A QUALIFIED APPRENTICE PURSUANT
TO AN APPRENTICESHIP AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED
SIXTEEN OF THIS ARTICLE THAT REQUIRES THE APPRENTICE TO BE TAUGHT TRADE
OR CRAFT DIVISIONS BY MORE THAN ONE EMPLOYER SHALL BE ELIGIBLE FOR THE
CREDIT BASED ON THE TOTAL NUMBER OF HOURS SUCH APPRENTICE IS EMPLOYED BY
EACH SUCH EMPLOYER IF THE TOTAL NUMBER OF HOURS EMPLOYED EXCEEDS THE
MINIMUM NUMBER OF HOURS REQUIRED TO BE A QUALIFIED APPRENTICESHIP UNDER
PARAGRAPH FIVE OF SUBDIVISION (B) OF THIS SECTION, AS DETERMINED PURSU-
ANT TO REGULATIONS OF THE DEPARTMENT.
(J) THE COMMISSIONER SHALL ANNUALLY PUBLISH A REPORT WITHIN ONE
HUNDRED EIGHTY DAYS OF THE CLOSE OF THE TAX YEAR. SUCH REPORT MUST
CONTAIN THE NAMES AND ADDRESSES OF ANY CERTIFIED EMPLOYER ISSUED A
CERTIFICATE OF ELIGIBILITY UNDER THIS SECTION, THE MAXIMUM AMOUNT OF
EMPIRE STATE APPRENTICESHIP TAX CREDIT ALLOWED TO THE CERTIFIED EMPLOYER
AS SPECIFIED ON SUCH CERTIFICATE OF ELIGIBILITY, THE NUMBER OF EMPLOYERS
WHO RECEIVED TAX CREDITS FOR EMPLOYING ONE OR MORE DISADVANTAGED YOUTHS,
THE TOTAL NUMBER OF DISADVANTAGED YOUTHS FOR WHICH SUCH CREDITS ARE
AWARDED, THE NUMBER OF APPRENTICES HIRED BROKEN DOWN BY AGE, RACE,
GENDER, AND HOW THEY MEET THE DEFINITION OF DISADVANTAGED AS DEFINED IN
PARAGRAPH SIX OF SUBDIVISION (B) OF THIS SECTION, THE NUMBER OF TOTAL
AND NEW CERTIFICATES GRANTED EACH YEAR, THE TOTAL DOLLAR AMOUNT OF CRED-
ITS CLAIMED TO DATE, AND THE NUMBER OF YEARS CREDITS HAVE BEEN RECEIVED
FOR INDIVIDUAL APPRENTICES. THE COMMISSIONER SHALL INCLUDE IN SUCH
REPORT RECOMMENDATIONS FOR LEGISLATIVE OR OTHER ACTION TO FURTHER THE
INTENT AND PURPOSE OF THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
PROGRAM. THE ANNUAL REPORT SHALL BE ALIGNED WITH THE GOALS OF THE NEW
YORK STATE WORKFORCE INNOVATION AND OPPORTUNITY ACT FOUR YEAR COMBINE
STATE PLAN WHERE APPROPRIATE.
(K) THE COMMISSIONER SHALL PROMOTE, PUBLISH AND DISSEMINATE INFORMA-
TION CONCERNING THE EMPIRE STATE APPRENTICESHIP TAX CREDIT AND OTHER
AVAILABLE FUNDING, PARTICULARLY TARGETING INDUSTRIES AND FIELDS OF BUSI-
NESS NOT CURRENTLY TAKING ADVANTAGE OF APPRENTICESHIPS, EMPLOYERS
ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH
SECTORS, INCLUDING THOSE IDENTIFIED BY THE DEPARTMENT, SUCH AS CLEAN
ENERGY, HEALTH CARE, ADVANCED MANUFACTURING AND CONSERVATION, AND MINOR-
ITY- AND WOMEN-OWNED BUSINESSES.
§ 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. EMPIRE STATE APPRENTICESHIP TAX CREDIT. (A) A TAXPAYER THAT HAS
BEEN CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER
A. 3009--B 23
PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EACH QUALIFIED
APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED DOLLARS FOR THE FIRST
YEAR OF THE APPRENTICESHIP; (II) THREE THOUSAND FIVE HUNDRED DOLLARS FOR
THE SECOND YEAR OF THE APPRENTICESHIP; (III) FOUR THOUSAND FIVE HUNDRED
DOLLARS FOR THE THIRD YEAR OF THE APPRENTICESHIP; (IV) FOUR THOUSAND
FIVE HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP; AND (V)
FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE APPRENTICE-
SHIP. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "QUALIFIED APPRENTICE"
SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION
TWENTY-FIVE-C OF THE LABOR LAW. THE PORTION OF THE CREDIT DESCRIBED IN
SUBPARAGRAPHS (I) THROUGH (V) OF THIS PARAGRAPH SHALL BE ALLOWED FOR THE
TAXABLE YEARS IN WHICH THE WAGES ARE PAID TO THE QUALIFIED APPRENTICE.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED
IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED
AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH
THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER.
PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON.
(C) A TAXPAYER SHALL BE ENTITLED TO A TAX CREDIT, IN LIEU OF THE CRED-
IT AS SPECIFIED IN SUBDIVISION (C) OF SECTION TWENTY-FIVE-C OF THE LABOR
LAW, AGAINST INCOME TAX FOR EACH QUALIFIED APPRENTICE WHO IS CONSIDERED
A DISADVANTAGED YOUTH, PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR
LAW, FOR EACH TAX YEAR EQUAL TO: (I) THE LESSER OF FIVE THOUSAND FIVE
HUNDRED DOLLARS OR THE TOTAL AMOUNT OF WAGES PAID FOR THE FIRST YEAR OF
THE APPRENTICESHIP; (II) THE LESSER OF SIX THOUSAND FIVE HUNDRED DOLLARS
OF THE TOTAL AMOUNT OF WAGES PAID FOR THE SECOND YEAR OF THE APPRENTICE-
SHIP; AND (III) THE LESSER OF SEVEN THOUSAND FIVE HUNDRED DOLLARS OR THE
TOTAL AMOUNT OF WAGES PAID FOR EACH OF THE THIRD, FOURTH, AND FIFTH
YEARS OF THE APPRENTICESHIP.
(D) THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS
CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR PURSUANT
TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY-
ER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON
THE CERTIFICATE OF ELIGIBILITY. NOTWITHSTANDING ANY PROVISION OF THIS
CHAPTER TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S DESIG-
NEES SHALL RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS
CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED,
HOWEVER, IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A MEMBER OF A
LIMITED LIABILITY COMPANY OR A PARTNER IN A PARTNERSHIP, ONLY THE AMOUNT
OF CREDIT EARNED BY THE ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY
THE TAXPAYER MAY BE RELEASED.
(E) NO WAGE PAID BY A TAXPAYER AS THE BASIS FOR THE ALLOWANCE OF THE
CREDIT PROVIDED UNDER THIS SECTION SHALL BE USED BY SUCH TAXPAYER TO
CLAIM OR CALCULATE ANY OTHER TAX CREDIT PROVIDED UNDER THIS CHAPTER.
§ 3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
(CCC) EMPIRE STATE APPRENTICESHIP TAX CREDIT. (1)(A) (I) A TAXPAYER
THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED
EMPLOYER PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EACH QUAL-
IFIED APPRENTICE, UP TO (I) TWO THOUSAND FIVE HUNDRED DOLLARS FOR THE
A. 3009--B 24
FIRST YEAR OF THE APPRENTICESHIP; (II) THREE THOUSAND FIVE HUNDRED
DOLLARS FOR THE SECOND YEAR OF THE APPRENTICESHIP; (III) FOUR THOUSAND
FIVE HUNDRED DOLLARS FOR THE THIRD YEAR OF THE APPRENTICESHIP; (IV) FOUR
THOUSAND FIVE HUNDRED DOLLARS FOR THE FOURTH YEAR OF THE APPRENTICESHIP;
AND (V) FOUR THOUSAND FIVE HUNDRED DOLLARS FOR THE FIFTH YEAR OF THE
APPRENTICESHIP.
(II) A TAXPAYER THAT HAS BEEN CERTIFIED BY THE COMMISSIONER OF LABOR
AS A CERTIFIED EMPLOYER PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR
LAW SHALL BE ALLOWED A CREDIT, IN LIEU OF THE CREDIT AS SPECIFIED IN
SUBDIVISION (C) OF SECTION TWENTY-FIVE-C OF THE LABOR LAW, AGAINST THE
TAX IMPOSED BY THIS ARTICLE, FOR EACH QUALIFIED APPRENTICE WHO IS
CONSIDERED A DISADVANTAGED YOUTH, PURSUANT TO SECTION TWENTY-FIVE-C OF
THE LABOR LAW, UP TO (I) THE FIVE THOUSAND FIVE HUNDRED DOLLARS OR THE
TOTAL AMOUNT OF WAGES PAID FOR THE FIRST YEAR OF THE APPRENTICESHIP;
(II) SIX THOUSAND FIVE HUNDRED DOLLARS FOR THE SECOND YEAR OF THE
APPRENTICESHIP; AND (III) SEVEN THOUSAND FIVE HUNDRED DOLLARS FOR EACH
OF THE THIRD, FOURTH, AND FIFTH YEARS OF THE APPRENTICESHIP.
(B) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED
LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPORATION THAT HAS BEEN
CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER PURSUANT
TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED ITS PRO RATA
SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY
OR S CORPORATION.
(C) FOR PURPOSES OF THIS SUBSECTION, THE TERM "QUALIFIED APPRENTICE"
SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDIVISION (B) OF SECTION
TWENTY-FIVE-C OF THE LABOR LAW. THE PORTION OF THE CREDIT DESCRIBED IN
ITEM (I) THROUGH (V) OF CLAUSE (I) OF SUBPARAGRAPH (A) OF THIS PARAGRAPH
SHALL BE ALLOWED FOR THE TAXABLE YEARS IN WHICH THE WAGES ARE PAID TO
THE QUALIFIED APPRENTICE.
(2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION EXCEEDS
THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUC-
TIBLE IN THAT TAXABLE YEAR WILL 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, NO INTEREST WILL
BE PAID THEREON.
(3) THE TAXPAYER SHALL BE REQUIRED TO ATTACH TO ITS TAX RETURN ITS
CERTIFICATE OF ELIGIBILITY ISSUED BY THE COMMISSIONER OF LABOR PURSUANT
TO SECTION TWENTY-FIVE-C OF THE LABOR LAW. IN NO EVENT SHALL THE TAXPAY-
ER BE ALLOWED A CREDIT GREATER THAN THE AMOUNT OF THE CREDIT LISTED ON
THE CERTIFICATE OF ELIGIBILITY. NOTWITHSTANDING ANY PROVISION OF THIS
CHAPTER TO THE CONTRARY, THE COMMISSIONER AND THE COMMISSIONER'S DESIG-
NEES SHALL RELEASE THE NAMES AND ADDRESSES OF ANY TAXPAYER CLAIMING THIS
CREDIT AND THE AMOUNT OF THE CREDIT EARNED BY THE TAXPAYER. PROVIDED,
HOWEVER, IF A TAXPAYER CLAIMS THIS CREDIT BECAUSE IT IS A MEMBER OF A
LIMITED LIABILITY COMPANY, A PARTNER IN A PARTNERSHIP, OR A SHAREHOLDER
IN A SUBCHAPTER S CORPORATION, ONLY THE AMOUNT OF CREDIT EARNED BY THE
ENTITY AND NOT THE AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MAY BE
RELEASED.
(4) NO WAGE PAID BY A TAXPAYER AS THE BASIS FOR THE ALLOWANCE OF THE
CREDIT PROVIDED UNDER THIS SECTION SHALL BE USED BY SUCH TAXPAYER TO
CLAIM OR CALCULATE ANY OTHER TAX CREDIT PROVIDED UNDER THIS CHAPTER.
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
(XLIII) EMPIRE STATE APPRENTICESHIP AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION SUBDIVISION FORTY-NINE OF
A. 3009--B 25
(CCC) SECTION TWO HUNDRED TEN-B
§ 5. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2018.
§ 2. This act shall take effect immediately provided, however, that
the applicable effective date of Subparts A and B of this act shall be
as specifically set forth in the last section of such Subparts.
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
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
A. 3009--B 26
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
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
A. 3009--B 27
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
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-
A. 3009--B 28
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
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.
A. 3009--B 29
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
Intentionally Omitted
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,
A. 3009--B 30
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.
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
A. 3009--B 31
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
Intentionally Omitted
PART W
Intentionally Omitted
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] 2019.
§ 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
A. 3009--B 32
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:
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
A. 3009--B 33
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
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
A. 3009--B 34
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
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,
A. 3009--B 35
(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.
(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-
A. 3009--B 36
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.]
§ 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
A. 3009--B 37
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
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-
A. 3009--B 38
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
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
A. 3009--B 39
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
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
A. 3009--B 40
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
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
A. 3009--B 41
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
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
A. 3009--B 42
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
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
A. 3009--B 43
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
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
A. 3009--B 44
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.
§ 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
A. 3009--B 45
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,
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-
A. 3009--B 46
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.
§ 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.
A. 3009--B 47
[(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
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,
A. 3009--B 48
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
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
A. 3009--B 49
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.
§ 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-
A. 3009--B 50
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:
(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
A. 3009--B 51
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-
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
A. 3009--B 52
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,
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
A. 3009--B 53
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.
§ 8-a. Paragraph (a) of subdivision 3 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:
(a) Imposition of points. If the enforcement officer determines, after
a hearing, that the retail dealer violated subdivision [one] TWO of
section thirteen hundred ninety-nine-cc of this article with respect to
a prohibited sale to a minor, he or she shall, in addition to imposing
any other penalty required or permitted pursuant to this section, assign
two points to the retail dealer's record where the individual who
committed the violation did not hold a certificate of completion from a
state certified tobacco sales training program and one point where the
retail dealer demonstrates that the person who committed the violation
held a certificate of completion from a state certified tobacco sales
training program.
§ 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
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.
A. 3009--B 54
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, AS SUCH TERM IS DEFINED IN SUBDIVISION NINE
OF SECTION THIRTEEN HUNDRED NINETY-NINE-N OF THIS CHAPTER, MAY SELL ANY
COMPONENT OF SUCH SYSTEMS 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
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
A. 3009--B 55
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. Paragraph (a) of subdivision 1 of section 471-b of the tax law,
as amended by section 18 of part D of chapter 134 of the laws of 2010,
is amended to read as follows:
(a) Such tax on tobacco products other than snuff, [and] little
cigars, AND VAPOR PRODUCTS shall be at the rate of seventy-five percent
of the wholesale price, and is intended to be imposed only once upon the
sale of any tobacco products other than snuff [and], little cigars, AND
VAPOR PRODUCTS.
§ 18. Subdivision 1 of section 471-b of the tax law is amended by
adding a new paragraph (d) to read as follows:
(D) SUCH TAX ON VAPOR PRODUCTS SHALL BE AT A RATE OF FORTY 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:
A. 3009--B 56
(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 FORTY 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,
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
A. 3009--B 57
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, are 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
(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
A. 3009--B 58
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
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
A. 3009--B 59
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:
(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
A. 3009--B 60
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
Intentionally Omitted
PART HH
Intentionally Omitted
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:
A. 3009--B 61
(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,
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:
A. 3009--B 62
(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
Intentionally Omitted
PART MM
Section 1. Paragraphs (b) and (c) of subdivision 2 of section 435 of
the executive law, paragraph (b) as amended by chapter 164 of the laws
of 2003, paragraph (c) as amended by chapter 437 of the laws of 1962,
clause 1 of paragraph (c) as amended by chapter 371 of the laws of 1974,
are amended to read as follows:
(b) No person, firm or corporation, other than an organization which
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. As a part of
its determination concerning the applicant's suitability for licensing
as a bingo supplier, the New York state [racing and wagering board]
GAMING COMMISSION shall require the applicant to furnish to such [board]
COMMISSION two sets of fingerprints. Such fingerprints shall be submit-
ted 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. UPON RECEIPT OF CRIMINAL HISTORY INFORMATION BY THE COMMISSION
FOR ANY APPLICANT, THE COMMISSION MUST CONSIDER ANY INFORMATION RECEIVED
PURSUANT TO ARTICLE TWENTY-THREE-A OF THE CORRECTION LAW AND SUBDIVI-
SIONS FIFTEEN AND SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THIS
CHAPTER. THE COMMISSION SHALL PROMPTLY PROVIDE THE APPLICANT WITH A COPY
OF HIS OR HER CRIMINAL HISTORY INFORMATION AS WELL AS A COPY OF ARTICLE
TWENTY-THREE-A OF THE CORRECTION LAW. THE DEPARTMENT SHALL INFORM SUCH
APPLICANT OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFOR-
MATION CONTAINED IN SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THE
REGULATIONS AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL
JUSTICE SERVICES. 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 or distribution of bingo
supplies and equipment to duly licensed organizations during the last
preceding calendar or fiscal year, and such other information as shall
be prescribed by such rules and regulations. The fee for such license
shall be a sum equal to twenty-five dollars plus an amount based upon
the gross sales, if any, of bingo equipment and supplies to authorized
organizations by the applicant during the preceding calendar year, or
fiscal year if the applicant maintains his accounts on a fiscal year
basis, and determined in accordance with the following schedule:
gross sales of $1,000 to $4,999................$10.00
gross sales of $5,000 to $19,999...............$50.00
gross sales of $20,000 to $49,999.............$200.00
A. 3009--B 63
gross sales of $50,000 to $100,000............$500.00
gross sales in excess of $100,000...........$1,000.00
(c) The following shall be ineligible for such a license:
(1) a person convicted of a crime [who has not received] 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, PROVIDED,
HOWEVER, THAT RECEIPT OF a pardon, a certificate of good conduct or a
certificate of relief from disabilities SHALL REMOVE ANY INELIGIBILITY
FOR A LICENSE UNDER THIS CLAUSE;
(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;
(5) a firm or corporation in which a person defined in [subdivision
(1), (2), (3) or (4) above] SUBPARAGRAPHS 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 per centum proprietary, equitable
or credit interest or in which such a person is active or employed.
§ 2. Subdivision 4 of section 186 of the general municipal law, as
amended by chapter by 574 of the laws of 1978, is amended to read as
follows:
4. "Authorized organization" shall mean and include any bona fide
religious or charitable organization or bona fide educational, fraternal
or service organization or bona fide organization of veterans [or],
volunteer [firemen] FIREFIGHTERS, OR VOLUNTEER AMBULANCE WORKERS, which
by its charter, certificate of incorporation, constitution, or act of
the legislature, shall have among its dominant purposes one or more of
the lawful purposes as defined in this article, 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 article for a period of three years [immediatley]
IMMEDIATELY prior to applying for a license under this article.
§ 3. Subdivisions 5 and 6 of section 189 of the general municipal law,
subdivision 5 as amended by chapter 434 of the laws of 2016, subdivision
6 as amended by chapter 302 of the laws of 2010, are amended to read as
follows:
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 [five
hundred] 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 [its costs] THE COST OF SUCH PRIZE to the authorized
organization or, if donated, [its] 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:
A. 3009--B 64
(1) ten thousand dollars during the successive operations of any one
merchandise wheel[,]; and
(2) [three] 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] THE cost OF SUCH PRIZE to the authorized organ-
ization or, if donated, [its] THE fair market value OF SUCH PRIZE.
§ 4. The opening paragraph and subdivision (a) of section 189-a of the
general municipal law, the opening paragraph as amended by chapter 164
of the laws of 2003, subdivision (a) as added by 574 of the laws of
1978, are amended to read as follows:
No person, firm, partnership, corporation or organization, shall sell
or 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 [board] COMMISSION in the form prescribed by the rules and regu-
lations of the [board] COMMISSION. As a part of its determination
concerning the applicant's suitability for licensing as a games of
chance supplier, the [board] COMMISSION shall require the applicant to
furnish to the [board] COMMISSION two sets of fingerprints. Such fing-
erprints 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. UPON RECEIPT OF CRIMINAL HISTORY INFORMATION BY
THE COMMISSION FOR ANY APPLICANT, THE COMMISSION MUST CONSIDER ANY
INFORMATION RECEIVED PURSUANT TO ARTICLE TWENTY-THREE-A OF THE
CORRECTION LAW AND SUBDIVISIONS FIFTEEN AND SIXTEEN OF SECTION TWO
HUNDRED NINETY-SIX OF THE EXECUTIVE LAW. THE COMMISSION SHALL PROMPTLY
PROVIDE THE APPLICANT WITH A COPY OF HIS OR HER CRIMINAL HISTORY INFOR-
MATION AS WELL AS A COPY OF ARTICLE TWENTY-THREE-A OF THE CORRECTION
LAW. THE DEPARTMENT SHALL INFORM SUCH APPLICANT OF HIS OR HER RIGHT TO
SEEK CORRECTION OF ANY INCORRECT INFORMATION CONTAINED IN SUCH CRIMINAL
HISTORY INFORMATION PURSUANT TO THE REGULATIONS AND PROCEDURES ESTAB-
LISHED BY THE DIVISION OF CRIMINAL JUSTICE SERVICES. 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 information as shall
be prescribed by such rules and regulations. The fee for such license
shall be a sum equal to twenty-five dollars plus an amount equal to two
per centum 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.
(a) The following shall be ineligible for such a license:
(1) a person convicted of a crime [who has not received] IF THERE IS A
DIRECT RELATIONSHIP BETWEEN ONE OR MORE OF THE PREVIOUS CRIMINAL
OFFENSES AND THE INTEGRITY OF GAMES OF CHANCE, CONSIDERING THE FACTORS
A. 3009--B 65
SET FORTH IN SECTION SEVEN HUNDRED FIFTY-THREE OF THE CORRECTION LAW,
PROVIDED, HOWEVER THAT RECEIPT OF a pardon, a certificate of good
conduct or a certificate of relief from disabilities SHALL REMOVE ANY
INELIGIBILITY FOR A LICENSE UNDER THIS PARAGRAPH;
(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 authorized games of chance lessor;
(5) a firm or corporation in which a person defined in [subdivision
(1), (2), (3) or (4) above] SUBPARAGRAPHS ONE, TWO, THREE OR FOUR OF
THIS PARAGRAPH has greater than a ten per centum proprietary, equitable
or credit interest or in which such a person is active or employed.
§ 5. The opening paragraph of paragraph (a) of subdivision 1 of
section 190 of the general municipal law, as amended by chapter 574 of
the laws of 1978, is amended to read as follows:
Each applicant for a license shall, after obtaining an identification
number from the [board] COMMISSION, file with the clerk or department, a
written OR ELECTRONIC application therefor in a form to be prescribed by
the [board] COMMISSION, duly executed and verified, in which shall be
stated:
§ 6. Subdivision 1 of section 190-a of the general municipal law, as
amended by chapter 400 of the laws of 2005, is amended to read as
follows:
1. Notwithstanding the licensing requirements set forth in this arti-
cle and their filing requirements set forth in subdivision four of
section one hundred ninety of this article, 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 [twenty] THIRTY thousand dollars
during one calendar year.
§ 7. Paragraph (a) of subdivision 2 of section 190-a of the general
municipal law, as amended by chapter 400 of the laws of 2005, is amended
to read as follows:
(a) For the purposes of this section, "authorized organization" shall
mean and include any bona fide religious or charitable organization or
bona fide educational, fraternal or service organization or bona fide
organization of veterans [or], volunteer [firefighter] FIREFIGHTERS, OR
VOLUNTEER AMBULANCE WORKERS, which by its charter, certificate of incor-
poration, constitution, or act of the legislature, shall have among its
dominant purposes one or more of the lawful purposes as defined in this
article, 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 article for a period of
three years immediately prior to being granted the filing requirement
exemption contained in subdivision one of this section.
§ 8. Paragraph (a) of subdivision 1 of section 191 of the general
municipal law, as amended by section 15 of part LL of chapter 56 of the
laws of 2010, is amended to read as follows:
(a) Issuance of licenses to conduct games of chance. If such clerk or
department shall determine that the applicant is duly qualified to be
licensed to conduct games of chance under this article; 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
A. 3009--B 66
crime, or, if convicted, have received a pardon, a certificate of good
conduct or a certificate of relief from disabilities pursuant to article
twenty-three of the correction law]; that such games are to be conducted
in accordance with the provisions of this article and in accordance with
the rules and regulations of the [board] COMMISSION and applicable local
laws or ordinances and that the proceeds thereof are to be disposed of
as provided by this article, and if such clerk or department is satis-
fied that no commission, salary, compensation, reward or recompense
whatever will be paid or given to any person managing, operating or
assisting therein except as in this article otherwise provided; it shall
issue a license to the applicant for the conduct of games of chance upon
payment of a license fee of twenty-five dollars for each license period.
§ 9. Subdivision 1 of section 195-c of the general municipal law, as
amended by chapter 252 of the laws of 1998, is amended to read as
follows:
[1.] Persons operating games; equipment; expenses; compensation. 1. No
person shall operate any game of chance under any license issued under
this article except a bona fide member of the authorized organization to
which the license is issued, or a bona fide member of an organization or
association which 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 which is affil-
iated with the licensee by being, with it, auxiliary to another organ-
ization 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. 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 with-
out payment of any compensation therefor by the licensee. However, in no
event shall bell jar tickets be transferred from one authorized organ-
ization to another, with or without payment of any compensation thereof.
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. Upon request by an 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
THAT MUST BE CONSIDERED PURSUANT TO ARTICLE TWENTY-THREE-A OF THE
CORRECTION LAW AND SUBDIVISIONS FIFTEEN AND SIXTEEN OF SECTION TWO
HUNDRED NINETY-SIX OF THE EXECUTIVE LAW. 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 article 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 [board] COMMISSION, janitorial services and utility
supplies if any, and license fees, and the cost of bus transportation,
if authorized by such clerk or department. 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.
§ 10. Subdivision 4 of section 195-n of the general municipal law, as
amended by chapter 637 of the laws of 1999, is amended to read as
follows:
4. Reports of sales. A manufacturer who sells bell jar tickets for
resale in this state shall file with the [board] COMMISSION, on a form
A. 3009--B 67
prescribed by the [board] 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 [board] COMMISSION may require
that the report be submitted via [magnetic] ELECTRONIC media or elec-
tronic data transfer.
§ 11. Subdivision 5 of section 195-o of the general municipal law, as
amended by chapter 637 of the laws of 1999, is amended to read as
follows:
5. Reports. A distributor shall report quarterly to the [board]
COMMISSION, on a form prescribed by the [board] COMMISSION, its sales of
each type of bell jar deal or tickets. This report shall be filed quar-
terly on or before the twentieth day of the month succeeding the end of
the quarter in which the sale was made. The [board] COMMISSION may
require that a distributor submit the quarterly report and invoices
required by this section via [magnetic] ELECTRONIC media or electronic
data transfer.
§ 12. Subdivisions 6 and 11-b of section 476 of the general municipal
law, subdivision 6 as amended by chapter 438 of the laws of 1962, para-
graph (c) of subdivision 6 as amended by chapter 190 of the laws of
1997, paragraph (d) of subdivision 6 as relettered by chapter 480 of the
laws of 1991, subdivision 11-b as added by chapter 162 of the laws of
2007, are amended to read as follows:
6. "Lawful purposes" shall mean one or more of the following causes,
deeds or activities:
(a) Those which shall 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 contributing 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 which shall initiate, perform or foster worthy public works
or shall enable or further the erection or maintenance of public struc-
tures;
(c) Those which shall initiate, perform or foster the provisions of
services to veterans by encouraging the gathering of such veterans and
shall enable or further the erection or maintenance of facilities for
use by such veterans which shall be used primarily for charitable or
patriotic purposes, or those purposes which 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
[racing and wagering board] COMMISSION.
(d) Those which shall otherwise lessen the burdens borne by government
or which are voluntarily undertaken by an authorized organization to
augment or supplement services which government would normally render to
the people, INCLUDING, IN THE CASE OF VOLUNTEER FIREFIGHTERS' ACTIV-
ITIES, THE PURCHASE, ERECTION, OR MAINTENANCE OF A BUILDING FOR A FIRE-
HOUSE, ACTIVITIES OPEN TO THE PUBLIC FOR THE ENHANCEMENT OF MEMBERSHIP,
AND THE PURCHASE OF EQUIPMENT WHICH CAN REASONABLY BE EXPECTED TO
INCREASE THE EFFICIENCY OF RESPONSE TO FIRES, ACCIDENTS, PUBLIC CALAMI-
TIES AND OTHER EMERGENCIES.
11-b. "Bonus ball" shall mean a bingo game that is played in conjunc-
tion with one or more regular or special bingo games designated as bonus
ball games by the licensed authorized organization during one or more
A. 3009--B 68
consecutive bingo occasions in which a prize is awarded to the player
obtaining 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 [six] TEN thousand dollars, whichever
shall be less, and which is not subject to the prize limits imposed by
subdivisions five and six of section four hundred seventy-nine and para-
graph (a) of subdivision one of section four hundred eighty-one of this
article. The percentage shall be specified both in the application for
the bingo license and the license. Notwithstanding section four hundred
eighty-nine 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.
§ 13. Subdivisions 5 and 6 of section 479 of the general municipal
law, as amended by chapter 328 of the laws of 1994, are amended to read
as follows:
5. No prize shall exceed the sum or value of [one] FIVE thousand
dollars in any single game of bingo.
6. No series of prizes on any one bingo occasion shall aggregate more
than [three] FIFTEEN thousand dollars.
§ 14. Paragraph (a) of subdivision 1 of section 480 of the general
municipal law, as amended by chapter 611 of the laws of 1963, is amended
to read as follows:
(a) Each applicant for a license shall, after obtaining an identifica-
tion number from the [control] commission, file with the clerk of the
municipality a written OR ELECTRONIC application therefor in the form
prescribed in the rules and regulations of the [control] commission,
duly executed and verified, in which shall be stated:
§ 15. Paragraph (a) of subdivision 2 of section 480 of the general
municipal law, as amended by chapter 438 of the laws of 1962, is amended
to read as follows:
(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 a written OR ELECTRONIC application
therefor in a form prescribed in the rules and regulations of the
[control] commission duly executed and verified, which shall set forth
the name and address of the applicant; designation and address of the
premises intended to be covered by the license sought; lawful capacity
for public assembly purposes; cost of premises and assessed valuation
for real estate tax purposes, or annual net lease rent, whichever is
applicable; gross rentals received and itemized expenses for the imme-
diately preceding calendar or fiscal year, if any; gross rentals, if
any, derived from bingo during the last preceding calendar or fiscal
year; computation by which proposed rental schedule was determined;
number of occasions on which applicant anticipates receiving rent for
bingo during the ensuing year or shorter period if applicable; proposed
rent for each such occasion; estimated gross rental income from all
other sources during the ensuing year; estimated expenses itemized for
ensuing year and amount of each item allocated to bingo rentals; a
statement that the applicant in all respects conforms with the specifi-
cations contained in the definition of "authorized commercial lessor"
A. 3009--B 69
set forth in section four hundred seventy-six of this article, and such
other information as shall be prescribed by such rules and regulations.
§ 16. Paragraph (a) of subdivision 1 of section 481 of the general
municipal law, as amended by section 17 of part LL of chapter 56 of the
laws of 2010, is amended to read as follows:
(a) Issuance of licenses to conduct bingo. If the governing body of
the municipality shall determine that the applicant is duly qualified to
be licensed to conduct bingo under this article; that the member or
members of the applicant designated in the application to conduct bingo
are bona fide active members of the applicant and are persons of good
moral character [and have never been convicted of a crime or, if
convicted, have received a pardon or a certificate of good conduct or a
certificate of relief from disabilities pursuant to article twenty-three
of the correction law]; that such games are to be conducted in accord-
ance with the provisions of this article and in accordance with the
rules and regulations of the commission, and that the proceeds thereof
are to be disposed of as provided by this article, and if the governing
body is satisfied that no commission, salary, compensation, reward or
recompense whatever will be paid or given to any person holding, operat-
ing or conducting or assisting in the holding, operation and conduct of
any such games except as in this article otherwise provided; and that no
prize will be offered and given in excess of the sum or value of [one]
FIVE thousand dollars in any single game and that the aggregate of all
prizes offered and given in all of such games conducted on a single
occasion, under said license shall not exceed the sum or value of
[three] FIFTEEN thousand dollars, it shall issue a license to the appli-
cant for the conduct of bingo upon payment of a license fee of eighteen
dollars and seventy-five cents for each bingo occasion; provided, howev-
er, that the governing body shall refuse to issue a license to an appli-
cant seeking to conduct bingo in premises of a licensed commercial
lessor where it determines that the premises presently owned or occupied
by said applicant are in every respect adequate and suitable for
conducting bingo games.
§ 17. Subdivision 1 of section 491 of the general municipal law, as
amended by chapter 667 of the laws of 1980, is amended to read as
follows:
1. Within seven days after the conclusion of any occasion of bingo,
the authorized organization which conducted the same, and its members
who were in charge thereof, and when applicable the authorized organiza-
tion which rented its premises therefor, shall each furnish to the clerk
of the municipality a statement subscribed by the member in charge and
affirmed by him 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 therefor, 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 thereof[, and it]. THE CLERK OR THE DEPART-
MENT SHALL MAKE PROVISIONS FOR THE OPTION FOR THE ELECTRONIC FILING OF
SUCH STATEMENT. 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 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
A. 3009--B 70
the state, shall be furnished in the same manner to the [state racing
and wagering board] COMMISSION.
§ 18. 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: TWO appointed by the governor[, two to be] EACH OF WHOM MUST BE
A RESIDENT OF NEW YORK STATE; ONE appointed by the temporary president
of the senate [and two to be]; ONE appointed by the speaker of the
assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK
RACING ASSOCIATION REORGANIZATION BOARD OF DIRECTORS CONSTITUTED PURSU-
ANT TO CHAPTER FOUR HUNDRED FIFTY-SEVEN OF THE LAWS OF TWO THOUSAND
TWELVE, OF WHICH AT LEAST ONE SHALL BE A FULL-TIME RESIDENT OF EACH OF
NASSAU, QUEENS, AND SARATOGA COUNTIES, AND WHICH SHALL CONTINUE TO EXIST
UNTIL SUCH TIME AS THE APPOINTMENTS REQUIRED HEREUNDER ARE MADE; ONE WHO
SHALL BE THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FRANCHISED
CORPORATION, EX OFFICIO AND WITHOUT TERM LIMITATION; ONE APPOINTED BY
THE NEW YORK THOROUGHBRED BREEDERS, INC; AND ONE APPOINTED BY THE NEW
YORK THOROUGHBRED HORSEMEN'S ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE
PERCENT OF THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPO-
RATION. 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 FIRST TERMS OF FIVE OF THE MEMBERS
APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
REORGANIZATION BOARD OF DIRECTORS SHALL EXPIRE DECEMBER THIRTY-FIRST,
TWO THOUSAND EIGHTEEN; THE FIRST TERMS OF THE REMAINING THREE MEMBERS
APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK RACING ASSOCIATION
REORGANIZATION BOARD OF DIRECTORS, THE MEMBER APPOINTED BY THE NEW YORK
THOROUGHBRED BREEDERS, INC., AND THE MEMBER APPOINTED BY THE NEW YORK
THOROUGHBRED HORSEMEN'S ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE
PERCENT OF THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPO-
RATION SHALL EXPIRE DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN; AND
THE FIRST TERMS OF THE MEMBERS APPOINTED BY THE GOVERNOR, THE TEMPORARY
A. 3009--B 71
PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY SHALL EXPIRE
DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY.
(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 REMAINING SUCH MEMBERS.
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, TO REVIEW INDUSTRY BEST PRAC-
TICES TO IMPROVE THE SAFETY OF HORSE RACING AT EACH OF THE THREE RACE-
TRACKS; A RACING COMMITTEE TO ADDRESS ALL ISSUES RELATED TO RACING OPER-
ATIONS; and an executive committee. Each of the compensation, finance,
nominating and executive committees shall include at least one of the
directors appointed by the governor, and the executive committee shall
include [at least one of] the [directors] DIRECTOR appointed by the
temporary president of the senate and [at least one of] the [directors]
DIRECTOR 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
A. 3009--B 72
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 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 ordi-
nary conduct of racing operations, or any direct or indirect interest in
any development undertaken at the racetracks of the state racing fran-
chise.
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. 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-
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. THE FRANCHISED
CORPORATION SHALL ENTER INTO A WRITTEN AGREEMENT WITH THE ORGANIZATION
REPRESENTING AT LEAST FIFTY-ONE PERCENT OF THE OWNERS AND TRAINERS
UTILIZING THE FACILITIES OF THE FRANCHISED CORPORATION THAT GOVERNS THE
TERMS AND CONDITIONS OF RACING DURING RACE MEETINGS CONDUCTED BY THE
FRANCHISED CORPORATION, INCLUDING: (A) A RATIO OF THE ALLOCATION OF
A. 3009--B 73
PURSE MONIES FOR STAKES RACES AND OVERNIGHT RACES; AND (B) THE NUMBER OF
LIVE RACING DAYS TO BE CONDUCTED PER RACE MEETING AT EACH OF THE FACILI-
TIES OPERATED BY THE FRANCHISED CORPORATION. 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 deter-
mining 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 circumstances beyond
the control of such franchised corporation for which the gaming commis-
sion 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-mu-
tuel 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.
§ 3. 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.
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
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
A. 3009--B 74
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
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
A. 3009--B 75
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:
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
A. 3009--B 76
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
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
A. 3009--B 77
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
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
A. 3009--B 78
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]
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
A. 3009--B 79
[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
Intentionally Omitted
PART SS
Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of chap-
ter 59 of the laws of 2014, is amended to read as follows:
(iv) (A) for taxable years beginning before January first, two thou-
sand sixteen, if the business income base is not more than two hundred
ninety thousand dollars the amount shall be six and one-half percent of
the business income base; if the business income base is more than two
hundred ninety thousand dollars but not over three hundred ninety thou-
sand dollars the amount shall be the sum of (1) eighteen thousand eight
hundred fifty dollars, (2) seven and one-tenth percent of the excess of
the business income base over two hundred ninety thousand dollars but
not over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the business income base over
three hundred fifty thousand dollars but not over three hundred ninety
thousand dollars;
(B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
SAND EIGHTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS
INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO HUNDRED NINETY
THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS THE
AMOUNT SHALL BE THE SUM OF (1) ELEVEN THOUSAND SIX HUNDRED DOLLARS, (2)
SIX AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER
TWO HUNDRED NINETY THOUSAND DOLLARS BUT NOT OVER THREE HUNDRED NINETY
THOUSAND DOLLARS AND (3) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE
EXCESS OF THE BUSINESS INCOME BASE OVER THREE HUNDRED FIFTY THOUSAND
DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS;
§ 2. Paragraph 39 of subsection (c) of section 612 of the tax law, as
added by section 1 of part Y of chapter 59 of the laws of 2013, is
amended to read as follows:
(39) (A) In the case of a taxpayer who is a small business OR A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL BUSINESS, who OR WHICH has business income and/or farm income as
defined in the laws of the United States, an amount equal to [three]
A. 3009--B 80
FIFTEEN percent of the net items of income, gain, loss and deduction
attributable to such business or farm entering into federal adjusted
gross income, but not less than zero[, for taxable years beginning after
two thousand thirteen, an amount equal to three and three-quarters
percent of the net items of income, gain, loss and deduction attribut-
able to such business or farm entering into federal adjusted gross
income, but not less than zero, for taxable years beginning after two
thousand fourteen, and an amount equal to five percent of the net items
of income, gain, loss and deduction attributable to such business or
farm entering into federal adjusted gross income, but not less than
zero, for taxable years beginning after two thousand fifteen].
(B) (I) For the purposes of this paragraph, the term small business
shall mean: (I) a sole proprietor [or a farm business] who employs one
or more persons during the taxable year and who has net business income
or net farm income of less than two hundred fifty thousand dollars, OR
(II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S CORPORATION
THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS NEW
YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS THAT IS
GREATER THAN ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND
DOLLARS OR NET FARM INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS
GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
(II) FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS
INCOME SHALL MEAN: (I) IN THE CASE OF A LIMITED LIABILITY COMPANY OR A
PARTNERSHIP NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B)
OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT
OF THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW
YORK RECEIPTS INCLUDED IN THE NUMERATOR OF THE APPORTIONMENT FACTOR
DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA-
BLE YEAR.
(C) TO QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL
BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S
CORPORATION, THE TAXPAYER'S INCOME ATTRIBUTABLE TO THE NET BUSINESS
INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART TT
Section 1. Clause (ii) of subparagraph (B) of paragraph 1 of
subsection (a) of section 601 of the tax law is amended by adding a new
subclause (IX) to read as follows:
(IX) FOR TAX YEARS AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING TAX
RATES SHALL APPLY IF NEW YORK TAXABLE INCOME IS OVER $1,000,000:
OVER $1,000,000 BUT NOT OVER $66,578 PLUS 8.82% OF EXCESS OVER
$5,000,000 $1,000,000
OVER $5,000,000 BUT NOT OVER $419,378 PLUS 9.32% OF EXCESS OVER
$10,000,000 $5,000,000
OVER $10,000,000 BUT NOT OVER $885,378 PLUS 9.82% OF EXCESS OVER
$100,000,000 $10,000,000
OVER $100,000,000 $9,723,378 PLUS 10.32% OF EXCESS
OVER $100,000,000
A. 3009--B 81
§ 2. Clause (ii) of subparagraph (B) of paragraph 1 of subsection (b)
of section 601 of the tax law is amended by adding a new subclause (IX)
to read as follows:
(IX) FOR TAX YEARS AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING TAX
RATES SHALL APPLY IF NEW YORK TAXABLE INCOME IS OVER $1,000,000:
OVER $1,000,000 BUT NOT OVER $67,017 PLUS 8.82% OF EXCESS OVER
$5,000,000 $1,000,000
OVER $5,000,000 BUT NOT OVER $419,817 PLUS 9.32% OF EXCESS OVER
$10,000,000 $5,000,000
OVER $10,000,000 BUT NOT OVER $885,817 PLUS 9.82% OF EXCESS OVER
$100,000,000 $10,000,000
OVER $100,000,000 $9,723,817 PLUS 10.32% OF EXCESS
OVER $100,000,000
§ 3. Clause (ii) of subparagraph (B) of paragraph 1 of subsection (c)
of section 601 of the tax law is amended by adding a new subclause (IX)
to read as follows:
(IX) FOR TAX YEARS AFTER TWO THOUSAND SEVENTEEN, THE FOLLOWING TAX
RATES SHALL APPLY IF NEW YORK TAXABLE INCOME IS OVER $1,000,000:
OVER $1,000,000 BUT NOT OVER $67,391 PLUS 8.82% OF EXCESS OVER
$5,000,000 $1,000,000
OVER $5,000,000 BUT NOT OVER $420,191 PLUS 9.32% OF EXCESS OVER
$10,000,000 $5,000,000
OVER $10,000,000 $886,191 PLUS 9.82% OF EXCESS OVER
$10,000,000
OVER $100,000,000 $9,724,191 PLUS 10.32% OF EXCESS
OVER $100,000,000
§ 4. Section 601 of the tax law is amended by adding a new subsection
(d-2) to read as follows:
(D-2) ALTERNATIVE TAX TABLE BENEFIT RECAPTURE. FOR TAXABLE YEARS
BEGINNING AFTER TWO THOUSAND SEVENTEEN FOR A TAXPAYER WHOSE NEW YORK
TAXABLE INCOME IS OVER $1,000,000, THERE IS HEREBY IMPOSED A SUPPLE-
MENTAL TAX IN ADDITION TO THE TAX IMPOSED UNDER SUBSECTIONS (A), (B) AND
(C) OF THIS SECTION FOR THE PURPOSE OF RECAPTURING THE BENEFIT OF THE
TAX TABLES CONTAINED IN SUCH SUBSECTIONS. DURING THESE TAXABLE YEARS,
ANY REFERENCE IN THIS CHAPTER TO SUBSECTION (D) OF THIS SECTION SHALL BE
READ AS A REFERENCE TO THIS SUBSECTION.
(1) FOR RESIDENT MARRIED INDIVIDUALS FILING JOINT RETURNS AND RESIDENT
SURVIVING SPOUSES, THE SUPPLEMENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE
SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARAGRAPHS (A), (B), (C)
AND (D) OF THIS PARAGRAPH MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN
SUCH SUBPARAGRAPHS.
(A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF
THIS SECTION LESS THE SUM OF TAX TABLE BENEFITS IN SUBPARAGRAPHS (A),
(B) AND (C) OF PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION. 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.
A. 3009--B 82
(B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO
THE 9.32 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS
(A), (B) AND (C) OF PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION AND
SUCH TAX TABLE BENEFIT IN SUBPARAGRAPH (A) OF THIS PARAGRAPH. THE FRAC-
TION 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 FIVE MILLION DOLLARS AND THE
DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARA-
GRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32
PERCENT TAX RATE.
(C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO
THE 9.82 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
CLAUSE (II) OF PARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS
SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B)
AND (C) OF PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX
TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRAC-
TION 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 TEN MILLION DOLLARS AND THE
DENOMINATOR IS FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARA-
GRAPH SHALL NOT APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.82
PERCENT TAX RATE.
(D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (A) OF THIS SECTION NOT SUBJECT TO
THE 10.32 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS
(A), (B) AND (C) OF PARAGRAPH 1 OF SUBSECTION (D-1) OF THIS SECTION AND
SUCH TAX TABLE BENEFITS IN SUBPARAGRAPHS (A), (B) AND (C) OF THIS PARA-
GRAPH. 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 HUNDRED MILLION
DOLLARS AND THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
(E) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
TAX TABLES IN SUBSECTION (A) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
(2) FOR RESIDENT HEADS OF HOUSEHOLDS, THE SUPPLEMENTAL TAX SHALL BE AN
AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS DESCRIBED IN SUBPARA-
GRAPHS (A), (B), (C) AND (D) OF THIS PARAGRAPH MULTIPLIED BY THEIR
RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS.
(A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
A. 3009--B 83
(B) OF 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION. THE FRAC-
TION 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.
(B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO
THE 9.32 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX
TABLE BENEFIT IN SUBPARAGRAPH (A) 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 FIVE MILLION DOLLARS AND THE DENOMINATOR IS
FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE.
(C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO
THE 9.82 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX
TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRAC-
TION 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 TEN MILLION DOLLARS AND THE
DENOMINATOR IS FIFTY THOUSAND DOLLARS.
(D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (B) OF THIS SECTION NOT SUBJECT TO
THE 10.32 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH 2 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH 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 ONE HUNDRED MILLION DOLLARS AND
THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
(E) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
A. 3009--B 84
TAX TABLES IN SUBSECTION (B) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
(3) FOR RESIDENT UNMARRIED INDIVIDUALS, RESIDENT MARRIED INDIVIDUALS
FILING SEPARATE RETURNS AND RESIDENT ESTATES AND TRUSTS, THE SUPPLE-
MENTAL TAX SHALL BE AN AMOUNT EQUAL TO THE SUM OF THE TAX TABLE BENEFITS
DESCRIBED IN SUBPARAGRAPHS (A), (B), (C) AND (D) OF THIS PARAGRAPH
MULTIPLIED BY THEIR RESPECTIVE FRACTIONS IN SUCH SUBPARAGRAPHS.
(A) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF
THIS SECTION LESS THE SUM OF TAX TABLE BENEFITS IN SUBPARAGRAPHS (A) AND
(B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION. THE FRACTION 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.
(B) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO
THE 9.32 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX
TABLE BENEFIT IN SUBPARAGRAPH (A) 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 FIVE MILLION DOLLARS AND THE DENOMINATOR IS
FIFTY THOUSAND DOLLARS. PROVIDED, HOWEVER, THIS SUBPARAGRAPH SHALL NOT
APPLY TO TAXPAYERS WHO ARE NOT SUBJECT TO THE 9.32 PERCENT TAX RATE.
(C) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO
THE 9.82 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH TAX
TABLE BENEFITS IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH. THE FRAC-
TION 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 TEN MILLION DOLLARS AND THE
DENOMINATOR IS FIFTY THOUSAND DOLLARS.
(D) THE TAX TABLE BENEFIT IS THE DIFFERENCE BETWEEN (I) THE AMOUNT OF
TAXABLE INCOME SET FORTH IN THE TAX TABLE IN CLAUSE (II) OF SUBPARAGRAPH
(B) OF PARAGRAPH ONE OF SUBSECTION (C) OF THIS SECTION NOT SUBJECT TO
THE 10.32 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
CLAUSE (II) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF
A. 3009--B 85
THIS SECTION LESS THE SUM OF THE TAX TABLE BENEFITS IN SUBPARAGRAPHS (A)
AND (B) OF PARAGRAPH 3 OF SUBSECTION (D-1) OF THIS SECTION AND SUCH 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 ONE HUNDRED MILLION DOLLARS AND
THE DENOMINATOR IS FIFTY THOUSAND DOLLARS.
(E) PROVIDED, HOWEVER, THE TOTAL TAX PRIOR TO THE APPLICATION OF ANY
TAX CREDITS SHALL NOT EXCEED THE HIGHEST RATE OF TAX SET FORTH IN THE
TAX TABLES IN SUBSECTION (C) OF THIS SECTION MULTIPLIED BY THE TAXPAY-
ER'S TAXABLE INCOME.
§ 5. Subsection (f) of section 614 of the tax law, as amended by
section 11 of part FF of chapter 59 of the laws of 2013, is amended to
read as follows:
(f) Adjusted standard deduction. For taxable years beginning after two
thousand seventeen, the standard deductions set forth in this section
shall be the amounts set forth in this section adjusted by the cost of
living adjustment prescribed in section six hundred one-a of this part
for tax years two thousand thirteen [through two thousand seventeen] AND
THEREAFTER.
§ 6. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART UU
Section 1. Paragraph (a) of subdivision 1 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:
(a) A taxpayer shall be allowed a credit, to be computed as hereinaft-
er provided, against the tax imposed by this article. The amount of the
credit shall be the percent provided for hereinbelow of the investment
credit base. The investment credit base is the cost or other basis for
federal income tax purposes of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph (b) of this subdivision, less the
amount of the nonqualified nonrecourse financing with respect to such
property to the extent such financing would be excludible from the cred-
it base pursuant to section 46(c)(8) of the internal revenue code
(treating such property as section thirty-eight property irrespective of
whether or not it in fact constitutes section thirty-eight property).
If, at the close of a taxable year following the taxable year in which
such property was placed in service, there is a net decrease in the
amount of nonqualified nonrecourse financing with respect to such prop-
erty, such net decrease shall be treated as if it were the cost or other
basis of property described in paragraph (b) of this subdivision
acquired, constructed, reconstructed or erected during the year of the
decrease in the amount of nonqualified nonrecourse financing. In the
case of a combined report the term investment credit base shall mean the
sum of the investment credit base of each corporation included on such
report. The percentage to be used to compute the credit allowed pursuant
to this subdivision shall be five percent with respect to the first
three hundred fifty million dollars of the investment credit base, and
four percent with respect to the investment credit base in excess of
three hundred fifty million dollars, except that in the case of research
and development property at the option of the taxpayer the applicable
percentage shall be [nine] EIGHTEEN.
A. 3009--B 86
§ 2. Paragraph 1 of subsection (a) of section 606 of the tax law, as
amended by chapter 170 of the laws of 1994, is amended to read as
follows:
(1) A taxpayer shall be allowed a credit, to be computed as hereinaft-
er provided, against the tax imposed by this article. The amount of the
credit shall be the per cent provided for hereinbelow of the investment
credit base. The investment credit base is the cost or other basis, for
federal income tax purposes, of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph two of this subsection, less the
amount of the nonqualified nonrecourse financing with respect to such
property to the extent such financing would be excludible from the cred-
it base pursuant to section 46(c)(8) of the internal revenue code
(treating such property as section thirty-eight property irrespective of
whether or not it in fact constitutes section thirty-eight property).
If, at the close of a taxable year following the taxable year in which
such property was placed in service, there is a net decrease in the
amount of nonqualified nonrecourse financing with respect to such prop-
erty, such net decrease shall be treated as if it were the cost or other
basis of property described in paragraph two of this subsection
acquired, constructed, reconstructed or erected during the year of the
decrease in the amount of nonqualified nonrecourse financing. The
percentage to be used to compute the credit allowed pursuant to this
subsection shall be that percentage appearing in column two which is
opposite the appropriate period in column one in which the tangible
personal property was acquired, constructed, reconstructed or erected,
as the case may be:
Column 1 Column 2
After December 31, 1968 and
prior to January 1, 1974 one per cent
After December 31, 1973 and
prior to January 1, 1978 two per cent
After December 31, 1977 and
prior to January 1, 1979 three per cent
After December 31, 1978 and
prior to June 1, 1981 four per cent
After May 31, 1981 and
prior to July 1, 1982 five per cent
After June 30, 1982 and
before January 1, 1987 six per cent
After December 31, 1986 four per cent, except that in the
case of research and development
property the applicable percentage
shall be [seven] FOURTEEN
Provided, however, that in the case of an acquisition, construction,
reconstruction or erection which was commenced in any one period and
continued or completed in any subsequent period the credit shall be the
sum of the portions of the investment credit base attributable to each
such period, which portion with respect to each such period shall be
ascertained by multiplying such investment credit base by a fraction the
numerator of which shall be the expenditures paid or incurred during
such period for such purposes and the denominator of which shall be the
total of all expenditures paid or incurred for such acquisition,
A. 3009--B 87
construction, reconstruction or erection, multiplied by the allowable
percentage for each such period.
§ 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART VV
Section 1. Subdivision 3 of section 355 of the economic development
law, as amended by section 4 of part G of chapter 61 of the laws of
2011, is amended to read as follows:
3. Excelsior research and development tax credit component. A partic-
ipant in the excelsior jobs program shall be eligible to claim a credit
equal to fifty percent of the portion of the participant's federal
research and development tax credit that relates to the participant's
research and development expenditures in New York state during the taxa-
ble year; provided however, the excelsior research and development tax
credit shall not exceed [three] SIX percent of the qualified research
and development expenditures attributable to activities conducted in New
York state. If the federal research and development credit has expired,
then the research and development expenditures relating to the federal
research and development credit shall be calculated as if the federal
research and development credit structure and definition in effect in
two thousand nine were still in effect. Notwithstanding any other
provision of this chapter to the contrary, research and development
expenditures in this state, including salary or wage expenses for jobs
related to research and development activities in this state, may be
used as the basis for the excelsior research and development tax credit
component and the qualified emerging technology company facilities,
operations and training credit under the tax law.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART WW
Section 1. Subdivision 16 of section 352 of the economic development
law, as amended by section 1 of part K of chapter 59 of the laws of
2015, is amended and a new subdivision 20-a is added to read as follows:
16. "Regionally significant project" means (a) a manufacturer creating
at least [fifty] TEN net new jobs in the state and making significant
capital investment in the state; (b) a business creating at least [twen-
ty] TEN net new jobs in agriculture in the state and making significant
capital investment in the state, (c) a financial services firm, distrib-
ution center, or back office operation creating at least [three] ONE
hundred net new jobs in the state and making significant capital invest-
ment in the state, (d) a scientific research and development firm creat-
ing at least [twenty] TEN net new jobs in the state, and making signif-
icant capital investment in the state or (e) an entertainment company
creating or obtaining at least two hundred net new jobs in the state and
making significant capital investment in the state. Other businesses
creating [three] ONE hundred FIFTY 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 indi-
cated in this subdivision and] what additional criteria a business must
A. 3009--B 88
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.
20-A. "SIGNIFICANT CAPITAL INVESTMENT" MEANS A PROJECT WHICH WILL BE
EITHER A NEWLY CONSTRUCTED FACILITY OR A NEWLY CONSTRUCTED ADDITION TO,
EXPANSION OF OR IMPROVEMENT OF A FACILITY, CONSISTING OF TANGIBLE
PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND
STRUCTURAL COMPONENTS OF BUILDINGS, THAT 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,
AND THAT IS EQUAL TO OR EXCEEDS (A) ONE MILLION DOLLARS FOR A MANUFAC-
TURER; (B) TWO HUNDRED FIFTY THOUSAND DOLLARS FOR AN AGRICULTURE BUSI-
NESS; (C) THREE MILLION DOLLARS FOR A FINANCIAL SERVICES FIRM OR BACK
OFFICE OPERATION; (D) FIFTEEN MILLION DOLLARS FOR A DISTRIBUTION CENTER;
(E) THREE MILLION DOLLARS FOR A SCIENTIFIC RESEARCH AND DEVELOPMENT
FIRM; OR (F) THREE MILLION DOLLARS FOR OTHER BUSINESSES.
§ 2. Subdivisions 3 and 4 of section 353 of the economic development
law, subdivision 3 as amended by section 2 of part K of chapter 59 of
the laws of 2015 and subdivision 4 as amended by section 1 of part C of
chapter 68 of the laws of 2013, are amended to read as follows:
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] FIVE 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] TWENTY-FIVE net new jobs; a business entity
operating predominantly in scientific research and development must
create at least five net new jobs; a business entity operating predomi-
nantly 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] TWENTY-FIVE 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] FIFTY net new jobs, notwith-
standing subdivision five of this section; or a business entity must be
a regionally significant project as defined in this article; or
4. A business entity operating predominantly in one of the industries
referenced in paragraphs (a) through (h) of subdivision 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 predomi-
nantly in manufacturing then it must have at least [ten] FIVE full-time
job equivalents and must demonstrate that its benefit-cost ratio is at
least ten to one.
§ 3. This act shall take effect immediately.
PART XX
Section 1. Paragraph 1 of subsection (d) of section 606 of the tax
law, as amended by section 1 of part Q of chapter 63 of the laws of
2000, is amended to read as follows:
A. 3009--B 89
(1) General. A taxpayer shall be allowed a credit as provided herein
equal to (i) the applicable percentage of the earned income credit
allowed under section thirty-two of the internal revenue code for the
same taxable year, (ii) reduced by the credit permitted under subsection
(b) of this section.
The applicable percentage shall be (i) seven and one-half percent for
taxable years beginning in nineteen hundred ninety-four, (ii) ten
percent for taxable years beginning in nineteen hundred ninety-five,
(iii) twenty percent for taxable years beginning after nineteen hundred
ninety-five and before two thousand, (iv) twenty-two and one-half
percent for taxable years beginning in two thousand, (v) twenty-five
percent for taxable years beginning in two thousand one, (vi) twenty-
seven and one-half percent for taxable years beginning in two thousand
two, and (vii) thirty percent for taxable years beginning in two thou-
sand three, and (VIII) THIRTY-TWO AND ONE-HALF PERCENT FOR THE TAXABLE
YEAR BEGINNING IN TWO THOUSAND EIGHTEEN, AND (IX) THIRTY-FIVE PERCENT
FOR TAXABLE YEARS BEGINNING IN TWO THOUSAND NINETEEN AND thereafter.
[Provided, however, that if the reversion event, as defined in this
paragraph, occurs, the applicable percentage shall be twenty percent for
taxable years ending on or after the date on which the reversion event
occurred. The reversion event shall be deemed to have occurred on the
date on which federal action, including but not limited to, administra-
tive, statutory or regulatory changes, materially reduces or eliminates
New York state's allocation of the federal temporary assistance for
needy families block grant, or materially reduces the ability of the
state to spend federal temporary assistance for needy families block
grant funds for the earned income credit or to apply state general fund
spending on the earned income credit toward the temporary assistance for
needy families block grant maintenance of effort requirement, and the
commissioner of the office of temporary and disability assistance shall
certify the date of such event to the commissioner of taxation and
finance, the director of the division of the budget, the speaker of the
assembly and the temporary president of the senate.]
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after 2018.
PART YY
Section 1. Section 606 of the tax law is amended by adding a new
subsection (ccc) to read as follows:
(CCC) UNIVERSAL VISITABILITY TAX CREDIT. 1. FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, UNTIL DECEMBER
THIRTY-FIRST, TWO THOUSAND TWENTY-TWO, A TAXPAYER SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR A PORTION OF THE
TOTAL PURCHASE PRICE PAID BY SUCH TAXPAYER FOR A PRINCIPAL RESIDENCE
ATTRIBUTABLE TO UNIVERSAL VISITABILITY OR THE TOTAL AMOUNT EXPENDED BY A
TAXPAYER TO RETROFIT AN EXISTING PRINCIPAL RESIDENCE TO ACHIEVE
UNIVERSAL VISITABILITY PROVIDED THAT THE PRINCIPAL RESIDENCE OR THE
RETROFITTING OF THE EXISTING PRINCIPAL RESIDENCE IS LOCATED WITHIN THIS
STATE AND DESIGNED TO PROVIDE UNIVERSAL VISITABILITY AS DEFINED THROUGH
THE ELIGIBILITY REQUIREMENTS ESTABLISHED BY GUIDELINES DEVELOPED BY THE
DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION WITHIN THE DEPARTMENT OF
STATE. FOR THE PURPOSE OF THIS SUBSECTION, PRINCIPAL RESIDENCE SHALL
MEAN SUCH RESIDENCE PURSUANT TO SECTION ONE HUNDRED TWENTY-ONE OF THE
INTERNAL REVENUE CODE.
A. 3009--B 90
2. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE PRIN-
CIPAL RESIDENCE HAS BEEN PURCHASED OR CONSTRUCTED, OR THE RETROFITTING
OR RENOVATION OF THE RESIDENCE OR RESIDENTIAL UNIT HAS BEEN COMPLETED.
THE CREDIT ALLOWED UNDER THIS SECTION SHALL NOT EXCEED (I) TWENTY-SEVEN
HUNDRED FIFTY DOLLARS FOR THE PURCHASE OF A NEW RESIDENCE, OR (II) FIFTY
PERCENT OF THE TOTAL AMOUNT EXPENDED, BUT NOT TO EXCEED TWENTY-SEVEN
HUNDRED FIFTY DOLLARS FOR THE RETROFITTING OR RENOVATION OF EACH EXIST-
ING RESIDENCE OR UNIT.
3. NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION FOR THE PURCHASE,
RETROFITTING OR RENOVATION OF RESIDENTIAL RENTAL PROPERTY.
4. NO CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION FOR THE SAME
UNIVERSAL VISITABILITY IMPROVEMENTS PREVIOUSLY CLAIMED BY A TAXPAYER.
5. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL
EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S
TAX FOR SUCH YEAR OR YEARS.
6. ELIGIBLE TAXPAYERS SHALL APPLY FOR THE CREDIT BY MAKING APPLICATION
TO THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION WITHIN THE
DEPARTMENT OF STATE. THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION
WITHIN THE DEPARTMENT OF STATE SHALL ISSUE A CERTIFICATION FOR AN
APPROVED APPLICATION TO THE TAXPAYER. THE TAXPAYER SHALL SUBMIT THE
CERTIFICATION TOGETHER WITH THEIR PERSONAL INCOME RETURN.
7. (A) THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED PURSUANT TO THE
AUTHORITY OF THIS SUBSECTION SHALL BE ONE MILLION DOLLARS EACH YEAR
DURING THE PERIOD TWO THOUSAND EIGHTEEN THROUGH TWO THOUSAND TWENTY-TWO.
SUCH AGGREGATE AMOUNTS OF CREDITS SHALL BE ALLOCATED BY THE DEPARTMENT
OF STATE AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON THE DATE OF
FILING AN APPLICATION FOR ALLOCATION OF CREDIT WITH THE DIVISION OF CODE
ENFORCEMENT AND ADMINISTRATION. 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 SECTION, SUCH EXCESS SHALL BE
TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
YEAR.
(B) THE SECRETARY OF STATE, AFTER CONSULTING WITH THE COMMISSIONER,
SHALL PROMULGATE REGULATIONS BY OCTOBER THIRTY-FIRST, TWO THOUSAND
SEVENTEEN TO ESTABLISH PROCEDURES FOR THE ALLOCATION OF TAX CREDITS AS
REQUIRED BY THIS SUBPARAGRAPH. SUCH RULES AND REGULATIONS SHALL INCLUDE
PROVISIONS DESCRIBING THE APPLICATION PROCESS, THE DUE DAYS FOR SUCH
APPLICATIONS, THE STANDARDS WHICH SHALL BE USED TO EVALUATE THE APPLICA-
TIONS, THE DOCUMENTATION THAT WILL BE PROVIDED TO TAXPAYERS TO SUBSTAN-
TIATE TO THE DEPARTMENT THE AMOUNT OF TAX CREDITS ALLOCATED TO SUCH
TAXPAYERS, AND SUCH OTHER PROVISIONS AS DEEMED NECESSARY AND APPROPRI-
ATE. NOTWITHSTANDING ANY OTHER PROVISIONS TO THE CONTRARY IN THE STATE
ADMINISTRATIVE PROCEDURE ACT, SUCH RULES AND REGULATIONS MAY BE ADOPTED
ON AN EMERGENCY BASIS IF NECESSARY TO MEET SUCH OCTOBER THIRTY-FIRST,
TWO THOUSAND SEVENTEEN DEADLINE.
8. THE DEPARTMENT OF STATE SHALL SUBMIT TO THE GOVERNOR, THE TEMPORARY
PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, AN ANNUAL
REPORT TO BE SUBMITTED BY FEBRUARY FIRST OF EACH YEAR EVALUATING THE
EFFECTIVENESS OF THE UNIVERSAL VISITABILITY TAX CREDIT PROVIDED BY THIS
SECTION. SUCH REPORT SHALL BE BASED ON DATA AVAILABLE FROM THE APPLICA-
TION FILED WITH THE DIVISION OF CODE ENFORCEMENT AND ADMINISTRATION FOR
UNIVERSAL VISITABILITY CREDITS. NOTWITHSTANDING ANY PROVISION OF LAW TO
THE CONTRARY, THE INFORMATION CONTAINED IN THE REPORT SHALL BE PUBLIC
INFORMATION. THE REPORT MAY ALSO INCLUDE ANY RECOMMENDATIONS OF CHANGES
IN THE CALCULATION OR ADMINISTRATION OF THE CREDIT, AND ANY OTHER RECOM-
A. 3009--B 91
MENDATION OF THE COMMISSIONER OF THE DEPARTMENT OF STATE OR THE DIVISION
OF CODE ENFORCEMENT AND ADMINISTRATION REGARDING CONTINUING MODIFICA-
TION, REPEAL OF SUCH ACT, AND SUCH OTHER INFORMATION REGARDING THE ACT
AS THE DIVISION MAY FEEL USEFUL AND APPROPRIATE.
§ 2. This act shall take effect immediately and shall apply to taxable
years commencing on and after January 1, 2018 and shall expire and be
deemed repealed December 31, 2022.
PART ZZ
Intentionally Omitted
PART AAA
Section 1. The tax law is amended by adding a new section 43 to read
as follows:
§ 43. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT.
(1) A TAXPAYER WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED
MUSIC PRODUCTION, OR WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PART-
NERSHIP, WHICH IS A MUSIC PRODUCTION ENTITY ENGAGED IN QUALIFIED MUSIC
PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF
THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX TO BE COMPUTED
AS PROVIDED HEREIN.
(2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNERSHIP OR LIMITED
LIABILITY COMPANY) OF TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION
COSTS OF ONE OR MORE QUALIFIED MUSIC PRODUCTIONS.
(3) ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION
INCURRED AND PAID IN THIS STATE BUT OUTSIDE SUCH METROPOLITAN COMMUTER
TRANSPORTATION DISTRICT SHALL BE ELIGIBLE FOR A CREDIT OF TEN PERCENT OF
SUCH ELIGIBLE PRODUCTION COSTS IN ADDITION TO THE CREDIT SPECIFIED IN
PARAGRAPH TWO OF THIS SUBDIVISION.
(4) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE THOSE COSTS USED BY
THE TAXPAYER OR ANOTHER TAXPAYER AS THE BASIS CALCULATION OF ANY OTHER
TAX CREDIT ALLOWED UNDER THIS CHAPTER OR ALLOWED IN ANY OTHER STATE.
(B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION FIFTY-TWO OF SECTION TWO HUNDRED TEN-B
AND SUBSECTION (HHH) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS. THE AGGREGATE AMOUNT
OF CREDITS FOR ANY TAXABLE YEAR SHALL BE DISTRIBUTED ON A REGIONAL BASIS
AS FOLLOWS: FIFTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL BE
AVAILABLE FOR QUALIFIED MUSIC PRODUCTIONS THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
REGION ONE; TWENTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL BE
AVAILABLE FOR QUALIFIED MUSIC PRODUCTIONS THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
REGION TWO; AND THIRTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL
BE AVAILABLE FOR QUALIFIED MUSIC PRODUCTIONS THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION IN
REGION THREE. IF SUCH REGIONAL DISTRIBUTION IS NOT FULLY ALLOCATED IN
ANY TAXABLE YEAR, THE REMAINDER OF SUCH CREDITS SHALL BE AVAILABLE FOR
ALLOCATION TO ANY REGION IN THE SUBSEQUENT TAX YEAR. FOR THE PURPOSES
OF THIS SECTION REGION ONE SHALL CONTAIN THE CITY OF NEW YORK; REGION
TWO SHALL CONTAIN THE COUNTIES OF WESTCHESTER, ROCKLAND, NASSAU AND
SUFFOLK; AND REGION THREE SHALL CONTAIN ANY COUNTY NOT CONTAINED IN
REGIONS ONE AND TWO. SUCH CREDIT SHALL BE ALLOCATED BY THE EMPIRE STATE
A. 3009--B 92
DEVELOPMENT CORPORATION AMONG TAXPAYERS IN ORDER OF PRIORITY BASED UPON
THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF MUSIC PRODUCTION
CREDITS WITH SUCH OFFICE. 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 SECTION, SUCH EXCESS SHALL BE
TREATED AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT
TAXABLE YEAR.
(C) DEFINITIONS. AS USED IN THIS SECTION:
(1) "MUSIC PRODUCTION" MEANS THE CREATION OF A SOUND RECORDING AND ANY
RELATED MUSIC VIDEO, EITHER OF WHICH IS INTENDED FOR COMMERCIAL RELEASE.
A "MUSIC PRODUCTION" DOES NOT INCLUDE RECORDINGS THAT ARE PRIMARILY
SPOKEN WORD OR WILDLIFE OR NATURE SOUNDS, OR PRODUCED FOR INSTRUCTIONAL
USE OR ADVERTISING OR PROMOTIONAL PURPOSES.
(2) "QUALIFIED MUSIC PRODUCTION" IS A MUSIC PRODUCTION IN WHICH ELIGI-
BLE PRODUCTION COSTS EQUAL TO OR ARE IN EXCESS OF SEVEN THOUSAND FIVE
HUNDRED DOLLARS IF INCURRED AND PAID IN THIS STATE IN THE TWELVE MONTHS
PRECEDING THE DATE ON WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, IF
SUCH PRODUCTION COSTS ARE INCURRED AND PAID OUTSIDE THE METROPOLITAN
COMMUTER TRANSPORTATION DISTRICT IN THIS STATE, SUCH PRODUCTION COSTS
SHALL BE EQUAL TO OR IN EXCESS OF THREE THOUSAND SEVEN HUNDRED FIFTY
DOLLARS TO BE A QUALIFIED MUSIC PRODUCTION FOR THE PURPOSES OF THIS
PARAGRAPH.
(3) (A) "ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED MUSIC PRODUCTION"
ARE COSTS INCURRED AND PAID IN THIS STATE FOR TANGIBLE PROPERTY AND
SERVICES USED IN THE PRODUCTION OF QUALIFIED MUSIC PRODUCTION, AS DETER-
MINED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT, INCLUDING, BUT NOT
LIMITED TO: (I) STUDIO RENTAL FEES AND RELATED COSTS, (II) INSTRUMENT
AND EQUIPMENT RENTAL FEES, (III) PRODUCTION SESSION FEES FOR MUSICIANS,
PROGRAMMERS, ENGINEERS, AND TECHNICIANS AND (IV) MIXING AND MASTERING
SERVICES.
(B) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE: (I) COSTS FOR TANGI-
BLE PROPERTY OR SERVICES USED OR PERFORMED OUTSIDE OF THIS STATE, (II)
PERFORMANCE FEES FOR FEATURED ARTISTS OR FEATURED GUEST ARTISTS RECEIV-
ING ROYALTIES OR ADVANCES ON ROYALTIES OR SPECIAL PERFORMANCE FEES
(OTHER THAN THOSE THAT WOULD NORMALLY BE COLLECTED BY A PERFORMING
RIGHTS ORGANIZATION) PURSUANT TO AN AGREEMENT DIRECTLY WITH THE PRODUCER
OR EMPLOYER, (III) SALARIES OR RELATED COMPENSATION FOR PRODUCERS OR
SONGWRITERS, (IV) COMPOSER, ARTIST OR PRODUCER RESIDUAL ROYALTIES OR
ADVANCES, (V) LICENSING FEES FOR SAMPLES, (VI) INTERPOLATIONS OR OTHER
MUSIC CLEARANCE COSTS, (VII) MASTERING OR POST-PRODUCTION EXPENDITURES
FOR PROJECTS THAT WERE NOT PRINCIPALLY TRACKED AND RECORDED IN THIS
STATE, (VIII) ANY COSTS ASSOCIATED WITH MANUFACTURING, DUPLICATION,
PACKAGING, DISTRIBUTION, PROMOTION, MARKETING OR TOURING NOT SPECIF-
ICALLY OUTLINED IN THIS SUBPARAGRAPH, OR (IX) LOCAL TRANSPORTATION
EXPENDITURES DIRECTLY RELATED TO MUSIC PRODUCTION AND PROVIDED AT OR TO
THE SITE OF SUCH MUSIC PRODUCTION. WITH RESPECT TO THE PRODUCTION OF A
MUSIC VIDEO, ELIGIBLE PRODUCTION COSTS ARE THOSE DEFINED IN PARAGRAPH
TWO OF SUBDIVISION (B) OF SECTION TWENTY-FOUR OF THIS ARTICLE. SUCH
TOTAL PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE EQUAL TO
OR EXCEED SEVENTY-FIVE PERCENT OF TOTAL COST OF AN ELIGIBLE PRODUCTION
INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
(D) CROSS-REFERENCES. FOR APPLICATIONS OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE NINE-A: SECTION TWO HUNDRED TEN-B, SUBDIVISION FIFTY-TWO.
(2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIII).
A. 3009--B 93
(3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (HHH).
§ 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
52. EMPIRE STATE MUSIC PRODUCTION CREDIT. (A) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
FORTY-THREE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
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 SUBDIVISION FOR ANY TAXABLE
YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, NO INTEREST SHALL BE PAID THEREON.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
(XLIII) EMPIRE STATE MUSIC AMOUNT OF CREDIT
PRODUCTION CREDIT UNDER UNDER SUBDIVISION
SUBSECTION (HHH) FIFTY-TWO OF SECTION TWO HUNDRED
TEN-B
§ 4. Section 606 of the tax law is amended by adding a new subsection
(hhh) to read as follows:
(HHH) EMPIRE STATE MUSIC PRODUCTION CREDIT. (1) ALLOWANCE OF CREDIT. A
TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF THIS CHAPTER
SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SUCH SECTION
FORTY-THREE AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION 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.
§ 5. The tax law is amended by adding a new section 44 to read as
follows:
§ 44. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOW-
ANCE OF CREDIT. (1) A TAXPAYER WHICH IS A DIGITAL GAMING MEDIA
PRODUCTION ENTITY ENGAGED IN QUALIFIED DIGITAL GAMING MEDIA PRODUCTION,
OR WHO IS A SOLE PROPRIETOR OF OR A MEMBER OF A PARTNERSHIP, WHICH IS A
DIGITAL GAMING MEDIA PRODUCTION ENTITY ENGAGED IN QUALIFIED DIGITAL
GAMING MEDIA PRODUCTION, AND IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR
TWENTY-TWO OF THIS CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX
TO BE COMPUTED AS PROVIDED HEREIN.
(2) THE AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNERSHIP OR LIMITED
LIABILITY COMPANY) OF TWENTY-FIVE PERCENT AND THE ELIGIBLE PRODUCTION
COSTS OF ONE OR MORE QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS.
(3) ELIGIBLE DIGITAL GAMING MEDIA PRODUCTION COSTS FOR A QUALIFIED
DIGITAL GAMING MEDIA PRODUCTION INCURRED AND PAID IN THIS STATE BUT
OUTSIDE SUCH METROPOLITAN COMMUTER TRANSPORTATION DISTRICT SHALL BE
ELIGIBLE FOR A CREDIT OF TEN PERCENT OF SUCH ELIGIBLE PRODUCTION COSTS
IN ADDITION TO THE CREDIT SPECIFIED IN PARAGRAPH TWO OF THIS SUBDIVI-
SION.
A. 3009--B 94
(4) ELIGIBLE PRODUCTION COSTS SHALL NOT INCLUDE THOSE COSTS USED BY
THE TAXPAYER OR ANOTHER TAXPAYER AS THE BASIS CALCULATION OF ANY OTHER
TAX CREDIT ALLOWED UNDER THIS CHAPTER OR ALLOWED IN ANY OTHER STATE.
(B) ALLOCATION OF CREDIT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
UNDER THIS SECTION, SUBDIVISION FIFTY-THREE OF SECTION TWO HUNDRED TEN-B
AND SUBSECTION (III) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER IN ANY
TAXABLE YEAR SHALL BE TWENTY-FIVE MILLION DOLLARS. THE AGGREGATE AMOUNT
OF CREDITS FOR ANY TAXABLE YEAR MUST BE DISTRIBUTED ON A REGIONAL BASIS
AS FOLLOWS: FIFTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL BE
AVAILABLE FOR QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS THAT INCUR AT
LEAST SIXTY PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED DIGITAL
GAMING MEDIA PRODUCTION IN REGION ONE; TWENTY PERCENT OF THE AGGREGATE
AMOUNT OF CREDITS SHALL BE AVAILABLE FOR QUALIFIED DIGITAL GAMING MEDIA
PRODUCTIONS THAT INCUR AT LEAST SIXTY PERCENT OF ELIGIBLE PRODUCTION
COSTS FOR A QUALIFIED DIGITAL GAMING MEDIA PRODUCTION IN REGION TWO; AND
THIRTY PERCENT OF THE AGGREGATE AMOUNT OF CREDITS SHALL BE AVAILABLE FOR
QUALIFIED DIGITAL GAMING MEDIA PRODUCTIONS THAT INCUR AT LEAST SIXTY
PERCENT OF ELIGIBLE PRODUCTION COSTS FOR A QUALIFIED DIGITAL GAMING
MEDIA PRODUCTION IN REGION THREE. IF SUCH REGIONAL DISTRIBUTION IS NOT
FULLY ALLOCATED IN ANY TAXABLE YEAR, THE REMAINDER OF SUCH CREDITS SHALL
BE AVAILABLE FOR ALLOCATION TO ANY REGION IN THE SUBSEQUENT TAX YEAR.
FOR THE PURPOSES OF THIS SECTION REGION ONE SHALL CONTAIN THE CITY OF
NEW YORK; REGION TWO SHALL CONTAIN THE COUNTIES OF WESTCHESTER, ROCK-
LAND, NASSAU AND SUFFOLK; AND REGION THREE SHALL CONTAIN ANY COUNTY NOT
CONTAINED IN REGIONS ONE AND TWO. SUCH CREDIT SHALL BE ALLOCATED BY THE
EMPIRE STATE DEVELOPMENT CORPORATION AMONG TAXPAYERS IN ORDER OF PRIORI-
TY BASED UPON THE DATE OF FILING AN APPLICATION FOR ALLOCATION OF
DIGITAL GAMING MEDIA PRODUCTION CREDIT WITH SUCH OFFICE. 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
SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE
FIRST DAY OF THE SUBSEQUENT TAXABLE YEAR.
(C) DEFINITIONS. AS USED IN THIS SECTION:
(1) "QUALIFIED DIGITAL GAMING MEDIA PRODUCTION" MEANS: (I) A WEBSITE,
THE DIGITAL MEDIA PRODUCTION COSTS OF WHICH ARE PAID OR INCURRED PREDO-
MINATELY IN CONNECTION WITH (A) VIDEO SIMULATION, ANIMATION, TEXT,
AUDIO, GRAPHICS OR SIMILAR GAMING RELATED PROPERTY EMBODIED IN DIGITAL
FORMAT, AND (B) INTERACTIVE FEATURES OF DIGITAL GAMING (E.G., LINKS,
MESSAGE BOARDS, COMMUNITIES OR CONTENT MANIPULATION); (II) VIDEO OR
INTERACTIVE GAMES PRODUCED PRIMARILY FOR DISTRIBUTION OVER THE INTERNET,
WIRELESS NETWORK OR SUCCESSORS THERETO; (III) ANIMATION, SIMULATION OR
EMBEDDED GRAPHICS DIGITAL GAMING RELATED SOFTWARE INTENDED FOR COMMER-
CIAL DISTRIBUTION REGARDLESS OF MEDIUM; AND (IV) A DIGITAL GAMING MEDIA
PRODUCTION IN WHICH QUALIFIED DIGITAL GAMING MEDIA PRODUCTION COSTS
EQUAL TO OR ARE IN EXCESS OF SEVEN THOUSAND FIVE HUNDRED DOLLARS IF
INCURRED AND PAID IN THIS STATE IN TWELVE MONTHS PRECEDING THE DATE ON
WHICH THE CREDIT IS CLAIMED. PROVIDED, HOWEVER, IF SUCH A PRODUCTION
COSTS ARE INCURRED AND PAID OUTSIDE THE METROPOLITAN COMMUTER TRANSPOR-
TATION DISTRICT IN THIS STATE, SUCH PRODUCTION COSTS SHALL BE EQUAL TO
OR IN EXCESS OF THREE THOUSAND SEVEN HUNDRED FIFTY DOLLARS TO BE A QUAL-
IFIED DIGITAL GAMING MEDIA PRODUCTION FOR PURPOSES OF THIS PARAGRAPH. A
QUALIFIED DIGITAL GAMING MEDIA PRODUCTION DOES NOT INCLUDE A WEBSITE,
VIDEO, INTERACTIVE GAME OR SOFTWARE THAT IS USED PREDOMINATELY FOR:
ELECTRONIC COMMERCE (RETAIL OR WHOLESALE PURPOSES OTHER THAN THE SALE OF
VIDEO OR INTERACTIVE GAMES), GAMBLING (INCLUDING ACTIVITIES REGULATED BY
A NEW YORK GAMING AGENCY), EXCLUSIVE LOCAL CONSUMPTION FOR ENTITIES NOT
A. 3009--B 95
ACCESSIBLE BY THE GENERAL PUBLIC INCLUDING INDUSTRIAL OR OTHER PRIVATE
PURPOSES, AND POLITICAL ADVOCACY PURPOSES.
(2) "DIGITAL GAMING MEDIA PRODUCTION COSTS" MEANS ANY COSTS FOR PROP-
ERTY USED AND WAGES OR SALARIES PAID TO INDIVIDUALS DIRECTLY EMPLOYED
FOR SERVICES PERFORMED BY THOSE INDIVIDUALS DIRECTLY AND PREDOMINATELY
IN THE CREATION OF A DIGITAL GAMING MEDIA PRODUCTION OR PRODUCTIONS.
DIGITAL GAMING MEDIA PRODUCTION COSTS INCLUDE BUT SHALL NOT BE LIMITED
TO TO PAYMENTS FOR PROPERTY USED AND SERVICES PERFORMED DIRECTLY AND
PREDOMINATELY IN THE DEVELOPMENT (INCLUDING CONCEPT CREATION), DESIGN,
PRODUCTION (INCLUDING CONCEPT CREATION), DESIGN, PRODUCTION (INCLUDING
TESTING), EDITING (INCLUDING ENCODING) AND COMPOSITING (INCLUDING THE
INTEGRATION OF DIGITAL FILES FOR INTERACTION BY END USERS) OF DIGITAL
GAMING MEDIA. DIGITAL GAMING MEDIA PRODUCTION COSTS SHALL NOT INCLUDE
EXPENSES INCURRED FOR THE DISTRIBUTION, MARKETING, PROMOTION, OR ADVER-
TISING CONTENT GENERATED BY END-USERS OR OTHER COSTS NOT DIRECTLY AND
PREDOMINATELY RELATED TO THE CREATION, PRODUCTION OR MODIFICATION OF
DIGITAL GAMING MEDIA. IN ADDITION, SALARIES OR OTHER INCOME DISTRIBUTION
RELATED TO THE CREATION OF DIGITAL GAMING MEDIA FOR ANY PERSON WHO
SERVES IN THE ROLE OF CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER,
PRESIDENT, TREASURER OR SIMILAR POSITION SHALL NOT BE INCLUDED AS
DIGITAL GAMING MEDIA PRODUCTION COSTS. FURTHERMORE, ANY INCOME OR OTHER
DISTRIBUTION TO ANY INDIVIDUAL WHO HOLDS AN OWNERSHIP INTEREST IN A
DIGITAL GAMING MEDIA PRODUCTION ENTITY SHALL NOT BE INCLUDED AS DIGITAL
GAMING MEDIA PRODUCTION COSTS.
(3) "QUALIFIED DIGITAL GAMING MEDIA PRODUCTION COSTS" MEANS DIGITAL
GAMING MEDIA PRODUCTION COSTS ONLY TO THE EXTENT SUCH COSTS ARE ATTRIB-
UTABLE TO THE USE OF PROPERTY OR THE PERFORMANCE OF SERVICES BY ANY
PERSONS WITHIN THE STATE DIRECTLY AND PREDOMINANTLY IN THE CREATION,
PRODUCTION OR MODIFICATION OF DIGITAL GAMING RELATED MEDIA. SUCH TOTAL
PRODUCTION COSTS INCURRED AND PAID IN THIS STATE SHALL BE EQUAL TO OR
EXCEED SEVENTY-FIVE PERCENT OF TOTAL COST OF AN ELIGIBLE PRODUCTION
INCURRED AND PAID WITHIN AND WITHOUT THIS STATE.
(D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE NINE-A: SECTION TWO HUNDRED TEN-B, SUBDIVISION FIFTY-
THREE.
(2) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (I), PARA-
GRAPH ONE, SUBPARAGRAPH (B), CLAUSE (XLIV).
(3) ARTICLE TWENTY-TWO: SECTION SIX HUNDRED SIX, SUBSECTION (III).
§ 6. Section 210-B of the tax law is amended by adding a new subdivi-
sion 53 to read as follows:
53. EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-FOUR OF
THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION FORTY-FOUR AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
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 SUBDIVISION FOR ANY TAXABLE
YEAR REDUCES THE TAX TO SUCH AMOUNT, THE EXCESS SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER, PROVIDED,
HOWEVER, NO INTEREST SHALL BE PAID THEREON.
A. 3009--B 96
§ 7. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliv) to read as
follows:
(XLIV) EMPIRE STATE DIGITAL AMOUNT OF CREDIT
GAMING MEDIA PRODUCTION UNDER SUBDIVISION
CREDIT UNDER SUBSECTION (III) FIFTY-THREE OF SECTION
TWO HUNDRED TEN-B
§ 8. Section 606 of the tax law is amended by adding a new subsection
(iii) to read as follows:
(III) EMPIRE STATE DIGITAL GAMING MEDIA PRODUCTION CREDIT. (1) ALLOW-
ANCE OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-
FOUR OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS
PROVIDED IN SUCH SECTION FORTY-FOUR AGAINST THE TAX IMPOSED BY THIS
ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION 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.
§ 9. The state commissioner of economic development, after consulting
with the state commissioner of taxation and finance, shall promulgate
regulations by December 31, 2017 to establish procedures for the allo-
cation of tax credits as required by subdivision (a) of section 43 and
subdivision (a) of section 44 of the tax law. Such rules and regulations
shall include provisions describing the application process, the due
dates for such applications, the standards which shall be used to evalu-
ate the applications, the documentation that will be provided to taxpay-
ers substantiate to the New York state department of taxation and
finance the amount of tax credits allocated to such taxpayers, under
what conditions all or a portion of this tax credit may be revoked, and
such other provisions as deemed necessary and appropriate. Notwithstand-
ing any other provisions to the contrary in the state administrative
procedure act, such rules and regulations may be adopted on an emergency
basis if necessary to meet such December 31, 2017 deadline.
§ 10. Subdivision 11 of section 352 of the economic development law is
REPEALED.
§ 11. Subdivisions 1, 3 and 5 of section 353 of the economic develop-
ment 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; OR
A. 3009--B 97
(i) as an entertainment company[; or
(j) in music production].
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 must be a regionally significant project
as defined in this article; or
5. A not-for-profit business entity, a business entity whose primary
function is the provision of services including personal services, busi-
ness services, or the provision of utilities, and a business entity
engaged predominantly in the retail or entertainment industry, other
than a business operating as an entertainment company as defined in this
article [and other than a business entity engaged in music production],
and a company engaged in the generation or distribution of electricity,
the distribution of natural gas, or the production of steam associated
with the generation of electricity are not eligible to receive the tax
credit described in this article.
§ 12. Subdivision 21 of section 352 of the economic development law,
as amended by section 1 of part K of chapter 59 of the laws of 2015, is
amended to read as follows:
21. "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 gener-
al business 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.
§ 13. The economic development law is amended by adding a new section
243 to read as follows:
§ 243. REPORTS ON THE MUSIC AND DIGITAL GAMING INDUSTRIES IN NEW YORK.
1. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A
BIANNUAL BASIS WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET AND THE
CHAIRPERSONS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SENATE FINANCE
COMMITTEE. THE REPORT SHALL BE FILED NO LATER THAN THIRTY DAYS BEFORE
THE MID-POINT AND THE END OF THE STATE FISCAL YEAR. THE FIRST REPORT
SHALL COVER THE CALENDAR HALF YEAR THAT BEGINS ON JANUARY FIRST, TWO
THOUSAND NINETEEN. EACH REPORT MUST CONTAIN THE FOLLOWING INFORMATION
FOR THE COVERED CALENDAR HALF YEAR:
(A) THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED PURSUANT TO SECTIONS
FORTY-THREE AND FORTY-FOUR OF THE TAX LAW DURING THE HALF YEAR, BROKEN
DOWN BY MONTH;
(B) THE NUMBER OF MUSIC AND DIGITAL GAMING PROJECTS, WHICH HAVE BEEN
ALLOCATED TAX CREDITS OF LESS THAN ONE MILLION DOLLARS PER PROJECT, AND
A. 3009--B 98
THE TOTAL DOLLAR AMOUNT OF CREDITS ALLOCATED TO THOSE PROJECTS DISTRIB-
UTED BY REGION PURSUANT TO SUBDIVISION (B) OF SECTIONS FORTY-THREE AND
FORTY-FOUR OF THE TAX LAW;
(C) THE NUMBER OF MUSIC AND DIGITAL GAMING PROJECTS, WHICH HAVE BEEN
ALLOCATED TAX CREDITS OF MORE THAN ONE MILLION DOLLARS, AND THE TOTAL
DOLLAR AMOUNT OF CREDITS ALLOCATED TO THOSE PROJECTS DISTRIBUTED BY
REGION PURSUANT TO SUBDIVISION (B) OF SECTIONS FORTY-THREE AND FORTY-
FOUR OF THE TAX LAW;
(D) A LIST OF EACH ELIGIBLE MUSIC AND DIGITAL GAMING PROJECT, WHICH
HAS BEEN ALLOCATED A TAX CREDIT ENUMERATED BY REGION PURSUANT TO SUBDI-
VISION (B) OF SECTIONS FORTY-THREE AND FORTY-FOUR OF THE TAX LAW, AND
FOR EACH OF THOSE PROJECTS, (I) THE ESTIMATED NUMBER OF EMPLOYEES ASSO-
CIATED WITH THE PROJECT, (II) THE ESTIMATED QUALIFYING COSTS FOR THE
PROJECTS, (III) THE ESTIMATED TOTAL COSTS OF THE PROJECT, (IV) THE CRED-
IT ELIGIBLE EMPLOYEE HOURS FOR EACH PROJECT, AND (V) TOTAL WAGES FOR
SUCH CREDIT ELIGIBLE EMPLOYEE HOURS FOR EACH PROJECT; AND
(E) (I) THE NAME OF EACH TAXPAYER ALLOCATED A TAX CREDIT FOR EACH
PROJECT AND THE COUNTY OF RESIDENCE OR INCORPORATION OF SUCH TAXPAYER
OR, IF THE TAXPAYER DOES NOT RESIDE OR IS NOT INCORPORATED IN NEW YORK,
THE STATE OF RESIDENCE OR INCORPORATION; HOWEVER, IF THE TAXPAYER CLAIMS
A TAX CREDIT BECAUSE THE TAXPAYER IS A MEMBER OF A LIMITED LIABILITY
COMPANY, A PARTNER IN A PARTNERSHIP OR A SHAREHOLDER IN A SUBCHAPTER S
CORPORATION, THE NAME OF EACH LIMITED LIABILITY COMPANY, PARTNERSHIP OR
SUBCHAPTER S CORPORATION EARNING ANY OF THOSE TAX CREDITS MUST BE
INCLUDED IN THE REPORT INSTEAD OF INFORMATION ABOUT THE TAXPAYER CLAIM-
ING THE TAX CREDIT, (II) THE AMOUNT OF TAX CREDIT ALLOCATED TO EACH
TAXPAYER; PROVIDED HOWEVER, IF THE TAXPAYER CLAIMS A TAX CREDIT BECAUSE
THE TAXPAYER IS A MEMBER OF A LIMITED LIABILITY COMPANY, A PARTNER IN A
PARTNERSHIP OR A SHAREHOLDER IN A SUBCHAPTER S CORPORATION, THE AMOUNT
OF TAX CREDIT EARNED BY EACH ENTITY MUST BE INCLUDED IN THE REPORT
INSTEAD OF INFORMATION ABOUT THE TAXPAYER CLAIMING THE TAX CREDIT, AND
(III) INFORMATION IDENTIFYING THE PROJECT ASSOCIATED WITH EACH TAXPAYER
FOR WHICH A TAX CREDIT WAS CLAIMED UNDER SECTION FORTY-THREE OR FORTY-
FOUR OF THE TAX LAW.
2. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL FILE A REPORT ON A
TRIENNIAL BASIS WITH THE DIRECTOR OF THE DIVISION OF THE BUDGET AND THE
CHAIRPERSONS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND SENATE FINANCE
COMMITTEE. THE FIRST REPORT SHALL BE FILED NO LATER THAN MARCH FIRST,
TWO THOUSAND TWENTY-ONE. THE REPORT MUST BE PREPARED BY AN INDEPENDENT
THIRD PARTY AUDITOR AND INCLUDE: (A) INFORMATION REGARDING THE EMPIRE
STATE MUSIC PRODUCTION CREDIT AND THE EMPIRE STATE DIGITAL GAMING
PRODUCTION CREDIT PROGRAMS INCLUDING THE EFFICIENCY OF OPERATIONS, RELI-
ABILITY OF FINANCIAL REPORTING, COMPLIANCE WITH LAWS AND REGULATIONS AND
DISTRIBUTION OF ASSETS AND FUNDS; (B) AND ECONOMIC IMPACT STUDY PREPARED
BY AN INDEPENDENT THIRD PARTY OF THE PROGRAM WITH SPECIAL EMPHASIS ON
THE REGIONAL IMPACT BY REGION AND THE TOTAL DOLLAR AMOUNT OF CREDITS
ALLOCATED TO THOSE PROJECTS DISTRIBUTED BY REGION PURSUANT TO SUBDIVI-
SION (B) OF SECTIONS FORTY-THREE AND FORTY-FOUR OF THE TAX LAW; AND (C)
ANY OTHER INFORMATION OR STATISTICAL INFORMATION THAT THE COMMISSIONER
OF ECONOMIC DEVELOPMENT DEEMS TO BE USEFUL IN ANALYZING THE EFFECTS OF
THE PROGRAMS.
§ 14. This act shall take effect immediately and shall apply to taxa-
ble years beginning on January 1, 2018 and before January 1, 2023;
provided that sections one through eight of this act shall expire and be
deemed repealed December 31, 2022.
A. 3009--B 99
PART BBB
Section 1. Paragraph (a) of subdivision 6 of section 425 of the real
property tax law, as amended by section 1 of part A of chapter 60 of the
laws of 2016, is amended to read as follows:
(a) Generally. All owners of the property who primarily reside thereon
[and who are not subject to the provisions of subdivision sixteen of
this section] must jointly file an application for exemption with the
assessor on or before the appropriate taxable status date. Such applica-
tion may be filed by mail if it is enclosed in a postpaid envelope prop-
erly addressed to the appropriate assessor, deposited in a post office
or official depository under the exclusive care of the United States
postal service, and postmarked by the United States postal service on or
before the applicable taxable status date. Each such application shall
be made on a form prescribed by the commissioner, which shall require
the applicant or applicants to agree to notify the assessor if their
primary residence changes while their property is receiving the
exemption. The assessor may request that proof of residency be submitted
with the application. If the applicant requests a receipt from the
assessor as proof of submission of the application, the assessor shall
provide such receipt. If such request is made by other than personal
request, the applicant shall provide the assessor with a self-addressed
postpaid envelope in which to mail the receipt.
§ 2. Subdivision 16 of section 425 of the real property tax law is
REPEALED.
§ 3. Subdivision 2 of section 496 of the real property tax law, as
amended by section 3 of part A of chapter 60 of the laws of 2016, is
amended to read as follows:
2. An application to renounce an exemption shall be made on a form
prescribed by the commissioner and shall be filed with the county direc-
tor of real property tax services no later than ten years after the levy
of taxes upon the assessment roll on which the renounced exemption
appears. The county director, after consulting with the assessor as
appropriate, shall compute the total amount owed on account of the
renounced exemption as follows:
(a) For each assessment roll on which the renounced exemption appears,
the assessed value that was exempted shall be multiplied by the tax rate
or rates that were applied to that assessment roll. Interest shall then
be added to each such product at the rate prescribed by section nine
hundred twenty-four-a of this chapter or such other law as may be appli-
cable for each month or portion thereon since the levy of taxes upon
such assessment roll.
(b) The sum of the calculations made pursuant to paragraph (a) of this
subdivision with respect to all of the assessment rolls in question
shall be determined.
(c) A processing fee of five hundred dollars shall be added to the sum
determined pursuant to paragraph (b) of this subdivision[, unless the
provisions of paragraph (d) of this subdivision are applicable.
(d) If the applicant is renouncing a STAR exemption in order to quali-
fy for the personal income tax credit authorized by subsection (eee) of
section six hundred six of the tax law, and no other exemptions are
being renounced on the same application, no processing fee shall be
applicable].
§ 4. Subdivision 6 of section 1306-a of the real property tax law is
REPEALED.
A. 3009--B 100
§ 5. Subparagraph (A) of paragraph 3 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:
(A) [Beginning with] FOR THE taxable [years after] YEAR two thousand
[fifteen] SIXTEEN, a basic STAR credit shall be available to a qualified
taxpayer if the affiliated income of the parcel that serves as the
taxpayer's primary residence is less than or equal to five hundred thou-
sand dollars.
§ 6. The opening paragraph of subparagraph (A) of paragraph 4 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:
[Beginning with] FOR THE taxable [years after] YEAR two thousand
[fifteen] SIXTEEN, an enhanced STAR credit shall be available to a qual-
ified taxpayer where both of the following conditions are satisfied:
§ 7. Clause (iii) of subparagraph (A) of paragraph 10 of subsection
(eee) of section 606 of the tax law is REPEALED.
§ 8. Paragraph (c) of subdivision 11 of section 425 of the real prop-
erty tax law, as amended by section 3 of part A of chapter 73 of the
laws of 2016, is amended to read as follows:
(c) Transfers of title. When the assessor has received a report pursu-
ant to section five hundred seventy-four of this chapter of a transfer
of title to real property which is exempt pursuant to this section, the
assessor shall [discontinue the exemption as required by subdivision
sixteen of this section] SEND THE NEW OWNER OR OWNERS AS SHOWN THEREON
AN APPLICATION FOR THE EXEMPTION AUTHORIZED BY THIS SECTION. The asses-
sor shall not implement the provisions of section five hundred twenty of
this chapter upon such a transfer, except to the extent that the proper-
ty may also be receiving one or more other exemptions.
§ 9. Paragraph (c) of subdivision 6 of section 425 of the real proper-
ty tax law, as amended by section 4 of part A of chapter 73 of the laws
of 2016, is amended to read as follows:
(c) Senior citizens exemption. When property is eligible for the
senior citizens exemption authorized by section four hundred sixty-seven
of this article, it shall also be deemed to be eligible for the enhanced
exemption authorized by this section for certain senior citizens,
provided, where applicable, that the age requirement established by a
municipal corporation pursuant to subdivision five of section four
hundred sixty-seven of this article is satisfied, and no separate appli-
cation need be filed therefor. [Provided, however, that the provisions
of this paragraph shall only apply where at least one of the applicants
held title to the property on the taxable status date of the assessment
roll that was used to levy school district taxes for the two thousand
fifteen--two thousand sixteen school year and the property was granted
an exemption pursuant to this section on such assessment roll.]
§ 10. Implementation for the 2017--2018 school year. The commissioner
of taxation and finance shall assist localities in notifying the public
of the provisions of this act and any action required by taxpayers to
receive a STAR exemption for the 2017--2018 school year. Notwithstand-
ing subdivision 6 of section 425 of the real property tax law, for
assessment rolls used to levy school district taxes for the 2017--2018
school year, an application for an exemption under section 425 of the
real property tax law shall be filed with the local assessor by the last
date on which a petition with respect to complaints of assessment may be
filed or not later than the sixtieth day after the effective date of
this act, whichever is later. The assessor shall approve or deny such
A. 3009--B 101
application as if it had been filed on or before the taxable status
date. If the assessor determines that the property is eligible for the
exemption, the assessor shall thereupon be authorized and directed to
correct the assessment roll accordingly, or, if another person has
custody or control of the assessment roll, to direct that person to make
the appropriate corrections. If the correction is not made before school
taxes are levied, the failure to take the exemption into account in the
computation of the tax shall be deemed a "clerical error" for purposes
of title 3 of article 5 of the real property tax law, or any comparable
laws governing the correction of administrative errors on assessment
rolls and tax rolls, and shall be corrected accordingly.
Notwithstanding any other provision of law to the contrary, the
commissioner of taxation and finance shall immediately notify local
assessors of the name and address of any taxpayer within their assessing
unit who qualified for the school tax relief (STAR) credit pursuant to
subsection (eee) of section 606 of the tax law for taxable year 2016, or
has applied for a credit for taxable year 2017 and any additional infor-
mation available that would assist the assessor in accurately determin-
ing the property's eligibility for the STAR exemption pursuant to
section 425 of the real property tax law. To the extent possible, the
local assessor shall determine the eligibility of the property for the
2017--2018 school year using information provided by the commissioner of
taxation and finance. Taxpayers who applied with the department of
taxation and finance for the STAR credit for the 2017--2018 school year
or received the STAR credit for the 2016--2017 school year, shall not be
required to file an application for an exemption in order to receive an
exemption on the same property for the 2017--2018 school year; however,
if a property's eligibility cannot be determined by using information
supplied by the department of taxation and finance, the assessor may
seek additional documentation from the taxpayer to prove his or her
eligibility. Such taxpayer shall have until the last date on which a
petition, with respect to complaints of assessment may be filed, to
supply proof of eligibility, or thirty days of such request, whichever
is later. The assessor shall mail notice of his or her determination to
such owner. If the assessor determines that the property is eligible for
the exemption, the assessor shall thereupon be authorized and directed
to correct the assessment roll accordingly, or, if another person has
custody or control of the assessment roll, to direct that person to make
the appropriate corrections. If the correction is not made before school
taxes are levied, the failure to take the exemption into account in the
computation of the tax shall be deemed a "clerical error" for purposes
of title 3 of article 5 of the real property tax law, or any comparable
laws governing the correction of administrative errors on assessment
rolls and tax rolls, and shall be corrected accordingly. Nothing within
this act shall preclude a taxpayer from seeking administrative and judi-
cial review of an assessor's denial of the exemption.
§ 11. This act shall take effect immediately.
PART CCC
Section 1. Section 654-b of the private housing finance law is
amended by adding a new subdivision 9 to read as follows:
9. THE SUBSIDIARY CORPORATION SHALL USE THE TAXES DESCRIBED IN SUBDI-
VISION G OF SECTION 11-2102 OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK EXCLUSIVELY FOR THE PROVISION OF THE ELDERLY RENTAL ASSISTANCE
PROGRAM AS DESCRIBED IN ARTICLE SIXTEEN-B OF THIS CHAPTER.
A. 3009--B 102
§ 2. The private housing finance law is amended by adding a new arti-
cle 16-B to read as follows:
ARTICLE 16-B
ELDER RENTAL ASSISTANCE PROGRAM
SECTION 930. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
931. DEFINITIONS.
932. ELDER RENTAL ASSISTANCE PROGRAM.
933. GENERAL AND ADMINISTRATIVE PROVISIONS.
§ 930. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE
HEREBY FINDS THAT THE CITY OF NEW YORK IS EXPERIENCING AN EXTREME SHORT-
AGE OF AFFORDABLE HOUSING THAT SERVES LOW INCOME SENIOR CITIZENS. FOR
HUNDREDS OF THOUSANDS OF SENIOR CITIZENS LIVING ON PENSIONS, RETIREMENT
SAVINGS AND OTHER FIXED INCOMES, THE RAPID RISE IN RENTS HAS THREATENED
THEIR ABILITY TO STAY IN THEIR HOMES AND NEIGHBORHOODS. MORE THAN HALF
OF SENIORS SPEND MORE ON HOUSING THAN THEY CAN AFFORD AND MORE THAN ONE
HUNDRED THOUSAND SENIORS HAVE WAITED FOR SEVEN YEARS OR MORE ON AN
AFFORDABLE HOUSING WAITLIST.
THE LEGISLATURE FURTHER FINDS THAT CITYWIDE, ALMOST TWO-THIRDS OF ALL
SENIOR RENTER HOUSEHOLDS ARE AMONG THE LOWEST INCOME HOUSEHOLDS IN THE
CITY, EARNING LESS THAN FIFTY PERCENT OF AREA MEDIAN INCOME. ACCORDING-
LY, THE LEGISLATURE FINDS THAT LEGISLATION SHOULD BE ENACTED TO CREATE
THE ELDER RENTAL ASSISTANCE PROGRAM, WHICH WILL PROVIDE MONTHLY FINAN-
CIAL ASSISTANCE TO RENT-BURDENED SENIORS SO THEY CAN LIVE IN DIGNITY IN
THEIR OWN HOMES. THIS PROGRAM WILL BE FINANCED THROUGH A MARGINAL TAX ON
REAL ESTATE TRANSACTIONS OVER TWO MILLION DOLLARS.
§ 931. DEFINITIONS. AS USED IN THIS ARTICLE:
1. "ELDERLY FAMILY" SHALL MEAN A FAMILY, AS DEFINED IN 24 C.F.R §
5.403, WHOSE HEAD (INCLUDING CO-HEAD), SPOUSE, OR SOLE MEMBER IS A
PERSON WHO IS AT LEAST SIXTY-TWO YEARS OF AGE. IT MAY INCLUDE TWO OR
MORE PERSONS WHO ARE AT LEAST SIXTY-TWO YEARS OF AGE LIVING TOGETHER, OR
ONE OR MORE PERSONS WHO ARE AT LEAST SIXTY-TWO YEARS OF AGE LIVING WITH
ONE OR MORE LIVE-IN AIDES, AS DEFINED IN 24 C.F.R § 5.403, AND SHALL
INCORPORATE ANY AMENDMENTS MADE TO THIS DEFINITION IN 24 C.F.R § 5.403.
2. "LOW INCOME FAMILIES" SHALL MEAN THOSE FAMILIES WHOSE INCOMES DO
NOT EXCEED EIGHTY PER CENTUM OF THE MEDIAN INCOME FOR THE NEW YORK
METROPOLITAN STATISTICAL AREA, AS DETERMINED BY THE SECRETARY OF THE
FEDERAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WITH ADJUSTMENTS FOR
SMALLER AND LARGER FAMILIES.
§ 932. ELDER RENTAL ASSISTANCE PROGRAM. 1. SUBJECT TO THE AVAILABILITY
OF FUNDS GENERATED BY THE TAXES DESCRIBED IN SUBDIVISION G OF SECTION
11-2102 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, THE HOUSING
ASSISTANCE CORPORATION, ESTABLISHED BY SECTION SIX HUNDRED FIFTY-FOUR-B
OF THIS CHAPTER, SHALL PROVIDE RENTAL ASSISTANCE TO OR ON BEHALF OF
LOW-INCOME FAMILIES WHOSE MEMBERS CONSTITUTE AN ELDERLY FAMILY, WHO ARE
RESIDENTS OF THE CITY OF NEW YORK, AND WHO PAY MORE THAN THIRTY PERCENT
OF THEIR MONTHLY ADJUSTED INCOME AS RENT AS CALCULATED PURSUANT TO 42
U.S.C § 1437A(A)(1)(A). THE AMOUNT OF RENTAL ASSISTANCE PROVIDED TO OR
ON BEHALF OF EACH SUCH FAMILY PURSUANT TO THIS SUBDIVISION SHALL BE AN
AMOUNT UP TO THE DIFFERENCE BETWEEN (I) A RENT ESTABLISHED BY THE
DEPARTMENT OF HOUSING PRESERVATION AND DEVELOPMENT ON AN ANNUAL BASIS
NOT TO EXCEED THE MAXIMUM MONTHLY RENT PRESCRIBED IN 42 U.S.C.
§1437F(C)(1), OR SUCH LOWER RENT AS MAY BE REQUIRED BY APPLICABLE LAW,
OR AS ORDERED PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN-B OR FOUR
HUNDRED SIXTY-SEVEN-C OF THE REAL PROPERTY TAX LAW, IF APPLICABLE AND
(II) THIRTY PERCENT OF EACH SUCH FAMILY'S MONTHLY ADJUSTED INCOME AS
CALCULATED PURSUANT TO 42 U.S.C. §1437A(A)(1)(A).
A. 3009--B 103
2. TO THE EXTENT A PERSON OR ENTITY RECEIVES ANY SUCH RENTAL ASSIST-
ANCE ON BEHALF OF A PARTICULAR ELDERLY FAMILY, SUCH PERSON OR ENTITY
SHALL CREDIT SUCH ASSISTANCE AGAINST THE RENT OF SUCH FAMILY ON A MONTH-
LY BASIS.
3. THE RENTAL ASSISTANCE PROVIDED PURSUANT TO SUBDIVISION ONE OF THIS
SECTION SHALL CONTINUE UPON THE DEATH OR PERMANENT DEPARTURE OF A MEMBER
OF AN ELDERLY FAMILY WHO WAS AT LEAST SIXTY-TWO YEARS OF AGE, INCLUDING
THE HEAD OF SUCH FAMILY (INCLUDING CO-HEAD) OR HIS OR HER SPOUSE,
PROVIDED THAT SUCH ELDERLY FAMILY IS OTHERWISE ELIGIBLE FOR SUCH RENTAL
ASSISTANCE AND A MEMBER OF SUCH ELDERLY FAMILY WHO IS AT LEAST SIXTY-TWO
YEARS OF AGE HAS RESIDED IN THE DWELLING UNIT RECEIVING SUCH RENTAL
ASSISTANCE FOR AT LEAST ONE HUNDRED EIGHTY DAYS IMMEDIATELY PRECEDING
SUCH DEATH OR PERMANENT DEPARTURE.
4. THE RENTAL ASSISTANCE AUTHORIZED BY SUBDIVISION ONE OF THIS SECTION
MAY BE PROVIDED EITHER AS TENANT-BASED OR AS BUILDING-BASED ASSISTANCE.
SUCH ASSISTANCE MAY BE USED IN CONJUNCTION WITH ANY GOVERNMENTAL PROGRAM
OR PROJECT TO DEVELOP OR PRESERVE HOUSING.
5. A PERSON WHO HAS OBTAINED A RENT INCREASE EXEMPTION ORDER GRANTED
PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN-B OR FOUR HUNDRED SIXTY-
SEVEN-C OF THE REAL PROPERTY TAX LAW MAY ALSO BE ELIGIBLE TO RECEIVE
RENTAL ASSISTANCE PURSUANT TO SUBDIVISION ONE OF THIS SECTION IF SUCH
PERSON IS A MEMBER OF AN ELDERLY FAMILY THAT IS OTHERWISE ELIGIBLE FOR
SUCH ASSISTANCE.
§ 933. GENERAL AND ADMINISTRATIVE PROVISIONS. 1. THE HOUSING ASSIST-
ANCE CORPORATION AND THE DEPARTMENT OF HOUSING PRESERVATION AND DEVELOP-
MENT SHALL HAVE THE AUTHORITY TO INCUR REASONABLE COSTS FOR ADMINIS-
TRATION OF THE PROGRAM AUTHORIZED BY SECTION NINE HUNDRED THIRTY-TWO OF
THIS ARTICLE PROVIDED THAT NO MORE THAN FIVE PERCENT OF THE TAXES
COLLECTED PURSUANT TO SUBDIVISION G OF SECTION 11-2102 OF THE ADMINIS-
TRATIVE CODE OF THE CITY OF NEW YORK SHALL BE USED FOR SUCH COSTS.
2. THE HOUSING ASSISTANCE CORPORATION AND THE DEPARTMENT OF HOUSING
PRESERVATION AND DEVELOPMENT SHALL HAVE THE AUTHORITY TO PROMULGATE SUCH
RULES AS ARE NECESSARY TO CARRY OUT THE PROVISIONS OF SECTION NINE
HUNDRED THIRTY-TWO OF THIS ARTICLE.
§ 3. Section 11-2102 of the administrative code of the city of New
York is amended by adding three new subdivisions g, h and i to read as
follows:
G. IN ADDITION TO THE TAXES IMPOSED BY SUBDIVISIONS A AND B OF THIS
SECTION, THERE IS HEREBY IMPOSED A TAX ON EACH DEED OR OTHER INSTRUMENT
OR TRANSACTION CONVEYING OR TRANSFERRING RESIDENTIAL REAL PROPERTY OR AN
ECONOMIC INTEREST THEREIN, AT THE TIME OF DELIVERY BY A GRANTOR TO A
GRANTEE, WHEN THE CONSIDERATION FOR SUCH PROPERTY AND ANY IMPROVEMENT
THEREON (WHETHER OR NOT IT IS INCLUDED IN THE SAME DEED) IS GREATER THAN
TWO MILLION DOLLARS, OR AT THE TIME OF THE TRANSFER OF SUCH ECONOMIC
INTEREST BY A GRANTOR TO A GRANTEE, WHERE THE CONSIDERATION FOR SUCH
ECONOMIC INTEREST IS GREATER THAN TWO MILLION DOLLARS. EXCEPT AS OTHER-
WISE PROVIDED IN THIS SECTION, ALL THE PROVISIONS OF THIS CHAPTER RELAT-
ING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND DETERMINATION
OF THE TAX IMPOSED BY SUBDIVISIONS A AND B OF THIS SECTION SHALL APPLY
TO THE TAX IMPOSED BY THIS SUBDIVISION WITH SUCH MODIFICATIONS AS MAY BE
NECESSARY TO ADAPT SUCH LANGUAGE TO THE TAX SO IMPOSED. FOR PURPOSES OF
THIS SECTION, "RESIDENTIAL REAL PROPERTY" SHALL INCLUDE ANY PREMISES
THAT ARE OR MAY BE USED IN WHOLE OR IN PART AS A PERSONAL RESIDENCE, AND
SHALL INCLUDE A ONE, TWO OR THREE-FAMILY HOUSE, AN INDIVIDUAL RESIDEN-
TIAL CONDOMINIUM UNIT, OR AN INDIVIDUAL RESIDENTIAL COOPERATIVE APART-
A. 3009--B 104
MENT. SUCH TAX SHALL BE AT THE RATE OF TWO AND ONE-HALF PERCENT OF THE
CONSIDERATION IN EXCESS OF TWO MILLION DOLLARS.
H. FOR PURPOSES OF THIS SECTION, THE DETERMINATION OF WHETHER A
CONVEYANCE OR TRANSFER SHALL BE SUBJECT TO THE TAXES IMPOSED BY SUBDIVI-
SIONS A, B AND G OF THIS SECTION, AND OF THE RATE OF SUCH TAXES, SHALL
BE MADE PRIOR TO THE APPLICATION OF SUBDIVISION F OF THIS SECTION AND
PARAGRAPH EIGHT OF SUBDIVISION B OF SECTION 11-2106 OF THIS CHAPTER,
PROVIDED, HOWEVER, THAT THE AMOUNT OF CONSIDERATION SUBJECT TO SUCH
TAXES SHALL BE DETERMINED AFTER THE APPLICATION OF SUBDIVISION F OF THIS
SECTION AND PARAGRAPH EIGHT OF SUBDIVISION B OF SECTION 11-2106 OF THIS
CHAPTER.
I. ANY TAX COLLECTED PURSUANT TO SUBDIVISION G OF THIS SECTION SHALL
BE USED EXCLUSIVELY FOR THE PROVISION OF RENTAL ASSISTANCE TO LOW-INCOME
FAMILIES WHOSE MEMBERS CONSTITUTE AN ELDERLY FAMILY, AS DESCRIBED IN
SUBDIVISION NINE OF SECTION SIX HUNDRED FIFTY-FOUR-B OF THE PRIVATE
HOUSING FINANCE LAW. FOR PURPOSES OF THIS SUBDIVISION, "LOW-INCOME FAMI-
LIES" AND "ELDERLY FAMILY" SHALL HAVE THE SAME MEANING AS PROVIDED IN
SECTION NINE HUNDRED THIRTY-ONE OF THE PRIVATE HOUSING FINANCE LAW.
§ 4. Section 11-2104 of the administrative code of the city of New
York, as added by local law number 71 of the city of New York for the
year 1986, subdivision 4 as amended by local law number 59 of the city
of New York for the year 1989, subdivisions 5 and 6 as amended and
subdivision 7 as added by chapter 170 of the laws of 1994, is amended to
read as follows:
§ 11-2104 Payment. The tax imposed [hereunder] PURSUANT TO SUBDIVI-
SIONS A AND B OF SECTION 11-2102 OF THIS CHAPTER shall be paid by the
grantor to the commissioner of finance at the office of the register in
the county where the deed is or would be recorded within thirty days
after the delivery of the deed by the grantor to the grantee but before
the recording of such deed, or, in the case of a tax on the transfer of
an economic interest in real property, at such place as the commissioner
of finance shall designate, within thirty days after the transfer. The
grantee shall also be liable for the payment of such tax in the event
that the amount of tax due is not paid by the grantor or the grantor is
exempt from tax. THE TAX IMPOSED PURSUANT TO SUBDIVISION G OF SECTION
11-2102 OF THIS CHAPTER SHALL BE PAID BY THE GRANTEE TO THE COMMISSIONER
OF FINANCE AT THE OFFICE OF THE REGISTER IN THE COUNTY WHERE THE DEED IS
OR WOULD BE RECORDED WITHIN THIRTY DAYS AFTER THE DELIVERY OF THE DEED
BY THE GRANTOR TO THE GRANTEE BUT BEFORE THE RECORDING OF SUCH DEED, OR,
IN THE CASE OF A TAX ON THE TRANSFER OF AN ECONOMIC INTEREST IN REAL
PROPERTY, AT SUCH PLACE AS THE COMMISSIONER OF FINANCE SHALL DESIGNATE,
WITHIN THIRTY DAYS AFTER THE TRANSFER. THE GRANTOR SHALL ALSO BE LIABLE
FOR THE PAYMENT OF THE TAX IMPOSED PURSUANT TO SUBDIVISION G OF SECTION
11-2102 OF THIS CHAPTER IN THE EVENT THAT THE AMOUNT OF TAX DUE IS NOT
PAID BY THE GRANTEE OR THE GRANTEE IS EXEMPT FROM PAYMENT OF THE TAX.
All moneys received as such payments by the register during the preced-
ing month shall be transmitted to the commissioner of finance on the
first day of each month or on such other day as is mutually agreeable to
the commissioner of finance and the register.
A. From the moneys so received by him or her PURSUANT TO SUBDIVISIONS
A AND B OF SECTION 11-2102 OF THIS CHAPTER, the commissioner of finance
shall set said in a special account:
(1) the total amount of taxes imposed pursuant to the provisions of
paragraph three of subdivision a of section 11-2102 of this chapter
including any interest or penalties thereon;
A. 3009--B 105
(2) fifty percent of the total amount of taxes imposed pursuant to the
provisions of paragraph four of subdivision a of section 11-2102 of this
chapter, including fifty percent of any interest or penalties thereon,
provided, however, that where such tax is measured by the consideration
for a conveyance without deduction for the amount of any mortgage or
other lien or encumbrance on the real property or interest therein which
existed before the delivery of the deed and remains thereon after the
delivery of the deed, the entire amount of tax imposed at the rate of
one percent on the portion of the consideration ascribable to such
nondeductible mortgage, lien or other encumbrance, including any inter-
est or penalties thereon, and fifty percent of the tax on the balance of
the consideration, including fifty percent of any interest or penalties
thereon, shall be set aside in such special account;
(3) fifty percent of the total amount of taxes imposed pursuant to the
provisions of subparagraph (iii) of paragraph seven of subdivision a of
section 11-2102 of this chapter, including fifty percent of any interest
or penalties thereon;
(4) fifty percent of the total amount of taxes imposed pursuant to the
provisions of paragraph eight of subdivision a of section 11-2102 of
this chapter, including fifty percent of any interest or penalties ther-
eon;
(5) fifty percent of the total amount of taxes imposed at the rate of
two percent pursuant to the provisions of clause (ii) of subparagraph A
of paragraph one of subdivision b of section 11-2102 of this chapter
including fifty percent of any interest or penalties thereon;
(6) with respect to any conveyance of real property, transfer of an
economic interest therein, or any grant, assignment or surrender of a
leasehold interest in real property, made on or after August first,
nineteen hundred eighty-nine and taxable under this chapter, in each
instance where the tax rate is in excess of two percent, a portion of
the tax received equal to one percent of the consideration subject to
the tax plus any interest or penalty attributable to such portion of the
tax; and
(7) notwithstanding anything in [subdivision] PARAGRAPH six OF THIS
SUBDIVISION to the contrary, in each instance where the tax rate imposed
pursuant to subdivision e of section 11-2102 of this chapter is in
excess of one percent, a portion of the tax received equal to one-half
of one percent of the total consideration for the real property or
economic interest therein conveyed or transferred, plus any interest or
penalty attributable to such portion of the tax.
Moneys in such account shall be used for payment by such commissioner
to the state comptroller for deposit in the urban mass transit operating
assistance account of the mass transportation operating assistance fund
of any amount of insufficiency certified by the state comptroller pursu-
ant to the provisions of subdivision six of section [eight-eight-a]
EIGHTY-EIGHT-A of the state finance law, and, on the fifteenth day of
each month, the commissioner of finance shall transmit all funds in such
account on the last day of the preceding month, except the amount
required for the payment of any amount of insufficiency certified by the
state comptroller and such amount as he or she deems necessary for
refunds and such other amounts necessary to finance the New York City
transportation disabled committee and the New York City paratransit
system as established by section fifteen-b of the transportation law,
provided, however, that such amounts shall not exceed six percent of the
total funds in the account but in no event be less than one hundred
seventy-five thousand dollars beginning April first, nineteen hundred
A. 3009--B 106
eighty-six, and further that beginning November fifteenth, nineteen
hundred eighty-four and during the entire period prior to operation of
such system, the total of such amounts shall not exceed three hundred
seventy-five thousand dollars for the administrative expenses of such
committee and fifty thousand dollars for the expenses of the agency
designated pursuant to paragraph b of subdivision five of such section,
and other amounts necessary to finance the operating needs of the
private bus companies franchised by the city of New York and eligible to
receive state operating assistance under section eighteen-b of the
transportation law, provided, however, that such amounts shall not
exceed four percent of the total funds in the account, to the New York
city transit authority for mass transit within the city.
B. THE MONEYS RECEIVED BY THE COMMISSIONER OF FINANCE PURSUANT TO
SUBDIVISION G OF SECTION 11-2102 OF THIS CHAPTER SHALL BE HELD FOR THE
BENEFIT OF THE HOUSING ASSISTANCE CORPORATION FOR THE PROVISION OF
RENTAL ASSISTANCE TO LOW-INCOME FAMILIES WHOSE MEMBERS CONSTITUTE AN
ELDERLY FAMILY IN ACCORDANCE WITH SUBDIVISION I OF SUCH SECTION, AND
PAID TO THE HOUSING ASSISTANCE CORPORATION, IN THE SAME FISCAL YEAR OR
AS SOON AS PRACTICABLE THEREAFTER, FOR THE PURPOSES DESCRIBED IN SUCH
SUBDIVISION I. SUCH MONEYS SHALL BE USED TO SUPPLEMENT, RATHER THAN
SUPPLANT, LOCAL FUNDS THAT SUCH CITY WOULD HAVE EXPENDED FOR THE
PROVISION OF RENTAL ASSISTANCE TO LOW-INCOME FAMILIES WHOSE MEMBERS
CONSTITUTE AN ELDERLY FAMILY. FOR PURPOSES OF THIS SUBDIVISION, "LOW-IN-
COME FAMILIES" AND "ELDERLY FAMILY" SHALL HAVE THE SAME MEANING AS
PROVIDED IN SECTION NINE HUNDRED THIRTY-ONE OF THE PRIVATE HOUSING
FINANCE LAW.
§ 5. This act shall take effect on the ninetieth day after it shall
have become a law.
PART DDD
Section 1. Section 606 of the tax law is amended by adding a new
subsection (n-2) to read as follows:
(N-2) CREDIT FOR FARM DONATIONS TO FOOD BANK OR EMERGENCY FOOD
PROGRAM. (1) GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARM-
ER, THERE SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER
PROVIDED AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS ON
AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN. THE AMOUNT OF THE CREDIT
SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE COST OF THE TAXPAYER'S
QUALIFIED DONATIONS, AS DEFINED IN PARAGRAPH THREE OF THIS SUBSECTION,
MADE TO ANY FOOD BANK OR OTHER PUBLIC, CHARITABLE OR NOT-FOR-PROFIT
EMERGENCY FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
DOLLARS PER YEAR.
(2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
BLE FARMER" MEANS A NEW YORK STATE RESIDENT TAXPAYER WHOSE FEDERAL GROSS
INCOME FROM FARMING FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF
EXCESS FEDERAL GROSS INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE
AMOUNT OF FEDERAL GROSS INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR
REDUCED BY THE SUM (NOT TO EXCEED THIRTY THOUSAND DOLLARS) OF THOSE
ITEMS INCLUDED IN FEDERAL GROSS INCOME WHICH CONSIST OF (I) EARNED
INCOME, (II) PENSION PAYMENTS, INCLUDING SOCIAL SECURITY PAYMENTS, (III)
INTEREST, AND (IV) DIVIDENDS. FOR PURPOSES OF THIS PARAGRAPH, THE TERM
"EARNED INCOME" SHALL MEAN WAGES, SALARIES, TIPS AND OTHER EMPLOYEE
COMPENSATION, AND THOSE ITEMS OF GROSS INCOME WHICH ARE INCLUDIBLE IN
THE COMPUTATION OF NET EARNINGS FROM SELF-EMPLOYMENT. FOR THE PURPOSES
OF THIS PARAGRAPH, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION
A. 3009--B 107
PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS,
SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE
ELIGIBLE FARMERS.
(3) QUALIFIED DONATION. FOR PURPOSES OF THIS SUBSECTION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF ANY FRESH FOOD ITEM GROWN OR
PRODUCED BY AN ELIGIBLE FARMER TO A FOOD BANK OR OTHER EMERGENCY FOOD
PROGRAM OPERATING WITHIN THIS STATE.
(4) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
(XLIII) FARM DONATIONS TO FOOD AMOUNT OF CREDIT UNDER
BANK OR EMERGENCY FOOD PROGRAM SUBDIVISION FIFTY-TWO
CREDIT UNDER SUBSECTION (N-2) OF SECTION TWO HUNDRED
TEN-B
§ 3. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
52. CREDIT FOR FARM DONATIONS TO FOOD BANK OR EMERGENCY FOOD PROGRAM.
(A) GENERAL. IN THE CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARMER, THERE
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON
AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN. THE AMOUNT OF THE CREDIT
SHALL BE TWENTY-FIVE PERCENT OF THE WHOLESALE COST OF THE TAXPAYER'S
QUALIFIED DONATIONS, AS DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION,
MADE TO ANY FOOD BANK OR OTHER PUBLIC, CHARITABLE OR NOT-FOR-PROFIT
EMERGENCY FOOD PROGRAM OPERATING WITHIN THIS STATE, UP TO FIVE THOUSAND
DOLLARS DURING THE TAXABLE YEAR.
(B) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBDIVISION, THE TERM
"ELIGIBLE FARMER" MEANS A NEW YORK STATE RESIDENT TAXPAYER WHOSE FEDERAL
GROSS INCOME FROM FARMING FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF
EXCESS FEDERAL GROSS INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE
AMOUNT OF FEDERAL GROSS INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR
REDUCED BY THE SUM (NOT TO EXCEED THIRTY THOUSAND DOLLARS) OF THOSE
ITEMS INCLUDED IN FEDERAL GROSS INCOME WHICH CONSIST OF (I) EARNED
INCOME, (II) PENSION PAYMENTS, INCLUDING SOCIAL SECURITY PAYMENTS, (III)
INTEREST, AND (IV) DIVIDENDS. FOR PURPOSES OF THIS PARAGRAPH, THE TERM
"EARNED INCOME" SHALL MEAN WAGES, SALARIES, TIPS AND OTHER EMPLOYEE
COMPENSATION, AND THOSE ITEMS OF GROSS INCOME WHICH ARE INCLUDIBLE IN
THE COMPUTATION OF NET EARNINGS FROM SELF-EMPLOYMENT. FOR THE PURPOSES
OF THIS PARAGRAPH, PAYMENTS FROM THE STATE'S FARMLAND PROTECTION
PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND MARKETS,
SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING FOR OTHERWISE
ELIGIBLE FARMERS.
(C) QUALIFIED DONATION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF ANY FRESH FOOD ITEM GROWN OR
PRODUCED BY AN ELIGIBLE FARMER TO A FOOD BANK OR OTHER EMERGENCY FOOD
PROGRAM OPERATING WITHIN THIS STATE.
A. 3009--B 108
(D) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE MINIMUM TAX FIXED BY THIS ARTICLE. HOWEVER, IF THE AMOUNT OF
CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
§ 4. The department of agriculture and markets, in conjunction with
the department of taxation and finance, shall establish an accepted
wholesale price of the taxpayer's qualified donations and promulgate any
necessary rules and regulations.
§ 5. This act shall take effect on January 1, 2018 and shall apply to
taxable years beginning on or after such date.
PART EEE
Section 1. Section 606 of the tax law is amended by adding a new
subsection (hhh) to read as follows:
(HHH) EDUCATION LOAN INTEREST DEDUCTION CREDIT. (1) A QUALIFIED RESI-
DENT TAXPAYER SHALL BE ALLOWED A REFUNDABLE CREDIT, TO BE COMPUTED AS
PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST THE TAX IMPOSED
BY THIS ARTICLE, FOR ALLOWABLE INTEREST DEDUCTED ON AN EDUCATION LOAN.
(2) A QUALIFIED RESIDENT TAXPAYER SHALL MEAN A RESIDENT TAXPAYER WHO
HAS RESIDED IN THIS STATE FOR NOT LESS THAN TEN YEARS.
(3) THE AMOUNT OF THE CREDIT PROVIDED UNDER THIS SUBSECTION SHALL BE
EQUAL TO FIVE PERCENT OF THE AMOUNT OF THE DEDUCTION ALLOWED WITH
RESPECT TO THE INTEREST DEDUCTION ON AN EDUCATION LOAN UNDER SECTION TWO
HUNDRED TWENTY-ONE OF THE INTERNAL REVENUE CODE.
(4) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION EXCEEDS
A TAXPAYER'S TAX FOR THE TAXABLE YEAR, 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 SHALL BE PAID THEREON.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART FFF
Section 1. The tax law is amended by adding a new section 43 to read
as follows:
§ 43. NEW YORK AGRICULTURE AND RURAL JOBS CREDIT. (A) DEFINITIONS. FOR
THE PURPOSE OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
(1) "AFFILIATE" MEANS A PERSON THAT DIRECTLY, OR INDIRECTLY THROUGH
ONE OR MORE INTERMEDIARIES, CONTROLS, IS CONTROLLED BY, OR IS UNDER
COMMON CONTROL WITH ANOTHER PERSON. FOR THE PURPOSES OF THIS DIVISION, A
PERSON IS "CONTROLLED BY" ANOTHER PERSON IF THE CONTROLLING PERSON
HOLDS, DIRECTLY OR INDIRECTLY, THE MAJORITY VOTING OR OWNERSHIP INTEREST
IN THE CONTROLLED PERSON OR HAS CONTROL OVER THE DAY-TO-DAY OPERATIONS
OF THE CONTROLLED PERSON BY CONTRACT OR BY LAW.
(2) "CLOSING DATE" MEANS THE DATE ON WHICH A RURAL BUSINESS GROWTH
FUND HAS COLLECTED ALL OF THE AMOUNTS SPECIFIED BY SUBPARAGRAPHS (A) AND
(B) OF PARAGRAPH SEVEN OF SUBDIVISION (B) OF THIS SECTION.
A. 3009--B 109
(3) "CREDIT-ELIGIBLE CAPITAL CONTRIBUTION" MEANS AN INVESTMENT OF CASH
BY A PERSON IN A RURAL BUSINESS GROWTH FUND THAT EQUALS THE AMOUNT SPEC-
IFIED ON A TAX CREDIT CERTIFICATE ISSUED BY THE DEPARTMENT UNDER SUBPAR-
AGRAPH (B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF THIS SECTION. THE
INVESTMENT SHALL PURCHASE AN EQUITY INTEREST IN THE RURAL BUSINESS
GROWTH FUND OR PURCHASE, AT PAR VALUE OR PREMIUM, A DEBT INSTRUMENT
ISSUED BY THE RURAL GROWTH FUND THAT MEETS ALL OF THE FOLLOWING CRITE-
RIA:
(A) THE DEBT INSTRUMENT HAS AN ORIGINAL MATURITY DATE OF AT LEAST FIVE
YEARS AFTER THE DATE OF ISSUANCE.
(B) THE DEBT INSTRUMENT HAS A REPAYMENT SCHEDULE THAT IS NOT FASTER
THAN A LEVEL PRINCIPAL AMORTIZATION OVER FIVE YEARS.
(C) THE DEBT INSTRUMENT HAS NO INTEREST, DISTRIBUTION, OR PAYMENT
FEATURES DEPENDENT ON THE RURAL BUSINESS GROWTH FUND'S PROFITABILITY OR
THE SUCCESS OF THE RURAL GROWTH INVESTMENTS.
(4) "ELIGIBLE INVESTMENT AUTHORITY" MEANS THE AMOUNT STATED ON THE
NOTICE ISSUED UNDER SUBPARAGRAPH (A) OF PARAGRAPH SIX OF SUBDIVISION (B)
OF THIS SECTION CERTIFYING THE RURAL BUSINESS GROWTH FUND. AT LEAST
SIXTY-FIVE PERCENT OF A RURAL BUSINESS GROWTH FUND'S ELIGIBLE INVESTMENT
AUTHORITY SHALL BE COMPRISED OF CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
(5) A BUSINESS'S "PRINCIPAL BUSINESS OPERATIONS" ARE IN THIS STATE IF
AT LEAST EIGHTY PERCENT OF THE BUSINESS'S EMPLOYEES RESIDE IN THIS
STATE, THE INDIVIDUALS WHO RECEIVE EIGHTY PERCENT OF THE BUSINESS'S
PAYROLL RESIDE IN THIS STATE, OR THE BUSINESS HAS AGREED TO USE THE
PROCEEDS OF A RURAL GROWTH INVESTMENT TO RELOCATE AT LEAST EIGHTY
PERCENT OF ITS EMPLOYEES TO THIS STATE OR PAY AT LEAST EIGHTY PERCENT OF
ITS PAYROLL TO INDIVIDUALS RESIDING IN THIS STATE.
(6) "RURAL AREA" MEANS EITHER OF THE FOLLOWING:
(A) AN AREA OF THE STATE NOT IN A CITY OR TOWN THAT HAS A POPULATION
OF MORE THAN FIFTY THOUSAND INHABITANTS ACCORDING TO THE LATEST DECENNI-
AL CENSUS OF THE UNITED STATES OR IN THE URBANIZED AREA CONTIGUOUS AND
ADJACENT TO A CITY OR TOWN THAT HAS A POPULATION OF MORE THAN FIFTY
THOUSAND INHABITANTS; OR
(B) ANY AREA DETERMINED TO BE "RURAL IN CHARACTER" BY THE UNDER-SECRE-
TARY OF AGRICULTURE FOR RURAL DEVELOPMENT WITHIN THE UNITED STATES
DEPARTMENT OF AGRICULTURE.
(7) "RURAL BUSINESS CONCERN" MEANS AN OPERATING COMPANY THAT, AT THE
TIME OF THE INITIAL INVESTMENT IN THE COMPANY BY A RURAL BUSINESS GROWTH
FUND, HAS ITS PRINCIPAL BUSINESS OPERATIONS IN THIS STATE, HAS FEWER
THAN TWO HUNDRED FIFTY EMPLOYEES OR NOT MORE THAN FIFTEEN MILLION
DOLLARS IN NET INCOME FOR THE PRECEDING TAXABLE YEAR, AND MEETS EITHER
OF THE FOLLOWING CRITERIA:
(A) THE BUSINESS'S PRINCIPAL BUSINESS OPERATIONS ARE LOCATED IN A
RURAL AREA; OR
(B) THE BUSINESS IS INVOLVED IN THE PRODUCTION, PROCESSING OR MARKET-
ING OF AGRICULTURAL OR AQUATIC PRODUCTS, OR AGRICULTURAL TECHNOLOGY, OR
SUPPLYING FARMS WITH GOODS AND SERVICES IN SUPPORT OF FARMING. FOR THE
PURPOSES OF THIS SECTION, "NET INCOME" MEANS FEDERAL ADJUSTED GROSS
INCOME AS REQUIRED TO BE REPORTED UNDER THE INTERNAL REVENUE CODE LESS
FEDERAL AND STATE TAXES IMPOSED ON OR MEASURED BY INCOME. ANY BUSINESS
WHICH IS CLASSIFIED AS A RURAL BUSINESS CONCERN AT THE TIME OF THE
INITIAL INVESTMENT IN SAID BUSINESS BY A RURAL BUSINESS GROWTH FUND
SHALL REMAIN CLASSIFIED AS A RURAL BUSINESS CONCERN AND MAY RECEIVE
FOLLOW-ON INVESTMENTS FROM ANY RURAL BUSINESS GROWTH FUND, AND SUCH
FOLLOW-ON INVESTMENTS SHALL BE RURAL GROWTH INVESTMENTS EVEN THOUGH SUCH
A. 3009--B 110
BUSINESS MAY NOT MEET THE DEFINITION OF A RURAL BUSINESS CONCERN AT THE
TIME OF SUCH FOLLOW-ON INVESTMENTS.
(8) "RURAL BUSINESS GROWTH FUND" MEANS AN ENTITY CERTIFIED BY THE
DEPARTMENT UNDER THIS SECTION.
(9) "RURAL GROWTH INVESTMENT" MEANS ANY CAPITAL OR EQUITY INVESTMENT
IN A RURAL BUSINESS CONCERN OR ANY LOAN TO A RURAL BUSINESS CONCERN WITH
A TERM OF AT LEAST ONE YEAR.
(10) "DEPARTMENT" MEANS THE DEPARTMENT OF TAXATION AND FINANCE;
PROVIDED, HOWEVER, THAT "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF
ECONOMIC DEVELOPMENT WITH REGARD TO ANY APPLICATION, CERTIFICATION,
REPORT, SUBMISSION, FILING OR OTHER ACTION REQUIRED OR GOVERNED BY THIS
SECTION.
(B) CERTIFICATION. (1) ON AND AFTER AUGUST FIRST, TWO THOUSAND SEVEN-
TEEN, AN APPLICANT THAT HAS DEVELOPED A BUSINESS PLAN TO INVEST IN RURAL
BUSINESS CONCERNS IN THIS STATE AND HAS SUCCESSFULLY SOLICITED PRIVATE
INVESTORS TO MAKE CAPITAL CONTRIBUTIONS IN SUPPORT OF THE PLAN MAY APPLY
TO THE DEPARTMENT FOR CERTIFICATION AS A RURAL BUSINESS GROWTH FUND. THE
APPLICATION SHALL INCLUDE ALL OF THE FOLLOWING:
(A) THE TOTAL ELIGIBLE INVESTMENT AUTHORITY SOUGHT BY THE APPLICANT
UNDER THE BUSINESS PLAN;
(B) DOCUMENTS AND OTHER EVIDENCE SUFFICIENT TO PROVE, TO THE SATISFAC-
TION OF THE DEPARTMENT, THAT THE APPLICANT MEETS ALL OF THE FOLLOWING
CRITERIA: (I) THE APPLICANT OR AN AFFILIATE OF THE APPLICANT IS LICENSED
AS A RURAL BUSINESS INVESTMENT COMPANY UNDER 7 U.S.C. 2009CC, OR AS A
SMALL BUSINESS INVESTMENT COMPANY UNDER 15 U.S.C. 681.
(II) AS OF THE DATE THE APPLICATION IS SUBMITTED, THE APPLICANT HAS
INVESTED MORE THAN ONE HUNDRED MILLION DOLLARS IN OPERATING COMPANIES,
INCLUDING AT LEAST FIFTY MILLION DOLLARS IN OPERATING COMPANIES LOCATED
IN RURAL AREAS. IN COMPUTING INVESTMENTS UNDER THIS DIVISION, THE APPLI-
CANT MAY INCLUDE INVESTMENTS MADE BY AFFILIATES OF THE APPLICANT.
(C) AN ESTIMATE OF THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED
IN THIS STATE AS A RESULT OF THE APPLICANT'S RURAL GROWTH INVESTMENTS;
(D) A REVENUE IMPACT ASSESSMENT FOR THE APPLICANT'S PROPOSED RURAL
GROWTH INVESTMENTS PREPARED BY A NATIONALLY RECOGNIZED THIRD-PARTY INDE-
PENDENT ECONOMIC FORECASTING FIRM USING A DYNAMIC ECONOMIC FORECASTING
MODEL. THE REVENUE IMPACT ASSESSMENT SHALL ANALYZE THE APPLICANT'S
BUSINESS PLAN OVER THE TEN YEARS FOLLOWING THE DATE THE APPLICATION IS
SUBMITTED TO THE DEPARTMENT.
(E) A SIGNED AFFIDAVIT FROM EACH INVESTOR SUCCESSFULLY SOLICITED BY
THE APPLICANT TO MAKE A CREDIT ELIGIBLE CAPITAL CONTRIBUTION IN SUPPORT
OF THE BUSINESS PLAN. EACH AFFIDAVIT SHALL INCLUDE INFORMATION SUFFI-
CIENT FOR THE COMMISSIONER TO IDENTIFY THE INVESTOR AND SHALL STATE THE
AMOUNT OF THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION.
(F) A NONREFUNDABLE APPLICATION FEE OF FIVE THOUSAND DOLLARS.
(2) THE DEPARTMENT SHALL REVIEW AND MAKE A DETERMINATION WITH RESPECT
TO EACH APPLICATION SUBMITTED UNDER PARAGRAPH ONE OF THIS SUBDIVISION
WITHIN THIRTY DAYS OF RECEIPT. THE DEPARTMENT SHALL REVIEW AND MAKE
DETERMINATIONS ON THE APPLICATIONS IN THE ORDER IN WHICH THE APPLICA-
TIONS ARE RECEIVED BY THE DEPARTMENT. APPLICATIONS RECEIVED BY THE
DEPARTMENT ON THE SAME DAY SHALL BE DEEMED TO HAVE BEEN RECEIVED SIMUL-
TANEOUSLY. EXCEPT AS PROVIDED IN PARAGRAPH FOUR OF SUBDIVISION (C) OF
THIS SECTION, THE DEPARTMENT SHALL NOT APPROVE MORE THAN ONE HUNDRED
MILLION DOLLARS IN ELIGIBLE INVESTMENT AUTHORITY OR MORE THAN SIXTY-FIVE
MILLION DOLLARS IN CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS.
A. 3009--B 111
(3) THE DEPARTMENT SHALL DENY AN APPLICATION SUBMITTED UNDER THIS
SECTION IF ANY OF THE FOLLOWING ARE TRUE: (A) THE APPLICATION IS INCOM-
PLETE.
(B) THE APPLICATION FEE IS NOT PAID IN FULL.
(C) THE APPLICANT DOES NOT SATISFY ALL THE CRITERIA DESCRIBED IN
SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBDIVISION.
(D) THE REVENUE IMPACT ASSESSMENT SUBMITTED UNDER SUBPARAGRAPH (D) OF
PARAGRAPH ONE OF THIS SUBDIVISION DOES NOT DEMONSTRATE THAT THE APPLI-
CANT'S BUSINESS PLAN WILL RESULT IN A POSITIVE ECONOMIC IMPACT ON THIS
STATE OVER A TEN-YEAR PERIOD THAT EXCEEDS THE ELIGIBLE INVESTMENT
AUTHORITY SOUGHT BY THE APPLICANT.
(E) THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS DESCRIBED IN AFFIDAVITS
SUBMITTED UNDER SUBPARAGRAPH (E) OF PARAGRAPH ONE OF THIS SUBDIVISION DO
NOT EQUAL SIXTY-FIVE PERCENT OF THE TOTAL AMOUNT OF ELIGIBLE INVESTMENT
AUTHORITY SOUGHT UNDER THE APPLICANT'S BUSINESS PLAN.
(F) THE DEPARTMENT HAS ALREADY APPROVED THE MAXIMUM AMOUNT OF ELIGIBLE
INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS ALLOWED
UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
(4) IF THE DEPARTMENT DENIES AN APPLICATION UNDER PARAGRAPH THREE OF
THIS SUBDIVISION, THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION
OF THE APPLICANT. THE NOTICE SHALL INCLUDE THE REASONS THAT THE APPLICA-
TION WAS DENIED. IF THE APPLICATION WAS DENIED FOR ANY REASON OTHER THAN
THE REASON SPECIFIED IN SUBPARAGRAPH (F) OF PARAGRAPH THREE OF THIS
SUBDIVISION, THE APPLICANT MAY PROVIDE ADDITIONAL INFORMATION TO THE
DEPARTMENT TO COMPLETE, CLARIFY, OR CURE DEFECTS IN THE APPLICATION.
THE ADDITIONAL INFORMATION MUST BE SUBMITTED WITHIN THIRTY DAYS AFTER
THE DATE THE NOTICE OF DENIAL WAS SENT BY THE DEPARTMENT. IF THE PERSON
OR ENTITY SUBMITS ADDITIONAL INFORMATION WITHIN THIRTY DAYS, THE DEPART-
MENT SHALL RECONSIDER THE APPLICATION WITHIN THIRTY DAYS AFTER RECEIVING
SUCH ADDITIONAL INFORMATION. IF AFTER SUBMISSION OF ADDITIONAL INFORMA-
TION, THE DEPARTMENT APPROVES THE APPLICATION, THEN THE SUBMISSION DATE
SHALL BE THE DATE OF THE ORIGINAL SUBMISSION OF THE APPLICATION. IF THE
PERSON OR ENTITY DOES NOT SUBMIT ADDITIONAL INFORMATION WITHIN THIRTY
DAYS AFTER THE NOTICE OF DENIAL WAS SENT, THE APPLICANT MAY SUBMIT A NEW
APPLICATION WITH A NEW SUBMISSION DATE AT ANY TIME.
(5) OF APPROVING MULTIPLE SIMULTANEOUSLY SUBMITTED APPLICATIONS WOULD
RESULT IN EXCEEDING THE OVERALL ELIGIBLE INVESTMENT LIMIT PRESCRIBED BY
PARAGRAPH TWO OF THIS SUBDIVISION, THE DEPARTMENT SHALL PROPORTIONALLY
REDUCE THE ELIGIBLE INVESTMENT AUTHORITY AND THE CREDIT-ELIGIBLE CAPITAL
CONTRIBUTIONS FOR EACH APPROVED APPLICATION AS NECESSARY TO AVOID
EXCEEDING THE LIMIT.
(6) THE DEPARTMENT SHALL NOT DENY A RURAL BUSINESS GROWTH FUND APPLI-
CATION OR REDUCE THE REQUESTED ELIGIBLE INVESTMENT AUTHORITY FOR REASONS
OTHER THAN THOSE DESCRIBED IN PARAGRAPHS THREE AND FIVE OF THIS SUBDIVI-
SION. IF THE DEPARTMENT APPROVES SUCH APPLICATION, THE DEPARTMENT SHALL
ISSUE ALL OF THE FOLLOWING NOTICES: (A) TO THE APPLICANT, A WRITTEN
NOTICE CERTIFYING THAT THE APPLICANT QUALIFIES AS A RURAL BUSINESS
GROWTH FUND AND SPECIFYING THE AMOUNT OF THE APPLICANT'S ELIGIBLE
INVESTMENT AUTHORITY; (B) TO EACH INVESTOR WHOSE AFFIDAVIT WAS INCLUDED
IN THE APPLICATION, A TAX CREDIT CERTIFICATE SPECIFYING THE AMOUNT OF
THE INVESTOR'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION; (C) TO THE COMMIS-
SIONER, A COPY OF EACH TAX CREDIT CERTIFICATE ISSUED UNDER SUBPARAGRAPH
(B) OF THIS PARAGRAPH.
(7) A RURAL BUSINESS GROWTH FUND SHALL COMPLETE ALL OF THE FOLLOWING
WITHIN SIXTY DAYS OF RECEIVING THE CERTIFICATION ISSUED UNDER SUBPARA-
GRAPH (A) OF PARAGRAPH SIX OF THIS SUBDIVISION:
A. 3009--B 112
(A) COLLECT THE CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS FROM EACH INVES-
TOR ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH (B) OF PARAGRAPH
SIX OF THIS SUBDIVISION;
(B) COLLECT ONE OR MORE INVESTMENTS OF CASH, WHICH SHALL PURCHASE AN
EQUITY INTEREST IN THE RURAL GROWTH FUND OR A DEBT INSTRUMENT ISSUED BY
THE RURAL GROWTH FUND AT PAR VALUE OR PREMIUM, WITH A MATURITY DATE OF
AT LEAST FIVE YEARS FROM THE CLOSING DATE THAT, WHEN ADDED TO THE
CONTRIBUTIONS COLLECTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH, EQUAL
THE FUND'S ELIGIBLE INVESTMENT AUTHORITY. AT LEAST TEN PERCENT OF THE
FUND'S ELIGIBLE INVESTMENT AUTHORITY SHALL BE COMPRISED OF EQUITY
INVESTMENTS CONTRIBUTED BY AFFILIATES OF THE RURAL BUSINESS GROWTH FUND,
INCLUDING EMPLOYEES, OFFICERS, AND DIRECTORS OF SUCH AFFILIATES.
(C) SEND TO THE DEPARTMENT DOCUMENTATION SUFFICIENT TO PROVE THAT THE
AMOUNTS DESCRIBED IN SUBPARAGRAPHS (A) AND (B) OF THIS PARAGRAPH HAVE
BEEN COLLECTED. IF THE RURAL BUSINESS GROWTH FUND FAILS TO FULLY COMPLY
WITH THIS PARAGRAPH, THE FUND'S CERTIFICATION SHALL LAPSE.
(8) ELIGIBLE INVESTMENT AUTHORITY AND CORRESPONDING CREDIT-ELIGIBLE
CAPITAL CONTRIBUTIONS THAT LAPSE UNDER PARAGRAPH SEVEN OF THIS SUBDIVI-
SION DO NOT COUNT TOWARD LIMITS ON TOTAL ELIGIBLE INVESTMENT AUTHORITY
AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS PRESCRIBED IN PARAGRAPH TWO OF
THIS SUBDIVISION. ONCE ELIGIBLE INVESTMENT AUTHORITY HAS LAPSED, THE
DEPARTMENT SHALL FIRST AWARD LAPSED AUTHORITY PRO RATA TO EACH RURAL
BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE REQUESTED ELIGIBLE
INVESTMENT AUTHORITY UNDER PARAGRAPH FIVE OF THIS SUBDIVISION. ANY
REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY THE DEPARTMENT
TO NEW APPLICANTS.
(9) APPLICATION FEES SUBMITTED TO THE DEPARTMENT PURSUANT TO SUBPARA-
GRAPH (F) OF PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE CREDITED TO THE
NEW YORK AGRICULTURE AND RURAL JOBS FUND, CREATED IN SECTION NINETY-
NINE-AA OF THE STATE FINANCE LAW.
(C) REVOCATION OF CERTIFICATION. (1) THE DEPARTMENT SHALL REVOKE A TAX
CREDIT CERTIFICATE ISSUED UNDER SUBDIVISION (B) OF THIS SECTION IF ANY
OF THE FOLLOWING OCCUR WITH RESPECT TO A RURAL BUSINESS GROWTH FUND
BEFORE THE FUND EXITS THE PROGRAM UNDER PARAGRAPH FIVE OF THIS SUBDIVI-
SION.
(A) THE RURAL BUSINESS GROWTH FUND IN WHICH THE CREDIT-ELIGIBLE CAPI-
TAL CONTRIBUTION WAS MADE DOES NOT INVEST SIXTY PERCENT OF ITS ELIGIBLE
INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE WITHIN
TWO YEARS OF THE CLOSING DATE AND ONE HUNDRED PERCENT OF ITS ELIGIBLE
INVESTMENT AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE WITHIN
THREE YEARS OF THE CLOSING DATE.
(B) AFTER INVESTING ONE HUNDRED PERCENT OF ITS ELIGIBLE INVESTMENT
AUTHORITY IN RURAL GROWTH INVESTMENTS IN THIS STATE, THE RURAL BUSINESS
GROWTH FUND FAILS TO MAINTAIN THAT INVESTMENT UNTIL THE FIFTH ANNIVER-
SARY OF THE CLOSING DATE, INCLUDING THE REINVESTMENT OF SUCH INVESTMENT.
FOR THE PURPOSES OF THIS SECTION, AN INVESTMENT IS "MAINTAINED" EVEN IF
THE INVESTMENT IS SOLD OR REPAID SO LONG AS THE RURAL BUSINESS GROWTH
FUND REINVESTS AN AMOUNT EQUAL TO THE CAPITAL RETURNED OR RECOVERED BY
THE FUND FROM THE ORIGINAL INVESTMENT, EXCLUSIVE OF ANY PROFITS REAL-
IZED, IN OTHER RURAL GROWTH INVESTMENTS IN THIS STATE WITHIN TWELVE
MONTHS OF THE RECEIPT OF SUCH CAPITAL. AMOUNTS RECEIVED PERIODICALLY BY
A RURAL BUSINESS GROWTH FUND SHALL BE TREATED AS CONTINUALLY INVESTED IN
RURAL GROWTH INVESTMENTS IF THE AMOUNTS ARE REINVESTED IN ONE OR MORE
RURAL GROWTH INVESTMENTS BY THE END OF THE FOLLOWING CALENDAR YEAR. A
RURAL BUSINESS GROWTH FUND IS NOT REQUIRED TO REINVEST CAPITAL RETURNED
FROM RURAL GROWTH INVESTMENTS IN THE SIX MONTHS IMMEDIATELY PRECEDING
A. 3009--B 113
THE FIFTH ANNIVERSARY OF THE CLOSING DATE, AND SUCH RURAL GROWTH INVEST-
MENTS SHALL BE CONSIDERED HELD CONTINUOUSLY BY THE RURAL GROWTH FUND
THROUGH THE FIFTH ANNIVERSARY OF THE CLOSING DATE.
(C) THE RURAL BUSINESS GROWTH FUND INVESTS MORE THAN THE GREATER OF
SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS OR TWENTY PERCENT OF ITS
ELIGIBLE INVESTMENT AUTHORITY IN THE SAME RURAL BUSINESS CONCERN,
INCLUDING AMOUNTS INVESTED IN AFFILIATES OF THE RURAL BUSINESS CONCERN
BUT EXCLUDING AMOUNTS REINVESTED IN THE RURAL BUSINESS GROWTH FUND WITH
REPAID OR REDEEMED RURAL BUSINESS GROWTH INVESTMENTS, PROVIDED SUCH
REINVESTMENTS SHALL NOT COUNT TOWARDS THE REQUIREMENT OF SUBPARAGRAPH
(A) OF THIS PARAGRAPH.
(D) THE RURAL BUSINESS GROWTH FUND MAKES A RURAL GROWTH INVESTMENT IN
A RURAL BUSINESS CONCERN THAT DIRECTLY OR INDIRECTLY THROUGH AN AFFIL-
IATE OWNS, HAS THE RIGHT TO ACQUIRE AN OWNERSHIP INTEREST, MAKE A LOAN
TO, OR MAKE AN INVESTMENT IN THE RURAL BUSINESS GROWTH FUND, AN AFFIL-
IATE OF THE RURAL BUSINESS GROWTH FUND, OR AN INVESTOR IN THE RURAL
BUSINESS GROWTH FUND. THIS PARAGRAPH DOES NOT APPLY TO INVESTMENTS IN
PUBLICLY TRADED SECURITIES BY A RURAL BUSINESS CONCERN OR AN OWNER OR
AFFILIATE OF SUCH CONCERN.
(2) BEFORE TAKING ACTION UNDER PARAGRAPH ONE OF THIS SUBDIVISION, THE
DEPARTMENT SHALL NOTIFY THE RURAL BUSINESS GROWTH FUND OF THE REASONS
FOR THE PENDING ACTION. IF THE RURAL BUSINESS GROWTH FUND CORRECTS THE
VIOLATIONS, OTHER THAN VIOLATIONS OF SUBPARAGRAPH (D) OF PARAGRAPH ONE
OF THIS SUBDIVISION, OUTLINED IN THE NOTICE TO THE SATISFACTION OF THE
DEPARTMENT WITHIN ONE HUNDRED EIGHTY DAYS OF THE DATE OF THE NOTICE WAS
SENT, THE DEPARTMENT SHALL NOT REVOKE THE TAX CREDIT CERTIFICATES OR
LEVY A FINE.
(3) IF THE DEPARTMENT REVOKES A TAX CREDIT CERTIFICATE UNDER PARAGRAPH
ONE OF THIS SUBDIVISION, THE COMMISSIONER SHALL MAKE AN ASSESSMENT FOR
THE AMOUNT OF THE CREDIT CLAIMED BY THE CERTIFICATE HOLDER BEFORE THE
CERTIFICATE WAS REVOKED. THE COMMISSIONER SHALL MAKE THE ASSESSMENT
WITHIN ONE YEAR AFTER THE CERTIFICATE HAS BEEN REVOKED.
(4) IF TAX CREDIT CERTIFICATES ARE REVOKED UNDER PARAGRAPH ONE OF THIS
SUBDIVISION, THE ASSOCIATED ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-EL-
IGIBLE CAPITAL CONTRIBUTIONS DO NOT COUNT TOWARD THE LIMIT ON TOTAL
ELIGIBLE INVESTMENT AUTHORITY AND CREDIT-ELIGIBLE CAPITAL CONTRIBUTIONS
DESCRIBED BY PARAGRAPH TWO OF SUBDIVISION (B) OF THIS SECTION. THE
DEPARTMENT SHALL FIRST AWARD REVERTED AUTHORITY PRO RATA TO EACH RURAL
BUSINESS GROWTH FUND THAT WAS AWARDED LESS THAN THE REQUESTED ELIGIBLE
INVESTMENT AUTHORITY UNDER PARAGRAPH FIVE OF SUBDIVISION (B) OF THIS
SECTION. ANY REMAINING ELIGIBLE INVESTMENT AUTHORITY MAY BE AWARDED BY
THE DEPARTMENT TO NEW APPLICANTS.
(5) (A) ON OR AFTER THE FIFTH ANNIVERSARY OF THE CLOSING DATE, A RURAL
BUSINESS GROWTH FUND THAT HAS NOT COMMITTED ANY OF THE ACTS DESCRIBED IN
PARAGRAPH ONE OF THIS SUBDIVISION MAY APPLY TO THE DEPARTMENT TO EXIT
THE PROGRAM AS A RURAL BUSINESS GROWTH FUND AND NO LONGER BE SUBJECT TO
REGULATION UNDER THIS SECTION. THE DEPARTMENT SHALL RESPOND TO THE
APPLICATION WITHIN THIRTY DAYS AFTER RECEIVING SUCH APPLICATION. IN
EVALUATING SUCH REQUEST THE FACT THAT NO TAX CREDIT CERTIFICATES HAVE
BEEN REVOKED WITH RESPECT TO THE RURAL BUSINESS GROWTH FUND SHALL BE
SUFFICIENT EVIDENCE TO PROVE THAT THE FUND IS ELIGIBLE TO EXIT THE
PROGRAM. THE DEPARTMENT SHALL NOT UNREASONABLY DENY AN APPLICATION
SUBMITTED UNDER THIS SUBDIVISION.
(B) THE DEPARTMENT SHALL SEND NOTICE OF ITS DETERMINATION WITH RESPECT
TO AN APPLICATION SUBMITTED UNDER SUBPARAGRAPH (A) OF THIS PARAGRAPH TO
A. 3009--B 114
THE RURAL BUSINESS GROWTH FUND. IF THE APPLICATION IS DENIED, THE NOTICE
SHALL INCLUDE THE REASONS FOR THE DETERMINATION.
(C) THE DEPARTMENT SHALL NOT REVOKE A TAX CREDIT CERTIFICATE DUE TO
ANY ACTIONS OF A RURAL BUSINESS GROWTH FUND THAT OCCUR AFTER THE DATE
THE FUND'S APPLICATION FOR EXITING THE PROGRAM IS APPROVED UNDER SUBPAR-
AGRAPH (A) OF THIS PARAGRAPH.
(6) IF THE NUMBER OF JOBS CREATED OR RETAINED BY THE RURAL BUSINESS
CONCERN THAT RECEIVED RURAL GROWTH INVESTMENTS FROM THE RURAL BUSINESS
GROWTH FUND IS:
(A) LESS THAN SIXTY PERCENT OF THE NUMBER PROJECTED IN THE APPROVED
RURAL BUSINESS GROWTH FUND'S BUSINESS PLAN FILED AS PART OF ITS APPLICA-
TION FOR CERTIFICATION UNDER SUBDIVISION (B) OF THIS SECTION, THEN THE
STATE SHALL RECEIVE TWENTY PERCENT OF ANY DISTRIBUTION OR PAYMENT TO AN
EQUITY HOLDER IN AN APPROVED RURAL BUSINESS GROWTH FUND IN EXCESS OF THE
SUM OF THE AMOUNT OF EQUITY CAPITAL INVESTED IN THE FUND BY SUCH EQUITY
HOLDER AND AN AMOUNT EQUAL TO ANY PROJECTED INCREASE IN THE EQUITY HOLD-
ER'S FEDERAL OR STATE TAX LIABILITY, INCLUDING PENALTIES AND INTEREST,
RELATED TO THE EQUITY HOLDER'S OWNERSHIP, MANAGEMENT, OR OPERATION OF
THE FUND; OR
(B) GREATER THAN SIXTY PERCENT BUT LESS THAN EIGHTY PERCENT OF THE
NUMBER PROJECTED IN THE APPROVED RURAL BUSINESS GROWTH FUND'S BUSINESS
PLAN FILED AS PART OF ITS APPLICATION FOR CERTIFICATION UNDER SUBDIVI-
SION (B) OF THIS SECTION, THEN THE STATE SHALL RECEIVE TEN PERCENT OF
ANY DISTRIBUTION OR PAYMENT TO AN EQUITY HOLDER IN AN APPROVED RURAL
BUSINESS GROWTH FUND IN EXCESS OF THE SUM OF THE AMOUNT OF EQUITY CAPI-
TAL INVESTED IN THE FUND BY SUCH EQUITY HOLDER AND AN AMOUNT EQUAL TO
ANY PROJECTED INCREASE IN THE EQUITY HOLDER'S FEDERAL OR STATE TAX
LIABILITY, INCLUDING PENALTIES AND INTEREST, RELATED TO THE EQUITY HOLD-
ER'S OWNERSHIP, MANAGEMENT, OR OPERATION OF THE FUND.
(7) A RURAL BUSINESS GROWTH FUND MAY, PRIOR TO MAKING A RURAL GROWTH
INVESTMENT, REQUEST FROM THE DEPARTMENT A WRITTEN DETERMINATION AS TO
WHETHER THE BUSINESS ENTITY IN WHICH IT PROPOSES TO INVEST QUALIFIES AS
A RURAL BUSINESS CONCERN.
(D) REPORTS. (1) EACH RURAL BUSINESS GROWTH FUND SHALL SUBMIT A REPORT
TO THE DEPARTMENT ON OR BEFORE THE FIFTH BUSINESS DAY AFTER THE FIRST,
SECOND AND THIRD ANNIVERSARIES OF THE CLOSING DATE. THE REPORT SHALL
PROVIDE DOCUMENTATION AS TO THE RURAL GROWTH INVESTMENTS MADE BY THE
RURAL BUSINESS GROWTH FUND. SUCH DOCUMENTATION SHALL INCLUDE THE
FOLLOWING:
(A) A BANK STATEMENT OF THE RURAL BUSINESS GROWTH FUND DISPLAYING EACH
RURAL GROWTH INVESTMENT, INCLUDING THE TOTAL AMOUNT INVESTED AND THE
AMOUNT OF CREDIT ELIGIBLE CAPITAL CONTRIBUTIONS, AS WELL AS THE VALUE OF
THE TAX CREDITS PROVIDED FOR THE CREDIT ELIGIBLE CAPITAL CONTRIBUTIONS.
(B) THE NAME, LOCATION AND INDUSTRIAL SECTOR CLASSIFICATION OF EACH
RURAL BUSINESS CONCERN IN WHICH THE RURAL BUSINESS GROWTH FUND HAS MADE
A RURAL GROWTH INVESTMENT, INCLUDING EVIDENCE THAT THE BUSINESS CONCERN
WAS QUALIFIED AT THE TIME THE INVESTMENT WAS MADE.
(2) ON OR BEFORE THE LAST DAY OF FEBRUARY OF EACH YEAR FOLLOWING THE
YEAR IN WHICH THE REPORT REQUIRED UNDER PARAGRAPH ONE OF THIS SUBDIVI-
SION IS DUE, THE RURAL BUSINESS GROWTH FUND SHALL SUBMIT AN ANNUAL
REPORT TO THE DEPARTMENT INCLUDING THE FOLLOWING:
(A) THE NUMBER OF FULL TIME EQUIVALENT EMPLOYMENT POSITIONS CREATED OR
RETAINED AS A RESULT OF THE FUND'S RURAL GROWTH INVESTMENTS AS OF THE
LAST DAY OF THE PRECEDING CALENDAR YEAR;
(B) THE AVERAGE ANNUAL SALARY OF THE POSITIONS DESCRIBED IN SUBPARA-
GRAPH (A) OF THIS PARAGRAPH;
A. 3009--B 115
(C) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT.
(3) THE DEPARTMENT SHALL ADOPT RULES NECESSARY TO IMPLEMENT THIS
SUBDIVISION. THE COMMISSIONER OF ECONOMIC DEVELOPMENT, IN CONSULTATION
WITH THE COMMISSIONER SHALL PRODUCE AND POST ON THEIR WEBSITE AN ANNUAL
REPORT NO LATER THAN NINETY DAYS AFTER THE LAST DAY OF THE PRECEDING
CALENDAR YEAR. THE REPORT SHALL INCLUDE ALL OF THE INFORMATION PROVIDED
BY EACH RURAL BUSINESS GROWTH FUND IN THEIR REPORTS AS PER SUBPARAGRAPHS
(A) AND (B) OF PARAGRAPH TWO OF THIS SUBDIVISION AS WELL AS THE INFORMA-
TION REPORTED BY THE RURAL BUSINESS GROWTH FUND IN ITS THIRD ANNIVERSARY
REPORT TO THE DEPARTMENT AS PER PARAGRAPH ONE OF THIS SUBDIVISION,
EXCEPT FOR BANK STATEMENTS. THE COMMISSIONER OF ECONOMIC DEVELOPMENT
SHALL INCLUDE ANY OTHER INFORMATION DEEMED NECESSARY FOR INCLUSION IN
THE REPORT.
§ 2. Section 1511 of the tax law is amended by adding a new subdivi-
sion (dd) to read as follows:
(DD) CREDIT FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH FUND.
(1) THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAYERS
THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS
GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
(B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FORTY-THREE OF THIS
CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE AND SECTION ONE THOUSAND ONE HUNDRED TWELVE OF THE INSURANCE LAW.
THE CREDIT MAY NOT BE SOLD, TRANSFERRED OR ALLOCATED TO ANY ENTITY OTHER
THAN AN IN-STATE AFFILIATE OF THE TAXPAYER.
(2) ON THE CLOSING DATE, THE TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL
TO THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX CREDIT CERTIF-
ICATE. THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD ANNIVER-
SARY DATE OF THE CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY CLAIM
UP TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXA-
BLE YEARS THAT INCLUDE THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE
CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
THREE OF THIS SUBDIVISION.
(3) IF THE AMOUNT OF THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
OTHERWISE DUE FOR THAT YEAR, THE EXCESS SHALL BE CARRIED FORWARD TO
SUCCEEDING TAXABLE YEARS UNTIL FULLY USED. A TAXPAYER CLAIMING A CREDIT
UNDER THIS SECTION SHALL SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE
WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
CLAIMED.
§ 3. The tax law is amended by adding a new section 187-t to read as
follows:
§ 187-T. CREDIT FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH
FUND. 1. THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAY-
ERS THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS
GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
(B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FORTY-THREE OF THIS
CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED OR ALLOCATED TO ANY ENTITY
OTHER THAN AN IN-STATE AFFILIATE OF THE TAXPAYER.
2. ON THE CLOSING DATE, THE TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL
TO THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX CREDIT CERTIF-
ICATE. THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD ANNIVER-
A. 3009--B 116
SARY DATE OF THE CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
PURSUANT TO SUBDIVISION THREE OF THIS SECTION. THE TAXPAYER MAY CLAIM UP
TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXABLE
YEARS THAT INCLUDE THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE CLOSING
DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO SUBDIVISION THREE
OF THIS SECTION.
3. IF THE AMOUNT OF THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
OTHERWISE DUE FOR THAT YEAR, THE EXCESS SHALL BE CARRIED FORWARD TO
SUCCEEDING TAXABLE YEARS UNTIL FULLY USED. A TAXPAYER CLAIMING A CREDIT
UNDER THIS SECTION SHALL SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE
WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
CLAIMED.
§ 4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
52. CREDIT FOR CERTAIN INVESTMENTS TO A RURAL BUSINESS GROWTH FUND.
(1) THERE IS HEREBY ALLOWED A NONREFUNDABLE TAX CREDIT FOR TAXPAYERS
THAT MADE A CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO A RURAL BUSINESS
GROWTH FUND AND WERE ISSUED A TAX CREDIT CERTIFICATE UNDER SUBPARAGRAPH
(B) OF PARAGRAPH SIX OF SUBDIVISION (B) OF SECTION FORTY-THREE OF THIS
CHAPTER. THE CREDIT MAY BE CLAIMED AGAINST THE TAX IMPOSED BY THIS ARTI-
CLE. THE CREDIT MAY NOT BE SOLD, TRANSFERRED OR ALLOCATED TO ANY ENTITY
OTHER THAN AN IN-STATE AFFILIATE OF THE TAXPAYER.
(2) ON THE CLOSING DATE, THE TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL
TO THE AMOUNT OF THE TAXPAYER'S CREDIT-ELIGIBLE CAPITAL CONTRIBUTION TO
THE RURAL BUSINESS GROWTH FUND, AS SPECIFIED ON THE TAX CREDIT CERTIF-
ICATE. THE TAXPAYER MAY CLAIM UP TO TWENTY-FIVE PERCENT OF THE ELIGIBLE
INVESTMENT AUTHORITY FOR THE TAXABLE YEAR CONTAINING THE THIRD ANNIVER-
SARY DATE OF THE CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD
PURSUANT TO PARAGRAPH THREE OF THIS SUBDIVISION. THE TAXPAYER MAY CLAIM
UP TO TWENTY PERCENT OF THE ELIGIBLE INVESTMENT AUTHORITY FOR THE TAXA-
BLE YEARS THAT INCLUDE THE FOURTH AND FIFTH ANNIVERSARY DATES OF THE
CLOSING DATE, EXCLUSIVE OF AMOUNTS CARRIED FORWARD PURSUANT TO PARAGRAPH
THREE OF THIS SUBDIVISION.
(3) IF THE AMOUNT OF THE CREDIT FOR A TAXABLE YEAR EXCEEDS THE TAX
OTHERWISE DUE FOR THAT YEAR, THE EXCESS SHALL BE CARRIED FORWARD TO
SUCCEEDING TAXABLE YEARS UNTIL FULLY USED. A TAXPAYER CLAIMING A CREDIT
UNDER THIS SECTION SHALL SUBMIT A COPY OF THE TAX CREDIT CERTIFICATE
WITH THE TAXPAYER'S RETURN FOR EACH TAXABLE YEAR FOR WHICH THE CREDIT IS
CLAIMED.
§ 5. The state finance law is amended by adding a new section 99-aa to
read as follows:
§ 99-AA. NEW YORK AGRICULTURE AND RURAL JOBS FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
"NEW YORK AGRICULTURE AND RURAL JOBS FUND".
2. SUCH FUND SHALL CONSIST OF ALL APPLICATION FEES SUBMITTED PURSUANT
TO SUBPARAGRAPH (F) OF PARAGRAPH ONE OF SUBDIVISION (B) OF SECTION
FORTY-THREE OF THE TAX LAW, AND ALL OTHER MONEYS APPROPRIATED, CREDITED,
OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
3. MONEYS OF THE FUND, FOLLOWING APPROPRIATION BY THE LEGISLATURE
SHALL BE EXPENDED ONLY FOR THE PURPOSES OF PROVIDING FUNDING FOR THE NEW
YORK AGRICULTURE AND RURAL JOBS CREDIT SET FORTH IN SECTION FORTY-THREE
OF THE TAX LAW. MONEYS SHALL BE PAID OUT OF THE FUND ON THE AUDIT AND
WARRANT OF THE STATE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY
THE COMMISSIONER OF TAXATION AND FINANCE. ANY INTEREST RECEIVED BY THE
A. 3009--B 117
COMPTROLLER ON MONEYS ON DEPOSIT IN THE NEW YORK AGRICULTURE AND RURAL
JOBS FUND SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND.
§ 6. This act shall take effect July 1, 2017.
PART GGG
Section 1. Subdivision 6 of section 221 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 325 of the laws of 2004
and such section as renumbered by chapter 18 of the laws of 2008, is
amended to read as follows:
6. (A) The fund shall secure workers' compensation insurance coverage
on a blanket basis for the benefit of all jockeys, apprentice jockeys
and exercise persons licensed pursuant to this article or article four
of this chapter who are employees under section two of the workers'
compensation law, AND MAY ELECT, WITH THE APPROVAL OF THE GAMING COMMIS-
SION, TO SECURE WORKERS' COMPENSATION INSURANCE FOR EMPLOYEES OF
LICENSED TRAINERS OR OWNERS. IN THE EVENT THE FUND ELECTS, WITH THE
APPROVAL OF THE GAMING COMMISSION, TO SECURE WORKERS' COMPENSATION
INSURANCE FOR EMPLOYEES OF LICENSED TRAINERS OR OWNERS, THE FUND MAY
DISCONTINUE TO SECURE WORKERS' COMPENSATION INSURANCE FOR EMPLOYEES OF
LICENSED TRAINERS OR OWNERS ONLY UPON PRIOR APPROVAL OF THE GAMING
COMMISSION.
(B) THE FUND MAY ELECT, WITH THE APPROVAL OF THE GAMING COMMISSION, TO
SECURE WORKERS' COMPENSATION INSURANCE COVERAGE THROUGH A FORM OF SELF-
INSURANCE, PROVIDED THAT THE FUND HAS MET THE REQUIREMENTS OF THE NEW
YORK STATE DEPARTMENT OF FINANCIAL SERVICES AND WORKERS' COMPENSATION
BOARD, INCLUDING, WITHOUT LIMITATION, SUBDIVISION THREE OF SECTION FIFTY
OF THE WORKERS' COMPENSATION LAW.
§ 2. Subdivision 7 of section 221 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 section 1 of part PP of chapter 60 of
the laws of 2016, is amended to read as follows:
7. In order to pay the costs of the insurance required by this section
and by the workers' compensation law and to carry out its other powers
and duties and to pay for any of its liabilities under section four-
teen-a of the workers' compensation law, the New York Jockey Injury
Compensation Fund, Inc. shall ascertain the total funding necessary and
establish the sums that are to be paid by all owners and trainers
licensed or required to be licensed under section two hundred twenty of
this article, to obtain the total funding amount required annually. In
order to provide that any sum required to be paid by an owner or trainer
is equitable, the fund shall establish payment schedules which reflect
such factors as are appropriate, including where applicable, the
geographic location of the racing corporation at which the owner or
trainer participates, the duration of such participation, the amount of
any purse earnings, the number of horses involved, or such other factors
as the fund shall determine to be fair, equitable and in the best inter-
ests of racing. In no event shall the amount deducted from an owner's
share of purses exceed two per centum; provided, however, for two thou-
sand [sixteen] SEVENTEEN the New York Jockey Injury Compensation Fund,
Inc. may use up to two million dollars from the account established
pursuant to subdivision nine of section two hundred eight of this arti-
cle to pay the annual costs required by this section and the funds from
such account shall not count against the two per centum of purses
deducted from an owner's share of purses. The amount deducted from an
owner's share of purses shall not exceed one per centum after April
A. 3009--B 118
first, two thousand [seventeen] TWENTY. In the cases of multiple owner-
ships and limited racing appearances, the fund shall equitably adjust
the sum required.
The [state racing and wagering board] GAMING COMMISSION shall, as a
condition of racing, require any racing corporation or any quarterhorse
racing association or corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat, to
require that each trainer utilizing the facilities of such association
or corporation and each owner racing a horse shall place or have placed
on deposit with the horsemen's bookkeeper of such racing association or
corporation, an amount to be established and paid in a manner to be
determined by the fund.
Should the fund determine that the amount which has been collected in
the manner prescribed is inadequate to pay the annual costs required by
this section, it shall notify the [state racing and wagering board]
GAMING COMMISSION of the deficiency and the amount of the additional sum
or sums necessary to be paid by each owner and/or trainer in order to
cover such deficiency. The [state racing and wagering board] GAMING
COMMISSION shall, as an additional condition of racing, direct any
racing corporation or any quarterhorse racing association or corporation
authorized under this chapter to conduct pari-mutuel betting at a race
meeting or races run thereat, to require each trainer and owner to place
such additional sum or sums on deposit with the respective horsemen's
bookkeeper.
All amounts collected by a horsemen's bookkeeper pursuant to this
section shall be transferred to the fund created under this section and
shall be used by the fund to purchase workers' compensation insurance
for jockeys, apprentice jockeys and exercise persons licensed pursuant
to this article or article four of this chapter who are employees under
section two of the workers' compensation law, AND AT THE ELECTION OF THE
FUND, WITH THE APPROVAL OF THE GAMING COMMISSION, TO SECURE WORKERS'
COMPENSATION INSURANCE FOR EMPLOYEES OF LICENSED TRAINERS OR OWNERS to
pay for any of its liabilities under section fourteen-a of the workers'
compensation law and to administer the workers' compensation program for
such jockeys, apprentice jockeys and exercise persons AND, IF APPROVED
BY THE GAMING COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS
required by this section and the workers' compensation law.
IN THE EVENT THE FUND ELECTS, WITH THE APPROVAL OF THE GAMING COMMIS-
SION, TO SECURE WORKERS' COMPENSATION INSURANCE FOR EMPLOYEES OF
LICENSED TRAINERS OR OWNERS, THE FUND MAY ELECT TO HAVE THE SUM REQUIRED
TO BE PAID BY AN OWNER OR TRAINER PURSUANT TO THIS SECTION BE SUBJECT TO
AN EXAMINATION OF WORKERS' COMPENSATION CLAIMS ATTRIBUTABLE UNDER THE
FUND TO EACH SUCH OWNER OR TRAINER, INCLUDING THE FREQUENCY AND SEVERITY
OF ACCIDENTS AND INJURIES.
§ 3. Subdivision 12 of section 221 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 325 of the laws of 2004 and such
section as renumbered by chapter 18 of the laws of 2008, is amended and
two new subdivisions 13 and 14 are added to read as follows:
12. [The fund and the state racing and wagering board shall have such
power as is necessary to implement the provisions of this section.] FOR
PURPOSES OF THIS SECTION, THE TERM "EMPLOYEES OF LICENSED TRAINERS OR
OWNERS" SHALL HAVE THE SAME MEANING AS SUBDIVISION TWENTY-FOUR OF
SECTION TWO OF THE WORKERS' COMPENSATION LAW.
13. A. THERE IS CREATED A RACING SAFETY COMMITTEE TO REVIEW THE RISK
MANAGEMENT REPORT SUBMITTED TO THE COMMISSION BY THE FUND ON OR ABOUT
SEPTEMBER THIRTIETH, TWO THOUSAND SIXTEEN AND TO MAKE NON-BINDING RECOM-
A. 3009--B 119
MENDATIONS FOR THE IMPLEMENTATION OF THE SAFETY PROPOSALS AND INITI-
ATIVES SET FORTH IN SUCH REPORT. SUCH COMMITTEE SHALL CONSIST OF SEVEN
MEMBERS, EACH TO SERVE A TERM OF THREE YEARS, WITH ONE MEMBER EACH
APPOINTED BY:
(I) THE FUND;
(II) THE GAMING COMMISSION;
(III) THE FRANCHISED CORPORATION;
(IV) THE RACING ASSOCIATION OR CORPORATION LICENSED PURSUANT TO THIS
ARTICLE OR ARTICLE FOUR OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING
LAW TO OPERATE THE RACING AND TRAINING FACILITIES AT FINGER LAKES RACE-
TRACK;
(V) THE HORSEMEN'S ORGANIZATION REPRESENTING AT LEAST FIFTY-ONE
PERCENT OF THE OWNERS AND TRAINERS USING THE FACILITIES OF THE FRAN-
CHISED CORPORATION;
(VI) THE HORSEMEN'S ORGANIZATION REPRESENTING AT LEAST FIFTY-ONE
PERCENT OF THE OWNERS AND TRAINERS USING THE FACILITIES OF THE FINGER
LAKES RACETRACK; AND
(VII) THE JOCKEYS' GUILD.
THE MEMBER OF THE RACING SAFETY COMMITTEE APPOINTED BY THE FUND SHALL
SERVE AS CHAIRPERSON AND THE MEMBER OF THE RACING SAFETY COMMITTEE
APPOINTED BY THE COMMISSION SHALL SERVE AS VICE-CHAIRPERSON. MEMBERS OF
THE RACING SAFETY COMMITTEE SHALL HAVE EQUAL VOTING RIGHTS.
B. THE RACING SAFETY COMMITTEE SHALL MEET WITHIN NINETY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SUBDIVISION TO REVIEW AND DISCUSS THE IMPLE-
MENTATION OF THE RECOMMENDATIONS CONTAINED IN THE RISK MANAGEMENT REPORT
SUBMITTED TO THE GAMING COMMISSION BY THE FUND ON OR ABOUT SEPTEMBER
THIRTIETH, TWO THOUSAND SIXTEEN. THE RACING SAFETY COMMITTEE SHALL MEET
ON OR AFTER JULY FIRST, TWO THOUSAND SEVENTEEN, AND AT LEAST ANNUALLY
THEREAFTER, TO REVIEW THE WORKERS' COMPENSATION LOSS INFORMATION AND THE
STATUS OF SAFETY-RELATED FINDINGS AND RECOMMENDATIONS AND TO DEVELOP AN
ANNUAL STRATEGIC PLAN TO ADDRESS IDENTIFIED SAFETY ISSUES.
C. THE MEMBERS APPOINTED PURSUANT TO SUBPARAGRAPH (III) AND (IV) OF
PARAGRAPH A OF THIS SUBDIVISION, IN CONSULTATION WITH THE OTHER MEMBERS
OF THE RACING SAFETY COMMITTEE, SHALL:
(I) WITHIN ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, FOR EACH TRACK, DEVELOP SAFETY RULES FOR TRAINING
ACTIVITIES TO BE DOCUMENTED AND COMMUNICATED, IN BOTH ENGLISH AND SPAN-
ISH, TO JOCKEYS, APPRENTICE JOCKEYS, AND EXERCISE PERSONS LICENSED
PURSUANT TO THIS ARTICLE OR ARTICLE FOUR OF THIS CHAPTER WHO ARE EMPLOY-
EES UNDER SECTION TWO OF THE WORKERS' COMPENSATION LAW, AND AT THE
ELECTION OF THE FUND, WITH THE APPROVAL OF THE GAMING COMMISSION,
EMPLOYEES OF LICENSED TRAINERS OR OWNERS. SUCH SAFETY RULES SHALL
INCLUDE, BUT NOT BE LIMITED TO, PROPER USAGE OF PERSONAL PROTECTIVE
EQUIPMENT, REQUIRED RESPONSE TO LOOSE HORSES, PROHIBITION OF CELL PHONE
USE WHILE MOUNTED ON A HORSE, GENERAL REQUIREMENTS FOR JOGGING, GALLOP-
ING, BREEZING, PONYING A HORSE, AND STARTING GATE SAFETY PROTOCOLS.
REFRESHER TRAINING RELATED TO SUCH SAFETY RULES SHALL BE REQUIRED AT THE
START OF EACH MEET.
(II) PRIOR TO THE START OF EACH MEET, FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, MEET WITH TRAINERS OR THEIR REPRESENTATIVES TO DISCUSS
AND ADDRESS IDENTIFIED SAFETY ISSUES.
(III) WITHIN ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, FOR EACH TRACK, DEVELOP A WRITTEN, DOCUMENTED EMERGEN-
CY RESPONSE PLAN TO ADDRESS RESPONSE PROTOCOLS TO ON-TRACK ACCIDENTS AND
INCIDENTS, WHICH, AT A MINIMUM, SHALL INCLUDE DETAILED INFORMATION
REGARDING ROLES AND RESPONSIBILITIES FOR INDIVIDUALS WHO ARE RESPONSIBLE
A. 3009--B 120
FOR TRACK-RELATED ACCIDENTS AND INCIDENTS, INCLUDING, BUT NOT LIMITED
TO, OUTRIDERS, EMERGENCY MEDICAL TECHNICIANS/PARAMEDICS, AMBULANCE DRIV-
ERS, SECURITY, AND VETERINARY STAFF AND CLOCKERS.
(IV) WITHIN TWO HUNDRED TEN DAYS FOLLOWING THE EFFECTIVE DATE OF THIS
SUBDIVISION, COMMUNICATE THE EMERGENCY RESPONSE PLAN TO ALL ON-TRACK
PERSONNEL AS PART OF NEW HIRE ORIENTATION AND JOB ASSIGNMENT.
(V) WITHIN TWO HUNDRED TEN DAYS FOLLOWING THE EFFECTIVE DATE OF THIS
SUBDIVISION, AND AT LEAST ONCE ANNUALLY THEREAFTER, FOR EACH TRACK,
CONDUCT A MOCK EMERGENCY RESPONSE DRILL FOR ON-TRACK ACCIDENTS PRIOR TO
THE OPENING OF EACH RACE MEET. SUCH EMERGENCY RESPONSE DRILL SHALL BE
FILMED AND USED FOR EDUCATION AND TRAINING PURPOSES FOR PERSONNEL,
INCLUDING IN NEW HIRE ORIENTATION, AND TO ASSESS THE PERFORMANCE OF
INDIVIDUALS INVOLVED IN THE EMERGENCY RESPONSE.
(VI) WITHIN ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, UPGRADE THE CURRENT LEVEL OF EMERGENCY MEDICAL RESPON-
DERS FROM EMERGENCY MEDICAL TECHNICIANS TO PARAMEDICS.
14. THE FUND AND THE GAMING COMMISSION SHALL HAVE SUCH POWER AS IS
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
§ 4. Section 2 of the workers' compensation law is amended by adding a
new subdivision 24 to read as follows:
24. "EMPLOYEES OF LICENSED TRAINERS OR OWNERS" MEANS ASSISTANT TRAIN-
ERS, FOREMEN, WATCHMEN AND STABLE EMPLOYEES, INCLUDING GROOMS AND HOT-
WALKERS, EMPLOYED BY A TRAINER OR OWNER LICENSED PURSUANT TO ARTICLE TWO
OR FOUR OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
§ 5. The second undesignated paragraph of subdivision 3 of section 2
of the workers' compensation law, as amended by chapter 392 of the laws
of 2008, is amended to read as follows:
Notwithstanding any other provision of this chapter and for purposes
of this chapter only, "employer" shall mean, with respect to a jockey,
apprentice jockey or exercise person licensed under article two or four
of the racing, pari-mutuel wagering and breeding law, AND AT THE
ELECTION OF THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC., WITH THE
APPROVAL OF THE NEW YORK STATE GAMING COMMISSION, EMPLOYEES OF LICENSED
TRAINERS OR OWNERS, performing services for an owner or trainer in
connection with the training or racing of a horse at a facility of a
racing association or corporation subject to article two or four of the
racing, pari-mutuel wagering and breeding law and subject to the juris-
diction of the New York state [racing and wagering board] GAMING COMMIS-
SION, The New York Jockey Injury Compensation Fund, Inc. and all owners
and trainers who are licensed or required to be licensed under article
two or four of the racing, pari-mutuel wagering and breeding law at the
time of any occurrence for which benefits are payable pursuant to this
chapter in respect to the injury or death of such jockey, apprentice
jockey [or], exercise person OR, IF APPROVED BY THE NEW YORK STATE
GAMING COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER.
§ 6. The fifth undesignated paragraph of subdivision 4 of section 2 of
the workers' compensation law, as amended by chapter 169 of the laws of
2007, is amended to read as follows:
Notwithstanding any other provision of this chapter, and for purposes
of this chapter only, a jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS, performing
services for an owner or trainer in connection with the training or
racing of a horse at a facility of a racing association or corporation
A. 3009--B 121
subject to article two or four of the racing, pari-mutuel wagering and
breeding law and subject to the jurisdiction of the New York state
[racing and wagering board] GAMING COMMISSION shall be regarded as the
"employee" not solely of such owner or trainer, but shall instead be
conclusively presumed to be the "employee" of The New York Jockey Injury
Compensation Fund, Inc. and also of all owners and trainers who are
licensed or required to be licensed under article two or four of the
racing, pari-mutuel wagering and breeding law at the time of any occur-
rence for which benefits are payable pursuant to this chapter in respect
of the injury or death of such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER.
§ 7. The third undesignated paragraph of subdivision 5 of section 2 of
the workers' compensation law, as amended by chapter 392 of the laws of
2008, is amended to read as follows:
Notwithstanding any other provision of this chapter, and for purposes
of this chapter only, a jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS, performing
services for an owner or trainer in connection with the training or
racing of a horse at a facility of a racing association or corporation
subject to article two or four of the racing, pari-mutuel wagering and
breeding law and subject to the jurisdiction of the New York state
[racing and wagering board] GAMING COMMISSION shall be regarded as in
the "employment" not solely of such owner and trainer, but shall instead
be conclusively presumed to be in the "employment" of The New York Jock-
ey Injury Compensation Fund, Inc. and of all owners and trainers who are
licensed or required to be licensed under article two or four of the
racing, pari-mutuel wagering and breeding law, at the time of any occur-
rence for which benefits are payable pursuant to this chapter in respect
of the injury or death of such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER. For the purpose of this chapter only,
whether a livery driver's performance of covered services, as those
terms are defined in article six-G of the executive law, constitutes
"employment" shall be determined in accordance with section eighteen-c
of this chapter.
§ 8. The opening paragraph of section 11 of the workers' compensation
law, as amended by chapter 169 of the laws of 2007, is amended to read
as follows:
The liability of an employer prescribed by the last preceding section
shall be exclusive and in place of any other liability whatsoever, to
such employee, his or her personal representatives, spouse, parents,
dependents, distributees, or any person otherwise entitled to recover
damages, contribution or indemnity, at common law or otherwise, on
account of such injury or death or liability arising therefrom, except
that if an employer fails to secure the payment of compensation for his
or her injured employees and their dependents as provided in section
fifty of this chapter, an injured employee, or his or her legal repre-
sentative in case of death results from the injury, may, at his or her
option, elect to claim compensation under this chapter, or to maintain
an action in the courts for damages on account of such injury; and in
such an action it shall not be necessary to plead or prove freedom from
contributory negligence nor may the defendant plead as a defense that
A. 3009--B 122
the injury was caused by the negligence of a fellow servant nor that the
employee assumed the risk of his or her employment, nor that the injury
was due to the contributory negligence of the employee. The liability
under this chapter of The New York Jockey Injury Compensation Fund, Inc.
created under section two hundred [thirteen-a] TWENTY-ONE of the racing,
pari-mutuel wagering and breeding law shall be limited to the provision
of workers' compensation coverage to jockeys, apprentice jockeys [and],
exercise persons, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS licensed under
article two or four of the racing, pari-mutuel wagering and breeding law
and any statutory penalties resulting from the failure to provide such
coverage.
§ 9. Subdivision 4 of section 14-a of the workers' compensation law,
as amended by chapter 169 of the laws of 2007, is amended to read as
follows:
4. With respect to a jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER, who, pursuant to
section two of this chapter, is an employee of all owners and trainers
licensed or required to be licensed under article two or four of the
racing, pari-mutuel wagering and breeding law and The New York Jockey
Injury Compensation Fund, Inc., the owner or trainer for whom such jock-
ey, apprentice jockey [or], exercise person OR, IF APPROVED BY THE NEW
YORK STATE GAMING COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER
was performing services at the time of the accident shall be solely
responsible for the double payments described in subdivision one of this
section, to the extent that such payments exceed any amounts otherwise
payable with respect to such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER under any other section of this chapter,
and the New York Jockey Injury Compensation Fund, Inc. shall have no
responsibility for such excess payments, unless there shall be a failure
of the responsible owner or trainer to pay such award within the time
provided under this chapter. In the event of such failure to pay and the
board requires the fund to pay the award on behalf of such owner or
trainer who has been found to have violated this section, the fund shall
be entitled to an award against such owner or trainer for the amount so
paid which shall be collected in the same manner as an award of compen-
sation.
§ 10. Section 18-a of the workers' compensation law, as amended by
chapter 169 of the laws of 2007, is amended to read as follows:
§ 18-a. Notice: The New York Jockey Injury Compensation Fund, Inc.
Wherever in this chapter it shall be required that notice be given to an
employer, except for claims involving section fourteen-a of the workers'
compensation law such notice requirement shall be deemed satisfied by
giving notice to the New York Jockey Injury Compensation Fund, Inc., in
connection with an injury to a jockey, apprentice jockey or exercise
person licensed under article two or four of the racing, pari-mutuel
wagering and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY
INJURY COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE
GAMING COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER, who,
pursuant to section two of this chapter, is an employee of all owners
and trainers licensed or required to be licensed under article two or
A. 3009--B 123
four of the racing, pari-mutuel wagering and breeding law and of the
fund. In a claim involving section fourteen-a of the workers' compen-
sation law such required notice shall be given to the employing owner
and/or trainer of the fund.
§ 11. Subdivision 8 of section 50 of the workers' compensation law, as
amended by chapter 169 of the laws of 2007, is amended to read as
follows:
8. The requirements of section ten of this chapter regarding the
provision of workers' compensation insurance as to owners and trainers
governed by the racing, pari-mutuel wagering and breeding law who are
employers under section two of this chapter are satisfied in full by
compliance with the requirements imposed upon owners and trainers by
section two hundred [thirteen-a] TWENTY-ONE of the racing, pari-mutuel
wagering and breeding law, provided that in the event double compen-
sation, death benefits, or awards are payable with respect to an injured
employee under section fourteen-a of this chapter, the owner or trainer
for whom the injured jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER, is performing
services as a jockey, apprentice jockey or exercise person so licensed
at the time of the accident OR, IF APPROVED BY THE NEW YORK STATE GAMING
COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER shall bear the
sole responsibility for the amount payable pursuant to such section
fourteen-a in excess of the amount otherwise payable under this chapter,
unless there shall be a failure of the responsible owner or trainer to
pay such award within the time provided under this chapter. In the event
of such failure to pay and the board requires the fund to pay the award
on behalf of such owner or trainer who has been found to have violated
section fourteen-a OF THIS CHAPTER, the fund shall be entitled to an
award against such owner or trainer for the amount so paid which shall
be collected in the same manner as an award of compensation. Coverage
directly procured by any owner or trainer for the purpose of satisfying
the requirements of this chapter with respect to employees of the owner
or trainer shall not include coverage on any jockey, apprentice jockey
or exercise person licensed under article two or four of the racing,
pari-mutuel wagering and breeding law, AND AT THE ELECTION OF THE NEW
YORK JOCKEY INJURY COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW
YORK STATE GAMING COMMISSION, ANY EMPLOYEE OF A LICENSED TRAINER OR
OWNER, to the extent that such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER is also covered under coverage procured
by The New York Jockey Injury Compensation Fund, Inc. pursuant to the
requirements of section two hundred [thirteen-a] TWENTY-ONE of the
racing, pari-mutuel wagering and breeding law, and to that extent,
coverage procured by the fund pursuant to the requirements of the
racing, pari-mutuel wagering and breeding law shall be considered prima-
ry.
§ 12. This act shall take effect immediately.
PART HHH
Section 1. Paragraph 4 of subdivision a and subdivision c of section
1617-a of the tax law, paragraph 4 of subdivision a as added and subdi-
A. 3009--B 124
vision c as amended by section 1 of part SS of chapter 60 of the laws of
2016, are amended to read as follows:
(4) Aqueduct racetrack, within the lottery terminal facility, pursuant
to an agreement between the corporation established pursuant to section
five hundred two of the racing, pari-mutuel wagering and breeding law in
the Nassau region and the operator of video lottery gaming at Aqueduct
racetrack, when such agreement is approved by the gaming commission and
as long as such agreement is in place, and when such agreement is accom-
panied by a detailed spending plan for the corporation established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and breeding law in the Nassau region, which includes a plan for the
timely payment of liabilities due to the franchised corporation,
PROVIDED THAT AN ADDENDUM TO SUCH DETAILED SPENDING PLAN SHALL BE
SUBMITTED TO THE COMMISSION ON OR BEFORE JUNE FIRST, TWO THOUSAND SEVEN-
TEEN THAT TAKES INTO CONSIDERATION THE FAIR AND EQUITABLE DISTRIBUTION
OF FUNDS BY THE CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED
TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE NASSAU
REGION TO THE PARTICIPATING COUNTIES, and when such video lottery
devices are hosted by the operator of video lottery gaming at Aqueduct
racetrack on behalf of the corporation established pursuant to section
five hundred two of the racing, pari-mutuel wagering and breeding law in
the Nassau region in lieu of the development of a facility in Nassau
county as authorized by paragraph three of THIS subdivision [a of this
section]. Such agreement reached by the parties shall identify the agen-
cy principally responsible for funding, approving or undertaking any
actions of such agreement. Provided, however, nothing in this paragraph
shall infringe upon the rights of the corporation established pursuant
to section five hundred two of the racing, pari-mutuel wagering and
breeding law in the Nassau region to develop a facility pursuant to
paragraph three of this subdivision upon the expiration, termination, or
withdrawal of such agreement.
c. The terminals authorized pursuant to paragraph four of subdivision
a of this section shall:
(i) be deemed as operated by the corporation established pursuant to
section five hundred two of the racing, pari-mutuel wagering and breed-
ing law in the Nassau region for the purposes of section sixteen hundred
twelve of this chapter and the distributions therefrom made as if the
video lottery devices were located in Nassau county;
(ii) consist exclusively of electronic table games, unless otherwise
approved by the gaming commission and the director of the division of
the budget; [and]
(iii) be individually designated as hosted[.]; AND
(IV) AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN, BE IN ADDITION TO THE
NUMBER OF TERMINALS IN OPERATION AT THE AQUEDUCT VIDEO LOTTERY TERMINAL
FACILITY ON THE FIRST OF OCTOBER, TWO THOUSAND SIXTEEN.
§ 2. Section 1617-a of the tax law is amended by adding a new subdivi-
sion d-1 to read as follows:
D-1. THE OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK SHALL
BE REQUIRED TO MAINTAIN, AT MINIMUM:
(I) THE AMOUNTS FOR AID TO EDUCATION FROM VIDEO LOTTERY GAMING AT
AQUEDUCT RACETRACK AT THE DOLLAR LEVEL REALIZED IN TWO THOUSAND FIFTEEN,
TO BE ADJUSTED BY THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS, AS
PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF LABOR BUREAU OF
LABOR STATISTICS;
(II) AN AMOUNT TO HORSEMEN FOR PURSES AT AQUEDUCT RACETRACK THAT WILL
ASSURE THE PURSE SUPPORT FROM VIDEO LOTTERY GAMING AT AQUEDUCT RACETRACK
A. 3009--B 125
TO BE MAINTAINED AT THE SAME DOLLAR LEVEL REALIZED IN TWO THOUSAND
FIFTEEN TO BE ADJUSTED BY THE CONSUMER PRICE INDEX FOR ALL URBAN CONSUM-
ERS, AS PUBLISHED ANNUALLY BY THE UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS; AND
(III) AN AMOUNT TO THE NEW YORK STATE THOROUGHBRED BREEDING AND DEVEL-
OPMENT FUND TO MAINTAIN PAYMENTS FROM VIDEO LOTTERY GAMING AT AQUEDUCT
RACETRACK TO SUCH FUND TO BE MAINTAINED AT THE SAME DOLLAR LEVEL REAL-
IZED IN TWO THOUSAND FIFTEEN TO BE ADJUSTED BY THE CONSUMER PRICE INDEX
FOR ALL URBAN CONSUMERS, AS PUBLISHED ANNUALLY BY THE UNITED STATES
DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS.
§ 3. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision 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. Any amount attributable to a capital expenditure
approved prior to April first, two thousand seventeen and completed
A. 3009--B 126
before April first, two thousand nineteen; or approved prior to April
first, two thousand twenty-one and completed before April first, two
thousand twenty-three 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 and completed prior to April first,
two thousand nineteen, exceed the vendor track's cumulative capital
award during the five year period ending April first, two thousand
seventeen, the vendor shall continue to receive the capital award after
April first, two thousand seventeen until such approved capital expendi-
tures are paid to the vendor track subject to any required co-invest-
ment. 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 operator 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 general-
ly accepted accounting principles, shall reimburse 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 shall be deposited into the state lottery
fund for education aid; and
§ 4. Subparagraph (iii) of paragraph 1 of subdivision b of section
1612 of the tax law, as separately amended by chapters 174 and 175 of
the laws of 2013, is amended to read as follows:
(iii) less an additional vendor's marketing allowance at a rate of ten
percent for the first one hundred million dollars annually and eight
percent thereafter of the total revenue wagered at the vendor track
after payout for prizes to be used by the vendor track for the marketing
and promotion and associated costs of its video lottery gaming oper-
ations and pari-mutuel horse racing operations, as long as any such
costs associated with pari-mutuel horse racing operations simultaneously
encourage increased attendance at such vendor's video lottery gaming
facilities, consistent with the customary manner of marketing comparable
operations in the industry and subject to the overall supervision of the
division; provided, however, that:
(A) the additional vendor's marketing allowance shall not exceed eight
percent in any year for any operator of a racetrack located in the coun-
ty of Westchester or Queens; [provided, however, a vendor track that
receives a vendor fee pursuant to clause (G) of subparagraph (ii) of
this paragraph shall not receive the additional vendor's marketing
allowance; provided, however, except for]
(B) a vendor track located west of State Route 14 from Sodus Point to
the Pennsylvania border within New York shall continue to receive a
marketing allowance of ten percent on total revenue wagered at the
vendor track after payout for prizes in excess of one hundred million
dollars annually [provided, however,];
(C) a vendor that receives a vendor fee pursuant to clause (G-1) of
subparagraph (ii) of this paragraph shall receive an additional market-
ing allowance at a rate of ten percent of the total revenue wagered at
the video lottery gaming facility after payout for prizes[. In estab-
lishing the vendor fee,]; PROVIDED, HOWEVER, THAT ANY SUCH VENDOR THAT
HAS ENTERED INTO AN AGREEMENT WITH THE OPERATOR OF VIDEO LOTTERY GAMING
AT AQUEDUCT RACETRACK IN LIEU OF THE DEVELOPMENT OF A FACILITY IN NASSAU
COUNTY SHALL RECEIVE AN ADDITIONAL MARKETING ALLOWANCE AT A RATE OF
A. 3009--B 127
EIGHT PERCENT OF THE TOTAL REVENUE WAGERED AT THE VIDEO LOTTERY GAMING
FACILITY AFTER PAYOUT FOR PRIZES.
§ 5. Nothing in this act shall be construed to result in any material
increase in the effective gaming tax rate or in the statutory payments
applicable to the Aqueduct video lottery terminal facility under New
York state law which may lead to the expiration, termination, or with-
drawal of the hosting agreement between the corporation established
pursuant to section 502 of the racing, pari-mutuel wagering and breeding
law in the Nassau region and the operator of video lottery gaming at
Aqueduct racetrack entered into on August 26, 2016 and as authorized
pursuant to paragraph (4) of subdivision a of section 1617-a of the tax
law.
§ 6. This act shall take effect immediately; provided, however, that
sections two and four of this act shall be deemed to have been in full
force and effect on and after October 1, 2016; and provided, further,
that section two of this act shall expire and be deemed repealed upon
the designation of one thousand video lottery devices as hosted pursuant
to paragraph (4) of subdivision a of section 1617-a of the tax law, as
amended by section one of this act; provided that the gaming commission
shall notify the legislative bill drafting commission upon the desig-
nation of one thousand video lottery devices as hosted pursuant to para-
graph (4) of subdivision a of section 1617-a of the tax law, as amended
by section one of this act 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.
§ 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 HHH of this act shall
be as specifically set forth in the last section of such Parts.
2017-A3009C (ACTIVE) - Details
- See Senate Version of this Bill:
- S2009
- Law Section:
- Budget Bills
- Laws Affected:
- Amd Various Laws, generally
2017-A3009C (ACTIVE) - Summary
Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F)
2017-A3009C (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
S. 2009--C A. 3009--C
S E N A T E - A S S E M B L Y
January 23, 2017
___________
IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti-
cle seven of the Constitution -- read twice and ordered printed, and
when printed to be committed to the Committee on Finance -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to
article seven of the Constitution -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
again reported from said committee with amendments, ordered reprinted
as amended and recommitted to said committee -- again reported from
said committee with amendments, ordered reprinted as amended and
recommitted to said committee
AN ACT intentionally omitted (Part A); intentionally omitted (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 population of one million or more; and to repeal section
54-f of the state finance law relating thereto (Part C); intentionally
omitted (Part D); intentionally omitted (Part E); to amend the real
property tax law, in relation to authorizing partial payments of prop-
erty 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12574-08-7
S. 2009--C 2 A. 3009--C
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 (Subpart A); and to
amend the labor law and the tax law, in relation to establishing the
empire state apprenticeship tax credit program (Subpart B) (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 liability companies that are disregarded entities in
determining eligibility for tax credits (Part Q); to amend the tax
law, in relation to extending the top personal income tax rate for two
years; and to repeal subparagraph (B) of paragraph 1 of subsection
(a), subparagraph (B) of paragraph 1 of subsection (b) and subpara-
graph (B) of paragraph 1 of subsection (c) of section 601 of the tax
law, relating to the imposition of tax (Part R); to amend the tax law
and the administrative code of the city of New York, in relation to
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 financial institution data match system for state tax
collection purposes; and providing for the repeal of such provisions
upon expiration thereof (Part U); intentionally omitted (Part V);
intentionally omitted (Part W); to amend 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, in
relation to extending the provisions authorizing service of income
executions on individual tax debtors without filing a warrant (Part
X); intentionally omitted (Part Y); to amend the tax law, in relation
to the definition of New York source income (Part Z); to amend the tax
law, in relation to closing the nonresident partnership asset sale
loophole (Part AA); intentionally omitted (Part BB); to amend the tax
law, in relation to closing the existing tax loopholes for trans-
actions 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 imposition of sales tax on gas service
or electric service of whatever nature (Part DD); intentionally omit-
ted (Part EE); intentionally omitted (Part FF); intentionally omitted
(Part GG); intentionally omitted (Part HH); intentionally omitted
(Part II); intentionally omitted (Part JJ); intentionally omitted
(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 executive law, in
relation to the powers and duties of the state bingo control commis-
sion; and to amend the general municipal law, in relation to bingo
games (Part MM); to amend the racing, pari-mutuel wagering and breed-
ing law, in relation to allowing for the reprivatization of NYRA (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; to amend chapter 346 of the laws of 1990 amending the
racing, pari-mutuel wagering and breeding law and other laws relating
to simulcasting and the imposition of certain taxes, in relation to
S. 2009--C 3 A. 3009--C
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); intentionally
omitted (Part RR); to amend the racing, pari-mutuel wagering and
breeding law and the workers' compensation law, in relation to the New
York Jockey Injury Compensation Fund, Inc. (Part SS); to amend the tax
law and the real property tax law, in relation to changing the calcu-
lation of STAR credit (Part TT); to amend the tax law, in relation to
the prepaid sales tax on motor fuel and diesel motor fuel under arti-
cle 28 thereof (Part UU); to amend the tax law and the administrative
code of the city of New York, in relation to qualified financial
instruments of RICS and REITS (Part VV); to amend the tax law, in
relation to exempting certain monuments from sales and use taxes (Part
WW); to amend the New York state urban development corporation act, in
relation to certain qualified entities (Part XX); to amend the econom-
ic development law, in relation to excelsior research and development
tax credits (Part YY); to amend the economic development law, in
relation to eligibility to participate in the excelsior jobs program
(Part ZZ); to amend the vehicle and traffic law, the insurance law,
the executive law, the general municipal law and the tax law, in
relation to the regulation of transportation network company services;
to establish the New York State TNC Accessibility Task Force and the
New York state transportation network company review board; and
providing for the repeal of certain provisions relating thereto (Part
AAA); to establish the county-wide shared services property tax
savings law (Part BBB); to amend chapter 261 of the laws of 1988,
amending the state finance law and other laws relating to the New York
state infrastructure trust fund, in relation to the minority and
women-owned business enterprise program (Part CCC); to amend the tax
law, in relation to the establishment of a tax credit for farm
donations to food pantries (Part DDD); to amend the tax law, in
relation to the imposition of a surcharge on prepaid wireless communi-
cations service and to repeal certain provisions of the county law
relating thereto (Part EEE); to amend the public health law, in
relation to the health care facility transformation program (Part
FFF); to amend the public health law, in relation to managed long term
care plans and demonstrations (Part GGG); to amend the education law,
in relation to establishing the excelsior scholarship (Part HHH); to
amend the education law, in relation to establishing enhanced tuition
assistance program awards (Part III); to amend the education law, in
relation to the NY-SUNY 2020 challenge grant program act; and to amend
chapter 260 of the laws of 2011, amending the education law and the
New York state urban development corporation act relating to estab-
lishing components of the NY-SUNY 2020 challenge grant program, in
relation to the effectiveness thereof (Part JJJ); to amend the educa-
tion law, in relation to a New York state part-time scholarship award
program (Part KKK); requiring the president of the higher education
services corporation to report on options to make college more afford-
able for New York students and providing for the repeal of such
provisions upon expiration thereof (Part LLL); to amend the education
law, in relation to establishing the New York state child welfare
worker incentive scholarship program and the New York state child
welfare worker loan forgiveness incentive program (Part MMM); to amend
the workers' compensation law, in relation to the schedule of compen-
S. 2009--C 4 A. 3009--C
sation in the case of injury, and in relation to appeals (Subpart A);
to amend the workers' compensation law, in relation to requiring the
drafting of permanency impairment guidelines (Subpart B); to amend the
workers' compensation law, in relation to a comprehensive pharmacy
benefit plan and prescription drug formulary (Subpart C); to amend the
workers' compensation law, in relation to penalties for failure to pay
compensation (Subpart D); to amend the workers' compensation law, in
relation to assumption of workers' compensation liability policies
(Subpart E); to amend chapter 11 of the laws of 2008 amending the
workers' compensation law, the insurance law, the volunteer ambulance
workers' benefit law and the volunteer firefighters' benefit law
relating to rates for workers' compensation insurance and setting
forth conditions for workers' compensation rate service organization,
in relation to the effectiveness thereof; and to amend the insurance
law, in relation to workers' compensation rate service organizations
(Subpart F); to amend the workers' compensation law, in relation to
requiring a study on independent medical examinations (Subpart G); and
to amend the workers' compensation law, in relation to security for
payment of compensation (Subpart H); to amend the workers' compen-
sation law, in relation to liability for compensation (Subpart I); and
to amend the workers' compensation law, in relation to assessments for
annual expenses; and providing for the repeal of certain provisions
upon expiration thereof (Subpart J) (Part NNN); to amend the tax law,
in relation to allowing an additional New York itemized deduction for
union dues not included in federal itemized deductions (Part OOO); to
amend the executive law and the criminal procedure law, in relation to
the establishment of the office of the inspector general of New York
for transportation (Part PPP); authorizing the transfer of certain
expenditures and disbursements; and to repeal a chapter of the laws of
2017 making appropriations for the support of government, as proposed
in legislative bills numbers S.5492 and A.7068 relating thereto (Part
QQQ); to amend the infrastructure investment act, in relation to the
definition of an authorized entity that may utilize design-build
contracts, and in relation to the effectiveness thereof (Part RRR); to
amend the retirement and social security law, in relation to disabili-
ty benefits for certain members of the New York city police pension
fund (Part SSS); to amend the real property tax law, in relation to
the affordable New York housing program and to repeal certain
provisions of such law relating thereto (Part TTT); to amend the
economic development law, in relation to comprehensive economic devel-
opment reporting; and to repeal section 438 of the economic develop-
ment law relating thereto (Part UUU); to amend the criminal procedure
law, the family court act and the executive law, in relation to state-
ments of those accused of crimes and eyewitness identifications, to
enhance criminal investigations and prosecutions and to promote confi-
dence in the criminal justice system of this state; to amend the coun-
ty law and the executive law, in relation to the implementation of a
plan regarding indigent legal services (Part VVV); to amend the crimi-
nal procedure law, the penal law, the executive law, the family court
act, the social services law, the correction law, the county law and
the state finance law, in relation to proceedings against juvenile and
adolescent offenders and the age of juvenile and adolescent offenders
and to repeal certain provisions of the criminal procedure law relat-
ing thereto (Part WWW); to provide for the administration of certain
funds and accounts related to the 2017-18 budget and authorizing
certain payments and transfers; to amend the state finance law, in
S. 2009--C 5 A. 3009--C
relation to the school tax relief fund and payments, transfers and
deposits; to amend chapter 62 of the laws of 2003 amending the general
business law and other laws relating to implementing the state fiscal
plan for the 2003-2004 state fiscal year, in relation to the deposit
provisions of the tobacco settlement financing corporation act; to
amend the state finance law, in relation to establishing the retiree
health benefit trust fund; to amend chapter 174 of the laws of 1968
constituting the New York state urban development corporation act, in
relation to funding project costs undertaken by non-public schools; to
amend the New York state urban development corporation act, in
relation to funding project costs for certain capital projects; to
amend chapter 389 of the laws of 1997, relating to the financing of
the correctional facilities improvement fund and the youth facility
improvement fund, in relation to the issuance of bonds; to amend the
private housing finance law, in relation to housing program bonds and
notes; to amend chapter 329 of the laws of 1991, amending the state
finance law and other laws relating to the establishment of the dedi-
cated highway and bridge trust fund, in relation to the issuance of
bonds; to amend the public authorities law, in relation to the issu-
ance of bonds by the dormitory authority; to amend chapter 61 of the
laws of 2005 relating to providing for the administration of certain
funds and accounts related to the 2005-2006 budget, in relation to
issuance of bonds by the urban development corporation; to amend the
New York state urban development corporation act, in relation to the
issuance of bonds; to amend the public authorities law, in relation to
the state environmental infrastructure projects; to amend the New York
state urban development corporation act, in relation to authorizing
the urban development corporation to issue bonds to fund project costs
for the implementation of a NY-CUNY challenge grant program and
increasing the bonding limit for certain state and municipal facili-
ties; to amend chapter 61 of the laws of 2005, relating to providing
for the administration of certain funds and accounts related to the
2005-2006 budget, in relation to increasing the bonding limit for
certain public protection facilities; to amend chapter 81 of the laws
of 2002, relating to providing for the administration of certain funds
and accounts related to the 2002-2003 budget, in relation to increas-
ing the aggregate amount of bonds to be issued by the New York state
urban development corporation; to amend the public authorities law, in
relation to financing of peace bridge and transportation capital
projects; to amend the public authorities law, in relation to dormito-
ries at certain educational institutions other than state operated
institutions and statutory or contract colleges under the jurisdiction
of the state university of New York; to amend the New York state
medical care facilities finance agency act, in relation to bonds and
mental health facilities improvement notes; to amend the state finance
law and the public authorities law, in relation to funding certain
capital projects and the issuance of bonds; to repeal sections 58, 59
and 60 of the state finance law relating thereto; and providing for
the repeal of certain provisions upon expiration thereof (Part XXX);
and to amend the education law, in relation to contracts for excel-
lence and the apportionment of public moneys; to amend the education
law, in relation to requiring the commissioner of education to include
certain information in the official score report of all students; to
amend the education law, in relation to charter school tuition and
facility aid for charter schools; relating to apportionment to the
Haverstraw-Stony Point central school district; relating to penalties
S. 2009--C 6 A. 3009--C
arising from late final cost reports; to amend chapter 425 of the laws
of 2002, amending the education law relating to the provision of
supplemental educational services, attendance at a safe public school
and the suspension of pupils who bring a firearm to or possess a
firearm at a school, in relation to the effectiveness thereof; to
amend the education law, in relation to English language learner
pupils; to amend chapter 101 of the laws of 2003, amending the educa-
tion law relating to the implementation of the No Child Left Behind
Act of 2001, in relation to the effectiveness thereof; to amend the
education law, in relation to transportable classroom units; to amend
chapter 507 of the laws of 1974 relating to providing for the appor-
tionment of state monies to certain nonpublic schools, to reimburse
them for their expenses in complying with certain state requirements
for the administration of state testing and evaluation programs and
for participation in state programs for the reporting of basic educa-
tional data, in relation to the state's immunization program; to amend
the education law, in relation to grants for hiring teachers; to amend
the education law, in relation to foundation aid; to amend the educa-
tion law, in relation to education of Native American pupils; to amend
the education law, in relation to additional expanded prekindergarten;
to amend the education law, in relation to conforming foundation aid
base change to accommodate pulling out community schools; to amend the
education law, in relation to establishing a foundation aid phase-in;
and in relation to maintenance of effort reduction; and in relation to
general aid for public schools; to amend the education law, in
relation to state aid adjustments; to amend the education law, in
relation to the teachers of tomorrow teacher recruitment and retention
program; to amend the education law, in relation to class sizes for
special classes containing certain students with disabilities; relat-
ing to the Hendrick Hudson reserve fund; to amend the education law,
in relation to approved reimbursement for preschool integrated special
class programs; to amend part B of chapter 57 of the laws of 2008
amending the education law relating to the universal pre-kindergarten
program, in relation to the effectiveness thereof; to amend chapter
121 of the laws of 1996 relating to authorizing the Roosevelt union
free school district to finance deficits by the issuance of serial
bonds, in relation to certain apportionments; to amend the general
municipal law, in relation to contracts for the purchase of certain
produce; to amend chapter 472 of the laws of 1998 amending the educa-
tion law relating to the lease of school buses by school districts in
relation to the effectiveness thereof; to amend chapter 82 of the laws
of 1995, amending the education law and certain other laws relating to
state aid to school districts and the appropriation of funds for the
support of government, in relation to the effectiveness thereof; to
amend chapter 756 of the laws of 1992, relating to funding a program
for work force education conducted by the consortium for worker educa-
tion in New York city, in relation to reimbursements for the 2017-2018
school year; to amend chapter 756 of the laws of 1992, relating to
funding a program for work force education conducted by the consortium
for worker education in New York city, in relation to withholding a
portion of employment preparation education aid and in relation to the
effectiveness thereof; to amend chapter 89 of the laws of 2016, relat-
ing to supplementary funding for dedicated programs for public school
students in the East Ramapo central school district, in relation to
reimbursement to such school district and in relation to the effec-
tiveness thereof; to amend chapter 147 of the laws of 2001, amending
S. 2009--C 7 A. 3009--C
the education law relating to conditional appointment of school
district, charter school or BOCES employees, in relation to the effec-
tiveness thereof; relating to school bus driver training; relating to
special apportionment for salary expenses and public pension accruals;
relating to suballocations of appropriations; relating to the city
school district of the city of Rochester; relating to total foundation
aid for the purpose of the development, maintenance or expansion of
certain magnet schools or magnet school programs for the 2017-2018
school year; relating to support of public libraries; to amend chapter
57 of the laws of 2004, relating to the support of education, in
relation to the effectiveness thereof; to amend chapter 658 of the
laws of 2002, amending the education law, relating to citizenship
requirements for permanent certification as a teacher, in relation to
extending the effectiveness thereof; to amend the education law, in
relation to serving persons twenty-one years of age or older (Part
YYY)
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 YYY. The effective date for each partic-
ular provision contained within such Part is set forth in the last
section of such Part. Any provision in any section contained within a
Part, including the effective date of the Part, which makes a reference
to a section "of this act", when used in connection with that particular
component, shall be deemed to mean and refer to the corresponding
section of the Part in which it is found. Section three of this act sets
forth the general effective date of this act.
PART A
Intentionally Omitted
PART B
Intentionally Omitted
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
S. 2009--C 8 A. 3009--C
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.
(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.
[(3)] (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
S. 2009--C 9 A. 3009--C
$12,000
OVER $500,000 NOT APPLICABLE
(5) Part-year residents. If a taxpayer changes status during the taxa-
ble year from resident to nonresident, or from nonresident to resident,
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:
(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
S. 2009--C 10 A. 3009--C
(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 SEVENTEEN:
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
S. 2009--C 11 A. 3009--C
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:
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
S. 2009--C 12 A. 3009--C
(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
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 SEVENTEEN:
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:
S. 2009--C 13 A. 3009--C
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 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 SEVENTEEN:
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
S. 2009--C 14 A. 3009--C
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-
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
Intentionally Omitted
PART E
Intentionally Omitted
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:
S. 2009--C 15 A. 3009--C
§ 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 THE account [thereof in such manner as may be prescribed by such
resolution; provided, however, that such resolution], FOLLOWING THE
ADOPTION OF A RESOLUTION BY THE GOVERNING BODY OF THE MUNICIPAL CORPO-
RATION THAT EMPLOYS THE COLLECTING OFFICER ALLOWING PARTIAL PAYMENTS.
SUCH RESOLUTION MAY LIMIT 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 SCHOOL DISTRICT TAXES ARE PAYABLE TO THE COLLECTING OFFICER
OF A CITY OR TOWN THAT HAS ACTED TO ALLOW PARTIAL PAYMENTS, THE GOVERN-
ING BODY OF THE SCHOOL DISTRICT MAY PASS A RESOLUTION ALLOWING PARTIAL
PAYMENTS FOR SCHOOL DISTRICT PURPOSES. SUCH RESOLUTION MAY LIMIT THE
CONDITIONS UNDER WHICH PARTIAL PAYMENTS MAY BE ACCEPTED. WHERE A SCHOOL
DISTRICT HAS PASSED A RESOLUTION ALLOWING PARTIAL PAYMENTS, AND HAS
PROVIDED A COPY TO THE COLLECTING OFFICER AT LEAST SIXTY DAYS BEFORE THE
LAST DATE SET BY LAW FOR THE DELIVERY OF THE TAX ROLL TO THE COLLECTING
OFFICER, THE COLLECTING OFFICER SHALL BE AUTHORIZED TO ACCEPT PARTIAL
PAYMENTS OF SCHOOL DISTRICT TAXES UNDER THE CONDITIONS SPECIFIED IN THE
SCHOOL DISTRICT'S RESOLUTION, SUBJECT TO THE FOLLOWING:
(I) IF THE CONDITIONS SET BY THE SCHOOL DISTRICT UPON PARTIAL PAYMENTS
DIFFER FROM THOSE SET BY THE CITY OR TOWN, AND IN THE JUDGMENT OF THE
COLLECTING OFFICER IT WOULD BE BURDENSOME TO ADMINISTER THEM, THE
COLLECTING OFFICER MAY NOTIFY THE SCHOOL DISTRICT THAT THE SCHOOL
DISTRICT'S CONDITIONS ARE NOT ACCEPTABLE. SUCH NOTICE SHALL BE PROVIDED
NO LATER THAN FIFTEEN DAYS AFTER THE DATE ON WHICH THE COLLECTING OFFI-
CER RECEIVED A COPY OF THE SCHOOL DISTRICT RESOLUTION, OR FORTY-FIVE
DAYS BEFORE THE LAST DATE SET BY LAW FOR THE DELIVERY OF THE TAX ROLL TO
THE COLLECTING OFFICER, WHICHEVER IS LATER.
(II) WHERE SUCH NOTICE HAS BEEN PROVIDED, 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, UNLESS THE
SCHOOL DISTRICT NOTIFIES THE COLLECTING OFFICER THAT THE CITY OR TOWN'S
CONDITIONS ARE NOT ACCEPTABLE. SUCH NOTICE SHALL BE PROVIDED NO LATER
THAN FIFTEEN DAYS AFTER THE DATE ON WHICH THE SCHOOL DISTRICT RECEIVED
THE COLLECTING OFFICER'S NOTICE, OR THIRTY DAYS BEFORE THAT LAST DATE
SET BY LAW FOR THE DELIVERY OF THE TAX ROLL TO THE COLLECTING OFFICER,
WHICHEVER IS LATER.
(III) WHERE SUCH NOTICE HAS BEEN PROVIDED, THE COLLECTING OFFICER
SHALL NOT BE AUTHORIZED TO ACCEPT PARTIAL PAYMENTS OF SCHOOL DISTRICT
TAXES.
(D) 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
S. 2009--C 16 A. 3009--C
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.
5. NOTHING CONTAINED HEREIN SHALL LIMIT THE ABILITY OF A COLLECTING
OFFICER TO ACCEPT PARTIAL PAYMENTS OF TAXES AUTHORIZED UNDER ANY OTHER
GENERAL OR SPECIAL LAW.
§ 2. This act shall take effect immediately, provided, however, that
in the case of a county that had adopted a resolution pursuant to
section 928-a of the real property tax law as such section read on the
date immediately preceding the effective date of this act, the former
provisions of such section 928-a shall remain in effect until such
resolution shall be repealed by the county.
PART G
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 MAY BE DISCLOSED TO ASSESSORS AND
COUNTY DIRECTORS OF REAL PROPERTY TAX SERVICES. IN ADDITION, WHERE AN
AGREEMENT IS IN PLACE BETWEEN THE COMMISSIONER AND THE HEAD OF THE TAX
DEPARTMENT OF ANOTHER STATE, SUCH INFORMATION MAY BE DISCLOSED TO SUCH
OFFICIAL OR HIS OR HER DESIGNEES. SUCH INFORMATION SHALL BE CONSIDERED
CONFIDENTIAL AND SHALL NOT BE SUBJECT TO FURTHER DISCLOSURE PURSUANT TO
THE FREEDOM OF INFORMATION LAW OR OTHERWISE.
§ 2. This act shall take effect immediately.
S. 2009--C 17 A. 3009--C
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
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.
S. 2009--C 18 A. 3009--C
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:
§ 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.
S. 2009--C 19 A. 3009--C
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,
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 AGRICULTURAL BIOTECHNOLOGY, BIOGENERICS,
BIOINFORMATICS, BIOMEDICAL ENGINEERING, BIOPHARMACEUTICALS, ACADEMIC
MEDICAL CENTERS, BIOTECHNOLOGY, CHEMICAL SYNTHESIS, CHEMISTRY TECHNOLO-
GY, MEDICAL DIAGNOSTICS, GENOMICS, MEDICAL IMAGE ANALYSIS, MARINE BIOLO-
GY, MEDICAL DEVICES, MEDICAL NANOTECHNOLOGY, NATURAL PRODUCT PHARMACEU-
TICALS, PROTEOMICS, REGENERATIVE MEDICINE, RNA INTERFERENCE, STEM CELL
RESEARCH, MEDICAL AND NEUROLOGICAL CLINICAL TRIALS, HEALTH ROBOTICS AND
VETERINARY SCIENCE.
S. 2009--C 20 A. 3009--C
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
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;
S. 2009--C 21 A. 3009--C
(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
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.
S. 2009--C 22 A. 3009--C
§ 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
§ 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:
S. 2009--C 23 A. 3009--C
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
$ 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
S. 2009--C 24 A. 3009--C
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 RESEARCH AND DEVELOPMENT TAX CREDIT. (A) ALLOWANCE
OF CREDIT. (1) 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 CORPO-
RATION 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, PURSUANT TO THE PROVISIONS REFERRED TO IN
SUBDIVISION (E) OF THIS SECTION, FOR A PERIOD OF THREE YEARS, AS
PROVIDED IN SUBPARAGRAPH (II) OF PARAGRAPH TWO OF THIS SUBDIVISION, TO
BE COMPUTED AS PROVIDED IN THIS SECTION, PROVIDED THAT NO CREDIT SHALL
BE ALLOWED FOR TAXABLE YEARS BEGINNING ON 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.
(2)(I) 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.
(II) THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST TAXA-
BLE YEAR DURING WHICH THE CRITERIA SET FORTH IN THIS SUBDIVISION ARE
SATISFIED, AND WITH RESPECT TO EACH OF THE TWO TAXABLE YEARS NEXT
S. 2009--C 25 A. 3009--C
FOLLOWING (BUT ONLY, WITH RESPECT TO EACH OF SUCH YEARS, IF SUCH CRITE-
RIA ARE SATISFIED). SUBSEQUENT CERTIFICATIONS OF THE LIFE SCIENCES
COMPANY BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT PURSUANT TO THIS
SECTION SHALL NOT EXTEND THE THREE TAXABLE YEAR TIME LIMITATION ON THE
ALLOWANCE OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE.
(3) 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
IN ANY TAXABLE YEAR. IF THE LIFE SCIENCES COMPANY IS A PARTNER IN A
PARTNERSHIP OR SHAREHOLDER 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 FIVE
HUNDRED THOUSAND DOLLARS IN ANY TAXABLE YEAR.
(4) 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 SECTION OR USED IN THE CALCULATION OF THE
CREDIT PROVIDED PURSUANT TO THIS SECTION SHALL BE USED TO CLAIM ANY
OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER OR BE USED IN THE CALCU-
LATION OF ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
(B) MAXIMUM AMOUNT OF CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
ALLOWED UNDER THIS SECTION TO TAXPAYERS SUBJECT TO TAX UNDER ARTICLES
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 SECTION,
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) "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 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 DEVELOPMENT TAX CREDIT
THAT MAY BE CLAIMED BY SUCH QUALIFIED LIFE SCIENCES COMPANY, PURSUANT TO
THIS SECTION, AND SHALL SPECIFY THE TAXABLE YEAR IN WHICH SUCH CREDIT
MAY BE CLAIMED.
(2) "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.
(3) "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-
S. 2009--C 26 A. 3009--C
NESS. PROVIDED HOWEVER, FOR PURPOSES OF THE CREDIT AUTHORIZED UNDER
THIS SECTION, THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL NOT CERTIFY
AS A LIFE SCIENCES COMPANY ANY CORPORATION, PARTNERSHIP, LIMITED PART-
NERSHIP, 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 SCIENTIFIC RESEARCH AND DEVELOP-
MENT AS DEFINED IN SUBDIVISION TWENTY-TWO OF SECTION THREE HUNDRED
FIFTY-TWO OF THE ECONOMIC DEVELOPMENT LAW.
(4) "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.
(5) "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 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) 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 THE CREDIT
ALLOWED UNDER THIS SECTION, THE DUE DATES FOR SUCH APPLICATIONS, THE
ELIGIBILITY STANDARDS FOR QUALIFIED LIFE SCIENCES COMPANIES, THE STAND-
ARDS 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 NECESSARY AND APPROPRIATE. NOTWITHSTANDING ANY
OTHER PROVISIONS TO THE CONTRARY IN THE STATE ADMINISTRATIVE PROCEDURE
ACT, SUCH RULES AND REGULATIONS 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 CREDIT 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
S. 2009--C 27 A. 3009--C
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 THE
CREDIT ALLOWED UNDER THIS SECTION AND THE AMOUNT OF THE CREDIT EARNED BY
THE TAXPAYER. PROVIDED, HOWEVER, IF A TAXPAYER CLAIMS SUCH CREDIT
BECAUSE IT IS A MEMBER OF A LIMITED LIABILITY COMPANY OR A PARTNER IN A
PARTNERSHIP, ONLY THE AMOUNT OF CREDIT EARNED BY THE ENTITY AND NOT THE
AMOUNT OF CREDIT CLAIMED BY THE TAXPAYER MAY BE RELEASED.
(G) FOR PURPOSES OF THE CREDIT 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 RESEARCH AND DEVELOPMENT TAX CREDIT. (A) ALLOWANCE
OF CREDIT. A TAXPAYER THAT IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE
OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
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 SUBDIVISION 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 TREAT-
ED AS AN OVERPAYMENT 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 THOU-
SAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE
PAID THEREON.
§ 9. Section 606 of the tax law is amended by adding a new subsection
(hhh) to read as follows:
(HHH) LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX CREDIT. (1) ALLOWANCE
OF CREDIT. A TAXPAYER WHO IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE OF
THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN
SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWABLE UNDER
THIS SUBSECTION 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 a new clause (xliii) to read as
follows:
S. 2009--C 28 A. 3009--C
(XLIII) LIFE SCIENCES RESEARCH AND AMOUNT OF CREDIT UNDER
DEVELOPMENT TAX CREDIT UNDER 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:
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
S. 2009--C 29 A. 3009--C
(f) is comprised of tasks the performance of which required the person
filling the job to undergo eligible training.] "LIFE SCIENCES" MEANS
AGRICULTURAL BIOTECHNOLOGY, BIOGENERICS, BIOINFORMATICS, BIOMEDICAL
ENGINEERING, BIOPHARMACEUTICALS, ACADEMIC MEDICAL CENTERS, BIOTECHNOLO-
GY, CHEMICAL SYNTHESIS, CHEMISTRY TECHNOLOGY, MEDICAL DIAGNOSTICS,
GENOMICS, MEDICAL IMAGE ANALYSIS, MARINE BIOLOGY, MEDICAL DEVICES,
MEDICAL NANOTECHNOLOGY, NATURAL PRODUCT PHARMACEUTICALS, PROTEOMICS,
REGENERATIVE MEDICINE, RNA INTERFERENCE, STEM CELL RESEARCH, MEDICAL AND
NEUROLOGICAL CLINICAL TRIALS, HEALTH ROBOTICS AND VETERINARY SCIENCE.
"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.
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-
S. 2009--C 30 A. 3009--C
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
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
S. 2009--C 31 A. 3009--C
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
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:
S. 2009--C 32 A. 3009--C
(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
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. This part enacts into law major components of legislation
relating to the New York youth jobs program tax credit and the empire
state apprenticeship tax credit program. Each component is wholly
contained within a Subpart identified as Subparts A through B. The
effective date for each particular provision contained within a Subpart
is set forth in the last section of such Subpart. Any provision in any
section contained within a Subpart, including the effective date of the
Subpart, which makes reference to a section "of this act", when used in
connection with that particular component, shall be deemed to mean and
S. 2009--C 33 A. 3009--C
refer to the corresponding section of the Subpart in which it is found.
Section three of this part sets forth the general effective date of this
part.
SUBPART A
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] 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
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, AND FORTY MILLION DOLLARS OF TAX CREDITS
UNDER PROGRAMS SIX, SEVEN, EIGHT, NINE AND TEN.
(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,
S. 2009--C 34 A. 3009--C
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, ENSURING THAT THE PROCESS ESTABLISHED
WILL MINIMIZE ANY UNDUE DELAY IN ISSUING THE CERTIFICATE OF ELIGIBILITY.
Any regulations that the commissioner determines are necessary may be
adopted on an emergency basis notwithstanding anything to the contrary
in section two hundred two of the state administrative procedure act.
Such requirements may include the types of industries that the employers
are engaged in. The commissioner may give preference to employers that
are engaged in demand occupations or industries, or in regional growth
sectors, including BUT NOT LIMITED TO those identified by the regional
economic development councils, such as clean energy, healthcare,
advanced manufacturing and conservation. In addition, the commissioner
shall give preference to employers who offer advancement and employee
benefit packages to the qualified individuals.
(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.
§ 1-a. Subdivision (b) of section 25-a of the labor law is amended by
adding a new paragraph 4 to read as follows:
(4) FOR PROGRAMS SIX, SEVEN, EIGHT, NINE AND TEN, THE TAX CREDIT UNDER
EACH PROGRAM SHALL BE ALLOCATED AS FOLLOWS: (I) TWENTY 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 REQUIREMENT OF SUBPARAGRAPH
(II) OF PARAGRAPH TWO OF THIS SUBDIVISION, WHICH INDIVIDUALS SHALL BE
DEEMED TO MEET THE RESIDENCY REQUIREMENTS OF SUBPARAGRAPH (II) OF PARA-
GRAPH TWO OF THIS SUBDIVISION IF THEY RESIDE IN NEW YORK STATE.
§ 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:
S. 2009--C 35 A. 3009--C
[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.
SUBPART B
Section 1. The labor law is amended by adding a new section 25-c to
read as follows:
§ 25-C. POWER TO ADMINISTER THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
PROGRAM. (A) THE COMMISSIONER IS AUTHORIZED TO ESTABLISH AND ADMINISTER
THE EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM TO PROVIDE TAX INCEN-
TIVES TO CERTIFIED EMPLOYERS FOR EMPLOYING QUALIFIED APPRENTICES PURSU-
ANT TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH THE DEPARTMENT PURSU-
ANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED ELEVEN
OF THIS CHAPTER. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE UP TO TEN
MILLION DOLLARS OF TAX CREDITS ANNUALLY, BEGINNING IN TWO THOUSAND EIGH-
TEEN AND ENDING BEFORE TWO THOUSAND TWENTY-THREE. ANY UNUSED ANNUAL
ALLOCATION OF THE CREDIT SHALL BE MADE AVAILABLE IN EACH OF THE SUBSE-
QUENT YEARS BEFORE TWO THOUSAND TWENTY-THREE.
(B) DEFINITIONS. (1) THE TERM "QUALIFIED APPRENTICESHIP AGREEMENT"
MEANS AN APPRENTICESHIP AGREEMENT AS DEFINED BY SECTION EIGHT HUNDRED
SIXTEEN OF THIS CHAPTER THAT HAS BEEN REGISTERED WITH, AND APPROVED BY,
THE COMMISSIONER, FOR A TRADE OTHER THAN A CONSTRUCTION TRADE.
(2) THE TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER THAT HAS OR
PARTICIPATES IN A COMMISSIONER APPROVED REGISTERED APPRENTICESHIP
PROGRAM.
(3) THE TERM "CONSTRUCTION" MEANS CONSTRUCTING, RECONSTRUCTING, ALTER-
ING, MAINTAINING, MOVING, REHABILITATING, REPAIRING, RENOVATING, FABRI-
CATING, SERVICING, OR DEMOLITION OF ANY BUILDING, STRUCTURE, OR IMPROVE-
MENT, OR COMPONENT, OR RELATING TO THE EXCAVATION OF OR OTHER
DEVELOPMENT OR IMPROVEMENT TO LAND.
(4) THE TERM "PARTICIPATING EMPLOYER" MEANS A QUALIFIED EMPLOYER THAT
HAS APPLIED TO PARTICIPATE IN THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
PROGRAM AND RECEIVED A PRELIMINARY CERTIFICATE OF TAX CREDIT FROM THE
COMMISSIONER. THE PRELIMINARY CERTIFICATE SHALL STATE THE MAXIMUM AMOUNT
OF THE TAX CREDIT THAT THE EMPLOYER MAY BE ABLE TO CLAIM IF THE APPLI-
CANT BECOMES A "CERTIFIED EMPLOYER."
(5) THE TERM "CERTIFIED EMPLOYER" MEANS A QUALIFIED EMPLOYER THAT HAS
RECEIVED A FINAL CERTIFICATE OF ELIGIBILITY FROM THE COMMISSIONER AFTER
THE COMMISSIONER HAS DETERMINED THAT THE QUALIFIED EMPLOYER HAS
FULFILLED ALL THE REQUISITE ELIGIBILITY CRITERIA TO PARTICIPATE IN THE
EMPIRE STATE APPRENTICESHIP TAX CREDIT PROGRAM ESTABLISHED IN THIS
SECTION. THE FINAL CERTIFICATE OF ELIGIBILITY SHALL STATE THE ACTUAL
AMOUNT OF TAX CREDIT THAT A CERTIFIED EMPLOYER IS ENTITLED TO CLAIM AND
THE ALLOCATION YEAR OF THE CREDIT.
(6) THE TERM "QUALIFIED APPRENTICE" MEANS AN INDIVIDUAL EMPLOYED BY A
PARTICIPATING EMPLOYER IN A FULL TIME POSITION FOR AT LEAST SIX MONTHS
OF A CALENDAR YEAR PURSUANT TO A QUALIFIED APPRENTICESHIP AGREEMENT WITH
A QUALIFIED EMPLOYER. NO INDIVIDUAL EMPLOYED BY A QUALIFIED EMPLOYER
SHALL BE DEEMED A QUALIFIED APPRENTICE IF SUCH INDIVIDUAL HAS NOT
S. 2009--C 36 A. 3009--C
COMPLETED THEIR APPRENTICESHIP TRAINING PROGRAM WITHIN ONE YEAR OF THEIR
EXPECTED DATE OF COMPLETION OF THEIR PROGRAM.
(7) THE TERM "DISADVANTAGED YOUTH" MEANS AN INDIVIDUAL:
(I) WHO IS BETWEEN THE AGES OF SIXTEEN AND TWENTY-FOUR WHEN THE YOUTH
BEGINS THE APPRENTICESHIP; AND
(II) WHO IS LOW-INCOME OR AT-RISK, AS THOSE TERMS ARE DEFINED BY THE
COMMISSIONER.
(8) THE TERM "MENTOR" MEANS AN INDIVIDUAL WHO PROVIDES INSTRUCTION,
GUIDANCE, AND SUPPORT TO THE APPRENTICE ON A REGULAR BASIS THROUGHOUT
THE APPRENTICE'S COMPLETION OF THE APPRENTICESHIP AS THE APPRENTICE
SEEKS EMPLOYMENT IN THE FIELD OR INDUSTRY OF THE APPRENTICESHIP. THE
GOAL OF THE MENTOR IS TO HELP TRAIN THE APPRENTICE IN HIS OR HER TRADE
AND TO HELP THE APPRENTICE SUCCESSFULLY COMPLETE THE APPRENTICESHIP AND
TO SECURE AND RETAIN EMPLOYMENT.
(C)(1) A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT AGAINST
INCOME OR FRANCHISE TAX FOR EACH QUALIFIED APPRENTICE. THE BASE CREDIT
ALLOWED UNDER THIS PROGRAM SHALL BE COMPUTED AS FOLLOWS:
(A) (1) TWO THOUSAND DOLLARS FOR EACH FIRST YEAR APPRENTICE; (2) THREE
THOUSAND DOLLARS FOR EACH SECOND YEAR APPRENTICE;(3) FOUR THOUSAND
DOLLARS FOR EACH THIRD YEAR APPRENTICE; (4) FIVE THOUSAND DOLLARS FOR
EACH FOURTH YEAR APPRENTICE; AND (5) SIX THOUSAND DOLLARS FOR EACH FIFTH
YEAR APPRENTICE. THE APPRENTICE'S STATUS AS A FIRST, SECOND, THIRD,
FOURTH OR FIFTH YEAR APPRENTICE WILL BE DETERMINED ON THE LAST DAY OF
THE CALENDAR YEAR, OR IF THE APPRENTICE IS NO LONGER EMPLOYED BY THE
PARTICIPATING EMPLOYER ON THE LAST DAY OF THE CALENDAR YEAR, ON THE LAST
DAY OF THE APPRENTICE'S EMPLOYMENT WITH THE PARTICIPATING EMPLOYER; OR
(B) IN LIEU OF THE CREDIT SPECIFIED IN SUBPARAGRAPH (A) OF THIS PARA-
GRAPH, FOR EACH QUALIFIED APPRENTICE WHO IS CONSIDERED A DISADVANTAGED
YOUTH FOR EACH TAX YEAR: (1) FIVE THOUSAND DOLLARS FOR EACH FIRST YEAR
APPRENTICE; (2) SIX THOUSAND DOLLARS FOR EACH SECOND YEAR APPRENTICE;
AND (3) SEVEN THOUSAND DOLLARS FOR EACH THIRD, FOURTH, OR FIFTH YEAR
APPRENTICE. THE APPRENTICE'S STATUS AS A FIRST, SECOND, THIRD, FOURTH OR
FIFTH YEAR APPRENTICE WILL BE DETERMINED ON THE LAST DAY OF THE CALENDAR
YEAR, OR IF THE APPRENTICE IS NO LONGER EMPLOYED BY THE PARTICIPATING
EMPLOYER ON THE LAST DAY OF THE CALENDAR YEAR, ON THE LAST DAY OF THE
APPRENTICE'S EMPLOYMENT WITH THE PARTICIPATING EMPLOYER. IF A DISADVAN-
TAGED YOUTH BEGINS AN APPRENTICESHIP BEFORE THE AGE OF TWENTY-FIVE, A
CERTIFIED EMPLOYER SHALL BE ELIGIBLE TO CONTINUE TO RECEIVE THE TAX
CREDIT FOR SUCH YOUTH UNDER THIS SUBPARAGRAPH UNTIL THAT APPRENTICE
COMPLETES THE APPRENTICESHIP.
(2) IF AN APPRENTICE HAS BEEN TRAINED IN HIS OR HER TRADE BY A MENTOR
FOR THE ENTIRETY OF THE CALENDAR YEAR, THE BASE CREDIT AMOUNTS DESCRIBED
IN PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE INCREASED BY FIVE HUNDRED
DOLLARS.
(3) THE CERTIFIED EMPLOYER SHALL NOT BE ALLOWED A TAX CREDIT UNDER
THIS PROGRAM FOR ANY APPRENTICE, IF THAT APPRENTICE IS THE BASIS FOR ANY
OTHER STATE TAX CREDIT.
(D) APPLICATION AND APPROVAL PROCESS. (1) TO PARTICIPATE IN THE
PROGRAM ESTABLISHED UNDER THIS SECTION, A QUALIFIED EMPLOYER MUST SUBMIT
TO THE COMMISSIONER AN APPLICATION IN A FORM PRESCRIBED BY THE COMMIS-
SIONER. AS PART OF SUCH APPLICATION, A QUALIFIED EMPLOYER MUST:
(A) AGREE TO ALLOW THE DEPARTMENT OF TAXATION AND FINANCE TO SHARE ITS
TAX INFORMATION WITH THE DEPARTMENT. HOWEVER, ANY INFORMATION SHARED AS
A RESULT OF THIS AGREEMENT SHALL NOT BE AVAILABLE FOR DISCLOSURE OR
INSPECTION UNDER THE STATE FREEDOM OF INFORMATION LAW.
S. 2009--C 37 A. 3009--C
(B) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY AND ALL BOOKS
AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
(2) AFTER REVIEWING A QUALIFIED EMPLOYER'S COMPLETED APPLICATION AND
DETERMINING THAT THE QUALIFIED EMPLOYER WILL MEET THE ELIGIBILITY CONDI-
TIONS SET FORTH UNDER THIS SECTION AND ANY APPLICABLE REGULATIONS
PROMULGATED BY THE COMMISSIONER, THE COMMISSIONER MAY ADMIT THE APPLI-
CANT INTO THE PROGRAM AS A PARTICIPATING EMPLOYER AND PROVIDE THE APPLI-
CANT WITH A PRELIMINARY CERTIFICATE OF ELIGIBILITY ESTABLISHING THE
QUALIFIED EMPLOYER AS A PARTICIPATING EMPLOYER AND STATING THE MAXIMUM
AMOUNT OF CREDIT FOR WHICH THE APPLICANT MAY BE ELIGIBLE.
(3) TO RECEIVE A FINAL CERTIFICATE OF TAX CREDIT, THE PARTICIPATING
EMPLOYER MUST ANNUALLY SUBMIT A FINAL REPORT TO THE COMMISSIONER, IN A
FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT MUST DEMONSTRATE THAT
THE APPLICANT HAS SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED
ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN ACTUAL
AMOUNT OF CREDIT ALLOWED FOR THAT CALENDAR YEAR, NOTWITHSTANDING THE
FACT THAT A PARTICIPATING EMPLOYER'S TAXABLE YEAR MAY BE A FISCAL YEAR,
AS DEFINED IN SUBDIVISION TEN OF SECTION TWO HUNDRED EIGHT OF THE TAX
LAW.
(4) AFTER REVIEWING THE FINAL REPORT AND FINDING IT SUFFICIENT, THE
COMMISSIONER SHALL CERTIFY THE PARTICIPATING EMPLOYER AS A CERTIFIED
EMPLOYER AND ISSUE A FINAL CERTIFICATE OF TAX CREDIT. SUCH CERTIFICATE
SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
(A) THE NAME AND EMPLOYER IDENTIFICATION NUMBER OF THE CERTIFIED
EMPLOYER;
(B) THE ACTUAL AMOUNT OF CREDIT TO WHICH THE CERTIFIED EMPLOYER IS
ENTITLED FOR THAT CALENDAR YEAR, WHICH ACTUAL AMOUNT CANNOT EXCEED THE
AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY BE LESS
THAN SUCH AMOUNT;
(C) THE ALLOCATION YEAR OF THE CREDIT.
(5) IF A CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, IT SHALL
BE ENTITLED TO CLAIM THE CREDIT ON THE RETURN FOR THE FISCAL YEAR THAT
INCLUDES THE LAST DAY OF THE CALENDAR YEAR COVERED BY THE FINAL CERTIF-
ICATE OF TAX CREDIT.
(E) THE COMMISSIONER SHALL ESTABLISH GUIDELINES AND CRITERIA THAT
SPECIFY REQUIREMENTS FOR QUALIFIED EMPLOYERS TO PARTICIPATE IN THE
PROGRAM INCLUDING CRITERIA FOR CERTIFYING QUALIFIED APPRENTICES. ANY
REGULATIONS THAT THE COMMISSIONER DETERMINES ARE NECESSARY AND ARE
CONSISTENT WITH THE PURPOSE OF THIS ARTICLE MAY BE ADOPTED ON AN EMER-
GENCY BASIS NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY IN THE STATE
ADMINISTRATIVE PROCEDURE ACT. THE COMMISSIONER MAY GIVE PREFERENCE TO
QUALIFIED EMPLOYERS THAT HIRE AND TRAIN DISADVANTAGED YOUTH THROUGH
QUALIFIED APPRENTICESHIP AGREEMENTS, AND QUALIFIED EMPLOYERS THAT ARE
ENGAGED IN DEMAND OCCUPATIONS OR INDUSTRIES, OR IN REGIONAL GROWTH
SECTORS, INCLUDING THOSE IDENTIFIED BY THE DEPARTMENT, SUCH AS CLEAN
ENERGY, HEALTH CARE, TECHNOLOGY, INCLUDING SOFTWARE ENGINEERING AND WEB
DEVELOPMENT, ADVANCED MANUFACTURING AND CONSERVATION. IN ADDITION, THE
COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT EMPLOY APPRENTICES IN
NEWLY ESTABLISHED APPRENTICESHIP PROGRAMS. THE COMMISSIONER ALSO MAY
TAKE THE FOLLOWING FACTORS INTO CONSIDERATION WHEN EVALUATING WHETHER TO
APPROVE AN APPLICATION IN A YEAR SUBSEQUENT TO THE YEAR IN WHICH A QUAL-
IFIED EMPLOYER WAS DETERMINED TO BE A CERTIFIED EMPLOYER:
(1) THE LENGTH OF THE QUALIFIED APPRENTICESHIP AGREEMENT THE EMPLOYER
HAS ENTERED INTO;
S. 2009--C 38 A. 3009--C
(2) HOW MANY APPRENTICES HAVE GRADUATED FROM THE APPRENTICESHIP
PROGRAM TO WHICH THE QUALIFIED APPRENTICE EMPLOYED BY THE EMPLOYER
BELONGS;
(3) HOW MANY APPRENTICES IN THE APPRENTICESHIP PROGRAM THE QUALIFIED
EMPLOYER HAS HIRED; AND
(4) ANY OTHER FACTORS THE COMMISSIONER DEEMS RELEVANT.
(F) THE COMMISSIONER SHALL ANNUALLY PUBLISH A REPORT. SUCH REPORT MUST
CONTAIN THE NAMES AND ADDRESSES OF ANY CERTIFIED EMPLOYER ISSUED A FINAL
CERTIFICATE OF ELIGIBILITY UNDER THIS SECTION, THE WORK LOCATION OF EACH
APPRENTICE GENERATING CREDIT, THE AMOUNT OF EMPIRE STATE APPRENTICESHIP
TAX CREDIT ALLOWED TO THE CERTIFIED EMPLOYER AS SPECIFIED ON SUCH FINAL
CERTIFICATE OF ELIGIBILITY, AND THE NUMBER OF EACH OF THE FIRST YEAR
APPRENTICES, SECOND YEAR APPRENTICES, THIRD YEAR APPRENTICES, FOURTH
YEAR APPRENTICES, AND FIFTH YEAR APPRENTICES, AND HOW MANY OF EACH OF
THOSE TYPES ARE CONSIDERED DISADVANTAGED YOUTH. THE COMMISSIONER SHALL
INCLUDE IN SUCH REPORT THE RELEVANT INDUSTRIES OF CERTIFIED EMPLOYERS
AND RECOMMENDATIONS FOR LEGISLATIVE OR OTHER ACTION TO FURTHER THE
INTENT AND PURPOSE OF THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
PROGRAM.
(G) THE COMMISSIONER SHALL PROMOTE, PUBLISH AND DISSEMINATE INFORMA-
TION CONCERNING THE EMPIRE STATE APPRENTICESHIP TAX CREDIT AND OTHER
AVAILABLE FUNDING, PARTICULARLY TARGETING INDUSTRIES AND FIELDS OF BUSI-
NESS NOT CURRENTLY TAKING ADVANTAGE OF APPRENTICESHIPS.
§ 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
49. EMPIRE STATE APPRENTICESHIP TAX CREDIT. (A) A TAXPAYER THAT HAS
BEEN CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER
PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SPEC-
IFIED UNDER SUBDIVISION (C) OF SECTION TWENTY-FIVE-C OF THE LABOR LAW.
IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE
AMOUNT OF THE CREDIT LISTED ON THE FINAL CERTIFICATE OF ELIGIBILITY.
(B) THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY
NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS THAN THE AMOUNT PRESCRIBED
IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS
ARTICLE. HOWEVER, IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBDI-
VISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO THAT AMOUNT OR IF THE
TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT,
ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN THAT TAXABLE YEAR WILL BE TREATED
AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH
THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER.
PROVIDED, HOWEVER, NO INTEREST WILL BE PAID THEREON.
§ 3. Section 606 of the tax law is amended by adding a new subsection
(vvv) to read as follows:
(VVV) EMPIRE STATE APPRENTICESHIP TAX CREDIT. (1)(A) A TAXPAYER THAT
HAS BEEN CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER
PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED A
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SPEC-
IFIED UNDER SUBDIVISION (C) OF SECTION TWENTY-FIVE-C OF THE LABOR LAW.
IN NO EVENT SHALL THE TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE
AMOUNT OF THE CREDIT LISTED ON THE FINAL CERTIFICATE OF TAX CREDIT.
(B) A TAXPAYER THAT IS A PARTNER IN A PARTNERSHIP, MEMBER OF A LIMITED
LIABILITY COMPANY OR SHAREHOLDER IN AN S CORPORATION THAT HAS BEEN
CERTIFIED BY THE COMMISSIONER OF LABOR AS A CERTIFIED EMPLOYER PURSUANT
TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL BE ALLOWED ITS PRO RATA
S. 2009--C 39 A. 3009--C
SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY
OR S CORPORATION.
(2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION EXCEEDS
THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, ANY AMOUNT OF CREDIT NOT DEDUC-
TIBLE IN THAT TAXABLE YEAR WILL 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, NO INTEREST WILL
BE PAID THEREON.
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
(XLIII) EMPIRE STATE APPRENTICESHIP AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (VVV) SUBDIVISION FORTY-NINE OF
SECTION TWO HUNDRED TEN-B
§ 5. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2018.
§ 2. Severability. If any clause, sentence, paragraph, subdivision or
section of this part shall be adjudged by any court of competent juris-
diction to be invalid, such judgment shall not affect, impair, or inval-
idate the remainder thereof, but shall be confined in its operation to
the clause, sentence, paragraph, subdivision or section thereof directly
involved in the controversy in which such judgment shall have been
rendered. It is hereby declared to be the intent of the legislature that
this part would have been enacted even if such invalid provisions had
not been included herein.
§ 3. This act shall take effect immediately; provided, however, that
the applicable effective date of Subparts A and B of this part shall be
as specifically set forth in the last section of such Subparts.
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. Legislative findings. The legislature finds and declares
that this act does not alter the meaning of the statutes amended herein;
instead, it is the intent of the legislature to confirm the long-stand-
S. 2009--C 40 A. 3009--C
ing position of the department of taxation and finance interpreting
these statutes, as well as relevant prior statutes, as not allowing the
investment tax credit where tangible personal property and other tangi-
ble property is principally used by the taxpayer in the production or
distribution of electricity or steam, the delivery of natural gas after
extraction from wells and the production and delivery of water through
pipes and mains.
§ 2. 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
S. 2009--C 41 A. 3009--C
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
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 IN THE PRODUCTION OR DISTRIBUTION OF ELEC-
TRICITY, NATURAL GAS AFTER EXTRACTION FROM WELLS, STEAM, OR WATER DELIV-
ERED THROUGH PIPES AND MAINS.
§ 3. 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
S. 2009--C 42 A. 3009--C
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
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
S. 2009--C 43 A. 3009--C
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 IN
THE PRODUCTION OR DISTRIBUTION OF ELECTRICITY, NATURAL GAS AFTER
EXTRACTION FROM WELLS, STEAM, OR WATER DELIVERED THROUGH PIPES AND
MAINS.
§ 4. This act shall take effect immediately.
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
S. 2009--C 44 A. 3009--C
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
$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:
S. 2009--C 45 A. 3009--C
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 $19,674 PLUS 6.85% OF EXCESS OVER
$323,200
(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
S. 2009--C 46 A. 3009--C
$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
(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
S. 2009--C 47 A. 3009--C
$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 $16,524 PLUS 6.85% OF EXCESS OVER
$269,300
(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:
S. 2009--C 48 A. 3009--C
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:
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
S. 2009--C 49 A. 3009--C
$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 $13,288 PLUS 6.85% OF EXCESS OVER
$215,400
(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
S. 2009--C 50 A. 3009--C
(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
(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
S. 2009--C 51 A. 3009--C
§ 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.
§ 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.
§ 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.
§ 7. This act shall take effect immediately.
PART S
S. 2009--C 52 A. 3009--C
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]
TWENTY. 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 taxable years beginning in two thousand nine or after
two thousand [seventeen] NINETEEN.
(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] TWENTY.
§ 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]
TWENTY. 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 taxable years beginning in two thousand nine or after
two thousand [seventeen] NINETEEN.
(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] TWENTY.
§ 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
S. 2009--C 53 A. 3009--C
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. Subsection (c) of section 606 of the tax law is amended by adding
a new paragraph 1-b to read as follows:
(1-B) NOTWITHSTANDING ANYTHING IN THIS SUBSECTION TO THE CONTRARY, A
TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN THIS SUBSECTION EQUAL
TO THE APPLICABLE PERCENTAGE OF THE CREDIT ALLOWABLE UNDER SECTION TWEN-
TY-ONE OF THE INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR (WITHOUT
REGARD TO WHETHER THE TAXPAYER IN FACT CLAIMED THE CREDIT UNDER SUCH
SECTION TWENTY-ONE FOR SUCH TAXABLE YEAR) THAT WOULD HAVE BEEN ALLOWED
ABSENT THE APPLICATION OF SECTION 21(C) OF SUCH CODE FOR TAXPAYERS WITH
MORE THAN TWO QUALIFYING INDIVIDUALS, PROVIDED HOWEVER, THAT THE CREDIT
SHALL BE CALCULATED AS IF THE DOLLAR LIMIT ON AMOUNT CREDITABLE SHALL
NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS IF THERE ARE THREE QUALI-
FYING INDIVIDUALS, EIGHT THOUSAND FIVE HUNDRED DOLLARS IF THERE ARE FOUR
QUALIFYING INDIVIDUALS, AND NINE THOUSAND DOLLARS IF THERE ARE FIVE OR
MORE QUALIFYING INDIVIDUALS.
§ 3. This act shall take effect immediately; provided, however, that
section two of this act shall apply to taxable years beginning on or
after January 1, 2018.
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 and shall expire April 1,
2020 when upon such date the provisions of this act shall be deemed
repealed.
S. 2009--C 54 A. 3009--C
PART V
Intentionally Omitted
PART W
Intentionally Omitted
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] 2020.
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2017.
PART Y
Intentionally Omitted
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
S. 2009--C 55 A. 3009--C
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
Intentionally Omitted
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.
§ 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-
S. 2009--C 56 A. 3009--C
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,
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-
S. 2009--C 57 A. 3009--C
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
Intentionally Omitted
PART FF
Intentionally Omitted
PART GG
Intentionally Omitted
PART HH
Intentionally Omitted
PART II
Intentionally Omitted
PART JJ
Intentionally Omitted
PART KK
Intentionally Omitted
PART LL
S. 2009--C 58 A. 3009--C
Section 1. Subdivision 2 of section 902 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 18 of the laws of 2008,
is amended and four new subdivisions 3, 4, 5 and 6 are added to read as
follows:
2. Notwithstanding any inconsistent provision of THE 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] EXECUTIVE DIRECTOR OF THE COMMISSION,
upon the audit and warrant of the comptroller and pursuant to a plan
developed by the [state racing and wagering board] COMMISSION as
approved by the director of the budget; PROVIDED, HOWEVER, THE COMMIS-
SION MAY DIRECT THE ASSESSMENT IMPOSED PURSUANT TO SUBDIVISION THREE OF
THIS SECTION TO BE PAID DIRECTLY TO THE LABORATORY AUTHORIZED TO CONDUCT
EQUINE DRUG TESTING PURSUANT TO SUBDIVISION ONE OF THIS SECTION,
PROVIDED HOWEVER, UPON DIRECTION OF THE COMMISSION, ANY AMOUNTS DIRECTLY
PAID TO SUCH LABORATORY SHALL CONSTITUTE AN ENCUMBRANCE OF
APPROPRIATION.
3. (A) THE COMMISSION MAY IMPOSE AN ASSESSMENT ON EACH RACE TRACK
LICENSED OR FRANCHISED PURSUANT TO THIS CHAPTER, AND AN ADDITIONAL PER
START FEE, FOR ANY ADDITIONAL COSTS AND EXPENSES OF EQUINE DRUG TESTING
AND RESEARCH CONDUCTED AT A LABORATORY AUTHORIZED PURSUANT TO SUBDIVI-
SION ONE OF THIS SECTION, AFTER ALL OTHER FUNDS FOR SUCH PURPOSE HAVE
BEEN EXPENDED.
(B) (I) THE COMMISSION SHALL ESTABLISH AN ASSESSABLE AMOUNT BY MAY
FIRST OF EACH YEAR BASED ON THE PROJECTED DEFICIT OF REVENUES DEPOSITED
INTO THE RACING REGULATION ACCOUNT ESTABLISHED BY SECTION NINETY-NINE-I
OF THE STATE FINANCE LAW, INCLUDING FUNDS DEPOSITED PURSUANT TO SECTIONS
ONE HUNDRED FIFTEEN, TWO HUNDRED THIRTY-SIX, TWO HUNDRED THIRTY-EIGHT,
THREE HUNDRED SEVEN, THREE HUNDRED EIGHT, THREE HUNDRED EIGHTEEN, FIVE
HUNDRED TWENTY-SEVEN, ONE THOUSAND SEVEN, ONE THOUSAND EIGHT, ONE THOU-
SAND NINE, ONE THOUSAND FOURTEEN, ONE THOUSAND FIFTEEN, ONE THOUSAND
SIXTEEN, AND ONE THOUSAND EIGHTEEN OF THIS CHAPTER IN RELATION TO THE
CONDUCT OF RACING, THE AMOUNT OF FUNDS PAID FOR EQUIPMENT PURSUANT TO
SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-EIGHT OF THIS CHAPTER, THE
AMOUNT OF FUNDS RECEIVED BY THE COMMISSION FROM THE PURSE ENHANCEMENT
ACCOUNT FOR EQUINE HEALTH AND SAFETY PURSUANT TO PARAGRAPH TWO OF SUBDI-
VISION B OF SECTION SIXTEEN HUNDRED TWELVE OF THE TAX LAW IN RELATION TO
VIDEO LOTTERY TERMINAL FACILITIES AT RACE TRACKS LICENSED PURSUANT TO
ARTICLES TWO AND THREE OF THIS CHAPTER, AND BY THE AMOUNT OF FUNDS
GENERATED BY ANY OTHER EXISTING FEES, TAXES AND ASSESSMENTS PAID BY RACE
TRACKS OR OWNERS LICENSED PURSUANT TO ARTICLES TWO AND THREE OF THIS
CHAPTER FOR THE PURPOSE OF EQUINE DRUG TESTING, COMPARED TO EXPENSES IN
THE RACING REGULATION ACCOUNT. THE COMMISSION SHALL IMPOSE THE ASSESSA-
BLE AMOUNT AS AN ASSESSMENT UPON EACH RACE TRACK, AND AS AN ADDITIONAL
PER START FEE ON EACH OWNER. IN NO EVENT SHALL THE TOTAL ASSESSABLE
AMOUNT EXCEED THE TOTAL EXPENSE PROJECTED BY THE COMMISSION FOR EQUINE
DRUG TESTING AND RESEARCH CONDUCTED AT A LABORATORY AUTHORIZED PURSUANT
TO SUBDIVISION ONE OF THIS SECTION DURING THAT YEAR.
(II) THE TOTAL VALUE OF THE ASSESSMENT IMPOSED UPON ALL RACE TRACKS
SHALL BE FIFTY PERCENT OF THE ASSESSABLE AMOUNT CALCULATED BY SUBPARA-
GRAPH (I) OF THIS PARAGRAPH, AND SHALL BE ASSESSED IN A MANNER THAT IS
PROPORTIONAL TO THE NUMBER OF STARTS AT EACH RACE TRACK DURING THE
PREVIOUS YEAR. IN NO EVENT SHALL ANY RACE TRACK IMPOSE THE COST OF SUCH
ASSESSMENT, IN PART OR IN WHOLE, ON ANY OWNER OR TRAINER.
S. 2009--C 59 A. 3009--C
(III) THE TOTAL VALUE OF THE ADDITIONAL PER START FEE IMPOSED ON
OWNERS LICENSED PURSUANT TO THIS CHAPTER AS AN ADDITIONAL PER START FEE
SHALL BE FIFTY PERCENT OF THE ASSESSABLE AMOUNT CALCULATED BY SUBPARA-
GRAPH (I) OF THIS PARAGRAPH DIVIDED BY THE TOTAL NUMBER OF STARTS IN THE
PREVIOUS YEAR, AND SHALL BE ASSESSED AND PAID IN THE SAME MANNER, AND IN
ADDITION TO, THE FEE FOR THE START OF A HORSE IN NEW YORK STATE PARI-MU-
TUEL RACES PROVIDED BY SECTION ONE HUNDRED FIFTEEN-A OF THIS CHAPTER.
4. PAYMENT OF THE ASSESSMENT IMPOSED BY THIS SECTION SHALL BE MADE TO
THE COMMISSION, OR TO THE LABORATORY AUTHORIZED TO CONDUCT EQUINE DRUG
TESTING IF DIRECTED BY THE COMMISSION, BY EACH ENTITY REQUIRED TO MAKE
SUCH PAYMENTS. PAYMENTS OF SUCH ASSESSMENT SHALL BE MADE ON THE LAST
BUSINESS DAY OF EACH MONTH AND SHALL COVER ONE-TWELFTH OF THE ANNUAL
ASSESSMENT, PROVIDED HOWEVER THAT ALL SUCH PAYMENTS REQUIRED TO BE MADE
ON THE LAST DAY OF APRIL SHALL BE DUE WITH THE MAY PAYMENT. A PENALTY OF
FIVE PERCENT, AND INTEREST AT THE RATE OF ONE PERCENT PER MONTH FROM THE
DATE THE ASSESSMENT, IS DUE TO THE DATE OF THE PAYMENT OF THE ASSESS-
MENT, AND SHALL BE PAYABLE IN CASE ANY ASSESSMENT IMPOSED BY THIS CHAP-
TER IS NOT PAID WHEN DUE. IF THE COMMISSION DETERMINES THAT ANY PAYMENT
RECEIVED UNDER THIS SECTION WAS PAID IN ERROR, THE COMMISSION MAY CAUSE
THE SAME TO BE REFUNDED WITHOUT INTEREST OUT OF ANY MONIES COLLECTED
THEREUNDER, PROVIDED AN APPLICATION THEREFOR IS FILED WITH THE COMMIS-
SION WITHIN ONE YEAR FROM THE TIME THE ERRONEOUS PAYMENT IS MADE.
5. ANY DEFICIT IN THE RACING REGULATION ACCOUNT ON MARCH THIRTY-FIRST
OF EACH YEAR, EXCLUDING ANY DEFICIT ATTRIBUTED TO THE NEGATIVE FUND
BALANCE AS OF MARCH THIRTY-FIRST, TWO THOUSAND SEVENTEEN, SHALL BE ADDED
TO THE ASSESSABLE AMOUNT FOR THE FOLLOWING YEAR. FIFTY PERCENT OF ANY
SURPLUS IN SUCH ACCOUNT AS OF MARCH THIRTY-FIRST OF EACH YEAR, NOT TO
EXCEED THE AMOUNT OF THE ASSESSMENT IMPOSED ON RACE TRACKS IN THAT YEAR,
SHALL BE USED TO REDUCE THE ASSESSMENT IMPOSED ON EACH RACE TRACK IN THE
FOLLOWING YEAR IN PROPORTION TO THE AMOUNT PAID BY EACH RACE TRACK IN
THE YEAR OF THE SURPLUS. FIFTY PERCENT OF ANY SURPLUS IN SUCH ACCOUNT
AS OF MARCH THIRTY-FIRST OF EACH YEAR, NOT TO EXCEED THE TOTAL AMOUNT OF
THE ADDITIONAL START FEES IN THAT YEAR, SHALL BE USED TO REDUCE THE
ADDITIONAL PER START FEE IN THE FOLLOWING YEAR. SUCH REDUCTION SHALL BE
CALCULATED IN THE SAME MANNER AS THE ADDITIONAL PER START FEE.
6. NOT LATER THAN MAY FIRST, EACH YEAR, THE COMMISSION SHALL SUBMIT TO
THE DIRECTOR OF THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE AND
THE SPEAKER OF THE ASSEMBLY A REPORT ON THE REVENUE GENERATED BY THE
ASSESSMENT, THE TOTAL COST OF EQUINE DRUG TESTING, AND ANY PROJECTED
DEFICIT OR SURPLUS IN THE RACING REGULATION ACCOUNT. THE COMMISSION
SHALL ALSO PUBLISH SUCH REPORT ON THE COMMISSION'S WEBSITE AS SOON AS
PRACTICABLE.
§ 2. This act shall take effect immediately.
PART MM
Section 1. Paragraph (b) of subdivision 2 of section 435 of the execu-
tive law, as amended by chapter 164 of the laws of 2003, is amended to
read as follows:
(b) No person, firm or corporation, other than an organization [which]
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 A written OR
ELECTRONIC application made, verified and filed with the commission in
the form prescribed by the rules and regulations of the commission. As a
part of its determination concerning the applicant's suitability for
S. 2009--C 60 A. 3009--C
licensing as a bingo supplier, the [New York state racing and wagering
board] COMMISSION shall require the applicant to furnish to such board
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.
In each such application for a license under this section shall be stat-
ed 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 or distribution of bingo supplies and
equipment to duly licensed organizations during the last preceding
calendar or fiscal year, and such other information as shall be
prescribed by such rules and regulations. The fee for such license shall
be a sum equal to twenty-five dollars plus an amount based upon the
gross sales, if any, of bingo equipment and supplies to authorized
organizations by the applicant during the preceding calendar year, or
fiscal year if the applicant maintains his OR HER accounts on a fiscal
year basis, and determined in accordance with the following schedule:
gross sales of $1,000 to $4,999................$10.00
gross sales of $5,000 to $19,999...............$50.00
gross sales of $20,000 to $49,999.............$200.00
gross sales of $50,000 to $100,000............$500.00
gross sales in excess of $100,000...........$1,000.00
§ 2. Section 476 of the general municipal law is amended by adding a
new subdivision 13 to read as follows:
13. "ANCILLARY NON-GAMING ACTIVITY" SHALL MEAN ANY ACTIVITY NOT
DIRECTLY RELATED TO THE CONDUCT OR OUTCOME OF ANY GAME OF BINGO, AND
SHALL INCLUDE ASSISTING AT ANY FOOD CONCESSION, CLEANING, MAINTENANCE
AND SITE PREPARATION AT THE LOCATION WHERE GAMES OF BINGO ARE CONDUCTED.
§ 3. Subdivisions 5 and 6 of section 479 of the general municipal law,
as amended by chapter 328 of the laws of 1994, are amended to read as
follows:
5. No prize shall exceed the sum or value of [one] FIVE thousand
dollars in any single game of bingo.
6. No series of prizes on any one bingo occasion shall aggregate more
than [three] FIFTEEN thousand dollars.
§ 4. Section 480 of the general municipal law, as amended by chapter
438 of the laws of 1962, paragraph (a) of subdivision 1 as amended by
chapter 611 of the laws of 1963, paragraph (b) of subdivision 2 as
amended by chapter 413 of the laws of 1963, is amended to read as
follows:
§ 480. 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 control commission, file with the clerk of the
municipality a written OR ELECTRONIC application therefor in the form
prescribed in the rules and regulations of the control commission, duly
executed and verified, in which SUCH APPLICANT shall [be stated] STATE:
(1) the name and address of the applicant together with sufficient
facts relating to [its] SUCH APPLICANT'S incorporation and organization
to enable the governing body of the municipality to determine whether or
not [it] THE APPLICANT is a bona fide authorized organization;
(2) the names and addresses of [its] THE APPLICANT'S officers; 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;
S. 2009--C 61 A. 3009--C
(3) in case the applicant intends to lease premises for this purpose
from other than an authorized organization, the name and address of the
licensed commercial lessor of such premises, and the capacity or poten-
tial capacity for public assembly purposes of space in any premises
presently owned or occupied by the applicant;
(4) 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 article to conduct
bingo or for use of the premises of a licensed commercial lessor;
(5) 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 whom, and the
purposes for which, they are to be paid;
(6) the specific purposes to which the entire net proceeds of such
games OF BINGO 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 bingo game or games or for assisting therein except
as in this article otherwise provided; and such other information as
shall be prescribed by [such] THE rules and regulations OF THE COMMIS-
SION.
(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 regu-
lations of the commission and [of] this article.
2. Commercial lessor. (a) Each applicant for a license to lease prem-
ises to a licensed organization for the purposes of conducting bingo
therein shall file with the clerk of the municipality [a written] AN
application therefor in a form prescribed in the rules and regulations
of the control commission duly executed and verified, which shall set
forth the name and address of the applicant; designation and address of
the premises intended to be covered by the license sought; lawful capac-
ity for public assembly purposes; cost of premises and assessed valu-
ation for real estate tax purposes, or annual net lease rent, whichever
is applicable; gross rentals received and itemized expenses for the
immediately preceding calendar or fiscal year, if any; gross rentals, if
any, derived from bingo during the last preceding calendar or fiscal
year; computation by which proposed rental schedule was determined;
number of occasions on which applicant anticipates receiving rent for
bingo during the ensuing year or shorter period if applicable; proposed
rent for each such occasion; estimated gross rental income from all
other sources during the ensuing year; estimated expenses itemized for
ensuing year and amount of each item allocated to bingo rentals; a
statement that the applicant in all respects conforms with the specifi-
cations contained in the definition of "authorized commercial lessor"
set forth in section four hundred seventy-six of this article, and such
other information as shall be prescribed by [such] THE rules and regu-
lations 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[, and any]. THE LICENSEE SHALL PAY ANY deficiency of fee
thereby shown to be due [shall be paid by the licensee] and any excess
S. 2009--C 62 A. 3009--C
of fee thereby shown to have been paid shall be credited to [said] SUCH
licensee, in such manner as the commission by rules and regulations
shall prescribe.
§ 5. Paragraph (a) of subdivision 1 of section 481 of the general
municipal law, as amended by section 17 of part LL of chapter 56 of the
laws of 2010, is amended to read as follows:
(a) Issuance of licenses to conduct bingo. If the governing body of
the municipality [shall determine] DETERMINES that the applicant is duly
qualified to be licensed to conduct bingo under this article; that the
member or members of the applicant designated in the application to
conduct bingo are bona fide active members of the applicant and are
persons of good moral character and have never been convicted of a crime
or, if convicted, have received a pardon or a certificate of good
conduct or a certificate of relief from disabilities pursuant to article
twenty-three of the correction law; that such games OF BINGO are to be
conducted in accordance with the provisions of this article and in
accordance with the rules and regulations of the commission, and that
the proceeds thereof are to be disposed of as provided by this article,
and if the governing body is satisfied that no commission, salary,
compensation, reward or recompense [whatever] WHAT SO EVER 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 article otherwise provided; and that no prize will be offered
and given in excess of the sum or value of [one] FIVE thousand dollars
in any single game and that the aggregate of all prizes offered and
given in all of such games conducted on a single occasion, under said
license shall not exceed the sum or value of [three] FIFTEEN thousand
dollars, [it] THEN THE MUNICIPALITY shall issue a license to the appli-
cant for the conduct of bingo upon payment of a license fee of eighteen
dollars and seventy-five cents for each bingo occasion; provided, howev-
er, that the governing body shall refuse to issue a license to an appli-
cant seeking to conduct bingo in premises of a licensed commercial
lessor where [it] SUCH GOVERNING BODY determines that the premises pres-
ently owned or occupied by [said] SUCH applicant are in every respect
adequate and suitable for conducting bingo games.
§ 6. Section 486 of the general municipal law, as amended by chapter
438 of the laws of 1962, is amended to read as follow:
§ 486. Participation by persons under THE AGE OF eighteen. No person
under the age of eighteen years shall be permitted to play any game or
games of bingo conducted pursuant to any license issued under this arti-
cle [unless accompanied by an adult]. No person under the age of eigh-
teen years shall be permitted to conduct, OPERATE or assist in the
conduct of any game of bingo conducted pursuant to any license issued
[under] PURSUANT TO this article. NOTHING IN THIS SECTION SHALL PREVENT
A PERSON SIXTEEN YEARS OF AGE OR OLDER FROM PERFORMING ANCILLARY NON-
GAMING ACTIVITIES CONDUCTED IN CONJUNCTION WITH ANY GAME OF BINGO
CONDUCTED PURSUANT TO ANY LICENSE PURSUANT TO THIS ARTICLE.
§ 7. Intentionally omitted.
§ 8. Section 490 of the general municipal law, as amended by chapter
99 of the laws of 1988, is amended to read as follows:
§ 490. Advertising of bingo games. A licensee may advertise the
conduct of an occasion of bingo to the general public by means of news-
paper, radio, circular, handbill and poster, [and] by one sign not
exceeding sixty square feet in area, which may be displayed on or adja-
cent to the premises owned or occupied by a licensed authorized organ-
ization, [and when] AND THROUGH THE INTERNET OR TELEVISION AS MAY BE
S. 2009--C 63 A. 3009--C
REGULATED BY THE RULES AND REGULATIONS OF THE COMMISSION. WHEN an organ-
ization is licensed to conduct bingo occasions on the premises of anoth-
er licensed authorized organization or of a licensed commercial 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 OR AMBULANCE equipment belonging to any
licensed authorized organization which is a volunteer fire company,
VOLUNTEER AMBULANCE CORPS or upon any equipment of a first aid or rescue
squad in and throughout the community served by such volunteer fire
company, VOLUNTEER AMBULANCE CORPS or such first aid or rescue squad, as
the case may be. All advertisements shall be limited to the description
of such event as "bingo", the name of the licensed authorized organiza-
tion conducting such BINGO occasions, the license number of the author-
ized organization as assigned by the clerk; THE PRIZES OFFERED and the
date, location and time of the bingo occasion.
§ 9. Subdivision 1 of section 491 of the general municipal law, as
amended by chapter 667 of the laws of 1980, is amended to read as
follows:
1. Within seven days after the conclusion of any occasion of bingo,
the authorized organization [which] THAT conducted the same, and [its]
SUCH AUTHORIZED ORGANIZATION'S members who were in charge thereof, and
when applicable the authorized organization [which] THAT rented its
premises therefor, shall each furnish to the clerk of the municipality a
statement subscribed by the member in charge and affirmed by [him] 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 therefor, 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 thereof[, and it]. A CLERK MAY MAKE PROVISIONS FOR THE
OPTION FOR THE ELECTRONIC FILING OF SUCH STATEMENT. 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 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 infor-
mation, in form prescribed by the [state] COMMISSION, shall be furnished
in the same manner to the [state racing and wagering board] COMMISSION.
§ 10. Subdivision 3-b and paragraph (c) of subdivision 5 of section
186 of the general municipal law, as amended by subdivision 3-b as added
by chapter 550 of the laws of 1994, paragraph (c) of subdivision 5 as
amended by chapter 881 of the laws of 1981, are amended to read as
follows:
3-b. "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.
(c) Those [which shall] THAT otherwise lessen the burdens borne by
government or [which] THAT are voluntarily undertaken by an authorized
organization to augment or supplement services which government would
S. 2009--C 64 A. 3009--C
normally render to the people, including, in the case of volunteer
[firemen's] FIREFIGHTERS OR VOLUNTARY EMERGENCY MEDICAL SERVICE activ-
ities, the purchase, erection or maintenance of a building for a fire-
house OR A VOLUNTEER AMBULANCE CORPS BUILDING, activities open to the
public for the enhancement of membership[,] and the purchase of equip-
ment [which] THAT can reasonably be expected to increase the efficiency
of response to fires, accidents, MEDICAL EMERGENCIES, public calamities
and other emergencies.
§ 11. Subdivisions 5, 6 and 13 of section 189 of the general municipal
law, subdivision 5 as amended by chapter 434 of the laws of 2016, subdi-
vision 6 as amended by chapter 302 of the laws of 2010, and subdivision
13 as amended by chapter 252 of the laws of 1998, are amended to read as
follows:
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 [five
hundred] 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 [its costs] THE COST OF SUCH PRIZE to the authorized
organization or, if donated, [its] 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) [three] 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] THE COST OF SUCH PRIZE to the authorized
organization or, if donated, [its] THE fair market value OF SUCH PRIZE.
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. [Nothing herein shall prohibit the sale of raffle]
(B) RAFFLE tickets MAY BE SOLD to the public, AND A RAFFLE DRAWING MAY
OCCUR, outside the premises of an authorized organization or an author-
ized games of chance lessor[; or in municipalities which have] IF SUCH
SALES OCCUR, OR SUCH DRAWING OCCURS, IN A MUNICIPALITY THAT:
(1) HAS passed a local law, ordinance or resolution in accordance with
sections one hundred eighty-seven and one hundred eighty-eight of this
article approving the conduct of games of chance;
(2) [that are] IS located in the county in which the municipality
issuing the RAFFLE license is located [and] OR in [the counties which
are] A COUNTY THAT IS contiguous to the county in which the municipality
issuing the raffle license is located[, provided those municipalities
S. 2009--C 65 A. 3009--C
have authorized the licensee, in writing, to sell such raffle tickets
therein and provided, however, that no];
(3) HAS NOT OBJECTED TO SUCH SALES AFTER THE GAMING COMMISSION GIVES
NOTICE TO SUCH MUNICIPALITY OF AN AUTHORIZED ORGANIZATION'S REQUEST TO
SELL SUCH RAFFLE TICKETS IN SUCH MUNICIPALITY; AND
(4) HAS NOT OBJECTED TO THE LOCATION IN SUCH MUNICIPALITY THAT SUCH
DRAWING IS PROPOSED TO OCCUR, AFTER THE COMMISSION GIVES NOTICE TO SUCH
MUNICIPALITY OF AN AUTHORIZED ORGANIZATION'S REQUEST TO CONDUCT SUCH
DRAWING IN SUCH MUNICIPALITY. A LOCATION OF A DRAWING MAY BE ON STATE-
OWNED PROPERTY SO LONG AS THE AUTHORIZED ORGANIZATION CONDUCTING THE
RAFFLE OBTAINS ALL REQUIRED AUTHORIZATIONS TO DO SO AND COMPLIES WITH
THIS PARAGRAPH.
(C) THE GAMING COMMISSION MAY BY REGULATION PRESCRIBE THE ADVANCE
NOTICE AN AUTHORIZED ORGANIZATION MUST PROVIDE TO THE GAMING 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
GAMING 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.
§ 12. Subdivisions 1 and 2 of section 190-a of the general municipal
law, as amended by chapter 400 of the laws of 2005, are amended to read
as follows:
1. Notwithstanding the licensing requirements set forth in this arti-
cle and their filing requirements set forth in subdivision four of
section one hundred ninety of this article, 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 [twenty] THIRTY thousand dollars
during one calendar year.
2. (a) For the purposes of this section, "authorized organization"
shall mean and include any bona fide religious or charitable organiza-
tion or bona fide educational, fraternal or service organization or bona
fide organization of veterans [or], volunteer [firefighter, which] FIRE-
FIGHTERS OR VOLUNTEER AMBULANCE WORKERS THAT by its charter, certificate
of incorporation, constitution, or act of the legislature, [shall have]
HAS among its dominant purposes one or more of the lawful purposes as
defined in this article, 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 article
for a period of [three years] ONE YEAR immediately prior to being grant-
ed the filing requirement exemption contained in subdivision one of this
section.
(b) No organization shall be deemed an authorized organization [which]
THAT is formed primarily for the purpose of conducting games of chance
and [which] THAT does not devote at least seventy-five percent of its
activities to other than conducting games of chance. No political party
shall be deemed an authorized organization.
§ 13. Section 195-d of the general municipal law, as amended by chap-
ter 637 of the laws of 1999, is amended to read as follows:
S. 2009--C 66 A. 3009--C
§ 195-d. 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 article. The clerk or department may in its discretion fix a mini-
mum 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. No alcoholic beverage shall be
offered or given as a prize in any game of chance.
3. A PLAYER MAY PURCHASE A CHANCE WITH CASH OR, IF THE AUTHORIZED
ORGANIZATION WISHES, WITH A PERSONAL CHECK.
§ 14. Section 195-e of the general municipal law, as amended by
section 94 of the laws of 1981, is amended to read as follows:
§ 195-e. Advertising games. A licensee may advertise the conduct of
games of chance to the general public by means of newspaper, circular,
handbill and poster, and 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 authorized organization, [and when] THROUGH THE
INTERNET OR TELEVISION AS MAY BE REGULATED BY THE RULES AND REGULATIONS
OF THE COMMISSION. WHEN an organization is licensed OR AUTHORIZED to
conduct games of chance on THE premises of an authorized games of chance
lessor, one additional such sign may be displayed on or adjacent to the
premises in which the games are to be conducted. Additional signs may
be displayed upon any [fire fighting] FIREFIGHTING OR AMBULANCE equip-
ment belonging to any licensed authorized organization [which] THAT is a
volunteer fire company, VOLUNTEER AMBULANCE CORPS or upon any equipment
of a first aid or rescue squad in and throughout the community served by
such volunteer fire company, VOLUNTEER AMBULANCE CORPS or such first aid
or rescue squad, as the case may be. All advertisements shall be limited
to the description of such event as "Games of chance" or "Las Vegas
Night", the name of the authorized organization conducting such games,
the license number of the authorized organization as assigned by the
clerk or department, THE PRIZES OFFERED and the date, location and time
of the event.
§ 15. Subdivision 2 of section 195-f of the general municipal law, as
amended by chapter 678 of the laws of 2004, is amended to read as
follows:
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 [which] THAT rented its premises
therefor, shall each furnish to the clerk or department a statement on a
form prescribed by the [board] GAMING COMMISSION, subscribed by the
member in charge and affirmed by him OR HER as true, under the penalties
of perjury, showing the number of tickets printed, the number of tickets
sold, the price, and the number of tickets returned to or retained by
the authorized organization as unsold, a description and statement of
the fair market value for each prize actually awarded, the amount of the
gross receipts derived therefrom, 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, a detailed
description of the merchandise purchased or the services rendered there-
for, the net proceeds derived from the raffle at such occasion, the use
to which the proceeds have been or are to be applied [and]. IT shall be
the duty of each licensee to maintain and keep such books and records as
S. 2009--C 67 A. 3009--C
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
[board] GAMING 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 [board] GAMING 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 [twenty] THIRTY thousand
dollars during one calendar year, no reporting shall be required.
§ 16. Subdivision 5 of section 195-o of the general municipal law, as
amended by section 637 of the laws of 1999, is amended to read as
follows:
5. Reports. A distributor shall report quarterly to the [board] GAMING
COMMISSION, on a form prescribed by the [board] GAMING 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 [board] GAMING
COMMISSION may require that a distributor submit the quarterly report
and invoices required by this section via [magnetic] ELECTRONIC media or
electronic data transfer.
§ 17. 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 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: TWO
appointed by the governor, two [to be] appointed by the temporary presi-
dent of the senate and two [to be] appointed by the speaker of the
assembly; EIGHT APPOINTED BY THE EXECUTIVE COMMITTEE OF THE NEW YORK
RACING ASSOCIATION REORGANIZATION BOARD OF DIRECTORS CONSTITUTED PURSU-
ANT 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. THE NEW YORK RACING ASSOCIATION WILL
INCLUDE KNOWLEDGE OF THE MARKETPLACE AND COMMUNITIES IN WHICH THE NEW
YORK RACING ASSOCIATION OPERATES AS A FACTOR IN BOARD SELECTION; ONE WHO
SHALL BE THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE FRANCHISED
CORPORATION, EX OFFICIO AND WITHOUT TERM LIMITATION; ONE APPOINTED BY
THE NEW YORK THOROUGHBRED BREEDERS, INC.; AND ONE APPOINTED BY THE NEW
YORK THOROUGHBRED HORSEMEN'S ASSOCIATION REPRESENTING AT LEAST FIFTY-ONE
PERCENT OF THE HORSEMEN USING THE FACILITIES OF THE FRANCHISED CORPO-
RATION. THE NEW YORK RACING ASSOCIATION BOARD MAY INCLUDE ADDITIONAL EX
S. 2009--C 68 A. 3009--C
OFFICIO, NON-VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF
THE BOARD. ALL PUBLIC APPOINTED MEMBERS OF THE BOARD SHALL BE A RESIDENT
OF NEW YORK STATE.
(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 ONE MEMBER APPOINTED
BY EACH OF THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, AND SPEAKER
OF THE ASSEMBLY, THE MEMBER APPOINTED BY THE NEW YORK THOROUGHBRED
HORSEMEN'S ASSOCIATION, AND THE MEMBER APPOINTED BY THE NEW YORK
THOROUGHBRED BREEDERS, INC. SHALL EXPIRE MARCH THIRTY-FIRST, TWO THOU-
SAND EIGHTEEN; THE INITIAL TERM OF THE REMAINING MEMBERS APPOINTED BY
EACH OF THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, AND SPEAKER OF
THE ASSEMBLY AND TWO MEMBERS APPOINTED BY THE NEW YORK RACING ASSOCI-
ATION REORGANIZATION BOARD SHALL EXPIRE ON MARCH THIRTY-FIRST, TWO THOU-
SAND 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 TO REVIEW INDUSTRY BEST PRAC-
TICES TO IMPROVE THE SAFETY OF HORSE RACING OF THE THREE RACETRACKS; 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
S. 2009--C 69 A. 3009--C
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
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 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 ordi-
nary conduct of racing operations, or any direct or indirect interest in
any development undertaken at the racetracks of the state racing fran-
chise INCLUDING REAL ESTATE DEVELOPMENT PARCELS AS DEFINED IN THE FRAN-
CHISE AGREEMENT.
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.
S. 2009--C 70 A. 3009--C
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.
8. THE FRANCHISE CORPORATION SHALL NOT HAVE ANY DIRECT OR INDIRECT
OWNERSHIP, CONTROL, INFLUENCE, OR INVESTMENT, IN ANY FRANCHISE OVERSIGHT
BOARD APPROVED DEVELOPMENT OR SUCH ALTERNATIVE USE AS MAY BE APPROVED BY
THE FRANCHISE OVERSIGHT BOARD CONDUCTED ON THE REAL ESTATE DEVELOPMENT
PARCELS AS DEFINED IN THE FRANCHISE AGREEMENT.
§ 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
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
S. 2009--C 71 A. 3009--C
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, AND SUCH DEVIATION IS NOT
MITIGATED BY THE FRANCHISED CORPORATION WITHIN ONE HUNDRED EIGHTY DAYS
OF THE FRANCHISE OVERSIGHT BOARD PROVIDING NOTICE OF SUCH DETERMINATION
TO THE FRANCHISED CORPORATION, OR WHEN THE IMPLEMENTATION OF SUCH PLAN
WOULD, IN THE OPINION OF THE FRANCHISE OVERSIGHT BOARD, POSE A SIGNIF-
ICANT 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
(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, AND WHEN THE FRANCHISED
CORPORATION HAS FAILED TO ADDRESS CONCERNS IDENTIFIED BY THE FRANCHISE
OVERSIGHT BOARD PURSUANT TO SUBPARAGRAPH (XVIII) OF THIS PARAGRAPH, THE
BOARD MAY BY UNANIMOUS VOTE REQUEST THE DIRECTOR OF THE BUDGET TO
IMPOUND AND ESCROW RACING SUPPORT PAYMENTS ACCRUING TO THE BENEFIT OF
THE FRANCHISED CORPORATION PURSUANT TO PARAGRAPHS THREE AND FOUR OF
SUBDIVISION F OF SECTION SIXTEEN HUNDRED TWELVE OF THE TAX LAW. THE
DIRECTOR OF THE BUDGET SHALL RELEASE SUCH IMPOUNDED AND ESCROWED RACING
SUPPORT PAYMENTS UPON NOTICE FROM THE FRANCHISE OVERSIGHT BOARD THAT THE
FRANCHISED CORPORATION HAS ACHIEVED THE GOALS OF A NEW CORRECTIVE ACTION
PLAN APPROVED BY THE BOARD.
THE DIRECTOR OF THE BUDGET SHALL, UPON WARRANT OF THE FRANCHISE OVER-
SIGHT BOARD, APPROVE THE USE OF WITHHELD RACING SUPPORT PAYMENTS NECES-
SARY TO SATISFY FINANCIAL INSTRUMENTS USED TO FUND BOARD-APPROVED CAPI-
TAL INVESTMENTS, AS APPROVED BY THE FRANCHISE OVERSIGHT BOARD.
§ 3. 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:
S. 2009--C 72 A. 3009--C
(i) The pari-mutuel tax rate authorized by paragraph (a) of this
subdivision shall be effective so long as a franchised corporation noti-
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.
§ 4. 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
S. 2009--C 73 A. 3009--C
and for account wagering licensees that do not operate either a simul-
cast facility that is open to the public within the state of New York or
a licensed racetrack within the state, twenty thousand dollars per year
payable by the licensee to the commission for deposit into the general
fund. Except as provided in this section, the commission shall not
approve any application to conduct simulcasting into individual or group
residences, homes or other areas for the purposes of or in connection
with pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the follow-
ing: a franchised corporation, thoroughbred racing corporation or a
harness racing corporation or association; provided (i) the simulcasting
consists only of those races on which pari-mutuel betting is authorized
by this chapter at one or more simulcast facilities for each of the
contracting off-track betting corporations which shall include wagers
made in accordance with section one thousand fifteen, one thousand
sixteen and one thousand seventeen of this article; provided further
that the contract provisions or other simulcast arrangements for such
simulcast facility shall be no less favorable than those in effect on
January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis primari-
ly for promotional or marketing purposes as found by the commission. For
purposes of this paragraph, the provisions of section one thousand thir-
teen of this article shall not apply. Any agreement authorizing an
in-home simulcasting experiment commencing prior to May fifteenth, nine-
teen hundred ninety-five, may, and all its terms, be extended until June
thirtieth, two thousand [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-
S. 2009--C 74 A. 3009--C
ty-first, nineteen hundred ninety-five to the total commissions that
would have been available to such track prior to July twenty-first,
nineteen hundred ninety-five.
§ 3. The opening paragraph of subdivision 1 of section 1014 of the
racing, pari-mutuel wagering and breeding law, as amended by section 3
of part 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:
S. 2009--C 75 A. 3009--C
§ 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:
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
S. 2009--C 76 A. 3009--C
total deposits in pools resulting from on-track regular bets, and four-
teen to twenty-one per centum of the total deposits in pools resulting
from on-track multiple bets and fifteen to twenty-five per centum of the
total deposits in pools resulting from on-track exotic bets and fifteen
to thirty-six per centum of the total deposits in pools resulting from
on-track super exotic bets, plus the breaks. The retention rate to be
established is subject to the prior approval of the gaming commission.
Such rate may not be changed more than once per calendar quarter to be
effective on the first day of the calendar quarter. "Exotic bets" and
"multiple bets" shall have the meanings set forth in section five
hundred nineteen of this chapter. "Super exotic bets" shall have the
meaning set forth in section three hundred one of this chapter. For
purposes of this section, a "pick six bet" shall mean a single bet or
wager on the outcomes of six races. The breaks are hereby defined as the
odd cents over any multiple of five for payoffs greater than one dollar
five cents but less than five dollars, over any multiple of ten for
payoffs greater than five dollars but less than twenty-five dollars,
over any multiple of twenty-five for payoffs greater than twenty-five
dollars but less than two hundred fifty dollars, or over any multiple of
fifty for payoffs over two hundred fifty dollars. Out of the amount so
retained there shall be paid by such franchised corporation to the
commissioner of taxation and finance, as a reasonable tax by the state
for the privilege of conducting pari-mutuel betting on the races run at
the race meetings held by such franchised corporation, the following
percentages of the total pool for regular and multiple bets five per
centum of regular bets and four per centum of multiple bets plus twenty
per centum of the breaks; for exotic wagers seven and one-half per
centum plus twenty per centum of the breaks, and for super exotic bets
seven and one-half per centum plus fifty per centum of the breaks. For
the period June first, nineteen hundred ninety-five through September
ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
three per centum and such tax on multiple wagers shall be two and one-
half per centum, plus twenty per centum of the breaks. For the period
September tenth, nineteen hundred ninety-nine through March thirty-
first, two thousand one, such tax on all wagers shall be two and six-
tenths per centum and for the period April first, two thousand one
through December thirty-first, two thousand [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:
S. 2009--C 77 A. 3009--C
(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
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-
S. 2009--C 78 A. 3009--C
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]
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
Intentionally Omitted
PART SS
Section 1. Subdivision 6 of section 221 of the racing, pari-mutuel
wagering and breeding law, as amended by chapter 325 of the laws of 2004
and such section as renumbered by chapter 18 of the laws of 2008, is
amended to read as follows:
6. (A) The fund shall secure workers' compensation insurance coverage
on a blanket basis for the benefit of all jockeys, apprentice jockeys
and exercise persons licensed pursuant to this article or article four
of this chapter who are employees under section two of the workers'
compensation law, AND MAY ELECT, WITH THE APPROVAL OF THE GAMING COMMIS-
SION, TO SECURE WORKERS' COMPENSATION INSURANCE FOR EMPLOYEES OF
LICENSED TRAINERS OR OWNERS. IN THE EVENT THE FUND ELECTS, WITH THE
APPROVAL OF THE GAMING COMMISSION, TO SECURE WORKERS' COMPENSATION
INSURANCE FOR EMPLOYEES OF LICENSED TRAINERS OR OWNERS, THE FUND MAY
DISCONTINUE TO SECURE WORKERS' COMPENSATION INSURANCE FOR EMPLOYEES OF
LICENSED TRAINERS OR OWNERS ONLY UPON PRIOR APPROVAL OF THE GAMING
COMMISSION.
(B) THE FUND MAY ELECT, WITH THE APPROVAL OF THE GAMING COMMISSION, TO
SECURE WORKERS' COMPENSATION INSURANCE COVERAGE THROUGH A FORM OF SELF-
INSURANCE, PROVIDED THAT THE FUND HAS MET THE REQUIREMENTS OF THE WORK-
ERS' COMPENSATION BOARD, INCLUDING, WITHOUT LIMITATION, SUBDIVISION
THREE OF SECTION FIFTY OF THE WORKERS' COMPENSATION LAW.
S. 2009--C 79 A. 3009--C
§ 2. Subdivision 7 of section 221 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 section 1 of part PP of chapter 60 of
the laws of 2016, is amended to read as follows:
7. In order to pay the costs of the insurance required by this section
and by the workers' compensation law and to carry out its other powers
and duties and to pay for any of its liabilities under section four-
teen-a of the workers' compensation law, the New York Jockey Injury
Compensation Fund, Inc. shall ascertain the total funding necessary and
establish the sums that are to be paid by all owners and trainers
licensed or required to be licensed under section two hundred twenty of
this article, to obtain the total funding amount required annually. In
order to provide that any sum required to be paid by an owner or trainer
is equitable, the fund shall establish payment schedules which reflect
such factors as are appropriate, including where applicable, the
geographic location of the racing corporation at which the owner or
trainer participates, the duration of such participation, the amount of
any purse earnings, the number of horses involved, or such other factors
as the fund shall determine to be fair, equitable and in the best inter-
ests of racing. In no event shall the amount deducted from an owner's
share of purses exceed two per centum; provided, however, for two thou-
sand [sixteen] SEVENTEEN the New York Jockey Injury Compensation Fund,
Inc. may use up to two million dollars from the account established
pursuant to subdivision nine of section two hundred eight of this arti-
cle to pay the annual costs required by this section and the funds from
such account shall not count against the two per centum of purses
deducted from an owner's share of purses. The amount deducted from an
owner's share of purses shall not exceed one per centum after April
first, two thousand [seventeen] TWENTY. In the cases of multiple owner-
ships and limited racing appearances, the fund shall equitably adjust
the sum required.
The [state racing and wagering board] GAMING COMMISSION shall, as a
condition of racing, require any racing corporation or any quarterhorse
racing association or corporation authorized under this chapter to
conduct pari-mutuel betting at a race meeting or races run thereat, to
require that each trainer utilizing the facilities of such association
or corporation and each owner racing a horse shall place or have placed
on deposit with the horsemen's bookkeeper of such racing association or
corporation, an amount to be established and paid in a manner to be
determined by the fund.
Should the fund determine that the amount which has been collected in
the manner prescribed is inadequate to pay the annual costs required by
this section, it shall notify the [state racing and wagering board]
GAMING COMMISSION of the deficiency and the amount of the additional sum
or sums necessary to be paid by each owner and/or trainer in order to
cover such deficiency. The [state racing and wagering board] GAMING
COMMISSION shall, as an additional condition of racing, direct any
racing corporation or any quarterhorse racing association or corporation
authorized under this chapter to conduct pari-mutuel betting at a race
meeting or races run thereat, to require each trainer and owner to place
such additional sum or sums on deposit with the respective horsemen's
bookkeeper.
All amounts collected by a horsemen's bookkeeper pursuant to this
section shall be transferred to the fund created under this section and
shall be used by the fund to purchase workers' compensation insurance
for jockeys, apprentice jockeys and exercise persons licensed pursuant
S. 2009--C 80 A. 3009--C
to this article or article four of this chapter who are employees under
section two of the workers' compensation law, AND AT THE ELECTION OF THE
FUND, WITH THE APPROVAL OF THE GAMING COMMISSION, TO SECURE WORKERS'
COMPENSATION INSURANCE FOR EMPLOYEES OF LICENSED TRAINERS OR OWNERS to
pay for any of its liabilities under section fourteen-a of the workers'
compensation law and to administer the workers' compensation program for
such jockeys, apprentice jockeys and exercise persons AND, IF APPROVED
BY THE GAMING COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS
required by this section and the workers' compensation law.
IN THE EVENT THE FUND ELECTS, WITH THE APPROVAL OF THE GAMING COMMIS-
SION, TO SECURE WORKERS' COMPENSATION INSURANCE FOR EMPLOYEES OF
LICENSED TRAINERS OR OWNERS, THE FUND MAY ELECT TO HAVE THE SUM REQUIRED
TO BE PAID BY AN OWNER OR TRAINER PURSUANT TO THIS SECTION BE SUBJECT TO
AN EXAMINATION OF WORKERS' COMPENSATION CLAIMS ATTRIBUTABLE UNDER THE
FUND TO EACH SUCH OWNER OR TRAINER, INCLUDING THE FREQUENCY AND SEVERITY
OF ACCIDENTS AND INJURIES.
§ 3. Subdivision 12 of section 221 of the racing, pari-mutuel wagering
and breeding law, as amended by chapter 325 of the laws of 2004 and such
section as renumbered by chapter 18 of the laws of 2008, is amended and
two new subdivisions 13 and 14 are added to read as follows:
12. [The fund and the state racing and wagering board shall have such
power as is necessary to implement the provisions of this section.] FOR
PURPOSES OF THIS SECTION, THE TERM "EMPLOYEES OF LICENSED TRAINERS OR
OWNERS" SHALL HAVE THE SAME MEANING AS SUBDIVISION TWENTY-FOUR OF
SECTION TWO OF THE WORKERS' COMPENSATION LAW.
13. A. THERE IS CREATED A RACING SAFETY COMMITTEE TO REVIEW THE RISK
MANAGEMENT REPORT SUBMITTED TO THE COMMISSION BY THE FUND ON OR ABOUT
SEPTEMBER THIRTIETH, TWO THOUSAND SIXTEEN AND TO MAKE NON-BINDING RECOM-
MENDATIONS FOR THE IMPLEMENTATION OF THE SAFETY PROPOSALS AND INITI-
ATIVES SET FORTH IN SUCH REPORT. SUCH COMMITTEE SHALL CONSIST OF SEVEN
MEMBERS, EACH TO SERVE A TERM OF THREE YEARS, WITH ONE MEMBER EACH
APPOINTED BY:
(I) THE FUND;
(II) THE GAMING COMMISSION;
(III) THE FRANCHISED CORPORATION;
(IV) THE RACING ASSOCIATION OR CORPORATION LICENSED PURSUANT TO THIS
ARTICLE OR ARTICLE FOUR OF THIS CHAPTER TO OPERATE THE RACING AND TRAIN-
ING FACILITIES AT FINGER LAKES RACETRACK;
(V) THE HORSEMEN'S ORGANIZATION REPRESENTING AT LEAST FIFTY-ONE
PERCENT OF THE OWNERS AND TRAINERS USING THE FACILITIES OF THE FRAN-
CHISED CORPORATION;
(VI) THE HORSEMEN'S ORGANIZATION REPRESENTING AT LEAST FIFTY-ONE
PERCENT OF THE OWNERS AND TRAINERS USING THE FACILITIES OF THE FINGER
LAKES RACETRACK; AND
(VII) THE JOCKEYS' GUILD.
THE MEMBER OF THE RACING SAFETY COMMITTEE APPOINTED BY THE FUND SHALL
SERVE AS CHAIRPERSON AND THE MEMBER OF THE RACING SAFETY COMMITTEE
APPOINTED BY THE COMMISSION SHALL SERVE AS VICE-CHAIRPERSON. MEMBERS OF
THE RACING SAFETY COMMITTEE SHALL HAVE EQUAL VOTING RIGHTS.
B. THE RACING SAFETY COMMITTEE SHALL MEET WITHIN NINETY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SUBDIVISION TO REVIEW AND DISCUSS THE IMPLE-
MENTATION OF THE RECOMMENDATIONS CONTAINED IN THE RISK MANAGEMENT REPORT
SUBMITTED TO THE GAMING COMMISSION BY THE FUND ON OR ABOUT SEPTEMBER
THIRTIETH, TWO THOUSAND SIXTEEN. THE RACING SAFETY COMMITTEE SHALL MEET
ON OR AFTER JULY FIRST, TWO THOUSAND SEVENTEEN, AND AT LEAST ANNUALLY
THEREAFTER, TO REVIEW THE WORKERS' COMPENSATION LOSS INFORMATION AND THE
S. 2009--C 81 A. 3009--C
STATUS OF SAFETY-RELATED FINDINGS AND RECOMMENDATIONS AND TO DEVELOP AN
ANNUAL STRATEGIC PLAN TO ADDRESS IDENTIFIED SAFETY ISSUES.
C. THE MEMBERS APPOINTED PURSUANT TO SUBPARAGRAPH (III) AND (IV) OF
PARAGRAPH A OF THIS SUBDIVISION, IN CONSULTATION WITH THE OTHER MEMBERS
OF THE RACING SAFETY COMMITTEE, SHALL:
(I) WITHIN ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, FOR EACH TRACK, DEVELOP SAFETY RULES FOR TRAINING
ACTIVITIES TO BE DOCUMENTED AND COMMUNICATED, IN BOTH ENGLISH AND SPAN-
ISH, TO JOCKEYS, APPRENTICE JOCKEYS, AND EXERCISE PERSONS LICENSED
PURSUANT TO THIS ARTICLE OR ARTICLE FOUR OF THIS CHAPTER WHO ARE EMPLOY-
EES UNDER SECTION TWO OF THE WORKERS' COMPENSATION LAW, AND AT THE
ELECTION OF THE FUND, WITH THE APPROVAL OF THE GAMING COMMISSION,
EMPLOYEES OF LICENSED TRAINERS OR OWNERS. SUCH SAFETY RULES SHALL
INCLUDE, BUT NOT BE LIMITED TO, PROPER USAGE OF PERSONAL PROTECTIVE
EQUIPMENT, REQUIRED RESPONSE TO LOOSE HORSES, PROHIBITION OF CELL PHONE
USE WHILE MOUNTED ON A HORSE, GENERAL REQUIREMENTS FOR JOGGING, GALLOP-
ING, BREEZING, PONYING A HORSE, AND STARTING GATE SAFETY PROTOCOLS.
REFRESHER TRAINING RELATED TO SUCH SAFETY RULES SHALL BE REQUIRED AT THE
START OF EACH MEET.
(II) PRIOR TO THE START OF EACH MEET, FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, MEET WITH TRAINERS OR THEIR REPRESENTATIVES TO DISCUSS
AND ADDRESS IDENTIFIED SAFETY ISSUES.
(III) WITHIN ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, FOR EACH TRACK, DEVELOP A WRITTEN, DOCUMENTED EMERGEN-
CY RESPONSE PLAN TO ADDRESS RESPONSE PROTOCOLS TO ON-TRACK ACCIDENTS AND
INCIDENTS, WHICH, AT A MINIMUM, SHALL INCLUDE DETAILED INFORMATION
REGARDING ROLES AND RESPONSIBILITIES FOR INDIVIDUALS WHO ARE RESPONSIBLE
FOR TRACK-RELATED ACCIDENTS AND INCIDENTS, INCLUDING, BUT NOT LIMITED
TO, OUTRIDERS, EMERGENCY MEDICAL TECHNICIANS/PARAMEDICS, AMBULANCE DRIV-
ERS, SECURITY, AND VETERINARY STAFF AND CLOCKERS.
(IV) WITHIN TWO HUNDRED TEN DAYS FOLLOWING THE EFFECTIVE DATE OF THIS
SUBDIVISION, COMMUNICATE THE EMERGENCY RESPONSE PLAN TO ALL ON-TRACK
PERSONNEL AS PART OF NEW HIRE ORIENTATION AND JOB ASSIGNMENT.
(V) WITHIN TWO HUNDRED TEN DAYS FOLLOWING THE EFFECTIVE DATE OF THIS
SUBDIVISION, AND AT LEAST ONCE ANNUALLY THEREAFTER, FOR EACH TRACK,
CONDUCT A MOCK EMERGENCY RESPONSE DRILL FOR ON-TRACK ACCIDENTS PRIOR TO
THE OPENING OF EACH RACE MEET. SUCH EMERGENCY RESPONSE DRILL SHALL BE
FILMED AND USED FOR EDUCATION AND TRAINING PURPOSES FOR PERSONNEL,
INCLUDING IN NEW HIRE ORIENTATION, AND TO ASSESS THE PERFORMANCE OF
INDIVIDUALS INVOLVED IN THE EMERGENCY RESPONSE.
(VI) WITHIN ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE OF
THIS SUBDIVISION, UPGRADE THE CURRENT LEVEL OF EMERGENCY MEDICAL RESPON-
DERS FROM EMERGENCY MEDICAL TECHNICIANS TO PARAMEDICS.
14. THE FUND AND THE GAMING COMMISSION SHALL HAVE SUCH POWER AS IS
NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
§ 4. Section 2 of the workers' compensation law is amended by adding a
new subdivision 24 to read as follows:
24. "EMPLOYEES OF LICENSED TRAINERS OR OWNERS" MEANS ASSISTANT TRAIN-
ERS, FOREMEN, WATCHMEN AND STABLE EMPLOYEES, INCLUDING GROOMS AND HOT-
WALKERS, EMPLOYED BY A TRAINER OR OWNER LICENSED PURSUANT TO ARTICLE TWO
OR FOUR OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW.
§ 5. The second undesignated paragraph of subdivision 3 of section 2
of the workers' compensation law, as amended by chapter 392 of the laws
of 2008, is amended to read as follows:
Notwithstanding any other provision of this chapter and for purposes
of this chapter only, "employer" shall mean, with respect to a jockey,
S. 2009--C 82 A. 3009--C
apprentice jockey or exercise person licensed under article two or four
of the racing, pari-mutuel wagering and breeding law, AND AT THE
ELECTION OF THE NEW YORK JOCKEY INJURY COMPENSATION FUND, INC., WITH THE
APPROVAL OF THE NEW YORK STATE GAMING COMMISSION, EMPLOYEES OF LICENSED
TRAINERS OR OWNERS, performing services for an owner or trainer in
connection with the training or racing of a horse at a facility of a
racing association or corporation subject to article two or four of the
racing, pari-mutuel wagering and breeding law and subject to the juris-
diction of the New York state [racing and wagering board] GAMING COMMIS-
SION, The New York Jockey Injury Compensation Fund, Inc. and all owners
and trainers who are licensed or required to be licensed under article
two or four of the racing, pari-mutuel wagering and breeding law at the
time of any occurrence for which benefits are payable pursuant to this
chapter in respect to the injury or death of such jockey, apprentice
jockey [or], exercise person OR, IF APPROVED BY THE NEW YORK STATE
GAMING COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER.
§ 6. The fifth undesignated paragraph of subdivision 4 of section 2 of
the workers' compensation law, as amended by chapter 169 of the laws of
2007, is amended to read as follows:
Notwithstanding any other provision of this chapter, and for purposes
of this chapter only, a jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS, performing
services for an owner or trainer in connection with the training or
racing of a horse at a facility of a racing association or corporation
subject to article two or four of the racing, pari-mutuel wagering and
breeding law and subject to the jurisdiction of the New York state
[racing and wagering board] GAMING COMMISSION shall be regarded as the
"employee" not solely of such owner or trainer, but shall instead be
conclusively presumed to be the "employee" of The New York Jockey Injury
Compensation Fund, Inc. and also of all owners and trainers who are
licensed or required to be licensed under article two or four of the
racing, pari-mutuel wagering and breeding law at the time of any occur-
rence for which benefits are payable pursuant to this chapter in respect
of the injury or death of such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER.
§ 7. The third undesignated paragraph of subdivision 5 of section 2 of
the workers' compensation law, as amended by chapter 392 of the laws of
2008, is amended to read as follows:
Notwithstanding any other provision of this chapter, and for purposes
of this chapter only, a jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS, performing
services for an owner or trainer in connection with the training or
racing of a horse at a facility of a racing association or corporation
subject to article two or four of the racing, pari-mutuel wagering and
breeding law and subject to the jurisdiction of the New York state
[racing and wagering board] GAMING COMMISSION shall be regarded as in
the "employment" not solely of such owner and trainer, but shall instead
be conclusively presumed to be in the "employment" of The New York Jock-
ey Injury Compensation Fund, Inc. and of all owners and trainers who are
S. 2009--C 83 A. 3009--C
licensed or required to be licensed under article two or four of the
racing, pari-mutuel wagering and breeding law, at the time of any occur-
rence for which benefits are payable pursuant to this chapter in respect
of the injury or death of such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER. For the purpose of this chapter only,
whether a livery driver's performance of covered services, as those
terms are defined in article six-G of the executive law, constitutes
"employment" shall be determined in accordance with section eighteen-c
of this chapter.
§ 8. The opening paragraph of section 11 of the workers' compensation
law, as amended by chapter 169 of the laws of 2007, is amended to read
as follows:
The liability of an employer prescribed by the last preceding section
shall be exclusive and in place of any other liability whatsoever, to
such employee, his or her personal representatives, spouse, parents,
dependents, distributees, or any person otherwise entitled to recover
damages, contribution or indemnity, at common law or otherwise, on
account of such injury or death or liability arising therefrom, except
that if an employer fails to secure the payment of compensation for his
or her injured employees and their dependents as provided in section
fifty of this chapter, an injured employee, or his or her legal repre-
sentative in case of death results from the injury, may, at his or her
option, elect to claim compensation under this chapter, or to maintain
an action in the courts for damages on account of such injury; and in
such an action it shall not be necessary to plead or prove freedom from
contributory negligence nor may the defendant plead as a defense that
the injury was caused by the negligence of a fellow servant nor that the
employee assumed the risk of his or her employment, nor that the injury
was due to the contributory negligence of the employee. The liability
under this chapter of The New York Jockey Injury Compensation Fund, Inc.
created under section two hundred [thirteen-a] TWENTY-ONE of the racing,
pari-mutuel wagering and breeding law shall be limited to the provision
of workers' compensation coverage to jockeys, apprentice jockeys [and],
exercise persons, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEES OF LICENSED TRAINERS OR OWNERS licensed under
article two or four of the racing, pari-mutuel wagering and breeding law
and any statutory penalties resulting from the failure to provide such
coverage.
§ 9. Subdivision 4 of section 14-a of the workers' compensation law,
as amended by chapter 169 of the laws of 2007, is amended to read as
follows:
4. With respect to a jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER, who, pursuant to
section two of this chapter, is an employee of all owners and trainers
licensed or required to be licensed under article two or four of the
racing, pari-mutuel wagering and breeding law and The New York Jockey
Injury Compensation Fund, Inc., the owner or trainer for whom such jock-
ey, apprentice jockey [or], exercise person OR, IF APPROVED BY THE NEW
YORK STATE GAMING COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER
was performing services at the time of the accident shall be solely
responsible for the double payments described in subdivision one of this
S. 2009--C 84 A. 3009--C
section, to the extent that such payments exceed any amounts otherwise
payable with respect to such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER under any other section of this chapter,
and the New York Jockey Injury Compensation Fund, Inc. shall have no
responsibility for such excess payments, unless there shall be a failure
of the responsible owner or trainer to pay such award within the time
provided under this chapter. In the event of such failure to pay and the
board requires the fund to pay the award on behalf of such owner or
trainer who has been found to have violated this section, the fund shall
be entitled to an award against such owner or trainer for the amount so
paid which shall be collected in the same manner as an award of compen-
sation.
§ 10. Section 18-a of the workers' compensation law, as amended by
chapter 169 of the laws of 2007, is amended to read as follows:
§ 18-a. Notice: The New York Jockey Injury Compensation Fund, Inc.
Wherever in this chapter it shall be required that notice be given to an
employer, except for claims involving section fourteen-a of the workers'
compensation law such notice requirement shall be deemed satisfied by
giving notice to the New York Jockey Injury Compensation Fund, Inc., in
connection with an injury to a jockey, apprentice jockey or exercise
person licensed under article two or four of the racing, pari-mutuel
wagering and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY
INJURY COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE
GAMING COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER, who,
pursuant to section two of this chapter, is an employee of all owners
and trainers licensed or required to be licensed under article two or
four of the racing, pari-mutuel wagering and breeding law and of the
fund. In a claim involving section fourteen-a of the workers' compen-
sation law such required notice shall be given to the employing owner
and/or trainer of the fund.
§ 11. Subdivision 8 of section 50 of the workers' compensation law, as
amended by chapter 169 of the laws of 2007, is amended to read as
follows:
8. The requirements of section ten of this chapter regarding the
provision of workers' compensation insurance as to owners and trainers
governed by the racing, pari-mutuel wagering and breeding law who are
employers under section two of this chapter are satisfied in full by
compliance with the requirements imposed upon owners and trainers by
section two hundred [thirteen-a] TWENTY-ONE of the racing, pari-mutuel
wagering and breeding law, provided that in the event double compen-
sation, death benefits, or awards are payable with respect to an injured
employee under section fourteen-a of this chapter, the owner or trainer
for whom the injured jockey, apprentice jockey or exercise person
licensed under article two or four of the racing, pari-mutuel wagering
and breeding law, AND AT THE ELECTION OF THE NEW YORK JOCKEY INJURY
COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW YORK STATE GAMING
COMMISSION, EMPLOYEE OF A LICENSED TRAINER OR OWNER, is performing
services as a jockey, apprentice jockey or exercise person so licensed
at the time of the accident OR, IF APPROVED BY THE NEW YORK STATE GAMING
COMMISSION, AN EMPLOYEE OF A LICENSED TRAINER OR OWNER shall bear the
sole responsibility for the amount payable pursuant to such section
fourteen-a in excess of the amount otherwise payable under this chapter,
unless there shall be a failure of the responsible owner or trainer to
pay such award within the time provided under this chapter. In the event
of such failure to pay and the board requires the fund to pay the award
S. 2009--C 85 A. 3009--C
on behalf of such owner or trainer who has been found to have violated
section fourteen-a OF THIS CHAPTER, the fund shall be entitled to an
award against such owner or trainer for the amount so paid which shall
be collected in the same manner as an award of compensation. Coverage
directly procured by any owner or trainer for the purpose of satisfying
the requirements of this chapter with respect to employees of the owner
or trainer shall not include coverage on any jockey, apprentice jockey
or exercise person licensed under article two or four of the racing,
pari-mutuel wagering and breeding law, AND AT THE ELECTION OF THE NEW
YORK JOCKEY INJURY COMPENSATION FUND, INC., WITH THE APPROVAL OF THE NEW
YORK STATE GAMING COMMISSION, ANY EMPLOYEE OF A LICENSED TRAINER OR
OWNER, to the extent that such jockey, apprentice jockey [or], exercise
person OR, IF APPROVED BY THE NEW YORK STATE GAMING COMMISSION, EMPLOYEE
OF A LICENSED TRAINER OR OWNER is also covered under coverage procured
by The New York Jockey Injury Compensation Fund, Inc. pursuant to the
requirements of section two hundred [thirteen-a] TWENTY-ONE of the
racing, pari-mutuel wagering and breeding law, and to that extent,
coverage procured by the fund pursuant to the requirements of the
racing, pari-mutuel wagering and breeding law shall be considered prima-
ry.
§ 12. This act shall take effect immediately.
PART TT
Section 1. Subsection (eee) of section 606 of the tax law is amended
by adding a new paragraph 13 to read as follows:
(13) (A) NOTHING HEREIN SHALL BE CONSTRUED TO PRECLUDE THE COMMISSION-
ER FROM MAKING A PRELIMINARY ADVANCE PAYMENT OF THE CREDIT BASED UPON AN
ESTIMATE OF THE STAR TAX SAVINGS APPLICABLE TO A SCHOOL DISTRICT
PORTION, WHERE HE OR SHE FINDS THAT ATTEMPTING TO ASCERTAIN THE ACTUAL
STAR TAX SAVINGS APPLICABLE TO THE SCHOOL DISTRICT PORTION WOULD JEOP-
ARDIZE THE TIMELY ISSUANCE OF THE PAYMENT. WHEN MAKING SUCH AN ESTIMATE,
THE COMMISSIONER SHALL CONSIDER THE STAR TAX SAVINGS APPLICABLE IN THE
SCHOOL DISTRICT FISCAL YEAR PRECEDING THE ASSOCIATED FISCAL YEAR, THE
ALLOWABLE LEVY GROWTH FACTOR APPLICABLE TO THE CALCULATION OF THE TAX
LEVY LIMIT FOR THE ASSOCIATED FISCAL YEAR PURSUANT TO PARAGRAPH A OF
SUBDIVISION TWO OF SECTION TWO THOUSAND TWENTY-THREE-A OF THE EDUCATION
LAW, TAXABLE ASSESSED VALUE WHERE APPROPRIATE, AND SUCH OTHER INFORMA-
TION THAT IN HIS OR HER JUDGMENT WILL HELP MAKE THE ESTIMATE AS ACCURATE
AS POSSIBLE.
(B) NOTHING HEREIN SHALL BE CONSTRUED TO PRECLUDE THE COMMISSIONER
FROM MAKING A PRELIMINARY ADVANCE PAYMENT OF THE CREDIT WITHOUT ATTEMPT-
ING TO ASCERTAIN THE TAXPAYER'S QUALIFYING TAXES, WHERE HE OR SHE FINDS
THAT ATTEMPTING TO ASCERTAIN THE TAXPAYER'S QUALIFYING TAXES WOULD JEOP-
ARDIZE THE TIMELY ISSUANCE OF THE PAYMENT.
(C) IF THE COMMISSIONER DETERMINES THAT A TAXPAYER RECEIVED A PRELIMI-
NARY ADVANCE PAYMENT THAT IS ABOVE OR BELOW THE ADVANCE PAYMENT TO WHICH
HE OR SHE WAS ENTITLED UNDER THIS SUBSECTION, THE COMMISSIONER SHALL
PROVIDE NOTICE TO SUCH TAXPAYER THAT THE NEXT ADVANCE PAYMENT DUE TO
SUCH TAXPAYER UNDER THIS SUBSECTION SHALL BE ADJUSTED TO RECONCILE SUCH
UNDERPAYMENT OR OVERPAYMENT; PROVIDED, HOWEVER, THE COMMISSIONER SHALL
PERMIT A TAXPAYER TO REQUEST THAT SUCH ADJUSTMENT BE MADE ON AN
ORIGINALLY FILED TIMELY INCOME TAX RETURN FOR THE TAX YEAR IN WHICH SUCH
OVERPAYMENT OR UNDERPAYMENT OCCURRED, PROVIDED SUCH RETURN IS FILED ON
OR BEFORE THE DUE DATE FOR SUCH RETURN, DETERMINED WITHOUT REGARD TO
EXTENSIONS.
S. 2009--C 86 A. 3009--C
(D) A TAXPAYER WHO RECEIVED A PRELIMINARY ADVANCE PAYMENT THAT CONSTI-
TUTES AN OVERPAYMENT SHALL NOT BE REQUIRED TO PAY INTEREST ON THE AMOUNT
OF THE OVERPAYMENT.
§ 2. Subparagraph (B) of paragraph 10 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) On or before [September fifteenth of each year] THE DATE SPECIFIED
BELOW, or as soon thereafter as practicable, the commissioner shall
determine the eligibility of taxpayers for this credit utilizing the
information available to him or her as obtained from the applications
submitted on or before July first of that year, or such later date as
may have been prescribed by the commissioner for that purpose, and from
such other sources as the commissioner deems reliable and appropriate.
For those taxpayers whom the commissioner has determined eligible for
this credit, the commissioner shall advance a payment in the amount
specified in paragraph three, four or six of this subsection, whichever
is applicable. Such payment shall be issued by [September thirtieth of
the year the credit is allowed] THE DATE SPECIFIED BELOW, or as soon
thereafter as is practicable; PROVIDED THAT IF SUCH PAYMENT IS ISSUED
AFTER SUCH DATE, IT SHALL BE SUBJECT TO INTEREST AT THE RATE PRESCRIBED
BY SUBPARAGRAPH (A) OF PARAGRAPH TWO OF SUBSECTION (J) OF SECTION SIX
HUNDRED NINETY-SEVEN OF THIS ARTICLE. Nothing contained herein shall be
deemed to preclude the commissioner from issuing payments after [Septem-
ber thirtieth] SUCH DATE to qualified taxpayers whose applications were
made after July first of that year, or such later date as may have been
prescribed by the commissioner for such purpose.
(I) THE APPLICABLE DATES FOR THIS PURPOSE ARE AS FOLLOWS:
(I) IF THE SCHOOL DISTRICT TAX ROLL IS FILED WITH THE COMMISSIONER ON
OR BEFORE JULY FIRST, THE DETERMINATION OF ELIGIBILITY SHALL BE MADE BY
JULY FIFTEENTH, OR AS SOON THEREAFTER AS IS PRACTICABLE, AND THE ADVANCE
PAYMENT SHALL BE ISSUED BY JULY THIRTIETH, OR AS SOON THEREAFTER AS IS
PRACTICABLE.
(II) IF THE SCHOOL DISTRICT TAX ROLL IS FILED WITH THE COMMISSIONER
AFTER JULY FIRST AND ON OR BEFORE SEPTEMBER FIRST, THE DETERMINATION OF
ELIGIBILITY SHALL BE MADE BY SEPTEMBER FIFTEENTH, OR AS SOON THEREAFTER
AS IS PRACTICABLE, AND THE ADVANCE PAYMENT SHALL BE ISSUED BY SEPTEMBER
THIRTIETH, OR AS SOON THEREAFTER AS IS PRACTICABLE.
(III) IF THE SCHOOL DISTRICT TAX ROLL IS FILED WITH THE COMMISSIONER
AFTER SEPTEMBER FIRST, THE DETERMINATION OF ELIGIBILITY SHALL BE MADE BY
THE FIFTEENTH DAY AFTER SUCH FILING, OR AS SOON THEREAFTER AS IS PRACTI-
CABLE, AND THE ADVANCE PAYMENT SHALL BE ISSUED BY THE THIRTIETH DAY
AFTER SUCH FILING, OR AS SOON THEREAFTER AS IS PRACTICABLE.
(II) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBPARAGRAPH, IN
THE CASE OF TAXPAYERS WHOSE PRIMARY RESIDENCE IS A COOPERATIVE APARTMENT
OR A MOBILE HOME THAT IS SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (A)
OR (B) OF PARAGRAPH SIX OF THIS SUBSECTION, THE PAYMENT SHALL BE ISSUED
BY THE SIXTIETH DAY FOLLOWING RECEIPT OF ALL OF THE DATA NEEDED TO PROP-
ERLY CALCULATE THE CREDIT, OR AS SOON THEREAFTER AS IS PRACTICABLE.
§ 3. Subdivision 6 of section 1306-a of the real property tax law, as
amended by section 7 of part A of chapter 73 of the laws of 2016, is
amended to read as follows:
6. When the commissioner determines, at least [thirty] TWENTY days
prior to the levy of school district taxes, that an advance credit of
the personal income tax credit authorized by subsection (eee) of section
six hundred six of the tax law will be provided to the owners of a
parcel in that school district, he or she shall so notify the assessor,
S. 2009--C 87 A. 3009--C
the county director of real property tax services, and the authorities
of the school district, who shall cause a statement to be placed on the
tax bill for the parcel in substantially the following form: ["A STAR
check of $ will be mailed to you upon issuance by the NYS Tax
Department". The commissioner shall advise such officials of the amount
to be entered therein.] "AN ESTIMATED STAR CHECK WILL BE MAILED TO YOU
UPON ISSUANCE BY THE NYS TAX DEPARTMENT. ANY OVERPAYMENT OR UNDERPAYMENT
CAN BE RECONCILED ON YOUR NEXT TAX RETURN OR STAR CREDIT CHECK."
Notwithstanding any provision of law to the contrary, in the event
that the parcel in question had been granted a STAR exemption on the
assessment roll upon which school district taxes are to be levied, such
exemption shall be deemed null and void, shall be removed from the
assessment roll, and shall be disregarded when the parcel's tax liabil-
ity is determined. The assessor or other local official or officials
having custody and control of the data file used to generate school
district tax rolls and tax bills shall be authorized and directed to
change such file as necessary to enable the school district authorities
to discharge the duties imposed upon them by this subdivision.
§ 4. This act shall take effect immediately.
PART UU
Section 1. Paragraph 2 of subdivision (e) of section 1111 of the tax
law, as amended by section 1 of part LL of chapter 59 of the laws of
2014, is amended to read as follows:
(2) (i) Where the motor fuel is imported, manufactured or sold in, or
diesel motor fuel is sold or used in the region referred to in subpara-
graph (i) of paragraph one of this subdivision, the tax required to be
prepaid pursuant to section eleven hundred two of this article on each
gallon of such fuel shall be [seventeen and one-half] SIXTEEN cents.
(ii) Where motor fuel is imported, manufactured or sold in, or diesel
motor fuel is sold or used in the region referred to in subparagraph
(ii) of paragraph one of this subdivision, the tax required to be
prepaid pursuant to section eleven hundred two of this article on each
gallon of such fuel shall be [twenty-one] SIXTEEN cents.
(iii) Where motor fuel is imported, manufactured or sold in, or diesel
motor fuel is sold or used in the region referred to in subparagraph
(iii) of paragraph one of this subdivision, the tax required to be
prepaid pursuant to section eleven hundred two of this article on each
gallon of such fuel shall be [sixteen] FIFTEEN cents.
§ 2. Subdivision (e) of section 1111 of the tax law is amended by
adding two new paragraphs 4 and 5 to read as follows:
(4) THE COMMISSIONER IS AUTHORIZED TO ADJUST THE RATES IN PARAGRAPH
TWO OF THIS SUBDIVISION AND SHALL PRESCRIBE A SCHEDULE OF SUCH RATES FOR
EACH REGION DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION AS PROVIDED
IN THIS PARAGRAPH.
(I) THE SCHEDULE REQUIRED BY THIS PARAGRAPH SHALL BE REVIEWED SEMIAN-
NUALLY DURING THE MONTHS OF APRIL AND OCTOBER OF EACH YEAR, BEGINNING IN
OCTOBER, TWO THOUSAND SEVENTEEN. THE COMMISSIONER SHALL DETERMINE A
TENTATIVE RATE OF TAX THAT WOULD BE REQUIRED TO BE PREPAID PURSUANT TO
SECTION ELEVEN HUNDRED TWO OF THIS ARTICLE ON EACH GALLON OF MOTOR FUEL
OR DIESEL MOTOR FUEL SOLD OR USED BY MULTIPLYING THE REGIONAL AVERAGE
RETAIL SALES PRICES FOR SUCH FUEL FOR EACH REGION DESCRIBED IN PARAGRAPH
ONE OF THIS SUBDIVISION BY A NUMBER THAT IS SEVENTY-FIVE PERCENT OF THE
AVERAGE LOCAL SALES TAX RATE IN EACH SUCH REGION AND ADDING TO THE PROD-
UCT THEREOF THE TAXES IMPOSED BY PARAGRAPHS ONE AND TWO OF SUBDIVISION
S. 2009--C 88 A. 3009--C
(M) OF THIS SECTION. THE REGIONAL AVERAGE RETAIL SALES PRICE SHALL BE
DETERMINED FOR PURPOSES OF THIS SUBDIVISION USING DATA REGARDING SALES
PRICES, WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, SALES PRICES AS
COMPILED BY GOVERNMENT OR INDUSTRY SURVEYS AND SOURCES, TAKING INTO
CONSIDERATION WITH RESPECT TO MOTOR FUEL, THE VOLUMES AND PRICES OF
UNLEADED MOTOR FUELS, INCLUDING REFORMULATED OR LIKE MOTOR FUELS, SOLD
IN THIS STATE AND WITH RESPECT TO BOTH MOTOR FUEL AND DIESEL MOTOR FUEL,
THE VOLUME AND PRICES OF SUCH FUELS SOLD AT FULL SERVICE AND SELF-SER-
VICE PUMPS FOR SUCH FUELS, DURING AN IMMEDIATELY PRECEDING PERIOD OF UP
TO TWELVE MONTHS ENDING THE LAST DAY OF MARCH IN THE CASE OF THE APRIL
SEMIANNUAL REVIEW AND ENDING THE LAST DAY OF SEPTEMBER IN THE CASE OF
THE OCTOBER SEMIANNUAL REVIEW; PROVIDED, HOWEVER, THAT THE REGIONAL
AVERAGE RETAIL SALES PRICES FOR BOTH MOTOR FUEL AND DIESEL MOTOR FUEL
SHALL REPRESENT THE RETAIL SALES PRICES UPON WHICH THE TAX UNDER THIS
ARTICLE AND PURSUANT TO THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
CHAPTER IS COMPUTED (INCLUDING ALL FEDERAL AND STATE AND ANY LOCAL TAXES
INCLUDED IN SUCH PRICE) FOR SUCH PERIOD.
(II) IF UPON SUCH REVIEW, IT IS DETERMINED THAT THE TENTATIVE RATE OF
TAX THAT WOULD BE REQUIRED TO BE PREPAID FOR MOTOR FUEL OR DIESEL MOTOR
FUEL IN ANY OF THE REGIONS DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVI-
SION WOULD INCREASE OR DECREASE THE RATE FOR SUCH REGION THEN IN EFFECT
BY TWO OR MORE CENTS PER GALLON, THE COMMISSIONER SHALL ADJUST SUCH RATE
TO BE EQUAL TO THE TENTATIVE RATE, WHICH SHALL TAKE EFFECT ON THE FIRST
DAY OF JUNE OR THE FIRST DAY OF DECEMBER, RESPECTIVELY. PROVIDED, HOWEV-
ER, THE COMMISSIONER SHALL SET THE RATE OF TAX REQUIRED TO BE PREPAID IN
THE REGION DESCRIBED IN SUBPARAGRAPH (II) OF PARAGRAPH ONE OF THIS
SUBDIVISION EQUAL TO THE RATE SET FORTH IN SUBPARAGRAPH (I) OF SUCH
PARAGRAPH, UNLESS THE REGIONAL AVERAGE RETAIL SALES PRICE IN THE METRO-
POLITAN COMMUTER TRANSPORTATION DISTRICT EXCEEDS FOUR DOLLARS PER
GALLON. IN SUCH EVENT, THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A
SEPARATE RATE IN THE REGION DESCRIBED IN SUCH SUBPARAGRAPH (II) AND
SHALL COMPUTE SUCH RATE BY MULTIPLYING THE REGIONAL AVERAGE RETAIL SALES
PRICES FOR MOTOR FUEL AND DIESEL MOTOR FUEL IN SUCH REGION BY A NUMBER
THAT IS EIGHTY-FIVE PERCENT OF THE AVERAGE LOCAL SALES TAX RATE IN SUCH
REGION AND ADDING TO THE PRODUCT THEREOF THE TAXES IMPOSED BY PARAGRAPHS
ONE AND TWO OF SUBDIVISION (M) OF THIS SECTION.
(III) THE COMMISSIONER SHALL CAUSE TO BE PUBLISHED ON THE DEPARTMENT'S
WEBSITE THE SCHEDULE OF RATES AND THE REGIONAL AVERAGE RETAIL SALES
PRICES OF MOTOR FUEL AND DIESEL MOTOR FUEL FIXED BY THIS SECTION, NO
LATER THAN TEN DAYS PRIOR TO THE EFFECTIVE DATE OF SUCH RATES. NOTWITH-
STANDING ANY OTHER PROVISION OF LAW, THE CALCULATION AND PUBLICATION OF
THE RATES SO FIXED BY THE PROVISIONS OF THIS SECTION SHALL NOT BE
INCLUDED WITHIN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION ONE HUNDRED
TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT RELATING TO THE DEFINITION
OF A RULE.
(5) WHERE A NEW RATE OF TAX REQUIRED TO BE PREPAID FOR MOTOR FUEL OR
DIESEL MOTOR FUEL IS DETERMINED BY THE COMMISSIONER, (I) IF SUCH NEW
RATE IS LESS THAN THE RATE THEN IN EFFECT, ON THE DATE THE RATE BECOMES
EFFECTIVE (A) A REGISTERED DISTRIBUTOR SHALL BE ENTITLED TO A CREDIT IN
AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE AMOUNT OF THE PREPAID TAX
PAID OR INCURRED BY HIM OR HER WITH RESPECT TO MOTOR FUEL WHICH HE OR
SHE IMPORTED AND WHICH HE OR SHE HAS IN INVENTORY AT THE TIME SUCH NEW
RATE BECOMES EFFECTIVE AND THE AMOUNT OF TAX WHICH WOULD BE DUE ON SUCH
INVENTORY IF THE PREPAID TAX WERE CALCULATED BASED ON SUCH NEW AVERAGE
PRICE FOR THE REGION IN WHICH SUCH MOTOR FUEL WAS IMPORTED AND (B) SUCH
INVENTORY SHALL THEN BE DEEMED TO HAVE BEEN TAXED BASED ON THE RATE AND
S. 2009--C 89 A. 3009--C
ALL CERTIFICATIONS OF TAX PAYMENT GIVEN BY THE DISTRIBUTOR WITH RESPECT
TO MOTOR FUEL IN SUCH INVENTORY SHALL INDICATE A PASS THROUGH OF THE
PREPAID TAX BASED ON SUCH NEW PRICE, (II) IF SUCH NEW RATE IS GREATER
THAN THE EXISTING RATE, ON THE DATE SUCH NEW RATE BECOMES EFFECTIVE (A)
SUCH DISTRIBUTOR SHALL BECOME LIABLE TO PAY AN ADDITIONAL TAX EQUAL TO
THE DIFFERENCE BETWEEN THE AMOUNT OF TAX WHICH WOULD BE DUE WITH RESPECT
TO MOTOR FUEL WHICH HE OR SHE IMPORTED AND WHICH HE OR SHE HAS IN INVEN-
TORY AT THE TIME SUCH NEW RATE BECOMES EFFECTIVE IF THE PREPAID TAX ON
SUCH MOTOR FUEL WERE CALCULATED BASED ON SUCH NEW AVERAGE PRICE FOR THE
REGION IN WHICH SUCH MOTOR FUEL WAS IMPORTED AND THE AMOUNT OF PREPAID
TAX PAID OR ACTUALLY INCURRED BY SUCH DISTRIBUTOR WITH RESPECT TO SUCH
MOTOR FUEL AND (B) SUCH INVENTORY SHALL THEN BE DEEMED TO HAVE BEEN
TAXED BASED ON THE NEW RATE AND ALL CERTIFICATIONS OF TAX PAYMENT GIVEN
BY THE DISTRIBUTOR WITH RESPECT TO MOTOR FUEL IN SUCH INVENTORY SHALL
INDICATE A PASS THROUGH OF THE PREPAID TAX BASED ON SUCH NEW RATE. SUCH
CREDIT SHALL BE ALLOWED WITH RESPECT TO OR SUCH TAX SHALL BE PAID WITH
THE RETURN COVERING THE MONTH IMMEDIATELY PRECEDING THE MONTH IN WHICH
SUCH NEW RATE BECOMES EFFECTIVE. ANY CARRYOVER CREDIT MAY BE APPLIED TO
SUBSEQUENT PERIODS. THE AMOUNT TO BE REPORTED AS ADDITIONAL TAX SHALL
BE PAID AND DISPOSED OF IN THE SAME MANNER AS THE TAX REQUIRED TO BE
PREPAID BY SECTION ELEVEN HUNDRED TWO OF THIS ARTICLE. SUCH ADDITIONAL
TAX SHALL BE DETERMINED, ASSESSED, COLLECTED AND ENFORCED IN THE SAME
MANNER AS THE TAX REQUIRED TO BE PREPAID BY SECTION ELEVEN HUNDRED TWO
OF THIS ARTICLE.
§ 3. This act shall take effect September 1, 2017.
PART VV
Section 1. The opening paragraph of paragraph (a) of subdivision 5 of
section 210-A of the tax law, as amended by section 4 of part P of chap-
ter 60 of the laws of 2016, is amended to read as follows:
A financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified financial instru-
ment means a financial instrument that is of a type described in any of
clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this
paragraph and that has been marked to market in the taxable year by the
taxpayer under section 475 or section 1256 of the internal revenue code.
Further, if the taxpayer has in the taxable year marked to market a
financial instrument of the type described in any of the clauses (A),
(B), (C), (D), (G), (H) or (I) of subparagraph two of this paragraph,
then any financial instrument within that type described in the above
specified clause or clauses that has not been marked to market by the
taxpayer under section 475 or section 1256 of the internal revenue code
is a qualified financial instrument in the taxable year. Notwithstanding
the two preceding sentences, (i) a loan secured by real property shall
not be a qualified financial instrument, (ii) if the only loans that are
marked to market by the taxpayer under section 475 or section 1256 of
the internal revenue code are loans secured by real property, then no
loans shall be qualified financial instruments, (iii) stock that is
investment capital as defined in paragraph (a) of subdivision five of
section two hundred eight of this article shall not be a qualified
financial instrument, and (iv) stock that generates other exempt income
as defined in subdivision six-a of section two hundred eight of this
article and that is not marked to market under section 475 or section
1256 of the internal revenue code shall not constitute a qualified
financial instrument with respect to the income from that stock that is
S. 2009--C 90 A. 3009--C
described in such subdivision six-a. If a corporation is included in a
combined report, the definition of qualified financial instrument shall
be determined on a combined basis. IN THE CASE OF A RIC OR A REIT THAT
IS NOT A CAPTIVE RIC OR A CAPTIVE REIT, A QUALIFIED FINANCIAL INSTRUMENT
MEANS A FINANCIAL INSTRUMENT THAT IS OF A TYPE DESCRIBED IN ANY OF
CLAUSES (A), (B), (C), (D), (G), (H) OR (I) OF SUBPARAGRAPH TWO OF THIS
PARAGRAPH, OTHER THAN (I) A LOAN SECURED BY REAL PROPERTY, (II) STOCK
THAT IS INVESTMENT CAPITAL AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION
FIVE OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE, AND (III) STOCK THAT
GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION SIX-A OF SECTION
TWO HUNDRED EIGHT OF THIS ARTICLE WITH RESPECT TO THE INCOME FROM THAT
STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION SIX-A.
§ 2. Clause (D) of subparagraph 1 of paragraph (d) of subdivision 1 of
section 210 of the tax law, as amended by section 19 of part T of chap-
ter 59 of the laws of 2015, is amended to read as follows:
(D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
[and], (C) AND (D-1) of this subparagraph, the amount prescribed by this
paragraph will be determined in accordance with the following table:
If New York receipts are: The fixed dollar minimum tax is:
not more than $100,000 $ 25
more than $100,000 but not over $250,000 $ 75
more than $250,000 but not over $500,000 $ 175
more than $500,000 but not over $1,000,000 $ 500
more than $1,000,000 but not over $5,000,000 $1,500
more than $5,000,000 but not over $25,000,000 $3,500
more than $25,000,000 but not over $50,000,000 $5,000
more than $50,000,000 but not over $100,000,000 $10,000
more than $100,000,000 but not over $250,000,000 $20,000
more than $250,000,000 but not over $500,000,000 $50,000
more than $500,000,000 but not over $1,000,000,000 $100,000
Over $1,000,000,000 $200,000
§ 3. Subparagraph 1 of paragraph (d) of subdivision 1 of section 210
of the tax law is amended by adding a new clause (D-1) to read as
follows:
(D-1) IN THE CASE OF A REIT OR A RIC THAT IS NOT A CAPTIVE REIT OR
CAPTIVE RIC, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED
IN ACCORDANCE WITH THE FOLLOWING TABLE:
IF NEW YORK RECEIPTS ARE: THE FIXED DOLLAR MINIMUM TAX IS:
NOT MORE THAN $100,000 $ 25
MORE THAN $100,000 BUT NOT OVER $250,000 $ 75
MORE THAN $250,000 BUT NOT OVER $500,000 $ 175
MORE THAN $500,000 $ 500
§ 4. The opening paragraph of paragraph (a) of subdivision 5 of
section 11-654.2 of the administrative code of the city of New York, as
amended by section 16 of part P of chapter 60 of the laws of 2016, is
amended to read as follows:
A financial instrument is a "nonqualified financial instrument" if it
is not a qualified financial instrument. A qualified financial instru-
ment means a financial instrument that is of a type described in any of
[clause] CLAUSES (i), (ii), (iii), (iv), (vii), (viii) or (ix) of
subparagraph two of this paragraph and that has been marked to market in
the taxable year by the taxpayer under section 475 or section 1256 of
S. 2009--C 91 A. 3009--C
the internal revenue code. Further, if the taxpayer has in the taxable
year marked to market a financial instrument of the type described in
any of [clause] CLAUSES (i), (ii), (iii), (iv), (vii), (viii) or (ix) of
subparagraph two of this paragraph, then any financial instrument within
that type described in the above specified clause or clauses that has
not been marked to market by the taxpayer under section 475 or section
1256 of the internal revenue code is a qualified financial instrument in
the taxable year. Notwithstanding the two preceding sentences, (i) a
loan secured by real property shall not be a qualified financial instru-
ment, (ii) if the only loans that are marked to market by the taxpayer
under section 475 or section 1256 of the internal revenue code are loans
secured by real property, then no loans shall be qualified financial
instruments, (iii) stock that is investment capital as defined in para-
graph (a) of subdivision four of section 11-652 of this subchapter shall
not be a qualified financial instrument, and (iv) stock that generates
other exempt income as defined in subdivision five-a of section 11-652
of this subchapter and that is not marked to market under section 475 or
section 1256 of the internal revenue code shall not constitute a quali-
fied financial instrument with respect to the income from that stock
that is described in such subdivision five-a. If a corporation is
included in a combined report, the definition of qualified financial
instrument shall be determined on a combined basis. IN THE CASE OF A
RIC OR A REIT THAT IS NOT A CAPTIVE RIC OR A CAPTIVE REIT, A QUALIFIED
FINANCIAL INSTRUMENT MEANS A FINANCIAL INSTRUMENT THAT IS OF A TYPE
DESCRIBED IN ANY OF CLAUSES (I), (II), (III), (IV), (VII), (VIII) OR
(IX) OF SUBPARAGRAPH TWO OF THIS PARAGRAPH, OTHER THAN (I) A LOAN
SECURED BY REAL PROPERTY, (II) STOCK THAT IS INVESTMENT CAPITAL AS
DEFINED IN PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION 11-652 OF THIS
SUBCHAPTER, AND (III) STOCK THAT GENERATES OTHER EXEMPT INCOME AS
DEFINED IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS SUBCHAPTER WITH
RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVI-
SION FIVE-A.
§ 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2016.
PART WW
Section 1. Subdivision (a) of section 1115 of the tax law is amended
by adding a new paragraph 44 to read as follows:
(44) MONUMENTS AS THAT TERM IS DEFINED IN SUBDIVISION (F) OF SECTION
FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW.
§ 2. This act shall take effect on the first day of a sales tax quar-
terly period, as described in subdivision (b) of section 1136 of the tax
law, beginning at least ninety days after the date this act shall have
become a law and shall apply to sales made on or after such date.
PART XX
Section 1. Subdivision 3 of section 16-v of section 1 of chapter 174
of the laws of 1968, constituting the New York state urban development
corporation act, is amended by adding a new paragraph (e) to read as
follows:
(E) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A
QUALIFIED ENTITY THAT HAS PREVIOUSLY BEEN DESIGNATED AS A NEW YORK STATE
INCUBATOR AND HAS NOT FULLY DISBURSED ANY GRANTS AWARDED PURSUANT TO
S. 2009--C 92 A. 3009--C
THIS SECTION, SHALL CONTINUE BEING DESIGNATED AS SUCH BY THE CORPORATION
FOR AN ADDITIONAL THREE YEARS.
§ 2. This act shall take effect immediately.
PART YY
Section 1. Subdivision 3 of section 355 of the economic development
law, as amended by section 4 of part G of chapter 61 of the laws of
2011, is amended to read as follows:
3. Excelsior research and development tax credit component. A partic-
ipant in the excelsior jobs program shall be eligible to claim a credit
equal to fifty percent of the portion of the participant's federal
research and development tax credit that relates to the participant's
research and development expenditures in New York state during the taxa-
ble year; provided however, the excelsior research and development tax
credit shall not exceed [three] SIX percent of the qualified research
and development expenditures attributable to activities conducted in New
York state. If the federal research and development credit has expired,
then the research and development expenditures relating to the federal
research and development credit shall be calculated as if the federal
research and development credit structure and definition in effect in
two thousand nine were still in effect. Notwithstanding any other
provision of this chapter to the contrary, research and development
expenditures in this state, including salary or wage expenses for jobs
related to research and development activities in this state, may be
used as the basis for the excelsior research and development tax credit
component and the qualified emerging technology company facilities,
operations and training credit under the tax law.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART ZZ
Section 1. Subdivision 16 of section 352 of the economic development
law, as amended by section 1 of part K of chapter 59 of the laws of
2015, is amended and a new subdivision 20-a is added to read as follows:
16. "Regionally significant project" means (a) a manufacturer creating
at least [fifty] TEN net new jobs in the state and making significant
capital investment in the state; (b) a business creating at least [twen-
ty] TEN net new jobs in agriculture in the state and making significant
capital investment in the state, (c) a financial services firm, distrib-
ution center, or back office operation creating at least [three] ONE
hundred net new jobs in the state and making significant capital invest-
ment in the state, (d) a scientific research and development firm creat-
ing at least [twenty] TEN net new jobs in the state, and making signif-
icant capital investment in the state or (e) an entertainment company
creating or obtaining at least two hundred net new jobs in the state and
making significant capital investment in the state. Other businesses
creating [three] ONE hundred FIFTY 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 indi-
cated in this subdivision and] what additional criteria a business must
meet to be eligible as a regionally significant project, including, but
S. 2009--C 93 A. 3009--C
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.
20-A. "SIGNIFICANT CAPITAL INVESTMENT" MEANS A PROJECT WHICH WILL BE
EITHER A NEWLY CONSTRUCTED FACILITY OR A NEWLY CONSTRUCTED ADDITION TO,
EXPANSION OF OR IMPROVEMENT OF A FACILITY, CONSISTING OF TANGIBLE
PERSONAL PROPERTY AND OTHER TANGIBLE PROPERTY, INCLUDING BUILDINGS AND
STRUCTURAL COMPONENTS OF BUILDINGS, THAT 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,
AND THAT IS EQUAL TO OR EXCEEDS (A) ONE MILLION DOLLARS FOR A MANUFAC-
TURER; (B) TWO HUNDRED FIFTY THOUSAND DOLLARS FOR AN AGRICULTURE BUSI-
NESS; (C) THREE MILLION DOLLARS FOR A FINANCIAL SERVICES FIRM OR BACK
OFFICE OPERATION; (D) FIFTEEN MILLION DOLLARS FOR A DISTRIBUTION CENTER;
(E) THREE MILLION DOLLARS FOR A SCIENTIFIC RESEARCH AND DEVELOPMENT
FIRM; OR (F) THREE MILLION DOLLARS FOR OTHER BUSINESSES.
§ 2. Subdivisions 3 and 4 of section 353 of the economic development
law, subdivision 3 as amended by section 2 of part K of chapter 59 of
the laws of 2015 and subdivision 4 as amended by section 1 of part C of
chapter 68 of the laws of 2013, are amended to read as follows:
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] FIVE 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] TWENTY-FIVE net new jobs; a business entity
operating predominantly in scientific research and development must
create at least five net new jobs; a business entity operating predomi-
nantly 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] TWENTY-FIVE 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] FIFTY net new jobs, notwith-
standing subdivision five of this section; or a business entity must be
a regionally significant project as defined in this article; or
4. A business entity operating predominantly in one of the industries
referenced in paragraphs (a) through (h) of subdivision 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 predomi-
nantly in manufacturing then it must have at least [ten] FIVE full-time
job equivalents and must demonstrate that its benefit-cost ratio is at
least ten to one.
§ 3. This act shall take effect immediately.
PART AAA
Section 1. Legislative intent. The purpose of this act is to ensure
the safety, reliability, and cost-effectiveness of transportation
network company (TNC) services within the state of New York and to
S. 2009--C 94 A. 3009--C
preserve and enhance access to these important transportation options
for residents and visitors to the state.
§ 2. The vehicle and traffic law is amended by adding a new article
44-B to read as follows:
ARTICLE 44-B
TRANSPORTATION NETWORK COMPANY SERVICES
SECTION 1691. DEFINITIONS.
1692. GENERAL PROVISIONS.
1693. FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK COMPA-
NIES.
1694. DISCLOSURES.
1695. INSURANCE PROVISIONS.
1696. DRIVER AND VEHICLE REQUIREMENTS.
1697. MAINTENANCE OF RECORDS.
1698. AUDIT PROCEDURES; CONFIDENTIALITY OF RECORDS.
1699. CRIMINAL HISTORY BACKGROUND CHECK OF TRANSPORTATION
NETWORK COMPANY DRIVERS.
1700. CONTROLLING AUTHORITY.
§ 1691. DEFINITIONS. AS USED IN THIS ARTICLE: 1. "TRANSPORTATION
NETWORK COMPANY VEHICLE" OR "TNC VEHICLE" MEANS A VEHICLE THAT IS:
(A) USED BY A TRANSPORTATION NETWORK COMPANY DRIVER TO PROVIDE A TNC
PREARRANGED TRIP ORIGINATING WITHIN THE STATE OF NEW YORK; AND
(B) OWNED, LEASED OR OTHERWISE AUTHORIZED FOR USE BY THE TRANSPORTA-
TION NETWORK COMPANY DRIVER;
(C) SUCH TERM SHALL NOT INCLUDE:
(I) A TAXICAB, AS DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THIS
CHAPTER AND SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW
YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW;
(II) A LIVERY VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E
OF THIS CHAPTER, OR AS OTHERWISE DEFINED IN LOCAL LAW;
(III) A BLACK CAR, LIMOUSINE, OR LUXURY LIMOUSINE, AS DEFINED IN
SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS
OTHERWISE DEFINED IN LOCAL LAW;
(IV) A FOR-HIRE VEHICLE, AS DEFINED IN SECTION 19-502 OF THE ADMINIS-
TRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL
LAW;
(V) A BUS, AS DEFINED IN SECTION ONE HUNDRED FOUR OF THIS CHAPTER;
(VI) ANY MOTOR VEHICLE WEIGHING MORE THAN SIX THOUSAND FIVE HUNDRED
POUNDS UNLOADED;
(VII) ANY MOTOR VEHICLE HAVING A SEATING CAPACITY OF MORE THAN SEVEN
PASSENGERS; AND
(VIII) ANY MOTOR VEHICLE SUBJECT TO SECTION THREE HUNDRED SEVENTY OF
THIS CHAPTER.
2. "DIGITAL NETWORK" MEANS ANY SYSTEM OR SERVICE OFFERED OR UTILIZED
BY A TRANSPORTATION NETWORK COMPANY THAT ENABLES TNC PREARRANGED TRIPS
WITH TRANSPORTATION NETWORK COMPANY DRIVERS.
3. "TRANSPORTATION NETWORK COMPANY" OR "TNC" MEANS A PERSON, CORPO-
RATION, PARTNERSHIP, SOLE PROPRIETORSHIP, OR OTHER ENTITY THAT IS
LICENSED PURSUANT TO THIS ARTICLE AND IS OPERATING IN NEW YORK STATE
EXCLUSIVELY USING A DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK
COMPANY PASSENGERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE
TNC PREARRANGED TRIPS.
4. "TRANSPORTATION NETWORK COMPANY DRIVER" OR "TNC DRIVER" MEANS AN
INDIVIDUAL WHO:
S. 2009--C 95 A. 3009--C
(A) RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES
FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF A FEE
TO THE TRANSPORTATION NETWORK COMPANY; AND
(B) USES A TNC VEHICLE TO OFFER OR PROVIDE A TNC PREARRANGED TRIP TO
TRANSPORTATION NETWORK COMPANY PASSENGERS UPON CONNECTION THROUGH A
DIGITAL NETWORK CONTROLLED BY A TRANSPORTATION NETWORK COMPANY IN
EXCHANGE FOR COMPENSATION OR PAYMENT OF A FEE.
5. "TRANSPORTATION NETWORK COMPANY PASSENGER" OR "PASSENGER" MEANS A
PERSON OR PERSONS WHO USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
NETWORK TO CONNECT WITH A TRANSPORTATION NETWORK COMPANY DRIVER WHO
PROVIDES TNC PREARRANGED TRIPS TO THE PASSENGER IN THE TNC VEHICLE
BETWEEN POINTS CHOSEN BY THE PASSENGER.
6. (A) "TNC PREARRANGED TRIP" OR "TRIP" MEANS THE PROVISION OF TRANS-
PORTATION BY A TRANSPORTATION NETWORK COMPANY DRIVER TO A PASSENGER
PROVIDED THROUGH THE USE OF A TNC'S DIGITAL NETWORK:
(I) BEGINNING WHEN A TRANSPORTATION NETWORK COMPANY DRIVER ACCEPTS A
PASSENGER'S REQUEST FOR A TRIP THROUGH A DIGITAL NETWORK CONTROLLED BY A
TRANSPORTATION NETWORK COMPANY;
(II) CONTINUING WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER TRANS-
PORTS THE REQUESTING PASSENGER IN A TNC VEHICLE; AND
(III) ENDING WHEN THE LAST REQUESTING PASSENGER DEPARTS FROM THE TNC
VEHICLE.
(B) THE TERM "TNC PREARRANGED TRIP" DOES NOT INCLUDE TRANSPORTATION
PROVIDED THROUGH ANY OF THE FOLLOWING:
(I) SHARED EXPENSE CARPOOL OR VANPOOL ARRANGEMENTS, INCLUDING THOSE AS
DEFINED IN SECTION ONE HUNDRED FIFTY-EIGHT-B OF THIS CHAPTER; AND
(II) USE OF A TAXICAB, LIVERY, LUXURY LIMOUSINE, OR OTHER FOR-HIRE
VEHICLE, AS DEFINED IN THIS CHAPTER, SECTION 19-502 OF THE ADMINISTRA-
TIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW.
7. "GROUP POLICY" MEANS AN INSURANCE POLICY ISSUED PURSUANT TO SECTION
THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSURANCE LAW.
§ 1692. GENERAL PROVISIONS. 1. A TNC OR A TNC DRIVER SHALL NOT BE
DEEMED A COMMON CARRIER, AS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF
THE TRANSPORTATION LAW; A CONTRACT CARRIER OF PASSENGERS BY MOTOR VEHI-
CLE, AS DEFINED IN SUBDIVISION NINE OF SECTION TWO OF THE TRANSPORTATION
LAW; OR A MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION
TWO OF THE TRANSPORTATION LAW. NEITHER A TNC NOR A TNC DRIVER SHALL BE
DEEMED TO PROVIDE TAXICAB OR FOR-HIRE VEHICLE SERVICE WHILE OPERATING AS
A TNC OR TNC DRIVER PURSUANT TO THIS ARTICLE. MOREOVER, A TNC DRIVER
SHALL NOT BE REQUIRED TO REGISTER THE TNC VEHICLE SUCH TNC DRIVER USES
FOR TNC PREARRANGED TRIPS AS A COMMERCIAL OR FOR-HIRE VEHICLE, AS SET
FORTH IN ARTICLE FOURTEEN OF THIS CHAPTER.
2. (A) A TNC MAY NOT OPERATE IN THE STATE OF NEW YORK WITHOUT FIRST
HAVING OBTAINED A LICENSE ISSUED BY THE DEPARTMENT IN A FORM AND MANNER
AND WITH APPLICABLE FEES AS PROVIDED FOR BY REGULATIONS PROMULGATED BY
THE COMMISSIONER. AS A CONDITION OF OBTAINING A LICENSE, A TNC SHALL BE
REQUIRED TO SUBMIT TO THE DEPARTMENT PROOF OF A GROUP POLICY ISSUED
PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSUR-
ANCE LAW. FAILURE OF A TNC TO COMPLY WITH THE PROVISIONS OF THIS ARTICLE
MAY RESULT IN APPLICABLE PENALTIES, WHICH MAY INCLUDE, BUT ARE NOT
LIMITED TO FINES, SUSPENSION OR REVOCATION OF LICENSE OR A COMBINATION
THEREOF AS OTHERWISE PROVIDED BY LAW. NO LICENSE SHALL BE SUSPENDED OR
REVOKED EXCEPT UPON NOTICE TO THE TNC AND AFTER AN OPPORTUNITY TO BE
HEARD.
(B) FAILURE OF A TNC TO OBTAIN A LICENSE BEFORE OPERATION, PURSUANT TO
THIS SUBDIVISION SHALL CONSTITUTE A MISDEMEANOR.
S. 2009--C 96 A. 3009--C
3. A TNC MUST MAINTAIN AN AGENT FOR SERVICE OF PROCESS IN THE STATE OF
NEW YORK.
4. ON BEHALF OF A TNC DRIVER, A TNC MAY CHARGE A FARE FOR THE SERVICES
RENDERED TO PASSENGERS; PROVIDED THAT, IF A FARE IS COLLECTED FROM A
PASSENGER, THE TNC SHALL DISCLOSE TO SUCH PASSENGER THE FARE WITHIN THE
TNC'S DIGITAL NETWORK. THE TNC SHALL ALSO PROVIDE PASSENGERS, BEFORE
SUCH PASSENGERS ENTER A TNC VEHICLE, THE ACTUAL FARE OR AN ESTIMATED
FARE FOR SUCH TNC PREARRANGED TRIP THROUGH THE TNC'S DIGITAL NETWORK.
THE TNC SHALL ALSO POST THE FAIR CALCULATION METHOD ON ITS WEBSITE.
5. A TNC'S DIGITAL NETWORK SHALL DISPLAY A PICTURE OF THE TNC DRIVER,
AND PROVIDE THE MAKE, MODEL, COLOR AND LICENSE PLATE NUMBER OF THE TNC
VEHICLE UTILIZED FOR PROVIDING THE TNC PREARRANGED TRIP BEFORE THE
PASSENGER ENTERS THE TNC VEHICLE.
6. WITHIN A REASONABLE PERIOD OF TIME FOLLOWING THE COMPLETION OF A
TRIP, A TNC SHALL TRANSMIT AN ELECTRONIC RECEIPT TO THE PASSENGER ON
BEHALF OF THE TNC DRIVER THAT LISTS:
(A) THE ORIGIN AND DESTINATION OF THE TRIP;
(B) THE TOTAL TIME AND DISTANCE OF THE TRIP;
(C) AN ITEMIZATION OF THE TOTAL FARE PAID, IF ANY;
(D) A SEPARATE STATEMENT OF THE APPLICABLE ASSESSMENT FEE AND
SURCHARGE; AND
(E) THE TNC NAME AND OPERATING LICENSE NUMBER.
7. A TNC DRIVER SHALL NOT SOLICIT OR ACCEPT STREET HAILS.
8. A TNC SHALL ADOPT A POLICY PROHIBITING SOLICITATION OR ACCEPTANCE
OF CASH PAYMENTS FOR THE FARES CHARGED TO PASSENGERS FOR TNC PREARRANGED
TRIPS AND NOTIFY TNC DRIVERS OF SUCH POLICY. TNC DRIVERS SHALL NOT
SOLICIT OR ACCEPT CASH PAYMENTS FROM PASSENGERS.
9. A TNC SHALL PREVENT A TNC DRIVER FROM ACCEPTING TNC PREARRANGED
TRIPS WITHIN A CITY OF A POPULATION OF ONE MILLION OR MORE AND ANY COUN-
TY OR CITY THAT HAS ENACTED A LOCAL LAW OR ORDINANCE PURSUANT TO SECTION
ONE HUNDRED EIGHTY-TWO OF THE GENERAL MUNICIPAL LAW AND HAS NOT REPEALED
SUCH LOCAL LAW OR ORDINANCE, EXCEPT WHERE THE ACCEPTANCE OF A PREAR-
RANGED TRIP IS AUTHORIZED PURSUANT TO AN EXISTING RECIPROCITY AGREEMENT.
10. NOTHING IN THIS ARTICLE SHALL APPLY TO CITIES WITH A POPULATION OF
ONE MILLION OR MORE.
§ 1693. FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK COMPANIES.
1. A TNC DRIVER, OR TNC ON THE TNC DRIVER'S BEHALF THROUGH A GROUP POLI-
CY, SHALL MAINTAIN INSURANCE THAT RECOGNIZES THAT THE DRIVER IS A TNC
DRIVER AND PROVIDES FINANCIAL RESPONSIBILITY COVERAGE:
(A) WHILE THE TNC DRIVER IS LOGGED ONTO THE TNC'S DIGITAL NETWORK; AND
(B) WHILE THE TNC DRIVER IS ENGAGED IN A TNC PREARRANGED TRIP.
2. (A) THE FOLLOWING AUTOMOBILE FINANCIAL RESPONSIBILITY INSURANCE
REQUIREMENTS SHALL APPLY WHILE A TNC DRIVER IS LOGGED ONTO THE TNC'S
DIGITAL NETWORK BUT IS NOT ENGAGED IN A TNC PREARRANGED TRIP: INSURANCE
AGAINST LOSS FROM THE LIABILITY IMPOSED BY LAW FOR DAMAGES, INCLUDING
DAMAGES FOR CARE AND LOSS OF SERVICES, BECAUSE OF BODILY INJURY TO OR
DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF PROPERTY ARISING
OUT OF THE OWNERSHIP, MAINTENANCE, USE OR OPERATION OF A PERSONAL VEHI-
CLE OR VEHICLES WITHIN THIS STATE, OR ELSEWHERE IN THE UNITED STATES IN
NORTH AMERICA OR CANADA, SUBJECT TO A LIMIT, EXCLUSIVE OF INTEREST AND
COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE, OF AT LEAST SEVENTY-FIVE
THOUSAND DOLLARS BECAUSE OF BODILY INJURY TO OR DEATH OF ONE PERSON IN
ANY ONE ACCIDENT AND, SUBJECT TO SAID LIMIT FOR ONE PERSON, TO A LIMIT
OF AT LEAST ONE HUNDRED FIFTY THOUSAND DOLLARS BECAUSE OF BODILY INJURY
TO OR DEATH OF TWO OR MORE PERSONS IN ANY ONE ACCIDENT, AND TO A LIMIT
OF AT LEAST TWENTY-FIVE THOUSAND DOLLARS BECAUSE OF INJURY TO OR
S. 2009--C 97 A. 3009--C
DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT, PROVIDED HOWEVER,
THAT SUCH POLICY NEED NOT BE FOR A PERIOD COTERMINOUS WITH THE REGISTRA-
TION PERIOD OF THE PERSONAL VEHICLE INSURED, AND COVERAGE IN SATISFAC-
TION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION
THREE THOUSAND FOUR HUNDRED TWENTY OF THE INSURANCE LAW, ARTICLE FIFTY-
ONE OF THE INSURANCE LAW, AND SUCH OTHER REQUIREMENTS OR REGULATIONS
THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBIL-
ITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A MOTOR VEHI-
CLE.
(B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY
BE SATISFIED BY ANY OF THE FOLLOWING:
(I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR
(II) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE TNC;
OR
(III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH.
3. (A) THE FOLLOWING AUTOMOBILE FINANCIAL RESPONSIBILITY INSURANCE
REQUIREMENTS SHALL APPLY WHILE A TNC DRIVER IS ENGAGED IN A TNC PREAR-
RANGED TRIP: INSURANCE AGAINST LOSS FROM THE LIABILITY IMPOSED BY LAW
FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND LOSS OF SERVICES, BECAUSE OF
BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF
PROPERTY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, USE, OR OPERATION OF
A SPECIFIC PERSONAL VEHICLE OR VEHICLES WITHIN THIS STATE, OR ELSEWHERE
IN THE UNITED STATES IN NORTH AMERICA OR CANADA, SUBJECT TO A LIMIT,
EXCLUSIVE OF INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE,
OF AT LEAST ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS BECAUSE OF
BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF
PROPERTY PROVIDED HOWEVER, THAT SUCH POLICY NEED NOT BE FOR A PERIOD
COTERMINOUS WITH THE REGISTRATION PERIOD OF THE PERSONAL VEHICLE
INSURED, AND COVERAGE IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY
REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF
THE INSURANCE LAW, ARTICLE FIFTY-ONE OF THE INSURANCE LAW; COVERAGE
PROVIDED IN ACCORDANCE WITH SUBSECTION (F) OF SECTION THREE THOUSAND
FOUR HUNDRED TWENTY OF THE INSURANCE LAW, PROVIDING SUPPLEMENTARY
UNINSURED/UNDERINSURED MOTORIST INSURANCE FOR BODILY INJURY, IN THE
AMOUNT OF ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS BECAUSE OF
BODILY INJURY TO OR DEATH OF ANY PERSON IN ANY ONE ACCIDENT; AND SUCH
OTHER REQUIREMENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF
SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
USE OR OPERATION OF A MOTOR VEHICLE.
(B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY
BE SATISFIED BY ANY OF THE FOLLOWING:
(I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR
(II) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE TNC;
OR
(III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH.
4. A TNC SHALL, UPON ENTERING INTO A CONTRACTUAL AGREEMENT WITH A TNC
DRIVER, PROVIDE NOTICE TO THE TNC DRIVER THAT HE OR SHE MAY NEED ADDI-
TIONAL INSURANCE COVERAGE INCLUDING MOTOR VEHICLE PHYSICAL DAMAGE COVER-
AGE AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE
THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW IF THE TNC VEHICLE
BEING USED BY THE TNC DRIVER IS SUBJECT TO A LEASE OR LOAN. A TNC SHALL
ALSO POST THIS NOTICE ON ITS WEBSITE IN A PROMINENT PLACE, AND PROVIDE
CONTACT INFORMATION FOR THE DEPARTMENT OF FINANCIAL SERVICES.
5. IF INSURANCE MAINTAINED BY A TNC DRIVER PURSUANT TO SUBDIVISIONS
TWO AND THREE OF THIS SECTION HAS LAPSED OR DOES NOT PROVIDE THE
REQUIRED COVERAGE, THEN THE GROUP POLICY MAINTAINED BY A TNC SHALL
S. 2009--C 98 A. 3009--C
PROVIDE THE COVERAGE REQUIRED BY THIS SECTION BEGINNING WITH THE FIRST
DOLLAR OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
6. COVERAGE UNDER A GROUP POLICY MAINTAINED BY THE TNC SHALL NOT BE
DEPENDENT ON THE DENIAL OF A CLAIM BY THE INSURER THAT ISSUED THE INSUR-
ANCE POLICY USED TO REGISTER THE TNC VEHICLE, NOR SHALL THAT INSURER BE
REQUIRED TO FIRST DENY A CLAIM.
7. (A) EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, A
GROUP POLICY MAINTAINED BY A TNC PURSUANT TO SUBPARAGRAPH (II) OF PARA-
GRAPH (B) OF SUBDIVISIONS TWO OR THREE OF THIS SECTION SHALL BE PLACED
WITH AN INSURER AUTHORIZED TO WRITE INSURANCE IN THIS STATE.
(B) IF A TNC IS UNABLE TO PURCHASE A GROUP POLICY PURSUANT TO SUBPARA-
GRAPH (II) OF PARAGRAPH (B) OF SUBDIVISIONS TWO OR THREE OF THIS SECTION
BECAUSE SUCH INSURANCE IS UNAVAILABLE FROM AUTHORIZED INSURERS THE TNC
MAY ACQUIRE SUCH GROUP INSURANCE WITH AN EXCESS LINE BROKER PURSUANT TO
SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW.
(C) THE OBLIGATION TO DETERMINE WHETHER THE INSURANCE REQUIRED BY THIS
SECTION IS UNAVAILABLE FROM INSURERS AUTHORIZED TO WRITE INSURANCE IN
THIS STATE SHALL BE MADE PRIOR TO THE INITIAL PLACEMENT AND AT EACH
RENEWAL OF A POLICY.
8. A TNC DRIVER WHO, WHILE OPERATING A TNC VEHICLE WAS LOGGED ON TO
THE TNC'S DIGITAL NETWORK BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR
WAS ENGAGED IN A TNC PREARRANGED TRIP, AND HAS IN EFFECT THE INSURANCE
REQUIRED PURSUANT TO THIS ARTICLE, SHALL NOT BE DEEMED TO BE IN
VIOLATION OF ARTICLE SIX OF THIS CHAPTER DURING SUCH TIME THAT HE OR SHE
WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK BUT NOT ENGAGED IN A TNC
PREARRANGED TRIP OR WAS ENGAGED IN A TNC PREARRANGED TRIP.
9. A TNC DRIVER SHALL CARRY PROOF OF COVERAGE SATISFYING SUBDIVISIONS
TWO AND THREE OF THIS SECTION WITH HIM OR HER AT ALL TIMES DURING HIS OR
HER USE OR OPERATION OF A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL
NETWORK. SUCH PROOF OF COVERAGE SHALL BE IN SUCH FORM AS THE COMMISSION-
ER SHALL PRESCRIBE, WHICH MAY BE IN THE FORM OF AN INSURANCE IDENTIFICA-
TION CARD AS DEFINED IN SECTION THREE HUNDRED ELEVEN OF THIS CHAPTER.
ANY INSURANCE IDENTIFICATION CARD ISSUED PURSUANT TO THE PROVISIONS OF
THIS ARTICLE SHALL BE IN ADDITION TO THE INSURANCE IDENTIFICATION CARD
REQUIRED PURSUANT TO ARTICLE SIX OF THIS CHAPTER, AND NOTHING CONTAINED
IN THIS ARTICLE SHALL BE DEEMED TO SUPERSEDE THE REQUIREMENTS OF SUCH
ARTICLE SIX. WHENEVER THE PRODUCTION OF AN INSURANCE IDENTIFICATION CARD
IS REQUIRED BY LAW, A TNC DRIVER SHALL (A) PRODUCE THE INSURANCE IDEN-
TIFICATION CARD ISSUED PURSUANT TO ARTICLE SIX OF THIS CHAPTER AND, (B)
IF SUCH DRIVER (I) WAS LOGGED ONTO THE TNC'S DIGITAL NETWORK BUT NOT
ENGAGED IN A TNC PREARRANGED TRIP OR (II) WAS ENGAGED IN A TNC PREAR-
RANGED TRIP, SUCH DRIVER SHALL ALSO PRODUCE THE INSURANCE IDENTIFICATION
CARD REQUIRED PURSUANT TO THIS ARTICLE.
10. THE SUPERINTENDENT OF FINANCIAL SERVICES IS AUTHORIZED TO ISSUE
SUCH RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION.
11. THE SUPERINTENDENT OF FINANCIAL SERVICES MAY PROMULGATE REGU-
LATIONS TO ADDRESS INSURANCE COVERAGE UNDER THIS SECTION AND SECTION
SIXTEEN HUNDRED NINETY-FIVE OF THIS ARTICLE WHEN A TNC DRIVER USES
MULTIPLE DIGITAL NETWORKS SIMULTANEOUSLY.
12. NOTHING IN THIS SECTION SHALL IMPOSE FINANCIAL RESPONSIBILITY
REQUIREMENTS UPON ANY ENTITIES OPERATING AS VEHICLES FOR HIRE IN A CITY
WITH A POPULATION OF ONE MILLION OR MORE.
13. AN INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A
POLICY ISSUED PURSUANT TO THIS SECTION. NOTHING IN THIS SECTION SUPER-
CEDES THE MANDATORY ARBITRATION REQUIREMENTS CONTAINED IN SECTION FIVE
THOUSAND ONE HUNDRED FIVE OF THE INSURANCE LAW.
S. 2009--C 99 A. 3009--C
§ 1694. DISCLOSURES. A TNC SHALL DISCLOSE IN WRITING TO TNC DRIVERS
THE FOLLOWING BEFORE THEY ARE ALLOWED TO ACCEPT A REQUEST FOR A TNC
PREARRANGED TRIP ON THE TNC'S DIGITAL NETWORK:
1. THE INSURANCE COVERAGE, INCLUDING THE TYPES OF COVERAGE AND THE
LIMITS FOR EACH COVERAGE, THAT THE TNC PROVIDES WHILE THE TNC DRIVER
USES A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL NETWORK;
2. THAT THE TNC DRIVER'S OWN AUTOMOBILE INSURANCE POLICY MIGHT NOT
PROVIDE ANY COVERAGE WHILE THE TNC DRIVER IS LOGGED ON TO THE TNC'S
DIGITAL NETWORK OR IS ENGAGED IN A TNC PREARRANGED TRIP, DEPENDING ON
ITS TERMS; AND
3. THAT, IF A TNC VEHICLE HAS A LIEN AGAINST IT, THEN THE CONTINUED
USE OF SUCH TNC VEHICLE BY ITS TNC DRIVER WITHOUT PHYSICAL DAMAGE COVER-
AGE MAY VIOLATE THE TERMS OF THE CONTRACT WITH THE LIENHOLDER.
§ 1695. INSURANCE PROVISIONS. 1. INSURERS THAT WRITE MOTOR VEHICLE
INSURANCE IN THIS STATE MAY, IN THE INSURANCE POLICY, EXCLUDE ANY AND
ALL COVERAGE AFFORDED UNDER THE POLICY ISSUED TO AN OWNER OR OPERATOR OF
A TNC VEHICLE FOR ANY LOSS OR INJURY THAT OCCURS WHILE A TNC DRIVER IS
LOGGED ON TO A TNC'S DIGITAL NETWORK OR WHILE A DRIVER PROVIDES A TNC
PREARRANGED TRIP, INCLUDING:
(A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
(B) COVERAGE PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THE INSURANCE
LAW;
(C) UNINSURED MOTORIST COVERAGE;
(D) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORIST COVERAGE; AND
(E) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THE INSURANCE LAW.
2. SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY REQUIREMENT UNDER
THE LAW TO THE CONTRARY. NOTHING IN THIS SECTION IMPLIES OR REQUIRES
THAT AN OWNER'S POLICY OF LIABILITY INSURANCE OR OTHER MOTOR VEHICLE
INSURANCE POLICY PROVIDE COVERAGE WHILE THE TNC DRIVER IS LOGGED ON TO
THE TNC'S DIGITAL NETWORK, WHILE THE TNC DRIVER IS ENGAGED IN A TNC
PREARRANGED TRIP OR WHILE THE TNC DRIVER OTHERWISE USES OR OPERATES A
TNC VEHICLE TO TRANSPORT PASSENGERS FOR COMPENSATION.
3. NOTHING SHALL BE DEEMED TO PRECLUDE AN INSURER FROM PROVIDING
PRIMARY, EXCESS, OR UMBRELLA COVERAGE FOR THE TNC DRIVER'S TNC VEHICLE,
IF IT CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
4. MOTOR VEHICLE INSURERS THAT EXCLUDE THE COVERAGE DESCRIBED IN THIS
ARTICLE SHALL HAVE NO DUTY TO DEFEND OR INDEMNIFY ANY CLAIM EXPRESSLY
EXCLUDED THEREUNDER. NOTHING IN THIS ARTICLE SHALL BE DEEMED TO INVALI-
DATE OR LIMIT AN EXCLUSION CONTAINED IN A POLICY INCLUDING ANY POLICY IN
USE OR APPROVED FOR USE IN THIS STATE PRIOR TO THE EFFECTIVE DATE OF
THIS SECTION.
5. A MOTOR VEHICLE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM AGAINST
A TNC DRIVER THAT IS EXCLUDED UNDER THE TERMS OF ITS POLICY SHALL HAVE A
RIGHT OF CONTRIBUTION AGAINST OTHER INSURERS THAT PROVIDE MOTOR VEHICLE
INSURANCE TO THE SAME DRIVER IN SATISFACTION OF THE COVERAGE REQUIRE-
MENTS OF THE PROVISIONS OF THIS ARTICLE.
6. IN A CLAIMS COVERAGE INVESTIGATION, A TNC AND ANY INSURER PROVIDING
COVERAGE UNDER THIS ARTICLE SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS
BEEN FILED, FACILITATE THE EXCHANGE OF RELEVANT INFORMATION WITH DIRECT-
LY INVOLVED PARTIES AND ANY INSURER OF THE TNC DRIVER IF APPLICABLE,
INCLUDING THE PRECISE TIMES THAT A TNC DRIVER LOGGED ON AND OFF OF THE
TNC'S DIGITAL NETWORK IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING
AND IN THE TWELVE HOUR PERIOD IMMEDIATELY FOLLOWING THE ACCIDENT AND
DISCLOSE TO ONE ANOTHER A CLEAR DESCRIPTION OF THE COVERAGE, EXCLUSIONS
S. 2009--C 100 A. 3009--C
AND LIMITS PROVIDED UNDER ANY MOTOR VEHICLE INSURANCE MAINTAINED UNDER
THIS ARTICLE.
7. THE SUPERINTENDENT OF FINANCIAL SERVICES MAY PROMULGATE SUCH RULES
AND REGULATIONS THAT THE SUPERINTENDENT DEEMS NECESSARY TO FACILITATE
THE SHARING OF INFORMATION BETWEEN INSURERS, WHEN A MOTOR VEHICLE ACCI-
DENT OCCURS AND AT LEAST ONE OF THE INSURERS IS PROVIDING FINANCIAL
RESPONSIBILITY COVERAGE TO A TNC VEHICLE PURSUANT TO THIS ARTICLE.
8. THE COMMISSIONER SHALL PROVIDE RELEVANT INSURANCE COVERAGE INFORMA-
TION REQUIRED BY THIS ARTICLE TO THE FOLLOWING PERSONS UPON REQUEST:
(A) A PERSON TO WHOM AN ACCIDENT REPORT PERTAINS OR WHO IS NAMED IN
SUCH REPORT, OR HIS OR HER AUTHORIZED REPRESENTATIVE; AND
(B) ANY OTHER PERSON OR HIS OR HER AUTHORIZED REPRESENTATIVE WHO HAS
DEMONSTRATED TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH PERSON IS
OR MAY BE A PARTY TO A CIVIL ACTION ARISING OUT OF THE CONDUCT DESCRIBED
IN SUCH ACCIDENT REPORT.
§ 1696. DRIVER AND VEHICLE REQUIREMENTS. 1. (A) AT ALL TIMES, AN INDI-
VIDUAL ACTING AS A TNC DRIVER SHALL BE PERMITTED BY THE TNC AS FOLLOWS:
(I) THE INDIVIDUAL SHALL SUBMIT AN APPLICATION TO THE TNC, WHICH SHALL
INCLUDE INFORMATION REGARDING HIS OR HER ADDRESS, AGE, DRIVER'S LICENSE,
MOTOR VEHICLE REGISTRATION, AUTOMOBILE LIABILITY INSURANCE, AND OTHER
INFORMATION REQUIRED BY THE TNC;
(II) THE TNC SHALL CONDUCT, OR HAVE A THIRD PARTY CONDUCT, A CRIMINAL
BACKGROUND CHECK FOR EACH APPLICANT IN ACCORDANCE WITH SECTION SIXTEEN
HUNDRED NINETY-NINE OF THIS ARTICLE AND THAT SHALL REVIEW WHETHER THE
APPLICANT:
(A) IS LISTED ON THE NEW YORK STATE SEX OFFENDER REGISTRY PURSUANT TO
ARTICLE SIX-C OF THE CORRECTION LAW; AND
(B) IS A MATCH IN THE UNITED STATES DEPARTMENT OF JUSTICE NATIONAL SEX
OFFENDER PUBLIC WEBSITE;
(III) THE TNC SHALL OBTAIN AND REVIEW, OR HAVE A THIRD PARTY OBTAIN
AND REVIEW, A DRIVING HISTORY RESEARCH REPORT FOR SUCH INDIVIDUAL.
(B) THE TNC SHALL NOT PERMIT AN APPLICANT WHERE SUCH APPLICANT:
(I) FAILS TO MEET ALL QUALIFICATIONS PURSUANT TO SECTION SIXTEEN
HUNDRED NINETY-NINE OF THIS ARTICLE;
(II) IS A MATCH IN THE UNITED STATES DEPARTMENT OF JUSTICE NATIONAL
SEX OFFENDER PUBLIC WEBSITE;
(III) DOES NOT POSSESS A VALID NEW YORK DRIVER'S LICENSE;
(IV) DOES NOT POSSESS PROOF OF REGISTRATION FOR THE MOTOR VEHICLES
USED TO PROVIDE TNC PREARRANGED TRIPS;
(V) DOES NOT POSSESS PROOF OF AUTOMOBILE LIABILITY INSURANCE FOR THE
MOTOR VEHICLES USED TO PROVIDE TNC PREARRANGED TRIPS AS A TNC VEHICLE;
OR
(VI) IS NOT AT LEAST NINETEEN YEARS OF AGE.
(C) UPON REVIEW OF ALL INFORMATION RECEIVED AND RETAINED BY THE TNC
AND UPON VERIFYING THAT THE INDIVIDUAL IS NOT DISQUALIFIED PURSUANT TO
THIS SECTION FROM RECEIVING A TNC DRIVER PERMIT, A TNC MAY ISSUE A TNC
DRIVER PERMIT TO THE APPLICANT. THE TNC SHALL REVIEW ALL INFORMATION
RECEIVED RELATING TO SUCH APPLICANT AND HOLD SUCH INFORMATION FOR SIX
YEARS ALONG WITH A CERTIFICATION THAT SUCH APPLICANT QUALIFIES TO
RECEIVE A TNC DRIVER PERMIT.
(D) (I) A TNC THAT ISSUES A TNC DRIVER'S PERMIT PURSUANT TO THIS
SECTION SHALL PARTICIPATE IN THE NEW YORK LICENSE EVENT NOTIFICATION
SERVICE (LENS) ESTABLISHED BY THE DEPARTMENT TO OBTAIN TIMELY NOTICE
WHEN ANY OF THE FOLLOWING VIOLATIONS ARE ADDED TO A TNC DRIVER'S DRIVING
RECORD:
S. 2009--C 101 A. 3009--C
(A) UNLAWFULLY FLEEING A POLICE OFFICER IN A MOTOR VEHICLE IN
VIOLATION OF SECTIONS 270.25, 270.30 OR 270.35 OF THE PENAL LAW;
(B) RECKLESS DRIVING IN VIOLATION OF SECTION ONE THOUSAND TWO HUNDRED
TWELVE OF THIS CHAPTER;
(C) OPERATING WHILE LICENSE OR PRIVILEGE IS SUSPENDED OR REVOKED IN
VIOLATION OF SECTION FIVE HUNDRED ELEVEN OF THIS CHAPTER, EXCLUDING
SUBDIVISION SEVEN OF SUCH SECTION;
(D) OPERATING A MOTOR VEHICLE UNDER THE INFLUENCE OF ALCOHOL OR DRUGS
IN VIOLATION OF SECTION ONE THOUSAND ONE HUNDRED NINETY-TWO OF THIS
CHAPTER; AND
(E) LEAVING THE SCENE OF AN INCIDENT WITHOUT REPORTING IN VIOLATION OF
SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER.
(II) THE DEPARTMENT MAY PROMULGATE REGULATIONS AUTHORIZING ADDITIONAL
LENS NOTIFICATIONS AS THE COMMISSIONER DEEMS NECESSARY TO PROTECT PUBLIC
HEALTH AND SAFETY.
(III) UPON SUCH NOTICE, A TNC MAY SUSPEND OR REVOKE ANY TNC DRIVER'S
PERMIT AND REVOKE ACCESS TO THE TNC DIGITAL NETWORK, ONLY AFTER CONSID-
ERING THE NUMBER OR SEVERITY OF ANY SUCH VIOLATIONS, INCLUDING SUCH
FACTORS AS REQUIRED BY THIS ARTICLE FOR OBTAINING A TNC PERMIT, WHEN
NECESSARY TO PROTECT PUBLIC HEALTH AND SAFETY. IF, HOWEVER, SUCH A
NOTICE PROVIDES THAT AN APPLICANT HAS BEEN CONVICTED OF A DISQUALIFYING
CRIME PURSUANT TO SECTION SIXTEEN HUNDRED NINETY-NINE OF THIS ARTICLE
SUCH TNC DRIVER'S ACCESS TO THE TNC DIGITAL NETWORK AND SUCH TNC DRIV-
ER'S PERMIT SHALL BOTH IMMEDIATELY BE SUSPENDED OR REVOKED. UPON SUCH
REVOCATION OR SUSPENSION PURSUANT TO THIS SECTION, THE TNC SHALL PROVIDE
THE DRIVER WITH A COPY OF THE LENS RECORD USED TO MAKE SUCH DETERMI-
NATION.
(E) NO PERSON SHALL OPERATE A TNC VEHICLE OR OPERATE AS A TNC DRIVER
UNLESS SUCH PERSON HOLDS A VALID TNC DRIVER PERMIT ISSUED PURSUANT TO
THIS SECTION. A VIOLATION OF THIS PARAGRAPH SHALL BE A TRAFFIC INFRAC-
TION PUNISHABLE BY A FINE OF NOT LESS THAN SEVENTY-FIVE NOR MORE THAN
THREE HUNDRED DOLLARS, OR BY IMPRISONMENT FOR NOT MORE THAN FIFTEEN
DAYS, OR BY BOTH SUCH FINE AND IMPRISONMENT.
(F) THE NAMES AND IDENTIFYING INFORMATION OF TNC DRIVERS PROVIDED
PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION SHALL BE CONSIDERED INFOR-
MATION, WHICH IF DISCLOSED, WOULD CONSTITUTE AN UNWARRANTED INVASION OF
PERSONAL PRIVACY UNDER THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFI-
CERS LAW.
2. A TNC SHALL IMPLEMENT A ZERO-TOLERANCE POLICY REGARDING A TNC DRIV-
ER'S ACTIVITIES WHILE ACCESSING THE TNC'S DIGITAL NETWORK. SUCH POLICY
SHALL ADDRESS THE ISSUE OF OPERATING A VEHICLE UNDER THE INFLUENCE OF
ALCOHOL OR DRUGS WHILE A TNC DRIVER IS PROVIDING TNC PREARRANGED TRIPS
OR IS LOGGED ONTO THE TNC'S DIGITAL NETWORK BUT IS NOT PROVIDING TNC
PREARRANGED TRIPS, AND THE TNC SHALL PROVIDE NOTICE OF THIS POLICY ON
ITS DIGITAL NETWORK, AS WELL AS PROCEDURES TO REPORT A COMPLAINT ABOUT A
TNC DRIVER WITH WHOM A TNC PREARRANGED TRIP WAS COMMENCED AND WHOM THE
PASSENGER REASONABLY SUSPECTS WAS OPERATING A VEHICLE UNDER THE INFLU-
ENCE OF ALCOHOL OR DRUGS DURING THE COURSE OF THE TNC PREARRANGED TRIP.
3. (A) A TNC SHALL ADOPT A POLICY OF NON-DISCRIMINATION ON THE BASIS
OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE
OR AFFILIATION, SEX, DISABILITY, AGE, SEXUAL ORIENTATION, OR GENETIC
PREDISPOSITION WITH RESPECT TO PASSENGERS AND POTENTIAL PASSENGERS AND
NOTIFY TNC DRIVERS OF SUCH POLICY.
(B) TNC DRIVERS SHALL COMPLY WITH ALL APPLICABLE LAWS REGARDING NON-
DISCRIMINATION AGAINST PASSENGERS OR POTENTIAL PASSENGERS ON THE BASIS
OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE
S. 2009--C 102 A. 3009--C
OR AFFILIATION, SEX, DISABILITY, AGE, SEXUAL ORIENTATION, OR GENETIC
PREDISPOSITION WITH RESPECT TO PASSENGERS AND POTENTIAL PASSENGERS AND
NOTIFY TNC DRIVERS OF SUCH POLICY.
(C) TNC DRIVERS SHALL COMPLY WITH ALL APPLICABLE LAWS RELATING TO
ACCOMMODATION OF SERVICE ANIMALS.
(D) A TNC SHALL IMPLEMENT AND MAINTAIN A POLICY AND AN OVERSIGHT PROC-
ESS OF PROVIDING ACCESSIBILITY TO PASSENGERS OR POTENTIAL PASSENGERS
WITH A DISABILITY AND ACCOMMODATION OF SERVICE ANIMALS AS SUCH TERM IS
DEFINED IN SECTION ONE HUNDRED TWENTY-THREE-B OF THE AGRICULTURE AND
MARKETS LAW AND SHALL TO THE EXTENT PRACTICABLE ADOPT FINDINGS ESTAB-
LISHED BY THE NEW YORK STATE TNC ACCESSIBILITY TASK FORCE ADOPTED PURSU-
ANT TO SECTION TWENTY-ONE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND
SEVENTEEN THAT ADDED THIS SECTION. A TNC SHALL NOT IMPOSE ADDITIONAL
CHARGES FOR PROVIDING SERVICES TO PERSONS WITH PHYSICAL DISABILITIES
BECAUSE OF THOSE DISABILITIES.
(E) THE NEW YORK STATE DIVISION OF HUMAN RIGHTS SHALL BE AUTHORIZED TO
ACCEPT, REVIEW AND INVESTIGATE ANY POTENTIAL OR ACTUAL VIOLATIONS OF
THIS SUBDIVISION IN A FORM AND MANNER CONSISTENT WITH AUTHORITY UNDER
ARTICLE FIFTEEN OF THE EXECUTIVE LAW AND SHALL NOTIFY THE DEPARTMENT,
UPON A FINDING OF A VIOLATION, FOR PURPOSES OF PERMIT SUSPENSION.
4. A TNC SHALL REQUIRE THAT ANY OR ALL MOTOR VEHICLES THAT A TNC DRIV-
ER WILL USE AS A TNC VEHICLE TO PROVIDE TNC PREARRANGED TRIPS MEETS
APPLICABLE NEW YORK STATE VEHICLE SAFETY AND EMISSIONS REQUIREMENTS, AS
SET FORTH IN SECTION THREE HUNDRED ONE OF THIS CHAPTER, OR THE VEHICLE
SAFETY AND EMISSIONS REQUIREMENTS OF THE STATE IN WHICH THE VEHICLE IS
REGISTERED.
5. THE DEPARTMENT SHALL PROMULGATE REGULATIONS TO ENSURE THAT EACH TNC
VEHICLE IS EASILY IDENTIFIED AS SUCH AND THAT THE TNC FOR WHICH THE TNC
DRIVER IS PROVIDING THE TNC SERVICE OR TNC PREARRANGED TRIP IS DISTIN-
GUISHABLE. SUCH MARKING SHALL BE IN SUCH FORM AS IS APPROVED BY THE
COMMISSIONER, AND SHALL BE ATTACHED, AFFIXED OR DISPLAYED IN SUCH MANNER
AS HE OR SHE MAY PRESCRIBE BY REGULATION.
§ 1697. MAINTENANCE OF RECORDS. A TNC SHALL MAINTAIN THE FOLLOWING
RECORDS:
1. INDIVIDUAL TRIP RECORDS FOR AT LEAST SIX YEARS FROM THE DATE EACH
TRIP WAS PROVIDED; AND
2. INDIVIDUAL RECORDS OF TNC DRIVERS AT LEAST UNTIL THE SIX YEAR ANNI-
VERSARY OF THE DATE ON WHICH A TNC DRIVER'S RELATIONSHIP WITH THE TNC
HAS ENDED.
§ 1698. AUDIT PROCEDURES; CONFIDENTIALITY OF RECORDS. 1. FOR THE
PURPOSE OF VERIFYING THAT A TNC IS IN COMPLIANCE WITH THE LICENSING
REQUIREMENTS OF THE DEPARTMENT, THE DEPARTMENT SHALL RESERVE THE RIGHT
TO AUDIT A SAMPLE OF RECORDS THAT THE TNC IS REQUIRED TO MAINTAIN, UPON
REQUEST BY THE DEPARTMENT THAT SHALL BE FULFILLED IN NO FEWER THAN TEN
BUSINESS DAYS BY THE TNC. THE SAMPLE SHALL BE CHOSEN RANDOMLY BY THE
DEPARTMENT IN A MANNER AGREEABLE TO BOTH PARTIES. THE AUDIT SHALL TAKE
PLACE AT A MUTUALLY AGREED LOCATION IN NEW YORK STATE. ANY RECORD
FURNISHED TO THE DEPARTMENT MAY EXCLUDE INFORMATION THAT WOULD TEND TO
IDENTIFY SPECIFIC DRIVERS OR PASSENGERS.
2. THE NAMES AND IDENTIFYING INFORMATION OF TNC DRIVERS THAT ARE
RECEIVED PURSUANT TO THIS SECTION SHALL BE CONSIDERED INFORMATION WHICH,
IF DISCLOSED, WOULD CONSTITUTE AN UNWARRANTED INVASION OF PERSONAL
PRIVACY UNDER THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
3. THE DEPARTMENT SHALL ESTABLISH REGULATIONS FOR THE FILING OF
COMPLAINTS AGAINST ANY TNC DRIVER OR TNC PURSUANT TO THIS SECTION.
S. 2009--C 103 A. 3009--C
§ 1699. CRIMINAL HISTORY BACKGROUND CHECK OF TRANSPORTATION NETWORK
COMPANY DRIVERS. 1. A TNC SHALL CONDUCT, OR HAVE A THIRD PARTY CONDUCT,
A CRIMINAL HISTORY BACKGROUND CHECK USING A LAWFUL METHOD APPROVED BY
THE DEPARTMENT PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS
SECTION FOR PERSONS APPLYING TO DRIVE FOR SUCH COMPANY.
2. (A) THE METHOD USED TO CONDUCT A CRIMINAL HISTORY BACKGROUND CHECK
PURSUANT TO SUBDIVISION ONE OF THIS SECTION SHALL BE ESTABLISHED IN
REGULATIONS ADOPTED BY THE DEPARTMENT WITHIN THIRTY DAYS OF THE EFFEC-
TIVE DATE OF THIS SUBDIVISION. TO ENSURE SAFETY OF THE PASSENGERS AND
THE PUBLIC SUCH REGULATIONS SHALL ESTABLISH THE METHOD USED TO CONDUCT
SUCH BACKGROUND CHECKS AND ANY PROCESSES AND OPERATIONS NECESSARY TO
COMPLETE SUCH CHECKS. THE REVIEW OF CRIMINAL HISTORY INFORMATION AND
DETERMINATIONS ABOUT WHETHER OR NOT AN APPLICANT IS ISSUED A TNC DRIVER
PERMIT SHALL BE CONTROLLED BY PARAGRAPHS (B), (C) AND (D) OF THIS SUBDI-
VISION.
(B) AN APPLICANT SHALL BE DISQUALIFIED TO RECEIVE A TNC DRIVER PERMIT
WHERE HE OR SHE:
(I) STANDS CONVICTED IN THE LAST THREE YEARS OF: UNLAWFUL FLEEING A
POLICE OFFICER IN A MOTOR VEHICLE IN VIOLATION OF SECTIONS 270.35,
270.30 OR 270.25 OF THE PENAL LAW, RECKLESS DRIVING IN VIOLATION OF
SECTION TWELVE HUNDRED TWELVE OF THIS CHAPTER, OPERATING WHILE LICENSE
OR PRIVILEGE IS SUSPENDED OR REVOKED IN VIOLATION OF SECTION FIVE
HUNDRED ELEVEN OF THIS CHAPTER, EXCLUDING SUBDIVISION SEVEN OF SUCH
SECTION, A MISDEMEANOR OFFENSE OF OPERATING A MOTOR VEHICLE WHILE UNDER
THE INFLUENCE OF ALCOHOL OR DRUGS IN VIOLATION OF SECTION ELEVEN HUNDRED
NINETY-TWO OF THIS CHAPTER, OR LEAVING THE SCENE OF AN ACCIDENT IN
VIOLATION OF SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER. IN
CALCULATING THE THREE YEAR PERIOD UNDER THIS SUBPARAGRAPH, ANY PERIOD OF
TIME DURING WHICH THE PERSON WAS INCARCERATED AFTER THE COMMISSION OF
SUCH OFFENSE SHALL BE EXCLUDED AND SUCH THREE YEAR PERIOD SHALL BE
EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SPENT INCARCERATED; OR
(II) STANDS CONVICTED IN THE LAST SEVEN YEARS OF: A SEX OFFENSE
DEFINED IN SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-EIGHT-A OF THE
CORRECTION LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED TWENTY-
FIVE OF THE PENAL LAW, A VIOLENT FELONY OFFENSE DEFINED IN SECTION 70.02
OF THE PENAL LAW, A CLASS A FELONY OFFENSE DEFINED IN THE PENAL LAW, A
FELONY OFFENSE DEFINED IN SECTION ELEVEN HUNDRED NINETY-TWO OF THIS
CHAPTER, AN OFFENSE FOR WHICH REGISTRATION AS A SEX OFFENDER IS REQUIRED
PURSUANT TO ARTICLE SIX-C OF THE CORRECTION LAW, OR ANY CONVICTION OF AN
OFFENSE IN ANY OTHER JURISDICTION THAT HAS ALL THE ESSENTIAL ELEMENTS OF
AN OFFENSE LISTED IN THIS SUBPARAGRAPH. IN CALCULATING THE SEVEN YEAR
PERIOD UNDER THIS SUBPARAGRAPH, ANY PERIOD OF TIME DURING WHICH THE
PERSON WAS INCARCERATED AFTER THE COMMISSION OF SUCH OFFENSE SHALL BE
EXCLUDED AND SUCH SEVEN YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR
PERIODS EQUAL TO THE TIME SPENT INCARCERATED.
(C) A CRIMINAL HISTORY RECORD THAT CONTAINS CRIMINAL CONVICTION INFOR-
MATION THAT DOES NOT DISQUALIFY AN APPLICANT PURSUANT TO SUBPARAGRAPHS
(I) OR (II) OF PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE REVIEWED AND
CONSIDERED ACCORDING TO THE PROVISIONS OF ARTICLE TWENTY-THREE-A OF THE
CORRECTION LAW AND SUBDIVISIONS FIFTEEN AND SIXTEEN OF SECTION TWO
HUNDRED NINETY-SIX OF THE EXECUTIVE LAW IN DETERMINING WHETHER OR NOT
THE APPLICANT SHOULD BE ISSUED A TNC DRIVER'S PERMIT.
(D) UPON RECEIPT OF CRIMINAL CONVICTION INFORMATION PURSUANT TO THIS
SECTION FOR ANY APPLICANT, SUCH APPLICANT SHALL PROMPTLY BE PROVIDED
WITH A COPY OF SUCH INFORMATION AS WELL AS A COPY OF ARTICLE
TWENTY-THREE-A OF THE CORRECTION LAW. SUCH APPLICANT SHALL ALSO BE
S. 2009--C 104 A. 3009--C
INFORMED OF HIS OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT INFOR-
MATION CONTAINED IN SUCH CRIMINAL HISTORY INFORMATION PURSUANT TO THE
REGULATIONS AND PROCEDURES ESTABLISHED BY THE DIVISION OF CRIMINAL
JUSTICE SERVICES.
(E) THE DEPARTMENT SHALL PROMULGATE REGULATIONS FOR THE PURPOSE OF
IMPLEMENTING THE PROVISIONS OF THIS SUBDIVISION.
3. A TNC SHALL UPDATE THE CRIMINAL HISTORY BACKGROUND CHECK YEARLY
DURING THE PERIOD IN WHICH THE PERSON IS AUTHORIZED TO DRIVE FOR THE
COMPANY, HOWEVER, THE COMMISSIONER MAY REQUIRE, PURSUANT TO REGULATION,
MORE FREQUENT CRIMINAL HISTORY BACKGROUND CHECKS.
4. TO ENSURE SAFETY OF THE PASSENGERS AND THE PUBLIC A TNC SHALL BE
RESPONSIBLE FOR ALL FEES ASSOCIATED WITH THE CRIMINAL HISTORY CHECK
PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
5. ANY TNC FOUND TO HAVE VIOLATED ANY REQUIREMENTS ESTABLISHED PURSU-
ANT TO THIS SECTION, SHALL ON THE FIRST INSTANCE, BE SUBJECT TO A CIVIL
PENALTY OF NOT MORE THAN TEN THOUSAND DOLLARS. FOR ANY SUBSEQUENT
INSTANCE WITHIN THE PERIOD OF TWO YEARS FROM ANY INITIAL VIOLATION, SUCH
TNC SHALL BE SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN FIFTY THOUSAND
DOLLARS, OR THE SUSPENSION OR REVOCATION OF ITS TNC LICENSE OR BOTH.
§ 1700. CONTROLLING AUTHORITY. 1. NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, THE REGULATION OF TNCS AND TNC DRIVERS IS GOVERNED EXCLUSIVELY
BY THE PROVISIONS OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN
WHICH ADDED THIS SECTION AND ANY RULES PROMULGATED BY THE STATE THROUGH
ITS AGENCIES CONSISTENT WITH SUCH CHAPTER. NO COUNTY, TOWN, CITY OR
VILLAGE MAY ENACT A TAX OR ANY FEE OR OTHER SURCHARGE ON A TNC, A TNC
DRIVER, OR A TNC VEHICLE USED BY A TNC DRIVER OR REQUIRE A LICENSE,
PERMIT, OR ADDITIONAL INSURANCE COVERAGE OR ANY OTHER LIMITATIONS OR
RESTRICTIONS, EXCEPT FOR A PROHIBITION ON PICK-UP PURSUANT TO SECTION
ONE HUNDRED EIGHTY-TWO OF THE GENERAL MUNICIPAL LAW, FOR A TNC, A TNC
DRIVER, OR A TNC VEHICLE USED BY A TNC DRIVER, WHERE SUCH FEE,
SURCHARGE, UNAUTHORIZED TAX, LICENSE, PERMIT, INSURANCE COVERAGE, LIMI-
TATION OR RESTRICTION, RELATES TO FACILITATING OR PROVIDING TNC PREAR-
RANGED TRIPS, OR SUBJECTS A TNC, A TNC DRIVER, OR A TNC VEHICLE USED BY
A TNC DRIVER TO OPERATIONAL, OR OTHER REQUIREMENTS.
2. NOTHING IN THIS ARTICLE SHALL AUTHORIZE ANY TNC DRIVER TO PICK-UP A
PASSENGER FOR PURPOSES OF A TNC PREARRANGED TRIP IN A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE OR WHERE A COUNTY OR CITY HAS OPTED TO
PROHIBIT THE SAME PURSUANT TO AUTHORITY CONSISTENT WITH SECTION ONE
HUNDRED EIGHTY-TWO OF THE GENERAL MUNICIPAL LAW, EXCEPT WHERE THE
ACCEPTANCE OF A PREARRANGED TRIP IS AUTHORIZED PURSUANT TO AN EXISTING
RECIPROCITY AGREEMENT.
3. NOTHING IN THIS ARTICLE SHALL: (A) LIMIT THE ABILITY OF A COUNTY,
TOWN, CITY OR VILLAGE TO ADOPT OR AMEND GENERALLY APPLICABLE LIMITATIONS
OR RESTRICTIONS RELATING TO LOCAL TRAFFIC OR PARKING CONTROL AS AUTHOR-
IZED BY STATE LAW; OR (B) PREEMPT ANY RECIPROCITY AGREEMENTS, INCLUDING
AGREEMENTS ENTERED INTO PURSUANT TO SECTION FOUR HUNDRED NINETY-EIGHT OF
THIS CHAPTER, BETWEEN A COUNTY, TOWN, CITY OR VILLAGE THAT RELATES TO
SERVICES REGULATED BY SECTION ONE HUNDRED EIGHTY-ONE OF THE GENERAL
MUNICIPAL LAW.
4. NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO LIMIT THE ABILITY OF
A MUNICIPALITY OR OTHER GOVERNING AUTHORITY THAT OWNS OR OPERATES AN
AIRPORT LOCATED OUTSIDE OF A CITY WITH A POPULATION OF ONE MILLION OR
MORE FROM ADOPTING REGULATIONS AND ENTERING INTO CONTRACTS OR OTHER
AGREEMENTS RELATING TO THE DUTIES AND RESPONSIBILITIES ON AIRPORT PROP-
ERTY OF A TRANSPORTATION NETWORK COMPANY, WHICH MAY INCLUDE THE IMPOSI-
TION AND PAYMENT OF REASONABLE FEES, PROVIDED THAT ANY SUCH CONTRACTS,
S. 2009--C 105 A. 3009--C
AGREEMENTS, OR REGULATIONS SHALL NOT IMPOSE ANY LICENSE OR OTHER OPERA-
TIONAL REQUIREMENT ON A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANS-
PORTATION NETWORK COMPANY VEHICLE THAT IS INCONSISTENT WITH OR ADDI-
TIONAL TO THE REQUIREMENTS OF THIS ARTICLE.
§ 3. Section 370 of the vehicle and traffic law is amended by adding a
new subdivision 8 to read as follows:
8. NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, AN INDIVIDUAL
SHALL NOT BE DEEMED TO BE ENGAGED IN THE BUSINESS OF CARRYING OR TRANS-
PORTING PASSENGERS FOR HIRE IF THE INDIVIDUAL DOES SO SOLELY AS A TRANS-
PORTATION NETWORK COMPANY DRIVER IN ACCORDANCE WITH ARTICLE FORTY-FOUR-B
OF THIS CHAPTER.
§ 4. Section 600 of the vehicle and traffic law, as amended by chapter
49 of the laws of 2005, is amended to read as follows:
§ 600. Leaving scene of an incident without reporting. 1. Property
damage. a. Any person operating a motor vehicle who, knowing or having
cause to know that damage has been caused to the real property or to the
personal property, not including animals, of another, due to an incident
involving the motor vehicle operated by such person shall, before leav-
ing the place where the damage occurred, stop, exhibit his or her
license and insurance identification card for such vehicle, when such
card is required pursuant to articles six and eight of this chapter, and
give his or her name, residence, including street and number, insurance
carrier and insurance identification information including but not
limited to the number and effective dates of said individual's insurance
policy, and license number to the party sustaining the damage, or in
case the person sustaining the damage is not present at the place where
the damage occurred then he or she shall report the same as soon as
physically able to the nearest police station, or judicial officer. IN
ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE
PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF
THIS CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE
WHILE THE INCIDENT OCCURRED WHO WAS (A) LOGGED ON TO THE TNC'S DIGITAL
NETWORK BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN
A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME
SUCH INCIDENT OCCURRED, WAS (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK
BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN A TNC
PREARRANGED TRIP.
b. It shall be the duty of any member of a law enforcement agency who
is at the scene of the accident to request the said operator or opera-
tors of the motor vehicles, when physically capable of doing so, to
exchange the information required hereinabove and such member of a law
enforcement agency shall assist such operator or operators in making
such exchange of information in a reasonable and harmonious manner.
A violation of the provisions of paragraph a of this subdivision shall
constitute a traffic infraction punishable by a fine of up to two
hundred fifty dollars or a sentence of imprisonment for up to fifteen
days or both such fine and imprisonment.
2. Personal injury. a. Any person operating a motor vehicle who,
knowing or having cause to know that personal injury has been caused to
another person, due to an incident involving the motor vehicle operated
by such person shall, before leaving the place where the said personal
injury occurred, stop, exhibit his or her license and insurance iden-
tification card for such vehicle, when such card is required pursuant to
articles six and eight of this chapter, and give his or her name, resi-
dence, including street and street number, insurance carrier and insur-
ance identification information including but not limited to the number
S. 2009--C 106 A. 3009--C
and effective dates of said individual's insurance policy and license
number, to the injured party, if practical, and also to a police offi-
cer, or in the event that no police officer is in the vicinity of the
place of said injury, then, he or she shall report said incident as soon
as physically able to the nearest police station or judicial officer.
IN ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE
THE PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE
FORTY-FOUR-B OF THIS CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING A
TNC VEHICLE AT THE TIME OF THE INCIDENT WHO WAS (A) LOGGED ON TO THE
TNC'S DIGITAL NETWORK BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B)
WAS ENGAGED IN A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR
SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS (A) LOGGED ON TO THE TNC'S
DIGITAL NETWORK BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS
ENGAGED IN A TNC PREARRANGED TRIP.
b. It shall be the duty of any member of a law enforcement agency who
is at the scene of the accident to request the said operator or opera-
tors of the motor vehicles, when physically capable of doing so, to
exchange the information required hereinabove and such member of a law
enforcement agency shall assist such operator or operators in making
such exchange of information in a reasonable and harmonious manner.
c. A violation of the provisions of paragraph a of this subdivision
resulting solely from the failure of an operator to exhibit his or her
license and insurance identification card for the vehicle or exchange
the information required in such paragraph shall constitute a class B
misdemeanor punishable by a fine of not less than two hundred fifty nor
more than five hundred dollars in addition to any other penalties
provided by law. Any subsequent such violation shall constitute a class
A misdemeanor punishable by a fine of not less than five hundred nor
more than one thousand dollars in addition to any other penalties
provided by law. Any violation of the provisions of paragraph a of this
subdivision, other than for the mere failure of an operator to exhibit
his or her license and insurance identification card for such vehicle or
exchange the information required in such paragraph, shall constitute a
class A misdemeanor, punishable by a fine of not less than five hundred
dollars nor more than one thousand dollars in addition to any other
penalties provided by law. Any such violation committed by a person
after such person has previously been convicted of such a violation
shall constitute a class E felony, punishable by a fine of not less than
one thousand nor more than two thousand five hundred dollars in addition
to any other penalties provided by law. Any violation of the provisions
of paragraph a of this subdivision, other than for the mere failure of
an operator to exhibit his or her license and insurance identification
card for such vehicle or exchange the information required in such para-
graph, where the personal injury involved (i) results in serious phys-
ical injury, as defined in section 10.00 of the penal law, shall consti-
tute a class E felony, punishable by a fine of not less than one
thousand nor more than five thousand dollars in addition to any other
penalties provided by law, or (ii) results in death shall constitute a
class D felony punishable by a fine of not less than two thousand nor
more than five thousand dollars in addition to any other penalties
provided by law.
3. FOR THE PURPOSES OF THIS ARTICLE, THE TERMS "TNC", "TNC DRIVER",
"TNC VEHICLE", "TNC PREARRANGED TRIP" AND "DIGITAL NETWORK" SHALL HAVE
THE SAME MEANINGS AS SUCH TERMS ARE DEFINED IN ARTICLE FORTY-FOUR-B OF
THIS CHAPTER.
S. 2009--C 107 A. 3009--C
§ 5. Section 601 of the vehicle and traffic law, as amended by chapter
672 of the laws of 2004, is amended to read as follows:
§ 601. Leaving scene of injury to certain animals without reporting.
Any person operating a motor vehicle which shall strike and injure any
horse, dog, cat or animal classified as cattle shall stop and endeavor
to locate the owner or custodian of such animal or a police, peace or
judicial officer of the vicinity, and take any other reasonable and
appropriate action so that the animal may have necessary attention, and
shall also promptly report the matter to such owner, custodian or offi-
cer (or if no one of such has been located, then to a police officer of
some other nearby community), exhibiting his or her license and insur-
ance identification card for such vehicle, when such card is required
pursuant to articles six and eight of this chapter, giving his or her
name and residence, including street and street number, insurance carri-
er and insurance identification information and license number. IN ADDI-
TION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF
OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF THIS
CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE AT THE
TIME OF THE INCIDENT WHO WAS (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK
BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN A TNC
PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME SUCH
INCIDENT OCCURRED, WAS (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK BUT
NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN A TNC PREAR-
RANGED TRIP. Violation of this section shall be punishable by a fine of
not more than one hundred dollars for a first offense and by a fine of
not less than fifty nor more than one hundred fifty dollars for a second
offense and each subsequent offense; provided, however where the animal
that has been struck and injured is a guide dog, hearing dog or service
dog, as such terms are defined in section forty-seven-b of the civil
rights law which is actually engaged in aiding or guiding a person with
a disability, a violation of this section shall be [publishable] PUNISH-
ABLE by a fine of not less than fifty nor more than one hundred fifty
dollars for a first offense and by a fine of not less than one hundred
fifty dollars nor more than three hundred dollars for a second offense
and each subsequent offense.
§ 6. The insurance law is amended by adding two new sections 3455 and
3456 to read as follows:
§ 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES. (A)
FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
(1) "TRANSPORTATION NETWORK COMPANY" SHALL HAVE THE SAME MEANING AS
SET FORTH IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(2) "CERTIFICATE" OR "CERTIFICATE OF INSURANCE" MEANS ANY POLICY,
CONTRACT OR OTHER EVIDENCE OF INSURANCE, OR ENDORSEMENT THERETO, ISSUED
TO A GROUP MEMBER UNDER A TRANSPORTATION NETWORK COMPANY GROUP POLICY.
(3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY" OR "GROUP POLICY"
MEANS A GROUP POLICY, INCLUDING CERTIFICATES ISSUED TO THE GROUP
MEMBERS, WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPA-
NY AND THE POLICY PROVIDES INSURANCE TO THE TRANSPORTATION NETWORK
COMPANY AND TO GROUP MEMBERS:
(A) IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE FORTY-FOUR-B OF THE
VEHICLE AND TRAFFIC LAW;
(B) OF THE TYPE DESCRIBED IN PARAGRAPH THIRTEEN, FOURTEEN, OR NINETEEN
OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS
CHAPTER; AND
(C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET
FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,
S. 2009--C 108 A. 3009--C
SUBDIVISION FOUR OF SECTION THREE HUNDRED ELEVEN OF THE VEHICLE AND
TRAFFIC LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND SUCH OTHER REQUIRE-
MENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE
FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERA-
TION OF A MOTOR VEHICLE.
(4) "GROUP MEMBER" MEANS A TRANSPORTATION NETWORK COMPANY DRIVER AS
DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
(6) "TNC VEHICLE" SHALL HAVE THE MEANING SET FORTH IN ARTICLE FORTY-
FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A TRANS-
PORTATION NETWORK COMPANY GROUP POLICY TO A TRANSPORTATION NETWORK
COMPANY AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH THE PROVISIONS
OF THIS SECTION.
(C)(1) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL PROVIDE
COVERAGE FOR A TNC VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF ARTI-
CLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
(A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
ANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
LY INJURY PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE
THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
(C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE PURSUANT TO SUBSECTION
(G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
(D) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
OF THIS CHAPTER.
(3) THE COVERAGE DESCRIBED IN PARAGRAPHS ONE AND TWO OF THIS
SUBSECTION MAY BE PROVIDED IN ONE GROUP POLICY OR IN SEPARATE GROUP
POLICIES.
(4) A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIF-
ICATES, SHALL BE ISSUED BY AUTHORIZED INSURERS OR FROM EXCESS LINE
BROKERS PURSUANT TO SECTION SIXTEEN SIX HUNDRED NINETY-THREE OF THE
VEHICLE AND TRAFFIC LAW.
(5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
(D) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY GROUP POLICY,
INCLUDING CERTIFICATES MAY BE PAID BY THE GROUP POLICYHOLDER FROM THE
FUNDS CONTRIBUTED:
(1) WHOLLY BY THE GROUP POLICYHOLDER;
(2) WHOLLY BY THE GROUP MEMBERS; OR
(3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
(E) (1) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETRO-
SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
HOLDER MAY:
(A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
(B) BE RETAINED BY THE GROUP POLICYHOLDER.
(2) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC-
TIVE PREMIUM REFUND NOT DISTRIBUTED UNDER PARAGRAPH ONE OF THIS
SUBSECTION SHALL BE:
(A) APPLIED TO REDUCE FUTURE PREMIUMS AND, ACCORDINGLY, FUTURE
CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
(B) PAID OR REFUNDED TO THOSE GROUP MEMBERS INSURED ON THE DATE THE
PAYMENT OR REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED BY
S. 2009--C 109 A. 3009--C
THE GROUP POLICYHOLDER, OR ON THE DATE OF MAILING, IF DISTRIBUTED
DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
(I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
(II) IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THE
INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT OR
REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
(III) IF THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND,
THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE METHOD
PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
(3) NOTWITHSTANDING PARAGRAPHS ONE AND TWO OF THIS SUBSECTION, IF A
DIVIDEND ACCRUES UPON TERMINATION OF COVERAGE UNDER A TRANSPORTATION
NETWORK COMPANY GROUP POLICY, THE PREMIUM FOR WHICH WAS PAID OUT OF
FUNDS CONTRIBUTED BY GROUP MEMBERS SPECIFICALLY FOR THE COVERAGE, THE
DIVIDEND SHALL BE PAID OR REFUNDED BY THE GROUP POLICYHOLDER TO THE
GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE TO THE
GROUP POLICYHOLDER, NET OF REASONABLE EXPENSES INCURRED BY THE GROUP
POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
(4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN BY
THE INSURER OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY OF EXCESS
PREMIUMS TO THE GROUP POLICYHOLDER IN LIGHT OF FAVORABLE LOSS EXPERI-
ENCE, INCLUDING RETROSPECTIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM
REFUNDS. THE TERM "DIVIDEND" DOES NOT INCLUDE REIMBURSEMENTS OR FEES
RECEIVED BY A GROUP POLICYHOLDER IN CONNECTION WITH THE OPERATION OR
ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
ING ADMINISTRATIVE REIMBURSEMENTS, FEES FOR SERVICES PROVIDED BY THE
GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
(F) THE INSURER SHALL TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS
OF THE SAME CLASS AND STATUS.
(G) EACH POLICY WRITTEN PURSUANT TO THIS SECTION SHALL PROVIDE PER
OCCURRENCE LIMITS OF COVERAGE FOR EACH GROUP MEMBER IN AN AMOUNT NOT
LESS THAN THAT REQUIRED BY THIS ARTICLE, AND MAY PROVIDE COVERAGE FOR
LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.
(H) (1) THE INSURER SHALL BE RESPONSIBLE FOR MAILING OR DELIVERY OF A
CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER INSURED UNDER THE TRANS-
PORTATION NETWORK COMPANY GROUP POLICY, PROVIDED, HOWEVER, THAT THE
INSURER MAY DELEGATE THE MAILING OR DELIVERY TO THE TRANSPORTATION
NETWORK COMPANY. THE INSURER SHALL ALSO BE RESPONSIBLE FOR THE MAILING
OR DELIVERY TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF INSURANCE
OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE IN LIMITS;
CHANGE IN TYPE OF COVERAGE; ADDITION, REDUCTION, OR ELIMINATION OF
COVERAGE; OR ADDITION OF EXCLUSION, UNDER THE TRANSPORTATION NETWORK
COMPANY GROUP POLICY OR CERTIFICATE.
(2) THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
TION NETWORK COMPANY GROUP POLICY IS INCORPORATED BY REFERENCE AND A
COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
(3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
BLE INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
THE GROUP MEMBERS THAT, IF THE MEMBER HAS OTHER INSURANCE COVERAGE,
SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
CY WILL BE EXCESS OVER THE OTHER INSURANCE.
(I) A GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME MANNER
AS AN AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,
S. 2009--C 110 A. 3009--C
CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A TRANS-
PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
(J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
TO SECTION THREE THOUSAND FOUR HUNDRED TWENTY-FIVE OR SECTION THREE
THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE; PROVIDED THAT THE
FOLLOWING REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
AGE:
(1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY IF
CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
(C) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT WOULD
CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
(B) WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
IF CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN
SUBPARAGRAPH (B), (C) OR (H) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
(2) (A) AN INSURER'S CANCELLATION OF A GROUP POLICY, INCLUDING ALL
CERTIFICATES, SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE
INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION TO THE GROUP
POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
(I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
BY THE GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP POLICY
TO THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS. SUCH CANCEL-
LATION SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER
MAILS OR DELIVERS THE WRITTEN NOTICE TO THE GROUP MEMBER.
(II) WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
GROUP MEMBER SPECIFICALLY FOR THE COVERAGE, THE GROUP POLICY HOLDER
SHALL MAIL OR DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND THE EFFECTIVE
DATE OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
FROM THE INSURER.
(B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL NOT
BECOME EFFECTIVE UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
MAILING ADDRESS AND TO THE GROUP POLICYHOLDER AT THE MAILING ADDRESS
SHOWN IN THE GROUP POLICY.
(3) (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR ANY REASON UPON THIRTY
DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
(B) THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO
EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S CANCELLATION OF
THE GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE TO THE
GROUP MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
TIVE DATE OF CANCELLATION.
(4) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED FOR A ONE-YEAR
POLICY PERIOD.
(B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
AND ALL CERTIFICATES UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:
S. 2009--C 111 A. 3009--C
(I) THE INSURER MAILS OR DELIVERS TO THE GROUP POLICYHOLDER AND ALL
GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
(II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
BUT NOT MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE
SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE NEXT ANNIVER-
SARY DATE OF THE POLICY.
(5) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
POLICYHOLDER SHALL MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER
ADVISING THE GROUP MEMBER OF NONRENEWAL OF THE GROUP POLICY AND THE
EFFECTIVE DATE OF NONRENEWAL. THE GROUP POLICYHOLDER SHALL MAIL OR
DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
(6) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR CONDITIONAL RENEWAL
SHALL SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE-
NEWAL, OR CONDITIONAL RENEWAL.
(7) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY EITHER THE
GROUP POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER-
AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
(B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION
TO GIVE NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS
BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
(8) (A) IF, PRIOR TO THE EFFECTIVE DATE OF CANCELLATION, NONRENEWAL,
OR CONDITIONAL RENEWAL OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER
INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP MEMBER IN
REGARD TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO
THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE UNTIL
EXPIRATION OF THE APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP
POLICY NOTWITHSTANDING THE CANCELLATION, NONRENEWAL OR CONDITIONAL
NONRENEWAL OF THE GROUP POLICY.
(B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
OF CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
(K) ANY MAILING OR DELIVERY TO A GROUP MEMBER REQUIRED OR PERMITTED
UNDER THIS SECTION MAY BE MADE BY ELECTRONIC MAIL IF CONSENT TO SUCH
METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
(L) AN INSURER MAY ISSUE A TRANSPORTATION NETWORK COMPANY GROUP POLICY
TO A TRANSPORTATION NETWORK COMPANY, NOTWITHSTANDING THAT IT MAY BE A
CONDITION OF OPERATING A VEHICLE ON THE TRANSPORTATION NETWORK COMPANY'S
DIGITAL NETWORK FOR THE TNC DRIVER TO PARTICIPATE IN SUCH GROUP POLICY.
(M) AN INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A
POLICY THAT PROVIDES FINANCIAL RESPONSIBILITY COVERAGE UNDER THIS
SECTION EXCEPT AS PERMITTED IN SECTION FIVE THOUSAND ONE HUNDRED FIVE OF
THE INSURANCE LAW.
§ 3456. PROHIBITION AGAINST CANCELLATION OF POLICY WHEN MOTOR VEHICLE
IS USED OR OPERATED THROUGH A TRANSPORTATION NETWORK COMPANY PROGRAM.
(A) AN INSURER SHALL NOT CANCEL AN EXISTING MOTOR VEHICLE INSURANCE
POLICY SOLELY ON THE BASIS THAT THE MOTOR VEHICLE COVERED BY THE INSUR-
ANCE HAS BEEN MADE AVAILABLE PURSUANT TO A TRANSPORTATION NETWORK COMPA-
NY PROGRAM IN COMPLIANCE WITH ARTICLE FORTY-FOUR-B OF THE VEHICLE AND
TRAFFIC LAW.
(B) THE DEFINITIONS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED
FIFTY-FIVE OF THIS ARTICLE SHALL APPLY TO THIS SECTION.
§ 6-a. Subsection (g) of section 5102 of the insurance law is amended
to read as follows:
S. 2009--C 112 A. 3009--C
(g) "Insurer" means the insurance company or self-insurer, as the case
may be, which provides the financial security required by article six
[or], eight, OR FORTY-FOUR-B of the vehicle and traffic law.
§ 7. Subsection (b) of section 5103 of the insurance law is amended by
adding a new paragraph 4 to read as follows:
(4) IS INJURED WHILE A MOTOR VEHICLE IS BEING USED OR OPERATED BY A
TNC DRIVER PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC
LAW, PROVIDED, HOWEVER, THAT ONLY THE INSURER ISSUING THE OWNER'S POLICY
OF LIABILITY INSURANCE PROVIDING COVERAGE FOR THE MOTOR VEHICLE BEING
OPERATED BY A TNC DRIVER MAY EXCLUDE SUCH COVERAGE AND AN INSURER MAY
NOT INCLUDE THIS EXCLUSION IN A POLICY USED TO SATISFY THE REQUIREMENTS
UNDER ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
§ 8. Subsection (d) of section 5106 of the insurance law, as added by
chapter 452 of the laws of 2005, is amended to read as follows:
(d) [Where] (1) EXCEPT AS PROVIDED IN PARAGRAPH TWO OF THIS
SUBSECTION, WHERE there is reasonable belief more than one insurer would
be the source of first party benefits, the insurers may agree among
themselves, if there is a valid basis therefor, that one of them will
accept and pay the claim initially. If there is no such agreement, then
the first insurer to whom notice of claim is given shall be responsible
for payment. Any such dispute shall be resolved in accordance with the
arbitration procedures established pursuant to section five thousand one
hundred five of this article and [regulation] REGULATIONS as promulgated
by the superintendent, and any insurer paying first-party benefits shall
be reimbursed by other insurers for their proportionate share of the
costs of the claim and the allocated expenses of processing the claim,
in accordance with the provisions entitled "other coverage" contained in
regulation and the provisions entitled "other sources of first-party
benefits" contained in regulation. If there is no such insurer and the
motor vehicle accident occurs in this state, then an applicant who is a
qualified person as defined in article fifty-two of this chapter shall
institute the claim against THE motor vehicle accident indemnification
corporation.
(2) A GROUP POLICY ISSUED PURSUANT TO SECTION THREE THOUSAND FOUR
HUNDRED FIFTY-FIVE OF THIS CHAPTER SHALL PROVIDE FIRST PARTY BENEFITS
WHEN A DISPUTE EXISTS AS TO WHETHER A DRIVER WAS USING OR OPERATING A
MOTOR VEHICLE IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY WHEN
LOSS, DAMAGE, INJURY, OR DEATH OCCURS. A TRANSPORTATION NETWORK COMPANY
SHALL NOTIFY THE INSURER THAT ISSUED THE OWNER'S POLICY OF LIABILITY
INSURANCE OF THE DISPUTE WITHIN TEN BUSINESS DAYS OF BECOMING AWARE THAT
THE DISPUTE EXISTS. WHEN THERE IS A DISPUTE, THE GROUP INSURER LIABLE
FOR THE PAYMENT OF FIRST PARTY BENEFITS UNDER A GROUP POLICY SHALL HAVE
THE RIGHT TO RECOVER THE AMOUNT PAID FROM THE DRIVER'S INSURER TO THE
EXTENT THAT THE DRIVER WOULD HAVE BEEN LIABLE TO PAY DAMAGES IN AN
ACTION AT LAW.
§ 9. Subsection (b) of section 2305 of the insurance law, as amended
by chapter 11 of the laws of 2008, paragraph 13 as amended by chapter
136 of the laws of 2008, is amended to read as follows:
(b) rate filings for:
(1) workers' compensation insurance;
(2) motor vehicle insurance, or surety bonds, required by section
three hundred seventy of the vehicle and traffic law OR ARTICLE FORTY-
FOUR-B OF THE VEHICLE AND TRAFFIC LAW;
(3) joint underwriting;
(4) motor vehicle assigned risk insurance;
S. 2009--C 113 A. 3009--C
(5) insurance issued by the New York Property Insurance Underwriting
Association;
(6) risk sharing plans authorized by section two thousand three
hundred eighteen of this article;
(7) title insurance;
(8) medical malpractice liability insurance;
(9) insurance issued by the Medical Malpractice Insurance Association;
(10) mortgage guaranty insurance;
(11) credit property insurance, as defined in section two thousand
three hundred forty of this article; [and]
(12) gap insurance; AND
(13) [Private] PRIVATE passenger automobile insurance, except as
provided in section two thousand three hundred fifty of this article[.],
shall be filed with the superintendent and shall not become effective
unless either the filing has been approved or thirty days, which the
superintendent may with cause extend an additional thirty days and with
further cause extend an additional fifteen days, have elapsed and the
filing has not been disapproved as failing to meet the requirements of
this article, including the standard that rates be not otherwise unrea-
sonable. After a rate filing becomes effective, the filing and support-
ing information shall be open to public inspection. If a filing is
disapproved, THEN notice of such disapproval order shall be given, spec-
ifying in what respects such filing fails to meet the requirements of
this article. Upon his or her request, the superintendent shall be
provided with support and assistance from the workers' compensation
board and other state agencies and departments with appropriate juris-
diction. The loss cost multiplier for each insurer providing coverage
for workers' compensation, as defined by regulation promulgated by the
superintendent, shall be promptly displayed on the department's website
and updated in the event of any change.
§ 10. Paragraph 1 of subsection (a) of section 3425 of the insurance
law, as amended by chapter 235 of the laws of 1989, is amended to read
as follows:
(1) "Covered policy" means a contract of insurance, referred to in
this section as "automobile insurance", issued or issued for delivery in
this state, on a risk located or resident in this state, insuring
against losses or liabilities arising out of the ownership, operation,
or use of a motor vehicle, predominantly used for non-business purposes,
when a natural person is the named insured under the policy of automo-
bile insurance; PROVIDED, HOWEVER, THAT THE USE OR OPERATION OF THE
MOTOR VEHICLE BY A TRANSPORTATION NETWORK DRIVER AS A TNC VEHICLE IN
ACCORDANCE WITH ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW
SHALL NOT BE INCLUDED IN DETERMINING WHETHER THE MOTOR VEHICLE IS BEING
USED PREDOMINANTLY FOR NON-BUSINESS PURPOSES.
§ 11. Subdivisions 1 and 3 of section 160-cc of the executive law, as
added by chapter 49 of the laws of 1999, are amended and a new subdivi-
sion 10 is added to read as follows:
1. "Black car operator" means the registered owner of a for-hire vehi-
cle, or a driver designated by such registered owner to operate the
registered owner's for-hire vehicle as the registered owner's authorized
designee, whose injury arose out of and in the course of providing
covered services to a central dispatch facility that is a registered
member of the New York black car operators' injury compensation fund,
inc.
(A) FOR THE PURPOSES OF THE ADMINISTRATION OF THIS ARTICLE, A BLACK
CAR OPERATOR SHALL INCLUDE A TNC DRIVER THAT IS ENGAGED IN A TNC PREAR-
S. 2009--C 114 A. 3009--C
RANGED TRIP. FOR THE PURPOSES OF THIS ARTICLE, THE TERMS "TNC DRIVER",
"TNC PREARRANGED TRIP" AND "DIGITAL NETWORK" SHALL HAVE THE SAME MEAN-
INGS AS SUCH TERMS ARE DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE
AND TRAFFIC LAW.
(B) FOR THE PURPOSES OF THE ADMINISTRATION OF THIS ARTICLE, A BLACK
CAR OPERATOR SHALL INCLUDE A TNC DRIVER THAT IS LOGGED ONTO A TNC
DIGITAL NETWORK AND IS NOT ENGAGED IN A TNC PREARRANGED TRIP BUT IS
ENGAGED IN AN ACTIVITY REASONABLY RELATED TO DRIVING AS A TNC DRIVER
TAKING INTO CONSIDERATION THE TIME, PLACE AND MANNER OF SUCH ACTIVITY,
HOWEVER, THAT THIS PARAGRAPH SHALL ONLY APPLY TO A TNC DRIVER PERMITTED
PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW WITHIN
TWELVE MONTHS OF THE EFFECTIVE DATE OF THIS PARAGRAPH.
3. "Central dispatch facility" means a central facility, wherever
located, INCLUDING A TRANSPORTATION NETWORK COMPANY, that (a) dispatches
the registered owners of for-hire vehicles, or drivers acting as the
designated agent of such registered owners, to both pick-up and
discharge passengers in the state, and (b) has certified to the satis-
faction of the department of state that more than ninety percent of its
for-hire business is on a payment basis other than direct cash payment
by a passenger; provided, however, that a central dispatch facility
shall not include any such central facility that owns fifty percent or
more of the cars it dispatches. FOR THE PURPOSES OF ADMINISTRATION OF
THIS ARTICLE, CENTRAL DISPATCH FACILITY SHALL INCLUDE TNC PREARRANGED
TRIP AS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
10. "TRANSPORTATION NETWORK COMPANY" OR "TNC" SHALL HAVE THE SAME
MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE
AND TRAFFIC LAW.
§ 12. Subdivision 1 of section 160-ff of the executive law, as added
by chapter 49 of the laws of 1999, is amended to read as follows:
1. [Within thirty days of the effective date of this article, there]
THERE shall be appointed a board of directors of the fund, consisting of
[nine] ELEVEN directors, [five] SIX of whom shall be selected by the
black car assistance corporation; [three] FOUR of whom shall be chosen
by the governor, including one chosen upon the recommendation of the
temporary president of the senate and one chosen upon the recommendation
of the speaker of the assembly; ONE CHOSEN TO REPRESENT A TRANSPORTATION
NETWORK COMPANY AS DEFINED BY ARTICLE FORTY-FOUR-B OF THE VEHICLE AND
TRAFFIC LAW; and one of whom shall be the secretary, who shall serve ex
officio. [The initial terms of directors other than the secretary shall
be staggered, the three directors appointed by the governor serving for
initial terms of three years from the effective date of this article,
three of the remaining five directors serving for initial terms of two
years from the effective date of this article and two directors serving
for initial terms of one year from the effective date of this article]
THE GOVERNOR SHALL APPOINT THE DIRECTOR CHOSEN TO REPRESENT A TRANSPOR-
TATION NETWORK COMPANY NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
SEVENTEEN. The [subsequent] terms of all directors other than the secre-
tary shall be three years. The board shall have the power to remove for
cause any director other than the secretary.
§ 13. Subdivision 3 of section 160-jj of the executive law, as added
by chapter 49 of the laws of 1999, is amended to read as follows:
3. No local licensing authority or the department OR THE NEW YORK
STATE DEPARTMENT OF MOTOR VEHICLES shall issue, continue or renew any
license or registration certificate, OR PERMIT for the operation of any
central dispatch facility unless such central dispatch facility, as a
condition of maintaining its license and/or registration certificate,
S. 2009--C 115 A. 3009--C
adds the surcharge required by this section to every invoice and billing
for covered services sent to, and every credit payment for covered
services received from, its customers and pays to the fund no later than
the fifteenth day of each month the total surcharges due pursuant to
this article.
§ 14. The general municipal law is amended by adding a new section 182
to read as follows:
§ 182. LOCAL REGULATION OF TRANSPORTATION NETWORK COMPANIES. 1. EVERY
COUNTY, AND ANY CITY WITH A POPULATION OF ONE HUNDRED THOUSAND OR MORE
AS OF THE LAST DECENNIAL CENSUS, MAY PROHIBIT THE PICK-UP OF ANY PERSON
BY A TRANSPORTATION NETWORK COMPANY AS DEFINED BY ARTICLE FORTY-FOUR-B
OF THE VEHICLE AND TRAFFIC LAW WITHIN THEIR GEOGRAPHIC BOUNDARIES PURSU-
ANT TO THE ENACTMENT OF A LOCAL LAW OR ORDINANCE, EXCEPT THAT ANY COUNTY
THAT CONTAINS A CITY WITH A POPULATION OF ONE HUNDRED THOUSAND OR MORE
AS OF THE LAST DECENNIAL CENSUS SHALL ONLY BE AUTHORIZED TO PROHIBIT THE
PICK-UP OF ANY PERSON BY A TRANSPORTATION NETWORK COMPANY AS DEFINED BY
ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW OUTSIDE OF THE
GEOGRAPHIC BOUNDARIES OF SUCH CITY.
2. ANY COUNTY OR CITY THAT ENACTS A LOCAL LAW OR ORDINANCE PURSUANT TO
THIS SECTION OR REPEALS SUCH LOCAL LAW OR ORDINANCE SHALL NOTIFY THE
DEPARTMENT OF MOTOR VEHICLES. SUCH DEPARTMENT SHALL MAINTAIN ON ITS
PUBLIC WEBSITE A LIST OF ALL COUNTIES AND CITIES THAT HAVE ENACTED A
LOCAL LAW OR ORDINANCE PURSUANT TO THIS SECTION AND SHALL REMOVE FROM
SUCH LIST ANY COUNTY OR CITY THAT REPEALS SUCH LOCAL LAW OR ORDINANCE.
3. THIS SECTION SHALL NOT APPLY TO A CITY WITH A POPULATION OF ONE
MILLION OR MORE.
§ 15. Subdivision 1 of section 171-a of the tax law, as amended by
chapter 90 of the laws of 2014, is amended to read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise provided in section two hundred five thereof), nine-A,
twelve-A (except as otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), eighteen, nineteen, twenty
(except as otherwise provided in section four hundred eighty-two there-
of), twenty-B, twenty-one, twenty-two, twenty-six, [twenty-six-B,] twen-
ty-eight (except as otherwise provided in section eleven hundred two or
eleven hundred three thereof), twenty-eight-A, TWENTY-NINE-B, thirty-one
(except as otherwise provided in section fourteen hundred twenty-one
thereof), thirty-three and thirty-three-A of this chapter shall be
deposited daily in one account with such responsible banks, banking
houses or trust companies as may be designated by the comptroller, to
the credit of the comptroller. Such an account may be established in one
or more of such depositories. Such deposits shall be kept separate and
apart from all other money in the possession of the comptroller. The
comptroller shall require adequate security from all such depositories.
Of the total revenue collected or received under such articles of this
chapter, the comptroller shall retain in the comptroller's hands such
amount as the commissioner may determine to be necessary for refunds or
reimbursements under such articles of this chapter out of which amount
the comptroller shall pay any refunds or reimbursements to which taxpay-
ers shall be entitled under the provisions of such articles of this
chapter. The commissioner and the comptroller shall maintain a system of
accounts showing the amount of revenue collected or received from each
of the taxes imposed by such articles. The comptroller, after reserving
S. 2009--C 116 A. 3009--C
the amount to pay such refunds or reimbursements, shall, on or before
the tenth day of each month, pay into the state treasury to the credit
of the general fund all revenue deposited under this section during the
preceding calendar month and remaining to the comptroller's credit on
the last day of such preceding month, (i) except that the comptroller
shall pay to the state department of social services that amount of
overpayments of tax imposed by article twenty-two of this chapter and
the interest on such amount which is certified to the comptroller by the
commissioner as the amount to be credited against past-due support
pursuant to subdivision six of section one hundred seventy-one-c of this
article, (ii) and except that the comptroller shall pay to the New York
state higher education services corporation and the state university of
New York or the city university of New York respectively that amount of
overpayments of tax imposed by article twenty-two of this chapter and
the interest on such amount which is certified to the comptroller by the
commissioner as the amount to be credited against the amount of defaults
in repayment of guaranteed student loans and state university loans or
city university loans pursuant to subdivision five of section one
hundred seventy-one-d and subdivision six of section one hundred seven-
ty-one-e of this article, (iii) and except further that, notwithstanding
any law, the comptroller shall credit to the revenue arrearage account,
pursuant to section ninety-one-a of the state finance law, that amount
of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
thereon, which is certified to the comptroller by the commissioner as
the amount to be credited against a past-due legally enforceable debt
owed to a state agency pursuant to paragraph (a) of subdivision six of
section one hundred seventy-one-f of this article, provided, however, he
shall credit to the special offset fiduciary account, pursuant to
section ninety-one-c of the state finance law, any such amount credita-
ble as a liability as set forth in paragraph (b) of subdivision six of
section one hundred seventy-one-f of this article, (iv) and except
further that the comptroller shall pay to the city of New York that
amount of overpayment of tax imposed by article nine, nine-A, twenty-
two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any
interest thereon that is certified to the comptroller by the commission-
er as the amount to be credited against city of New York tax warrant
judgment debt pursuant to section one hundred seventy-one-l of this
article, (v) and except further that the comptroller shall pay to a
non-obligated spouse that amount of overpayment of tax imposed by arti-
cle twenty-two of this chapter and the interest on such amount which has
been credited pursuant to section one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or
one hundred seventy-one-l of this article and which is certified to the
comptroller by the commissioner as the amount due such non-obligated
spouse pursuant to paragraph six of subsection (b) of section six
hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
a like amount which the comptroller shall pay into the treasury to the
credit of the general fund from amounts subsequently payable to the
department of social services, the state university of New York, the
city university of New York, or the higher education services corpo-
ration, or the revenue arrearage account or special offset fiduciary
account pursuant to section ninety-one-a or ninety-one-c of the state
finance law, as the case may be, whichever had been credited the amount
originally withheld from such overpayment, and (vii) with respect to
amounts originally withheld from such overpayment pursuant to section
S. 2009--C 117 A. 3009--C
one hundred seventy-one-l of this article and paid to the city of New
York, the comptroller shall collect a like amount from the city of New
York.
§ 16. Subdivision 1 of section 171-a of the tax law, as amended by
section 54 of part A of chapter 59 of the laws of 2014, is amended to
read as follows:
1. All taxes, interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise provided in section two hundred five thereof), nine-A,
twelve-A (except as otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise provided in
section three hundred twelve thereof), eighteen, nineteen, twenty
(except as otherwise provided in section four hundred eighty-two there-
of), twenty-one, twenty-two, twenty-six, [twenty-six-B,] twenty-eight
(except as otherwise provided in section eleven hundred two or eleven
hundred three thereof), twenty-eight-A, TWENTY-NINE-B, thirty-one
(except as otherwise provided in section fourteen hundred twenty-one
thereof), thirty-three and thirty-three-A of this chapter shall be
deposited daily in one account with such responsible banks, banking
houses or trust companies as may be designated by the comptroller, to
the credit of the comptroller. Such an account may be established in one
or more of such depositories. Such deposits shall be kept separate and
apart from all other money in the possession of the comptroller. The
comptroller shall require adequate security from all such depositories.
Of the total revenue collected or received under such articles of this
chapter, the comptroller shall retain in the comptroller's hands such
amount as the commissioner may determine to be necessary for refunds or
reimbursements under such articles of this chapter out of which amount
the comptroller shall pay any refunds or reimbursements to which taxpay-
ers shall be entitled under the provisions of such articles of this
chapter. The commissioner and the comptroller shall maintain a system of
accounts showing the amount of revenue collected or received from each
of the taxes imposed by such articles. The comptroller, after reserving
the amount to pay such refunds or reimbursements, shall, on or before
the tenth day of each month, pay into the state treasury to the credit
of the general fund all revenue deposited under this section during the
preceding calendar month and remaining to the comptroller's credit on
the last day of such preceding month, (i) except that the comptroller
shall pay to the state department of social services that amount of
overpayments of tax imposed by article twenty-two of this chapter and
the interest on such amount which is certified to the comptroller by the
commissioner as the amount to be credited against past-due support
pursuant to subdivision six of section one hundred seventy-one-c of this
article, (ii) and except that the comptroller shall pay to the New York
state higher education services corporation and the state university of
New York or the city university of New York respectively that amount of
overpayments of tax imposed by article twenty-two of this chapter and
the interest on such amount which is certified to the comptroller by the
commissioner as the amount to be credited against the amount of defaults
in repayment of guaranteed student loans and state university loans or
city university loans pursuant to subdivision five of section one
hundred seventy-one-d and subdivision six of section one hundred seven-
ty-one-e of this article, (iii) and except further that, notwithstanding
any law, the comptroller shall credit to the revenue arrearage account,
pursuant to section ninety-one-a of the state finance law, that amount
S. 2009--C 118 A. 3009--C
of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
thereon, which is certified to the comptroller by the commissioner as
the amount to be credited against a past-due legally enforceable debt
owed to a state agency pursuant to paragraph (a) of subdivision six of
section one hundred seventy-one-f of this article, provided, however, he
shall credit to the special offset fiduciary account, pursuant to
section ninety-one-c of the state finance law, any such amount credita-
ble as a liability as set forth in paragraph (b) of subdivision six of
section one hundred seventy-one-f of this article, (iv) and except
further that the comptroller shall pay to the city of New York that
amount of overpayment of tax imposed by article nine, nine-A, twenty-
two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any
interest thereon that is certified to the comptroller by the commission-
er as the amount to be credited against city of New York tax warrant
judgment debt pursuant to section one hundred seventy-one-l of this
article, (v) and except further that the comptroller shall pay to a
non-obligated spouse that amount of overpayment of tax imposed by arti-
cle twenty-two of this chapter and the interest on such amount which has
been credited pursuant to section one hundred seventy-one-c, one hundred
seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or
one hundred seventy-one-l of this article and which is certified to the
comptroller by the commissioner as the amount due such non-obligated
spouse pursuant to paragraph six of subsection (b) of section six
hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
a like amount which the comptroller shall pay into the treasury to the
credit of the general fund from amounts subsequently payable to the
department of social services, the state university of New York, the
city university of New York, or the higher education services corpo-
ration, or the revenue arrearage account or special offset fiduciary
account pursuant to section ninety-one-a or ninety-one-c of the state
finance law, as the case may be, whichever had been credited the amount
originally withheld from such overpayment, and (vii) with respect to
amounts originally withheld from such overpayment pursuant to section
one hundred seventy-one-l of this article and paid to the city of New
York, the comptroller shall collect a like amount from the city of New
York.
§ 17. Paragraph 34 of subdivision (b) of section 1101 of the tax law,
as amended by section 1 of part WW of chapter 57 of the laws of 2010, is
amended to read as follows:
(34) Transportation service. The service of transporting, carrying or
conveying a person or persons by livery service; whether to a single
destination or to multiple destinations; and whether the compensation
paid by or on behalf of the passenger is based on mileage, trip, time
consumed or any other basis. A service that begins and ends in this
state is deemed intra-state even if it passes outside this state during
a portion of the trip. However, transportation service does not include
transportation of persons in connection with funerals. Transportation
service includes transporting, carrying, or conveying property of the
person being transported, whether owned by or in the care of such
person. NOTWITHSTANDING THE FOREGOING, TRANSPORTATION SERVICE SHALL NOT
INCLUDE A TNC PREARRANGED TRIP, AS THAT TERM IS DEFINED IN ARTICLE
FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, THAT IS SUBJECT TO TAX
UNDER ARTICLE TWENTY-NINE-B OF THIS CHAPTER. In addition to what is
included in the definition of "receipt" in paragraph three of this
subdivision, receipts from the sale of transportation service subject to
S. 2009--C 119 A. 3009--C
tax include any handling, carrying, baggage, booking service, adminis-
trative, mark-up, additional, or other charge, of any nature, made in
conjunction with the transportation service. Livery service means
service provided by limousine, black car or other motor vehicle, with a
driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of
one million or more in this state, an affiliated livery vehicle, and
excluding any scheduled public service. Limousine means a vehicle with a
seating capacity of up to fourteen persons, excluding the driver. Black
car means a for-hire vehicle dispatched from a central facility. "Affil-
iated livery vehicle" means a for-hire motor vehicle with a seating
capacity of up to six persons, including the driver, other than a black
car or luxury limousine, that is authorized and licensed by the taxi and
limousine commission of a city of one million or more to be dispatched
by a base station located in such a city and regulated by such taxi and
limousine commission; and the charges for service provided by an affil-
iated livery vehicle are on the basis of flat rate, time, mileage, or
zones and not on a garage to garage basis.
§ 18. The tax law is amended by adding a new article 29-B to read as
follows:
ARTICLE 29-B
STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY
PREARRANGED TRIPS
SECTION 1291. DEFINITIONS.
1292. IMPOSITION.
1293. PRESUMPTION.
1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE.
1295. RECORDS TO BE KEPT.
1296. SECRECY OF RETURNS AND REPORTS.
1297. PRACTICE AND PROCEDURE.
1298. DEPOSIT AND DISPOSITION OF REVENUE.
§ 1291. DEFINITIONS. (A) "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP,
LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY,
CORPORATION, ESTATE, RECEIVER, TRUSTEE, ASSIGNEE, REFEREE OR ANY OTHER
PERSON ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER
APPOINTED BY A COURT OR OTHERWISE, ANY COMBINATION OF INDIVIDUALS AND
ANY OTHER FORM OF UNINCORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR
MORE PERSONS.
(B) "CITY" MEANS A CITY OF A MILLION OR MORE LOCATED IN THE METROPOL-
ITAN COMMUTER TRANSPORTATION DISTRICT ESTABLISHED BY SECTION TWELVE
HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
(C) "TRANSPORTATION NETWORK COMPANY" OR "TNC" SHALL HAVE THE SAME
MEANING AS THE TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE
AND TRAFFIC LAW.
(D) "TNC PREARRANGED TRIP" SHALL HAVE THE SAME MEANING AS THE TERM IS
DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(E) "TNC DRIVER" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN
ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(F) "TNC VEHICLE" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED
IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
(G) "GROSS TRIP FARE" MEANS THE SUM OF THE BASE FARE CHARGE, DISTANCE
CHARGE AND TIME CHARGE FOR A COMPLETE TNC PREARRANGED TRIP AT THE APPLI-
CABLE RATE CHARGED BY THE TNC AT THE TIME SUCH TRIP IS ARRANGED.
§ 1292. IMPOSITION. THERE IS HEREBY IMPOSED ON EVERY TNC A STATE
ASSESSMENT FEE OF 4% OF THE GROSS TRIP FARE OF EVERY TNC PREARRANGED
TRIP PROVIDED BY SUCH TNC THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE
THE CITY AND TERMINATES ANYWHERE IN THIS STATE.
S. 2009--C 120 A. 3009--C
§ 1293. PRESUMPTION. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF
THIS ARTICLE AND TO PREVENT EVASION OF THE STATE ASSESSMENT FEE IMPOSED
BY THIS ARTICLE, IT SHALL BE PRESUMED THAT EVERY TNC PREARRANGED TRIP
THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE THE CITY IS SUBJECT TO THE
STATE ASSESSMENT FEE. THIS PRESUMPTION SHALL PREVAIL UNTIL THE CONTRARY
IS PROVEN BY THE PERSON LIABLE FOR THE FEE.
§ 1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE. (A) EVERY PERSON
LIABLE FOR THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE SHALL FILE A
RETURN ON A CALENDAR-QUARTERLY BASIS WITH THE COMMISSIONER. EACH RETURN
SHALL SHOW THE NUMBER OF TNC PREARRANGED TRIPS, THE TOTAL GROSS TRIP
FARES AND THE AMOUNT OF FEES DUE THEREON IN THE QUARTER FOR WHICH THE
RETURN IS FILED, TOGETHER WITH SUCH OTHER INFORMATION AS THE COMMISSION-
ER MAY REQUIRE. THE RETURNS REQUIRED BY THIS SECTION SHALL BE FILED
WITHIN THIRTY DAYS AFTER THE END OF THE QUARTERLY PERIOD COVERED THERE-
BY. IF THE COMMISSIONER DEEMS IT NECESSARY IN ORDER TO ENSURE THE
PAYMENT OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, THE COMMIS-
SIONER MAY REQUIRE RETURNS TO BE MADE FOR SHORTER PERIODS THAN
PRESCRIBED BY THE FOREGOING PROVISIONS OF THIS SECTION, AND UPON SUCH
DATES AS THE COMMISSIONER MAY SPECIFY. THE FORM OF RETURNS SHALL BE
PRESCRIBED BY THE COMMISSIONER AND SHALL CONTAIN SUCH INFORMATION AS THE
COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER ADMINISTRATION OF THIS
ARTICLE. THE COMMISSIONER MAY REQUIRE AMENDED RETURNS TO BE FILED WITHIN
THIRTY DAYS AFTER NOTICE AND TO CONTAIN THE INFORMATION SPECIFIED IN THE
NOTICE. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS BE FILED ELECTRON-
ICALLY.
(B) EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS ARTICLE SHALL,
AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL OF
ALL STATE ASSESSMENT FEES ON THE CORRECT NUMBER OF TRIPS SUBJECT TO SUCH
FEE UNDER THIS ARTICLE. THE AMOUNT SO PAYABLE TO THE COMMISSIONER FOR
THE PERIOD FOR WHICH A RETURN IS REQUIRED TO BE FILED SHALL BE DUE AND
PAYABLE TO THE COMMISSIONER ON THE DATE SPECIFIED FOR THE FILING OF THE
RETURN FOR SUCH PERIOD, WITHOUT REGARD TO WHETHER A RETURN IS FILED OR
WHETHER THE RETURN THAT IS FILED CORRECTLY SHOWS THE CORRECT NUMBER OF
TRIPS, GROSS TRIP FARES OR AMOUNT OF FEES DUE THEREON. THE COMMISSIONER
MAY REQUIRE THAT THE FEE BE PAID ELECTRONICALLY.
§ 1295. RECORDS TO BE KEPT. EVERY PERSON LIABLE FOR THE STATE ASSESS-
MENT FEE IMPOSED BY THIS ARTICLE SHALL KEEP:
(A) RECORDS OF EVERY TNC PREARRANGED TRIP SUBJECT TO THE STATE ASSESS-
MENT FEE UNDER THIS ARTICLE, AND OF ALL AMOUNTS PAID, CHARGED OR DUE
THEREON, IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE;
(B) TRUE AND COMPLETE COPIES, INCLUDING ELECTRONIC COPIES, OF ANY
RECORDS REQUIRED TO BE KEPT BY A STATE AGENCY THAT IS AUTHORIZED TO
PERMIT OR REGULATE A TNC; AND
(C) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE.
§ 1296. SECRECY OF RETURNS AND REPORTS. (A) EXCEPT IN ACCORDANCE WITH
PROPER JUDICIAL ORDER OR AS OTHERWISE PROVIDED BY LAW, IT SHALL BE
UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
MENT, ANY PERSON ENGAGED OR RETAINED BY THE DEPARTMENT ON AN INDEPENDENT
CONTRACT BASIS, OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF
THE CONTENTS OF A RETURN OR REPORT FILED WITH THE COMMISSIONER PURSUANT
TO THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS
SET FORTH OR DISCLOSED IN ANY SUCH RETURN OR REPORT. THE OFFICERS
CHARGED WITH THE CUSTODY OF SUCH RETURNS AND REPORTS SHALL NOT BE
REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE
S. 2009--C 121 A. 3009--C
COMMISSIONER IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS
CHAPTER OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF
A STATE ASSESSMENT FEE DUE UNDER THIS ARTICLE TO WHICH THE STATE OR THE
COMMISSIONER IS A PARTY OR A CLAIMANT, OR ON BEHALF OF ANY PARTY TO ANY
ACTION, PROCEEDING OR HEARING UNDER THE PROVISIONS OF THIS ARTICLE WHEN
THE RETURNS, REPORTS OR FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN
SUCH ACTION, PROCEEDING OR HEARING, IN ANY OF WHICH EVENTS THE COURT, OR
IN THE CASE OF A HEARING, THE DIVISION OF TAX APPEALS MAY REQUIRE THE
PRODUCTION OF, AND MAY ADMIT INTO EVIDENCE, SO MUCH OF SAID RETURNS,
REPORTS OR OF THE FACTS SHOWN THEREBY, AS ARE PERTINENT TO THE ACTION,
PROCEEDING OR HEARING AND NO MORE. THE COMMISSIONER OR THE DIVISION OF
TAX APPEALS MAY, NEVERTHELESS, PUBLISH A COPY OR A SUMMARY OF ANY DECI-
SION RENDERED AFTER A HEARING REQUIRED BY THIS ARTICLE. NOTHING IN THIS
SECTION SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY TO A PERSON WHO HAS
FILED A RETURN OR REPORT OR TO SUCH PERSON'S DULY AUTHORIZED REPRESEN-
TATIVE OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED IN CONNECTION
WITH SUCH PERSON'S STATE ASSESSMENT FEE. NOR SHALL ANYTHING IN THIS
SECTION BE CONSTRUED TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLAS-
SIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS
AND THE ITEMS THEREOF, OR THE INSPECTION BY THE ATTORNEY GENERAL OR
OTHER LEGAL REPRESENTATIVES OF THE STATE OF THE RETURN OR REPORT OF ANY
PERSON REQUIRED TO PAY THE STATE ASSESSMENT FEE WHO SHALL BRING ACTION
TO REVIEW THE STATE ASSESSMENT FEE BASED THEREON, OR AGAINST WHOM AN
ACTION OR PROCEEDING UNDER THIS CHAPTER HAS BEEN RECOMMENDED BY THE
COMMISSIONER OR THE ATTORNEY GENERAL OR HAS BEEN INSTITUTED, OR THE
INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE
COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPART-
MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY
STATE ASSESSMENT FEE PAID BY A PERSON REQUIRED TO PAY THE STATE ASSESS-
MENT FEE UNDER THIS ARTICLE. PROVIDED, FURTHER, NOTHING IN THIS SECTION
SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE
COMMISSIONER DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDEN-
TIFYING INFORMATION OF THOSE PERSONS REQUIRED TO PAY STATE ASSESSMENT
FEE UNDER THIS ARTICLE.
(B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR
ALL PERSONS LIABLE FOR ANY STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE,
TO MAKE PAYMENT TO BANKS, BANKING HOUSES OR TRUST COMPANIES DESIGNATED
BY THE COMMISSIONER AND TO FILE RETURNS WITH SUCH BANKS, BANKING HOUSES
OR TRUST COMPANIES AS AGENTS OF THE COMMISSIONER, IN LIEU OF PAYING ANY
SUCH STATE ASSESSMENT FEE DIRECTLY TO THE COMMISSIONER. HOWEVER, THE
COMMISSIONER SHALL DESIGNATE ONLY SUCH BANKS, BANKING HOUSES OR TRUST
COMPANIES AS ARE ALREADY DESIGNATED BY THE COMPTROLLER AS DEPOSITORIES
PURSUANT TO SECTION TWELVE HUNDRED EIGHTY-EIGHT OF THIS CHAPTER.
(C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE UNITED
STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF
EITHER SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE, OR
MAY FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE
AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH PERSON WITH INFORMATION
CONCERNING AN ITEM CONTAINED IN ANY SUCH RETURN, OR DISCLOSED BY ANY
INVESTIGATION OF LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION SHALL
BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS OF THE UNITED
STATES GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE COMMISSIONER OR
OFFICER OF THIS STATE CHARGED WITH THE ADMINISTRATION OF THE STATE
ASSESSMENT FEE IMPOSED BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS
S. 2009--C 122 A. 3009--C
TO BE USED FOR PURPOSES OF TAX ADMINISTRATION ONLY; AND PROVIDED FURTHER
THE COMMISSIONER MAY FURNISH TO THE COMMISSIONER OF INTERNAL REVENUE OR
SUCH COMMISSIONER'S AUTHORIZED REPRESENTATIVE SUCH RETURNS FILED UNDER
THIS ARTICLE AND OTHER TAX INFORMATION, AS SUCH COMMISSIONER MAY CONSID-
ER PROPER, FOR USE IN COURT ACTIONS OR PROCEEDINGS UNDER THE INTERNAL
REVENUE CODE, WHETHER CIVIL OR CRIMINAL, WHERE A WRITTEN REQUEST THERE-
FOR HAS BEEN MADE TO THE COMMISSIONER BY THE SECRETARY OF THE TREASURY
OF THE UNITED STATES OR SUCH SECRETARY'S DELEGATE, PROVIDED THE LAWS OF
THE UNITED STATES GRANT SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF
THE TREASURY OF THE UNITED STATES OR HIS OR HER DELEGATE. WHERE THE
COMMISSIONER HAS SO AUTHORIZED USE OF RETURNS AND OTHER INFORMATION IN
SUCH ACTIONS OR PROCEEDINGS, OFFICERS AND EMPLOYEES OF THE DEPARTMENT
MAY TESTIFY IN SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR
OTHER INFORMATION.
(D) RETURNS AND REPORTS FILED UNDER THIS ARTICLE SHALL BE PRESERVED
FOR THREE YEARS AND THEREAFTER UNTIL THE COMMISSIONER ORDERS THEM TO BE
DESTROYED.
(E) (1) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES
THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION SHALL BE DISMISSED
FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE FOR A PERIOD
OF FIVE YEARS THEREAFTER.
(2) CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
OF THIS CHAPTER.
§ 1297. PRACTICE AND PROCEDURE. THE PROVISIONS OF ARTICLE TWENTY-SEVEN
OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE ADMINISTRATION OF AND
PROCEDURE WITH RESPECT TO THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTI-
CLE IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE
LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO
THIS ARTICLE AND HAD EXPRESSLY REFERRED TO THE STATE ASSESSMENT FEE
UNDER THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY SUCH PROVISION IS
EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT RELEVANT
TO THIS ARTICLE.
§ 1298. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, FEES, INTEREST
AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTI-
CLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE PROVISIONS OF
SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
§ 19. The tax law is amended by adding a new section 1822 to read as
follows:
§ 1822. VIOLATION OF THE STATE ASSESSMENT FEE ON TRANSPORTATION
NETWORK COMPANY PREARRANGED TRIPS. ANY WILLFUL ACT OR OMISSION BY ANY
PERSON THAT CONSTITUTES A VIOLATION OF ANY PROVISION OF ARTICLE TWENTY-
NINE-B OF THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR.
§ 20. Section 1825 of the tax law, as amended by section 89 of part A
of chapter 59 of the laws of 2014, is amended to read as follows:
§ 1825. Violation of secrecy provisions of the tax law.--Any person
who violates the provisions of subdivision (b) of section twenty-one,
subdivision one of section two hundred two, subdivision eight of section
two hundred eleven, subdivision (a) of section three hundred fourteen,
subdivision one or two of section four hundred thirty-seven, section
four hundred eighty-seven, subdivision one or two of section five
hundred fourteen, subsection (e) of section six hundred ninety-seven,
subsection (a) of section nine hundred ninety-four, subdivision (a) of
section eleven hundred forty-six, section twelve hundred eighty-seven,
SECTION TWELVE HUNDRED NINETY-SIX, subdivision (a) of section fourteen
hundred eighteen, subdivision (a) of section fifteen hundred eighteen,
subdivision (a) of section fifteen hundred fifty-five of this chapter,
S. 2009--C 123 A. 3009--C
and subdivision (e) of section 11-1797 of the administrative code of the
city of New York shall be guilty of a misdemeanor.
§ 21. 1. For purposes of this section, transportation network company
shall mean a transportation network company as defined by article
forty-four-B of the vehicle and traffic law.
2. There is hereby established the New York State Transportation
Network Company Accessibility Task Force to analyze and advise on how to
maximize effective and integrated transportation services for persons
with disabilities in the transportation network company market. The New
York State Transportation Network Company Accessibility Task Force shall
consist of eleven members. Two members of the New York State Transporta-
tion Network Company Accessibility Task Force shall be appointed by the
speaker of the assembly. Two members of the New York State Transporta-
tion Network Company Accessibility Task Force shall be appointed by the
temporary president of the senate. Seven members of the New York State
Transportation Network Company Accessibility Task Force shall be
appointed by the governor and shall include, but not be limited to, two
representatives of groups who serve persons with disabilities and two
representatives from a transportation network company. The governor
shall designate two chairpersons to the New York State Transportation
Network Company Accessibility Task Force.
3. The New York State Transportation Network Company Accessibility
Task Force shall study the demand responsive transportation marketplace
and shall, in addition to any responsibilities assigned by the governor:
(a) conduct a needs assessment concerning the demand for demand respon-
sive accessible transportation; (b) conduct a resource assessment
concerning the availability of accessible demand responsive transporta-
tion services for persons with disabilities; (c) identify opportunities
for, and barriers to, increasing accessible demand responsive transpor-
tation service for persons with mobility disabilities; (d) propose stra-
tegies for increasing accessible demand responsive transportation
service for persons with disabilities; and (e) any other issues deter-
mined important to the task force in establishing a recommendation
pursuant to subdivision five of this section.
4. The New York State Transportation Network Company Accessibility
Task Force shall hold public hearings and provide an opportunity for
public comment on the activities described in subdivision two of this
section.
5. The New York State Transportation Network Company Accessibility
Task Force shall complete a report addressing the activities described
in subdivision two of this section and make a recommendation, supported
by such activities, recommending the amount of accessibility necessary
for adequate transportation for disabled passengers in order to utilize
such services and present such findings at a public meeting where its
members shall accept such report, pursuant to majority vote of the task
force, and present such report to the governor, the speaker of the
assembly and the temporary president of the senate, and make such report
publicly available for review on or before January first, two thousand
nineteen.
6. Upon making the report described in subdivision five of this
section, the New York State Transportation Network Company Accessibility
Task Force shall be deemed dissolved.
§ 22. 1. For purposes of this section, transportation network company
("TNC") and TNC driver shall have the same meaning as such terms are
defined by article 44-B of the vehicle and traffic law. Region shall
S. 2009--C 124 A. 3009--C
mean one or more of the following named areas comprised of the counties
indicated:
(a) Western New York: Allegany, Cattaraugus, Chautauqua, Erie, and
Niagara counties;
(b) Finger Lakes: Genesee, Livingston, Monroe, Ontario, Orleans, Sene-
ca, Wayne, Wyoming, and Yates counties;
(c) Southern Tier: Broome, Chemung, Chenango, Delaware, Schuyler,
Steuben, Tioga, and Tompkins counties;
(d) Central New York: Cayuga, Cortland, Madison, Onondaga, and Oswego
counties;
(e) Mohawk Valley: Fulton, Herkimer, Montgomery, Oneida, Otsego, and
Schoharie counties;
(f) North Country: Clinton, Essex, Franklin, Hamilton, Jefferson,
Lewis, and St. Lawrence counties;
(g) Capital Region: Albany, Columbia, Greene, Rensselaer, Saratoga,
Schenectady, Warren, and Washington counties;
(h) Mid-Hudson: Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster,
and Westchester counties; and
(i) Long Island: Nassau, and Suffolk counties.
2. (a) There is hereby established the New York State Transportation
Network Company Review Board. The board shall consist of 16 members who
shall be selected as follows:
(i) one shall be the commissioner of the department of motor vehicles
or his or her designee who shall serve as the chairperson;
(ii) one shall be the superintendent of the department of financial
services or his or her designee;
(iii) one shall be the commissioner of the department of labor or his
or her designee;
(iv) one shall be the superintendent of the New York state police or
his or her designee;
(v) one shall be the commissioner of the New York state department of
economic development or his or her designee;
(vi) eleven shall be appointed by the governor; provided, however,
that one shall be a representative of the New York black car operators'
injury compensation fund inc., one shall be a representative of a trans-
portation network company, and all regions as provided for in subdivi-
sion 1 of this section shall be represented;
(vii) three of such representatives of regions shall be appointed upon
recommendation of the temporary president of the senate; and
(viii) three of such representatives of regions shall be appointed
upon recommendation of the speaker of the assembly.
(b) The regional members appointed shall represent cities with a popu-
lation over one hundred thousand and a county contained within a region
as provided for in subdivision 1 of this section; provided, however,
that no two members shall represent the same region. Such cities shall
not include a city with a population of one million or more.
3. The New York state transportation network company review board
shall review issues related to the general operation of TNCs within the
state. Such issues shall include, but not be limited to: (a) TNC licens-
ing; (b) TNC Driver permitting; (c) geographic operation; (d) consumer
protection; (e) economic impact; (f) anti-discrimination; (g) workers'
compensation; (h) local government related impact; (i) public safety;
(j) surge pricing; and (k) any other issue deemed appropriate and proper
by the board.
4. The New York state transportation network company review board
shall hold no more than four public hearings and provide an opportunity
S. 2009--C 125 A. 3009--C
for the public, local government officials, and other interested parties
to comment on areas pertinent to the activities of the board. The New
York state transportation network company review board shall complete
and submit a comprehensive report addressing the activities described in
subdivision three of this section on or before January 1, 2019. Upon
formal adoption by the review board, such report shall be presented to
the governor, the speaker of the assembly and the temporary president of
the senate. Upon the presentation of such report, the New York state
transportation network review board shall be deemed dissolved.
§ 23. Severability clause. If any provision of this act or the appli-
cation thereof is held invalid, such invalidity shall not affect other
provisions or applications of this act which can be given effect without
the invalid provision or application, and to this end the provisions of
this act are declared to be severable.
§ 24. Each agency that is designated to perform any function or duty
pursuant to this act shall be authorized to establish rules and regu-
lations for the administration and execution of such authority in a
manner consistent with the provisions of this act and for the protection
of the public, health, safety and welfare of persons within this state.
§ 25. The New York black car operators injury compensation fund, inc.
shall complete a study on the impact of the inclusion of TNC drivers on
such fund no later than ten months from the effective date of this act.
§ 26. This act shall take effect on the ninetieth day after it shall
have become a law; provided that the amendments to subdivision 1 of
section 171-a of the tax law made by section fifteen of this act shall
not affect the expiration of such subdivision and shall expire there-
with, when upon such date the provisions of section sixteen of this act
shall take effect; provided however that coverage provided pursuant to
paragraph (b) of subdivision 1 of section 160-cc of the executive law as
added by section eleven of this act shall be deemed repealed one year
from the effective date of this act; provided, further, that any TNC
driver permitted to operate prior to the repeal of such paragraph shall
not see a reduction in coverage.
PART BBB
Section 1. County-wide shared services property tax savings plan. 1.
Notwithstanding the provisions of the municipal home rule law, the
alternative county government law, or any other general, special or
local law to the contrary, the chief executive officer of each county
outside of a city of one million or more shall prepare a property tax
savings plan for shared, coordinated and efficient services among the
county, cities, towns and villages within such county.
Such plan may include school districts, boards of cooperative educa-
tional services, and special improvement districts within such county if
the school district, board of cooperative educational services, or
special improvement district has a representative on the shared services
panel.
2. a. There shall be a shared services panel in each county consisting
of the chief executive officer of the county, who shall serve as chair,
and one representative from each city, town, and village in the county.
b. The chief executive officer of each town, city and village shall be
the representative to the shared services panel and shall be the mayor,
if a city or a village, or shall be the supervisor, if a town.
c. The chief executive officer of the county may invite any school
district, any board of cooperative educational services, and/or any
S. 2009--C 126 A. 3009--C
special improvement district in the county to participate in the coun-
ty-wide shared services property tax savings plan. Upon such invitation,
the governing body of such school district, board of cooperative educa-
tional services, and/or a special improvement district may accept such
invitation by selecting a representative of such governing body, by
majority vote, to serve as a member of the shared services panel.
d. In the development of the county-wide shared services property tax
savings plan, the chief executive officer of the county shall regularly
consult with, and take recommendations from, all the representatives of
the shared services panel, as well as with and from the representative
of each collective bargaining unit of the county and the cities, towns,
and villages as well as from the representative of each collective
bargaining unit of any participating school district, board of cooper-
ative educational services and special improvement district.
3. Public input, as well as input from civic, business, labor, and
community leaders, shall be accepted by the chief executive officer, the
county legislative body and the shared services panel on the proposed
county-wide shared services property tax savings plan. To facilitate
such input, three or more public hearings shall be arranged to be held
within the county. All such public hearings shall be conducted prior to
the submission of the county-wide shared services property tax savings
plan to a vote of the shared services panel, and public notice of all
such hearings shall be provided at least one week prior in the manner
prescribed in subdivision 1 of section 104 of the public officers law.
Civic, business, labor, and community leaders, as well as members of the
public, shall be permitted to provided public testimony at any such
hearings.
4. a. Such property tax savings plan shall contain new recurring prop-
erty tax savings through actions such as, but not limited to, the elimi-
nation of duplicative services; shared services, such as joint purchas-
ing, shared highway equipment, shared storage facilities, shared plowing
services, and energy and insurance purchasing cooperatives; reduction in
back office administrative overhead; and better coordination of
services.
b. The chief executive officer of the county shall submit such proper-
ty tax savings plan to the county legislative body no later than August
first, two thousand seventeen. Such property tax savings plan shall be
accompanied by a certification as to the accuracy of the savings
contained therein.
c. The county legislative body shall review and consider the county-
wide shared services plan submitted to it in accordance with paragraph b
of this subdivision. A majority of the members of such body may issue an
advisory report making recommendations as deemed necessary. The chief
executive officer may make modifications to the plan based on such
recommendations. If modifications are made by the chief executive offi-
cer, he or she shall produce an updated certification as to the accuracy
of the savings contained therein.
d. The county shared services panel shall consider the county-wide
shared services tax savings plan. A majority vote of the panel shall be
required for approval of such plan, provided however that each member of
the panel may, prior to the panel-wide vote, cause to be removed from
the plan any proposed action that affects the unit of local government
represented by the respective member. Written notice of such removal
shall be provided to the chief executive officer of the county prior to
the panel-wide vote on the plan.
S. 2009--C 127 A. 3009--C
e. If a county does not achieve an approved county-wide shared
services property tax savings plan by the deadlines required for 2017,
then it shall release to the public a report on the proposal, the vote
of the panel which vote shall require each panel member, in writing to
state the reason for such vote. The county shall then follow the same
procedures defined in this section to attempt to produce an approved
county-wide shared services property tax savings plan by the deadlines
required for 2018.
5. a. Upon approval of the shared services panel, the chief executive
officer of the county shall finalize the county-wide shared services
property tax savings plan and shall transmit to the director of the
division of the budget a certification of the plan and its property tax
savings plan. The chief executive officer of the county shall finalize
any such approved county-wide shared services property tax savings plan
no later than September fifteenth, two thousand seventeen, and any such
plan shall be publicly disseminated to residents of the county in a
concise, clear, and coherent manner using words with common and everyday
meanings.
b. The beginning of the plan publicly disseminated shall contain the
information and shall be in the form set forth hereinbelow:
County-wide Shared Services Property Tax Savings Plan Summary
Row 1 Participating Cities (insert number of cities in the
county as well as the number and list
of such cities with a representative
on the panel who voted on such plan)
Row 2 Participating Towns (insert number of towns in the county
as well as the number and list of
such towns with a representative
on the panel who voted on such plan)
Row 3 Participating Villages (insert number of villages in the
county as well as the number and list of
such villages with a representative
on the panel who voted on such plan)
Row 4 Participating school (insert number of school districts,
districts, BOCES, and BOCES, and special improvement
special improvement districts in the county as
districts well as the number and list of
such school districts, BOCES, and
special improvement districts
with a representative on the
panel who voted on such plan)
Row 5 2017 Local (insert sum total of property
Government property taxes levied in the year
taxes 2017 by the county, cities, towns,
villages, school districts,
BOCES, and special improvement
districts within such county)
Row 6 2017 Participating (insert sum total of property
Entities property taxes levied in the year 2017 by the
taxes county, any cities, towns, villages,
school districts, BOCES, and
special improvements districts
identified as participating in
the panel in rows one through
S. 2009--C 128 A. 3009--C
four above)
Row 7 Total Anticipated (insert sum total of net
Savings savings in such plan certified
as being anticipated in calendar
year 2018, calendar year 2019,
and annually thereafter)
Row 8 Anticipated Savings (insert sum total of net
as a Percentage of savings in such plan
Participating certified as being anticipated
Entities property in calendar year 2018 as a
taxes percentage of the sum total in
Row 6, calendar year 2019
as a percentage of the sum total
in Row 6, and annually
thereafter as a percentage of the
sum total in Row 6)
Row 9 Anticipated (insert the amount of the
Savings to the savings that the average
Average Taxpayer taxpayer in the county
will realize in calendar year
2018, calendar year 2019,
and annually thereafter if the
net savings certified
in the plan are realized)
Row 10 Anticipated (insert the percentage amount a
Costs/Savings to homeowner can expect his or her
the Average property taxes to increase or
Homeowner decrease in calendar year 2018,
calendar year 2019, and
annually thereafter if
the net savings certified in the
plan are realized)
Row 11 Anticipated (insert the percentage amount a
Costs/Savings to business can expect its property
the Average taxes to increase or decrease in
Business calendar year 2018, calendar year
2019, and annually thereafter if
the net savings certified in the
plan are realized)
c. The chief executive officer of the county shall conduct a public
presentation of the plan no later than October 15, 2017. Public notice
of such public presentation shall be provided at least one week prior in
the manner prescribed in subdivision 1 of section 104 of the public
officers law.
d. Any such finalized property tax savings plan which would have the
effect of transferring or abolishing a function or duty of the county or
of the cities, towns, villages, districts or other units of government
wholly contained in the county, shall not become operative unless and
until it is approved in accordance with subdivision (h) of section one
of article nine of the state constitution.
6. a. If the county-wide property tax savings plan shall fail to
obtain the approval of the shared services panel, voting on the plan in
accordance with this section, the chief executive officer of the county
shall resubmit such plan to the shared services panel, in accordance
with the procedures established for first consideration of the plan
S. 2009--C 129 A. 3009--C
outlined by this section, no later than August first, two thousand eigh-
teen.
b. Any proposed county-wide shared services property tax savings plan
prepared for reconsideration by the shared services panel, shall follow
the same procedures prescribed in this section for original consider-
ation in two thousand seventeen. No county-wide shared services property
tax savings plan shall be deemed approved, or may be finalized, without
approval of such plan by the shared services panel.
c. If the shared services panel approves the proposed county-wide
shared services property tax savings plan for 2018, the chief executive
officer of the county shall finalize any such approved county-wide
shared services property tax savings plan no later than September
fifteenth, two thousand eighteen, and any such plan shall be publicly
disseminated to residents of the county in a concise, clear, and coher-
ent manner using words with common and everyday meanings.
d. The beginning of the plan publicly disseminated shall contain the
information and shall be in the form set forth hereinbelow:
County-wide Shared Services Property Tax Savings Plan Summary
Row 1 Participating Cities (insert number of cities in the
county as well as the number
and list of such cities with
a representative on the
panel who voted on such plan)
Row 2 Participating Towns (insert number of towns in the
county as well as the number
and list of such towns with
a representative on the
panel who voted on such plan)
Row 3 Participating Villages (insert number of villages in the
county as well as the number
and list of such villages with
a representative on the
panel who voted on such plan)
Row 4 Participating school (insert number of school
districts, BOCES, and districts, BOCES, and special
special improvement improvement
districts districts in the county
as well as the number
and list of such school districts,
BOCES, and special improvement
districts with a representative
one the panel who voted on
such plan)
Row 5 2018 Local Government (insert sum total of property taxes
property levied in the year 2018 by the
taxes county, cities, towns, villages,
school districts, BOCES, and
special improvement districts
within such county)
Row 6 2018 Participating (insert sum total of property taxes
Entities property levied in the year 2018 by the
taxes county, any cities, towns, villages,
school districts, BOCES,
and special improvement districts
identified as participating
S. 2009--C 130 A. 3009--C
in the panel in
rows one through four above)
Row 7 Total Anticipated (insert sum total of net savings in
Savings such plan certified as being
anticipated in calendar year 2019,
calendar year 2020, and annually
thereafter)
Row 8 Anticipated Savings (insert sum total of net savings in
as a Percentage such plan certified as being
of Participating anticipated in calendar year 2019
Entities property as a percentage of the
taxes sum total in Row 6, calendar
year 2020 as a percentage of the
sum total in Row 6, and annually
thereafter as a percentage
of the sum total in Row 6)
Row 9 Anticipated Savings (insert the amount of
to the Average the savings that the average
Taxpayer taxpayer in the county will
realize in calendar year 2019,
calendar year 2020, and
annually thereafter if the net
savings certified in the plan
are realized)
Row 10 Anticipated (insert the percentage amount a
Costs/Savings to homeowner can expect his or her
the Average property taxes to increase or
Homeowner decrease in calendar year
2019, calendar year
2020, and annually thereafter if
the net savings certified in the
plan are realized)
Row 11 Anticipated (insert the percentage amount a
Costs/Savings to business can expect its property
the Average taxes to increase or decrease in
Business calendar year 2019, calendar year
2020, and annually thereafter if
the net savings certified in the
plan are realized)
e. The chief executive officer of the county shall conduct a public
presentation of the plan no later than October 15, 2018. Public notice
of such public presentation shall be provided at least one week prior in
the manner prescribed in subdivision 1 of section 104 of the public
officers law.
f. Any such finalized property tax savings plan which would have the
effect of transferring or abolishing a function or duty of the county or
of the cities, towns, villages, districts or other units of government
wholly contained in the county, shall not become operative unless and
until it is approved in accordance with subdivision (h) of section one
of article nine of the state constitution.
7. For the purposes of this part "chief executive officer" means the
county executive, county manager or other chief executive of the county,
or where none, the chair of the county legislative body.
8. Each county plan may be eligible for one-time funding to match
savings in such plan, subject to available appropriation. The secretary
of state shall develop an application, approved by the director of the
S. 2009--C 131 A. 3009--C
budget, with any necessary requirements to receive such matching fund-
ing. Savings that are actually and demonstrably realized by the partic-
ipating local governments are eligible for matching funding. For actions
that are a part of an approved plan finalized in 2017, savings from new
actions implemented on or after January 1, 2018 are eligible for match-
ing funding. For actions that are a part of an approved plan finalized
in 2017, savings achieved from January 1, 2018 through December 31, 2018
are eligible for matching funding. For actions that are a part of an
approved plan finalized in 2018, savings from new actions implemented on
or after January 1, 2019 are eligible for matching funding. For actions
that are a part of an approved plan finalized in 2018, savings achieved
from January 1, 2019 through December 31, 2019 are eligible for matching
funding. Only net savings between local governments for each action
would be eligible for matching funding. Savings from internal efficien-
cies or any other actions taken by a local government without the
participation of another local government are not eligible for matching
funding. Each county and all of the local governments within the county
that are part of any action to be implemented as part of the approved
plan must collectively apply for the matching funding and agree on the
distribution and use of any matching funding in order to qualify for
matching funding.
9. Where the implementation of any component of such finalized proper-
ty tax savings plan is, by any other general or special law, subject to
a public hearing, a mandatory or permissive referendum, consents of
governmental agencies, or other requirements applicable to the making of
contracts, then implementation of such component shall be conditioned on
compliance with such requirements.
10. If any clause, sentence, paragraph, subdivision, section or part
of this act shall be adjudged by any court or competent jurisdiction to
be invalid, such judgment shall not affect, impair, or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, subdivision, section or part thereof directly
involved in the controversy in which such judgment shall have been
rendered. It is hereby declared to be the intent of the legislature that
this act would have been enacted if such invalid provisions had not been
included herein.
§ 2. School district and board of cooperative educational services
participation in county-wide shared services property tax savings plans.
Notwithstanding any provision of the education law, or any other
provision of law, rule or regulation, to the contrary, any school
district or board of cooperative educational services may participate in
a county-wide shared services property tax savings plan established
pursuant to the provisions of this chapter, and may further participate
in any of the activities listed in paragraph a of subdivision 4 of
section one of this act with any participating county, town, city,
village, special improvement district, school district and/or board of
cooperative educational services participating in such county-wide
shared services property tax saving plan.
§ 3. This act shall take effect immediately.
PART CCC
Section 1. The opening paragraph of subdivision (h) of section 121 of
chapter 261 of the laws of 1988, amending the state finance law and
other laws relating to the New York state infrastructure trust fund, as
S. 2009--C 132 A. 3009--C
amended by section 2 of part Q of chapter 58 of the laws of 2015, is
amended to read as follows:
The provisions of [section] SECTIONS sixty-two through sixty-six of
this act shall expire APRIL FIFTEENTH, TWO THOUSAND EIGHTEEN, PROVIDED,
HOWEVER, THAT IF THE STATEWIDE DISPARITY STUDY REGARDING THE PARTIC-
IPATION OF MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES IN STATE
CONTRACTS REQUIRED PURSUANT TO SUBDIVISION ONE OF SECTION THREE HUNDRED
TWELVE-A OF THE EXECUTIVE LAW IS COMPLETED AND DELIVERED TO THE GOVERNOR
AND THE LEGISLATURE ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND SEVENTEEN,
THEN THE PROVISIONS OF SECTIONS SIXTY-TWO THROUGH SIXTY-SIX OF THIS ACT
SHALL EXPIRE on December thirty-first, two thousand [seventeen]
EIGHTEEN, except that:
§ 2. This act shall take effect immediately.
PART DDD
Section 1. Section 606 of the tax law is amended by adding a new
subsection (n-2) to read as follows:
(N-2) CREDIT FOR FARM DONATIONS TO FOOD PANTRIES. (1) GENERAL. IN THE
CASE OF A TAXPAYER WHO IS AN ELIGIBLE FARMER, THERE SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST,
TWO THOUSAND EIGHTEEN. THE AMOUNT OF THE CREDIT SHALL BE TWENTY-FIVE
PERCENT OF THE FAIR MARKET VALUE OF THE TAXPAYER'S QUALIFIED DONATIONS
MADE TO ANY ELIGIBLE FOOD PANTRY DURING THE TAXABLE YEAR, NOT TO EXCEED
FIVE THOUSAND DOLLARS PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER IN
A PARTNERSHIP OR A SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP
IMPOSED BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL,
SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL PARTNERS OR SHAREHOLDERS OF
SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED FIVE THOUSAND DOLLARS.
(2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
BLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARMING FOR
THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS INCOME.
EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT OF FEDERAL GROSS INCOME
FROM ALL SOURCES FOR THE TAXABLE YEAR REDUCED BY THE SUM (NOT TO EXCEED
THIRTY THOUSAND DOLLARS) OF THOSE ITEMS INCLUDED IN FEDERAL GROSS INCOME
THAT CONSIST OF: (I) EARNED INCOME, (II) PENSION PAYMENTS, INCLUDING
SOCIAL SECURITY PAYMENTS, (III) INTEREST, AND (IV) DIVIDENDS. FOR
PURPOSES OF THIS PARAGRAPH, THE TERM "EARNED INCOME" SHALL MEAN WAGES,
SALARIES, TIPS AND OTHER EMPLOYEE COMPENSATION, AND THOSE ITEMS OF GROSS
INCOME THAT ARE INCLUDIBLE IN THE COMPUTATION OF NET EARNINGS FROM SELF-
EMPLOYMENT. FOR THE PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM THE
STATE'S FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF
AGRICULTURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM
FARMING FOR OTHERWISE ELIGIBLE FARMERS.
(3) QUALIFIED DONATION. FOR PURPOSES OF THIS SUBSECTION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF ANY APPARENTLY WHOLESOME FOOD,
AS DEFINED IN SECTION 170(E)(3)(C)(VI) OF THE INTERNAL REVENUE CODE,
GROWN OR PRODUCED WITHIN THIS STATE, BY AN ELIGIBLE FARMER TO AN ELIGI-
BLE FOOD PANTRY.
(4) ELIGIBLE FOOD PANTRY. FOR PURPOSES OF THIS SUBSECTION, THE TERM
"ELIGIBLE FOOD PANTRY" MEANS ANY FOOD PANTRY, FOOD BANK, OR OTHER EMER-
GENCY FOOD PROGRAM OPERATING WITHIN THIS STATE THAT HAS QUALIFIED FOR
TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE.
(5) DETERMINATION OF FAIR MARKET VALUE. FOR PURPOSES OF THIS
SUBSECTION, TO DETERMINE THE FAIR MARKET VALUE OF APPARENTLY WHOLESOME
S. 2009--C 133 A. 3009--C
FOOD DONATED TO AN ELIGIBLE FOOD PANTRY, THE STANDARDS SET FORTH UNDER
SECTION 170(E)(3)(C)(V) OF THE INTERNAL REVENUE CODE SHALL APPLY.
(6) RECORD OF DONATION. TO CLAIM A CREDIT UNDER THIS SUBSECTION, A
TAXPAYER MUST GET AND KEEP A RECEIPT FROM THE ELIGIBLE FOOD PANTRY SHOW-
ING: (I) THE NAME OF THE ELIGIBLE FOOD PANTRY; (II) THE DATE AND
LOCATION OF THE QUALIFIED DONATION; AND (III) A REASONABLY DETAILED
DESCRIPTION OF THE QUALIFIED DONATION. A LETTER OR OTHER WRITTEN COMMU-
NICATION FROM THE ELIGIBLE FOOD PANTRY ACKNOWLEDGING RECEIPT OF THE
CONTRIBUTION AND CONTAINING THE INFORMATION IN SUBPARAGRAPHS (I), (II),
AND (III) OF THIS PARAGRAPH WILL SERVE AS A RECEIPT.
(7) APPLICATION OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT UNDER
THIS SUBSECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE. HOWEVER, IF THE
AMOUNT OF CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR
EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS WILL 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, THE PROVISIONS OF SUBSECTION (C) OF SECTION SIX HUNDRED EIGHT-
Y-EIGHT OF THIS ARTICLE NOTWITHSTANDING, NO INTEREST WILL BE PAID THERE-
ON.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliii) to read as
follows:
(XLIII) FARM DONATIONS TO FOOD AMOUNT OF CREDIT UNDER
PANTRIES CREDIT UNDER SUBDIVISION FIFTY-TWO OF
SUBSECTION (N-2) SECTION TWO HUNDRED TEN-B
§ 3. Subsection (c) of section 615 of the tax law is amended by adding
a new paragraph 9 to read as follows:
(9) WITH RESPECT TO A TAXPAYER WHO HAS CLAIMED THE FARM DONATIONS TO
FOOD PANTRIES CREDIT PURSUANT TO SUBSECTION (N-2) OF SECTION SIX HUNDRED
SIX OF THIS ARTICLE, THE TAXPAYER'S NEW YORK ITEMIZED DEDUCTIONS SHALL
BE REDUCED BY ANY CHARITABLE CONTRIBUTION DEDUCTION ALLOWED UNDER
SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE WITH RESPECT TO
SUCH DONATIONS.
§ 4. Section 210-B of the tax law is amended by adding a new subdivi-
sion 52 to read as follows:
52. CREDIT FOR FARM DONATIONS TO FOOD PANTRIES. (A) GENERAL. IN THE
CASE OF A TAXPAYER THAT IS AN ELIGIBLE FARMER, THERE SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED AGAINST THE TAX IMPOSED
BY THIS ARTICLE FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY FIRST,
TWO THOUSAND EIGHTEEN. THE AMOUNT OF THE CREDIT SHALL BE TWENTY-FIVE
PERCENT OF THE FAIR MARKET VALUE OF THE TAXPAYER'S QUALIFIED DONATIONS
MADE TO ANY ELIGIBLE FOOD PANTRY DURING THE TAXABLE YEAR, NOT TO EXCEED
FIVE THOUSAND DOLLARS PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER IN
A PARTNERSHIP, THEN THE CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE
APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL
PARTNERS OF SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED FIVE THOU-
SAND DOLLARS.
(B) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBDIVISION, THE TERM
"ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARM-
ING FOR THE TAXABLE YEAR IS AT LEAST TWO-THIRDS OF EXCESS FEDERAL GROSS
INCOME. EXCESS FEDERAL GROSS INCOME MEANS THE AMOUNT OF FEDERAL GROSS
INCOME FROM ALL SOURCES FOR THE TAXABLE YEAR IN EXCESS OF THIRTY THOU-
SAND DOLLARS. FOR PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM THE STATE'S
FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF AGRICUL-
S. 2009--C 134 A. 3009--C
TURE AND MARKETS, SHALL BE INCLUDED AS FEDERAL GROSS INCOME FROM FARMING
FOR OTHERWISE ELIGIBLE FARMERS.
(C) QUALIFIED DONATION. FOR PURPOSES OF THIS SUBDIVISION, THE TERM
"QUALIFIED DONATION" MEANS A DONATION OF APPARENTLY WHOLESOME FOOD, AS
DEFINED IN SECTION 170(E)(3)(C)(VI) OF THE INTERNAL REVENUE CODE, GROWN
OR PRODUCED WITHIN THIS STATE, BY AN ELIGIBLE FARMER TO AN ELIGIBLE FOOD
PANTRY.
(D) ELIGIBLE FOOD PANTRY. FOR PURPOSES OF THIS SUBDIVISION, THE TERM
"ELIGIBLE FOOD PANTRY" MEANS ANY FOOD PANTRY, FOOD BANK, OR OTHER EMER-
GENCY FOOD PROGRAM OPERATING WITHIN THIS STATE THAT HAS QUALIFIED FOR
TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE.
(E) DETERMINATION OF FAIR MARKET VALUE. FOR PURPOSES OF THIS SUBDIVI-
SION, TO DETERMINE THE FAIR MARKET VALUE OF APPARENTLY WHOLESOME FOOD
DONATED TO AN ELIGIBLE FOOD PANTRY, THE STANDARDS SET FORTH UNDER
SECTION 170(E)(3)(C)(V) OF THE INTERNAL REVENUE CODE SHALL APPLY.
(F) RECORD OF DONATION. TO CLAIM A CREDIT UNDER THIS SUBDIVISION, A
TAXPAYER MUST GET AND KEEP A RECEIPT FROM THE ELIGIBLE FOOD PANTRY SHOW-
ING: (I) THE NAME OF THE ELIGIBLE FOOD PANTRY; (II) THE DATE AND
LOCATION OF THE QUALIFIED DONATION; AND (III) A REASONABLY DETAILED
DESCRIPTION OF THE QUALIFIED DONATION. A LETTER OR OTHER WRITTEN COMMU-
NICATION FROM THE ELIGIBLE FOOD PANTRY ACKNOWLEDGING RECEIPT OF THE
CONTRIBUTION AND CONTAINING THE INFORMATION IN SUBPARAGRAPHS (I), (II),
AND (III) OF THIS PARAGRAPH WILL SERVE AS A RECEIPT.
(G) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR WILL 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. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE FIXED
DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
§ 5. Paragraph (b) of subdivision 9 of section 208 of the tax law is
amended by adding a new subparagraph 22 to read as follows:
(22) THE AMOUNT OF ANY DEDUCTION FOR CHARITABLE CONTRIBUTIONS ALLOWED
UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE TO THE
EXTENT SUCH CONTRIBUTIONS ARE USED AS THE BASIS OF THE CALCULATION OF
THE FARM DONATIONS TO FOOD PANTRIES CREDIT UNDER SUBDIVISION FIFTY-TWO
OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE.
§ 6. This act shall take effect immediately.
PART EEE
Section 1. Subdivisions 1, 2, 3 and 4 of section 186-f of the tax law,
as added by section 3 of part B of chapter 56 of the laws of 2009, are
amended to read as follows:
1. Definitions. As used in this section, where not otherwise specif-
ically defined and unless a different meaning is clearly required:
(a) "Place of primary use" has the same meaning as that term is
defined in paragraph twenty-six of subdivision (b) of section eleven
hundred one of this chapter.
(b) "Wireless communications customer" means mobile telecommunications
customer as defined in subparagraph (i) of paragraph twenty-seven of
S. 2009--C 135 A. 3009--C
subdivision (b) of section eleven hundred one of this chapter, who
contracts for or is the end user of wireless communications service.
(c) "Wireless communications device" means any equipment used to
access a wireless communications service.
(d) "Wireless communications service" means all commercial mobile
services, as that term is defined in section 332(d) of title 47 of the
United States Code, as amended from time to time, including, but not
limited to, all broadband personal communications services, wireless
radio telephone services, geographic area specialized and enhanced
specialized mobile radio services, and incumbent-wide area specialized
mobile radio licensees, which offer real time, two-way voice or data
service that is interconnected with the public switched telephone
network or otherwise provides access to emergency communications
services.
(e) "Wireless communications service supplier" means a home service
provider as defined in subparagraph (ii) of paragraph twenty-seven of
subdivision (b) of section eleven hundred one of this chapter, provided
that the home service provider provides wireless communications service
and has one or more wireless communications customers in New York state.
(F) "PREPAID WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
RETAIL SALE OF PREPAID WIRELESS COMMUNICATIONS SERVICE.
(G) "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.
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.
(2) A SURCHARGE IS IMPOSED ON THE RETAIL SALE OF EACH PREPAID WIRELESS
COMMUNICATIONS SERVICE, WHETHER OR NOT ANY TANGIBLE PERSONAL PROPERTY IS
SOLD THEREWITH, AT THE RATE OF NINETY CENTS PER RETAIL SALE. A SALE OF A
PREPAID WIRELESS COMMUNICATIONS SERVICE 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.
(b) [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 communi-
cations 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]
SURCHARGES must be reported and paid to the commissioner on a quarterly
basis on or before the [fifteenth] TWENTIETH day of the month following
S. 2009--C 136 A. 3009--C
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.
(c) The [surcharge] SURCHARGES must be added as a separate line item
to bills furnished by a wireless communications service supplier to its
customers, OR 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 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 AND PREPAID WIRELESS
COMMUNICATIONS SELLER is entitled to retain, as an administrative fee,
an amount equal to [two] THREE percent of fifty-eight and three-tenths
percent of the total collections of the [surcharge] SURCHARGES imposed
by this section, provided that the supplier OR SELLER files any required
return and remits the surcharge due to the commissioner on or before its
due date.
3. [Applicability of article twenty-seven. For purposes of article
twenty-seven of this chapter as applied to this section by section two
hundred seven-b of this article, the term "taxpayer" in article twenty-
seven refers to a wireless communications service supplier subject to
this section or a wireless communications customer subject to this
section, as the case may be, and the term "tax" in article twenty-seven
refers to the surcharge imposed by this section.
4. Exemptions. The state of New York and any of its agencies, instru-
mentalities and political subdivisions are] EXEMPTION. LIFELINE CONSUM-
ERS SHALL BE exempt from the [surcharge] SURCHARGES imposed by this
section.
4. APPLICABLE PROVISIONS. (A) EXCEPT AS OTHERWISE PROVIDED IN THIS
SECTION, THE SURCHARGES IMPOSED UNDER THIS SECTION SHALL BE ADMINISTERED
AND COLLECTED BY THE COMMISSIONER IN A LIKE MANNER AS THE TAXES IMPOSED
BY ARTICLE TWENTY-EIGHT OF THIS CHAPTER. ALL THE PROVISIONS OF ARTICLE
TWENTY-EIGHT OF THIS CHAPTER, INCLUDING THE PROVISIONS RELATING TO DEFI-
NITIONS, EXEMPTIONS, RETURNS, PERSONAL LIABILITY FOR THE TAX, COLLECTION
OF TAX FROM THE CUSTOMER, PAYMENT OF TAX, AND THE ADMINISTRATION OF THE
TAXES IMPOSED BY SUCH ARTICLE, SHALL APPLY TO THE SURCHARGES IMPOSED
UNDER THE AUTHORITY OF THIS SECTION SO FAR AS THOSE PROVISIONS CAN BE
MADE APPLICABLE TO THE SURCHARGES IMPOSED BY THIS SECTION, WITH SUCH
MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT THE LANGUAGE OF
THOSE PROVISIONS TO THE SURCHARGES IMPOSED BY THIS SECTION. THOSE
PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE
OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS SECTION, EXCEPT
TO THE EXTENT THAT ANY OF THOSE PROVISIONS IS EITHER INCONSISTENT WITH A
PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THE SURCHARGE IMPOSED BY
THIS SECTION. FOR PURPOSES OF THIS SECTION, ANY REFERENCE IN THIS CHAP-
TER TO A TAX OR THE TAXES IMPOSED BY ARTICLE TWENTY-EIGHT OF THIS CHAP-
TER SHALL BE DEEMED ALSO TO REFER TO THE SURCHARGES IMPOSED BY THIS
SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION:
S. 2009--C 137 A. 3009--C
(1) THE EXEMPTIONS PROVIDED FOR IN SECTION ELEVEN HUNDRED SIXTEEN OF
THIS CHAPTER, OTHER THAN THE EXEMPTIONS IN PARAGRAPHS ONE, TWO AND THREE
OF SUBDIVISION (A) OF THAT SECTION, SHALL NOT APPLY TO THE SURCHARGES
IMPOSED BY THIS SECTION.
(2) THE CREDIT PROVIDED IN SUBDIVISION (F) OF SECTION ELEVEN HUNDRED
THIRTY-SEVEN OF THIS CHAPTER SHALL NOT APPLY TO THIS SECTION.
§ 2. Sections 308-a, 308-b, 308-c, 309-d, 308-e, 308-f, 308-g, 308-h,
308-k, 308-l, 308-m, 308-n, 308-p, 308-q, 308-r, 308-s, 308-t, 308-u,
308-v, 308-w, 308-x and 308-y of the county law are REPEALED.
§ 3. The tax law is amended by adding a new section 186-g to read as
follows:
§ 186-G. WIRELESS COMMUNICATIONS SURCHARGE AUTHORIZED. 1. DEFINITIONS.
AS USED IN THIS SECTION, WHERE NOT OTHERWISE SPECIFICALLY DEFINED AND
UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED, ALL OF THE DEFINITIONS
OF SECTION ONE HUNDRED EIGHTY-SIX-F OF THIS ARTICLE SHALL APPLY TO THE
SURCHARGES AUTHORIZED BY THIS SECTION.
2. IMPOSITION OF SURCHARGE. (A) NOTWITHSTANDING ANY OTHER PROVISION OF
LAW TO THE CONTRARY, AND IN ADDITION TO ANY OTHER TAX OR FEE IMPOSED BY
THIS CHAPTER OR ANY OTHER LAW, A CITY HAVING A POPULATION OF A MILLION
OR MORE, AND A COUNTY, OTHER THAN A COUNTY WHOLLY WITHIN SUCH A CITY,
ACTING THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED AND
EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES OR RESOLUTIONS
IMPOSING A SURCHARGE WITHIN THE TERRITORIAL LIMITS OF SUCH CITY OR COUN-
TY TO TAKE EFFECT ON OR AFTER DECEMBER FIRST, TWO THOUSAND SEVENTEEN
THAT SHALL INCLUDE BOTH (I) WIRELESS COMMUNICATIONS SERVICE, AS
DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION; AND (II) PREPAID WIRE-
LESS COMMUNICATIONS SERVICE, AS DESCRIBED IN PARAGRAPH (C) OF THIS
SUBDIVISION.
(B) SUCH SURCHARGE ON WIRELESS COMMUNICATIONS SERVICE PROVIDED TO A
WIRELESS COMMUNICATIONS CUSTOMER WITH A PLACE OF PRIMARY USE IN A CITY
OR COUNTY AUTHORIZED TO IMPOSE THE SURCHARGE BY THIS SUBDIVISION SHALL
BE IMPOSED AT THE RATE OF THIRTY CENTS PER MONTH ON EACH WIRELESS COMMU-
NICATIONS DEVICE IN SERVICE DURING ANY PART OF THE MONTH. THE SURCHARGE
MUST BE REFLECTED AND MADE PAYABLE ON BILLS RENDERED TO THE WIRELESS
COMMUNICATIONS CUSTOMER FOR WIRELESS COMMUNICATIONS SERVICE.
(C) SUCH SURCHARGE ON THE RETAIL SALE OF EACH PREPAID WIRELESS COMMU-
NICATIONS SERVICE, WHETHER OR NOT ANY TANGIBLE PERSONAL PROPERTY IS SOLD
THEREWITH, SHALL BE IMPOSED AT THE RATE OF THIRTY CENTS PER RETAIL SALE
WITHIN A CITY OR COUNTY AUTHORIZED TO IMPOSE THE SURCHARGE BY THIS
SUBDIVISION. A SALE OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OCCURS
IN SUCH CITY OR COUNTY IF THE SALE TAKES PLACE AT A SELLER'S BUSINESS
LOCATION IN SUCH CITY OR COUNTY. 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 SUCH CITY OR COUNTY OR, IF
THERE IS NO ITEM SHIPPED, AT THE PURCHASER'S BILLING ADDRESS IN SUCH
CITY OR COUNTY, 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.
3. ANY SUCH LOCAL LAW, ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO
THIS SECTION SHALL STATE THE AMOUNT OF THE SURCHARGES AND THE DATE ON
WHICH BOTH THE WIRELESS COMMUNICATIONS SERVICE SUPPLIER SHALL BEGIN TO
ADD SUCH SURCHARGE TO THE BILLINGS OF ITS CUSTOMERS AND THE PREPAID
WIRELESS COMMUNICATIONS SELLER SHALL BEGIN TO COLLECT SUCH SURCHARGE
FROM ITS CUSTOMERS. NO SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL BE
EFFECTIVE UNLESS A CERTIFIED COPY OF SUCH LAW, ORDINANCE OR RESOLUTION
IS MAILED BY REGISTERED OR CERTIFIED MAIL TO THE COMMISSIONER IN ACCORD-
S. 2009--C 138 A. 3009--C
ANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF SECTION TWELVE
HUNDRED TEN OF THIS CHAPTER.
4. EXEMPTION. LIFELINE CONSUMERS SHALL BE EXEMPT FROM THE SURCHARGES
IMPOSED BY THIS SECTION.
5. THE SURCHARGES MUST BE REPORTED AND PAID TO THE COMMISSIONER ON A
QUARTERLY BASIS ON OR BEFORE THE TWENTIETH DAY OF THE MONTH FOLLOWING
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.
6. THE SURCHARGES MUST BE ADDED AS A SEPARATE LINE ITEM TO BILLS
FURNISHED BY A WIRELESS COMMUNICATIONS SERVICE SUPPLIER TO ITS CUSTOM-
ERS, OR 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 IDEN-
TIFIED AS THE "PUBLIC SAFETY COMMUNICATIONS SURCHARGE".
7. EACH WIRELESS COMMUNICATIONS SERVICE SUPPLIER AND PREPAID WIRELESS
COMMUNICATIONS SELLER IS ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE,
AN AMOUNT EQUAL TO THREE PERCENT OF ITS COLLECTIONS OF THE SURCHARGES
IMPOSED UNDER THE AUTHORITY OF THIS SECTION, PROVIDED THAT THE SUPPLIER
OR SELLER FILES ANY REQUIRED RETURN AND REMITS THE SURCHARGE DUE TO THE
COMMISSIONER ON OR BEFORE ITS DUE DATE.
8. APPLICABLE PROVISIONS. (A) EXCEPT AS OTHERWISE PROVIDED IN THIS
SECTION, ANY SURCHARGE IMPOSED UNDER THE AUTHORITY OF THIS SECTION SHALL
BE ADMINISTERED AND COLLECTED BY THE COMMISSIONER IN A LIKE MANNER AS
THE TAXES IMPOSED BY ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAP-
TER. ALL THE PROVISIONS OF ARTICLE TWENTY-EIGHT AND TWENTY-NINE OF THIS
CHAPTER, INCLUDING THE PROVISIONS RELATING TO DEFINITIONS, EXEMPTIONS,
RETURNS, PERSONAL LIABILITY FOR THE TAX, COLLECTION OF TAX FROM THE
CUSTOMER, PAYMENT OF TAX, AND THE ADMINISTRATION OF THE TAXES IMPOSED BY
SUCH ARTICLE, SHALL APPLY TO THE SURCHARGES IMPOSED UNDER THE AUTHORITY
OF THIS SECTION SO FAR AS THOSE PROVISIONS CAN BE MADE APPLICABLE TO THE
SURCHARGES IMPOSED UNDER THE AUTHORITY OF THIS SECTION, WITH SUCH
MODIFICATIONS AS MAY BE NECESSARY IN ORDER TO ADAPT THE LANGUAGE OF
THOSE PROVISIONS TO THE SURCHARGES IMPOSED UNDER THE AUTHORITY OF THIS
SECTION. THOSE PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS
IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS
SECTION, EXCEPT TO THE EXTENT THAT ANY OF THOSE PROVISIONS IS EITHER
INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THE
SURCHARGE IMPOSED UNDER THE AUTHORITY OF THIS SECTION. FOR PURPOSES OF
THIS SECTION, ANY REFERENCE IN THIS CHAPTER TO A TAX OR THE TAXES
IMPOSED BY ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAPTER SHALL
BE DEEMED ALSO TO REFER TO THE SURCHARGES IMPOSED UNDER THE AUTHORITY OF
THIS SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION:
(1) THE EXEMPTIONS PROVIDED FOR IN SECTION ELEVEN HUNDRED SIXTEEN OF
THIS CHAPTER, OTHER THAN THE EXEMPTIONS IN PARAGRAPHS ONE, TWO AND THREE
OF SUBDIVISION (A) OF THAT SECTION, SHALL NOT APPLY TO THE SURCHARGES
IMPOSED UNDER THE AUTHORITY OF THIS SECTION;
(2) THE CREDIT PROVIDED IN SUBDIVISION (F) OF SECTION ELEVEN HUNDRED
THIRTY-SEVEN OF THIS CHAPTER SHALL NOT APPLY TO THIS SECTION.
9. ALL SURCHARGE MONIES REMITTED TO THE COMMISSIONER UNDER THIS
SECTION SHALL BE EXPENDED ONLY UPON AUTHORIZATION OF THE LEGISLATIVE
BODY OF A CITY OR COUNTY THAT IMPOSES THE SURCHARGES PURSUANT TO THE
AUTHORITY OF SUBDIVISION TWO OF THIS SECTION, AND ONLY FOR PAYMENT OF
S. 2009--C 139 A. 3009--C
SYSTEM COSTS, ELIGIBLE WIRELESS 911 SERVICE COSTS, OR OTHER COSTS ASSO-
CIATED WITH THE ADMINISTRATION, DESIGN, INSTALLATION, CONSTRUCTION,
OPERATION, OR MAINTENANCE OF PUBLIC SAFETY COMMUNICATIONS NETWORKS OR A
SYSTEM TO PROVIDE ENHANCED WIRELESS 911 SERVICE SERVING SUCH CITY OR
COUNTY, INCLUDING, BUT NOT LIMITED TO, HARDWARE, SOFTWARE, CONSULTANTS,
FINANCING AND OTHER ACQUISITION COSTS. SUCH CITY OR COUNTY SHALL SEPA-
RATELY ACCOUNT FOR AND KEEP ADEQUATE BOOKS AND RECORDS OF THE AMOUNT AND
OBJECT OR PURPOSE OF ALL EXPENDITURES OF ALL SUCH MONIES. 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 FOLLOWING FISCAL YEAR.
§ 4. This act shall take effect immediately; provided, however,
sections one and two of this act shall take effect December 1, 2017; and
section one of this act shall apply to wireless communications service
and prepaid wireless communications service provided on and after that
date.
PART FFF
Section 1. The public health law is amended by adding a new section
2825-e to read as follows:
§ 2825-E. HEALTH CARE FACILITY TRANSFORMATION PROGRAM: STATEWIDE II.
1. A STATEWIDE HEALTH CARE FACILITY TRANSFORMATION PROGRAM IS HEREBY
ESTABLISHED UNDER THE JOINT ADMINISTRATION OF THE COMMISSIONER AND THE
PRESIDENT OF THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK FOR THE
PURPOSE OF STRENGTHENING AND PROTECTING CONTINUED ACCESS TO HEALTH CARE
SERVICES IN COMMUNITIES. THE PROGRAM SHALL PROVIDE FUNDING IN SUPPORT OF
CAPITAL PROJECTS, DEBT RETIREMENT, WORKING CAPITAL OR OTHER NON-CAPITAL
PROJECTS THAT FACILITATE HEALTH CARE TRANSFORMATION ACTIVITIES INCLUD-
ING, BUT NOT LIMITED TO, MERGER, CONSOLIDATION, ACQUISITION OR OTHER
ACTIVITIES INTENDED TO CREATE FINANCIALLY SUSTAINABLE SYSTEMS OF CARE OR
PRESERVE OR EXPAND ESSENTIAL HEALTH CARE SERVICES. GRANTS SHALL NOT BE
AVAILABLE TO SUPPORT GENERAL OPERATING EXPENSES. THE ISSUANCE OF ANY
BONDS OR NOTES HEREUNDER SHALL BE SUBJECT TO SECTION SIXTEEN HUNDRED
EIGHTY-R OF THE PUBLIC AUTHORITIES LAW AND THE APPROVAL OF THE DIRECTOR
OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS FUNDED THROUGH THE ISSU-
ANCE OF BONDS OR NOTES HEREUNDER SHALL BE APPROVED BY THE NEW YORK STATE
PUBLIC AUTHORITIES CONTROL BOARD, AS REQUIRED UNDER SECTION FIFTY-ONE OF
THE PUBLIC AUTHORITIES LAW.
2. THE COMMISSIONER AND THE PRESIDENT OF THE DORMITORY AUTHORITY SHALL
ENTER INTO AN AGREEMENT, SUBJECT TO APPROVAL BY THE DIRECTOR OF THE
BUDGET, AND SUBJECT TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE PUBLIC
AUTHORITIES LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND ADMIN-
ISTERING THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION. SUCH FUNDS
MAY BE DISTRIBUTED BY THE COMMISSIONER FOR CAPITAL GRANTS TO GENERAL
HOSPITALS, RESIDENTIAL HEALTH CARE FACILITIES, DIAGNOSTIC AND TREATMENT
CENTERS AND CLINICS LICENSED PURSUANT TO THIS CHAPTER OR THE MENTAL
HYGIENE LAW, AND COMMUNITY-BASED HEALTH CARE PROVIDERS AS DEFINED IN
SUBDIVISION THREE OF THIS SECTION FOR WORKS OR PURPOSES THAT SUPPORT THE
PURPOSES SET FORTH IN THIS SECTION. A COPY OF SUCH AGREEMENT, AND ANY
AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE
COMMITTEE, THE CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, AND THE
DIRECTOR OF THE DIVISION OF THE BUDGET NO LATER THAN THIRTY DAYS PRIOR
TO THE RELEASE OF A REQUEST FOR APPLICATIONS FOR FUNDING UNDER THIS
PROGRAM. PRIORITY SHALL BE GIVEN TO NEW APPLICATIONS FOR PROJECTS NOT
S. 2009--C 140 A. 3009--C
FUNDED UNDER SECTION TWENTY-EIGHT HUNDRED TWENTY-FIVE-D OF THIS ARTICLE.
PROJECTS AWARDED, IN WHOLE OR PART, UNDER SECTIONS TWENTY-EIGHT HUNDRED
TWENTY-FIVE-A AND TWENTY-EIGHT HUNDRED TWENTY-FIVE-B OF THIS ARTICLE
SHALL NOT BE ELIGIBLE FOR GRANTS OR AWARDS MADE AVAILABLE UNDER THIS
SECTION.
3. NOTWITHSTANDING SECTION ONE HUNDRED SIXTY-THREE OF THE STATE
FINANCE LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, UP TO
FIVE HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS PROGRAM
SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
ESS FOR GRANTS TO HEALTH CARE PROVIDERS (HEREAFTER "APPLICANTS").
PROVIDED, HOWEVER, THAT A MINIMUM OF SEVENTY-FIVE MILLION DOLLARS OF
TOTAL AWARDED FUNDS SHALL BE MADE TO COMMUNITY-BASED HEALTH CARE PROVID-
ERS, WHICH FOR PURPOSES OF THIS SECTION SHALL BE DEFINED AS A DIAGNOSTIC
AND TREATMENT CENTER LICENSED OR GRANTED AN OPERATING CERTIFICATE UNDER
THIS ARTICLE; A MENTAL HEALTH CLINIC LICENSED OR GRANTED AN OPERATING
CERTIFICATE UNDER ARTICLE THIRTY-ONE OF THE MENTAL HYGIENE LAW; AN ALCO-
HOL AND SUBSTANCE ABUSE TREATMENT CLINIC LICENSED OR GRANTED AN OPERAT-
ING CERTIFICATE UNDER ARTICLE THIRTY-TWO OF THE MENTAL HYGIENE LAW; A
PRIMARY CARE PROVIDER OR A HOME CARE PROVIDER CERTIFIED OR LICENSED
PURSUANT TO ARTICLE THIRTY-SIX OF THIS CHAPTER; OR OTHER PURPOSES AND
COMMUNITY-BASED PROVIDERS DESIGNATED BY THE COMMISSIONER PURSUANT TO
INFORMATION OBTAINED PURSUANT TO SUBDIVISION FOUR-A OF THIS SECTION.
ELIGIBLE APPLICANTS SHALL BE THOSE DEEMED BY THE COMMISSIONER TO BE A
PROVIDER THAT FULFILLS OR WILL FULFILL A HEALTH CARE NEED FOR ACUTE
INPATIENT, OUTPATIENT, PRIMARY, HOME CARE OR RESIDENTIAL HEALTH CARE
SERVICES IN A COMMUNITY.
4. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION OR ANY INCONSISTENT
PROVISION OF LAW TO THE CONTRARY, AND UPON APPROVAL OF THE DIRECTOR OF
THE BUDGET, THE COMMISSIONER MAY AWARD UP TO THREE HUNDRED MILLION
DOLLARS OF THE FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION FOR
UNFUNDED PROJECT APPLICATIONS SUBMITTED IN RESPONSE TO THE REQUEST FOR
APPLICATIONS NUMBER 1607010255 ISSUED BY THE DEPARTMENT ON JULY TWENTI-
ETH, TWO THOUSAND SIXTEEN PURSUANT TO SECTION TWENTY-EIGHT HUNDRED TWEN-
TY-FIVE-D OF THIS ARTICLE, PROVIDED HOWEVER THAT THE PROVISIONS OF
SUBDIVISION THREE OF THIS SECTION SHALL APPLY.
4-A. AUTHORIZED AMOUNTS TO BE AWARDED PURSUANT TO APPLICATIONS SUBMIT-
TED IN RESPONSE TO THE REQUEST FOR APPLICATION NUMBER 1607010255 SHALL
BE AWARDED NO LATER THAN MAY FIRST, TWO THOUSAND SEVENTEEN. THE COMMIS-
SIONER SHALL NOT ISSUE A REQUEST FOR APPLICATION FOR THE REMAINING
APPROPRIATED AMOUNTS ON OR BEFORE JUNE FIRST, TWO THOUSAND SEVENTEEN TO
ALLOW STAKEHOLDER, COMMUNITY, AND LEGISLATIVE INPUT REGARDING PROGRAM
ELIGIBILITY, AWARD CRITERIA AND THE PROCESS BY WHICH THE REMAINING FUNDS
WILL BE AWARDED.
5. IN DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER THIS SECTION,
THE COMMISSIONER SHALL CONSIDER STAKEHOLDER, COMMUNITY, AND LEGISLATIVE
INPUT PURSUANT TO SUBDIVISION FOUR-A OF THIS SECTION, AND OTHER CRITERIA
INCLUDING, BUT NOT LIMITED TO:
(A) THE EXTENT TO WHICH THE PROPOSED PROJECT WILL CONTRIBUTE TO THE
INTEGRATION OF HEALTH CARE SERVICES OR THE LONG TERM SUSTAINABILITY OF
THE APPLICANT OR PRESERVATION OF ESSENTIAL HEALTH SERVICES IN THE COMMU-
NITY OR COMMUNITIES SERVED BY THE APPLICANT;
(B) THE EXTENT TO WHICH THE PROPOSED PROJECT OR PURPOSE IS ALIGNED
WITH DELIVERY SYSTEM REFORM INCENTIVE PAYMENT ("DSRIP") PROGRAM GOALS
AND OBJECTIVES;
(C) CONSIDERATION OF GEOGRAPHIC DISTRIBUTION OF FUNDS;
S. 2009--C 141 A. 3009--C
(D) THE RELATIONSHIP BETWEEN THE PROPOSED PROJECT AND IDENTIFIED
COMMUNITY NEED;
(E) THE EXTENT TO WHICH THE APPLICANT HAS ACCESS TO ALTERNATIVE
FINANCING;
(F) THE EXTENT THAT THE PROPOSED PROJECT FURTHERS THE DEVELOPMENT OF
PRIMARY CARE AND OTHER OUTPATIENT SERVICES;
(G) THE EXTENT TO WHICH THE PROPOSED PROJECT BENEFITS MEDICAID ENROL-
LEES AND UNINSURED INDIVIDUALS;
(H) THE EXTENT TO WHICH THE APPLICANT HAS ENGAGED THE COMMUNITY
AFFECTED BY THE PROPOSED PROJECT AND THE MANNER IN WHICH COMMUNITY
ENGAGEMENT HAS SHAPED SUCH PROJECT; AND
(I) THE EXTENT TO WHICH THE PROPOSED PROJECT ADDRESSES POTENTIAL RISK
TO PATIENT SAFETY AND WELFARE.
6. DISBURSEMENT OF AWARDS MADE PURSUANT TO THIS SECTION SHALL BE
CONDITIONED ON THE AWARDEE ACHIEVING CERTAIN PROCESS AND PERFORMANCE
METRICS AND MILESTONES AS DETERMINED IN THE SOLE DISCRETION OF THE
COMMISSIONER. SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO ENSURE
THAT THE GOALS OF THE PROJECT ARE ACHIEVED, AND SUCH METRICS AND MILE-
STONES SHALL BE INCLUDED IN GRANT DISBURSEMENT AGREEMENTS OR OTHER
CONTRACTUAL DOCUMENTS AS REQUIRED BY THE COMMISSIONER.
7. THE DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE
CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, AND SENATE HEALTH
AND ASSEMBLY HEALTH COMMITTEES. SUCH REPORTS SHALL BE SUBMITTED NO LATER
THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL INCLUDE, FOR
EACH AWARD, THE NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR
PURPOSE, THE AMOUNT OF THE AWARD, DISBURSEMENT DATE, AND STATUS OF
ACHIEVEMENT OF PROCESS AND PERFORMANCE METRICS AND MILESTONES PURSUANT
TO SUBDIVISION FIVE OF THIS SECTION.
§ 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 GGG
Section 1. Subparagraph (i) of paragraph (g) of subdivision 7 of
section 4403-f of the public health law, as amended by section 41-b of
part H of chapter 59 of the laws of 2011, is amended to read as follows:
(i) Managed long term care plans and demonstrations may enroll eligi-
ble persons in the plan or demonstration upon the completion of a
comprehensive assessment that shall include, but not be limited to, an
evaluation of the medical, social, COGNITIVE, and environmental needs of
each prospective enrollee in such program. This assessment shall also
serve as the basis for the development and provision of an appropriate
plan of care for the enrollee. Upon approval of federal waivers pursuant
to paragraph (b) of this subdivision which require medical assistance
recipients who require community-based long term care services to enroll
in a plan, and upon approval of the commissioner, a plan may enroll an
applicant who is currently receiving home and community-based services
and complete the comprehensive assessment within thirty days of enroll-
ment provided that the plan continues to cover transitional care until
such time as the assessment is completed.
§ 2. This act shall take effect immediately; provided, however, that
the amendments to subparagraph (i) of paragraph (g) of subdivision 7 of
section 4403-f of the public health law made by section one of this act
shall not affect the expiration and reversion of such subparagraph and
shall be deemed to expire therewith; provided, further that the amend-
ments to subparagraph (i) of paragraph (g) of subdivision 7 of section
S. 2009--C 142 A. 3009--C
4403-f of the public health law made by section one of this act shall
not affect the repeal of such section and shall be deemed repealed ther-
ewith.
PART HHH
Section 1. The education law is amended by adding a new section 669-h
to read as follows:
§ 669-H. EXCELSIOR SCHOLARSHIP. 1. ELIGIBILITY. AN EXCELSIOR SCHOLAR-
SHIP AWARD SHALL BE MADE TO AN APPLICANT WHO: (A) IS MATRICULATED IN AN
APPROVED PROGRAM LEADING TO AN UNDERGRADUATE DEGREE AT A NEW YORK STATE
PUBLIC INSTITUTION OF HIGHER EDUCATION; (B) IF ENROLLED IN (I) A PUBLIC
INSTITUTION OF HIGHER EDUCATION PRIOR TO APPLICATION, HAS COMPLETED AT
LEAST THIRTY COMBINED CREDITS PER YEAR FOLLOWING THE STUDENT'S START
DATE, OR ITS EQUIVALENT, APPLICABLE TO HIS OR HER PROGRAM OR PROGRAMS OF
STUDY OR (II) AN INSTITUTION OF HIGHER EDUCATION PRIOR TO APPLICATION,
HAS COMPLETED AT LEAST THIRTY COMBINED CREDITS PER YEAR FOLLOWING THE
STUDENT'S START DATE, OR ITS EQUIVALENT, APPLICABLE TO HIS OR HER
PROGRAM OR PROGRAMS OF STUDY AND WHICH WERE ACCEPTED UPON TRANSFER TO A
PUBLIC INSTITUTION OF HIGHER EDUCATION; (C) ENROLLS IN AT LEAST TWELVE
CREDITS PER SEMESTER AND COMPLETES AT LEAST THIRTY COMBINED CREDITS PER
YEAR FOLLOWING THE STUDENT'S START DATE, OR ITS EQUIVALENT, APPLICABLE
TO HIS OR HER PROGRAM OR PROGRAMS OF STUDY EXCEPT IN LIMITED CIRCUM-
STANCES AS PRESCRIBED BY THE CORPORATION IN REGULATION. NOTWITHSTANDING,
IN THE STUDENT'S LAST SEMESTER, THE STUDENT MAY TAKE AT LEAST ONE COURSE
NEEDED TO MEET HIS OR HER GRADUATION REQUIREMENTS AND ENROLL IN AND
COMPLETE AT LEAST TWELVE CREDIT HOURS OR ITS EQUIVALENT. FOR STUDENTS
WHO ARE DISABLED AS DEFINED BY THE AMERICANS WITH DISABILITIES ACT OF
1990, 42 USC 12101, THE CORPORATION SHALL PRESCRIBE RULES AND REGU-
LATIONS THAT ALLOW APPLICANTS WHO ARE DISABLED TO BE ELIGIBLE FOR AN
AWARD PURSUANT TO THIS SECTION BASED ON MODIFIED CRITERIA; (D) HAS AN
ADJUSTED GROSS INCOME, AS DEFINED IN THIS SUBDIVISION, EQUAL TO OR LESS
THAN: (I) ONE HUNDRED THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN AWARD
IN THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN ACADEMIC YEAR; (II)
ONE HUNDRED TEN THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN AWARD IN
THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN ACADEMIC YEAR; AND
(III) ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS FOR RECIPIENTS RECEIVING
AN AWARD IN THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY ACADEMIC YEAR
AND THEREAFTER; AND (E) COMPLIES WITH THE APPLICABLE PROVISIONS OF THIS
ARTICLE AND ALL REQUIREMENTS PROMULGATED BY THE CORPORATION FOR THE
ADMINISTRATION OF THE PROGRAM. ADJUSTED GROSS INCOME SHALL BE THE TOTAL
OF THE COMBINED ADJUSTED GROSS INCOME OF THE APPLICANT AND THE APPLI-
CANT'S PARENTS OR THE APPLICANT AND THE APPLICANT'S SPOUSE, IF MARRIED,
AS REPORTED ON THE FEDERAL INCOME TAX RETURN, OR AS OTHERWISE OBTAINED
BY THE CORPORATION, FOR THE CALENDAR YEAR COINCIDING WITH THE TAX YEAR
ESTABLISHED BY THE U.S. DEPARTMENT OF EDUCATION TO QUALIFY APPLICANTS
FOR FEDERAL STUDENT FINANCIAL AID PROGRAMS AUTHORIZED BY TITLE IV OF THE
HIGHER EDUCATION ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, FOR THE
SCHOOL YEAR IN WHICH APPLICATION FOR ASSISTANCE IS MADE.
2. AMOUNT. WITHIN AMOUNTS APPROPRIATED THEREFOR AND BASED ON AVAIL-
ABILITY OF FUNDS, AWARDS SHALL BE GRANTED BEGINNING WITH THE TWO THOU-
SAND SEVENTEEN--TWO THOUSAND EIGHTEEN ACADEMIC YEAR AND THEREAFTER TO
APPLICANTS THAT THE CORPORATION HAS DETERMINED ARE ELIGIBLE TO RECEIVE
SUCH AWARDS. THE CORPORATION SHALL GRANT SUCH AWARDS IN AN AMOUNT UP TO
FIVE THOUSAND FIVE HUNDRED DOLLARS OR ACTUAL TUITION, WHICHEVER IS LESS;
PROVIDED, HOWEVER, (A) A STUDENT WHO RECEIVES EDUCATIONAL GRANTS AND/OR
S. 2009--C 143 A. 3009--C
SCHOLARSHIPS THAT COVER THE STUDENT'S FULL COST OF ATTENDANCE SHALL NOT
BE ELIGIBLE FOR AN AWARD UNDER THIS PROGRAM; AND (B) AN AWARD UNDER THIS
PROGRAM SHALL BE APPLIED TO TUITION AFTER THE APPLICATION OF PAYMENTS
RECEIVED UNDER THE TUITION ASSISTANCE PROGRAM PURSUANT TO SECTION SIX
HUNDRED SIXTY-SEVEN OF THIS SUBPART, TUITION CREDITS PURSUANT TO SECTION
SIX HUNDRED EIGHTY-NINE-A OF THIS ARTICLE, FEDERAL PELL GRANT PURSUANT
TO SECTION ONE THOUSAND SEVENTY OF TITLE TWENTY OF THE UNITED STATES
CODE, ET. SEQ., AND ANY OTHER PROGRAM THAT COVERS THE COST OF ATTEND-
ANCE, AND THE AWARD UNDER THIS PROGRAM SHALL BE REDUCED IN THE AMOUNT
EQUAL TO SUCH PAYMENTS, PROVIDED THAT THE COMBINED BENEFITS DO NOT
EXCEED FIVE THOUSAND FIVE HUNDRED DOLLARS. UPON NOTIFICATION OF AN AWARD
UNDER THIS PROGRAM, THE INSTITUTION SHALL DEFER THE AMOUNT OF TUITION.
NOTWITHSTANDING PARAGRAPH H OF SUBDIVISION TWO OF SECTION THREE HUNDRED
FIFTY-FIVE AND PARAGRAPH (A) OF SUBDIVISION SEVEN OF SECTION SIX THOU-
SAND TWO HUNDRED SIX OF THIS CHAPTER, AND ANY OTHER LAW, RULE OR REGU-
LATION TO THE CONTRARY, THE UNDERGRADUATE TUITION CHARGED BY THE INSTI-
TUTION TO RECIPIENTS OF AN AWARD SHALL NOT EXCEED THE TUITION RATE
ESTABLISHED BY THE INSTITUTION FOR THE TWO THOUSAND SIXTEEN--TWO THOU-
SAND SEVENTEEN ACADEMIC YEAR PROVIDED, HOWEVER, THAT IN THE TWO THOUSAND
TWENTY-ONE--TWO THOUSAND TWENTY-TWO ACADEMIC YEAR AND EVERY FOUR YEARS
THEREAFTER, THE UNDERGRADUATE TUITION CHARGED BY THE INSTITUTION TO
RECIPIENTS OF AN AWARD SHALL BE RESET TO EQUAL THE TUITION RATE ESTAB-
LISHED BY THE INSTITUTION FOR THE FORTHCOMING ACADEMIC YEAR, PROVIDED
FURTHER THAT THE TUITION CREDIT CALCULATED PURSUANT TO SECTION SIX
HUNDRED EIGHTY-NINE-A OF THIS ARTICLE SHALL BE APPLIED TOWARD THE
TUITION RATE CHARGED FOR RECIPIENTS OF AN AWARD UNDER THIS PROGRAM.
PROVIDED FURTHER THAT THE STATE UNIVERSITY OF NEW YORK AND THE CITY
UNIVERSITY OF NEW YORK SHALL PROVIDE AN ADDITIONAL TUITION CREDIT TO
STUDENTS RECEIVING AN AWARD TO COVER THE REMAINING COST OF TUITION.
3. DURATION. AN ELIGIBLE RECIPIENT SHALL NOT RECEIVE AN AWARD FOR MORE
THAN FOUR ACADEMIC YEARS OF FULL-TIME UNDERGRADUATE STUDY OR FIVE
ACADEMIC YEARS IF THE PROGRAM OF STUDY NORMALLY REQUIRES FIVE YEARS. AN
ELIGIBLE RECIPIENT ENROLLED IN AN ELIGIBLE TWO YEAR PROGRAM OF STUDY
SHALL NOT RECEIVE AN AWARD FOR MORE THAN TWO ACADEMIC YEARS. NOTWITH-
STANDING, SUCH DURATION MAY BE EXTENDED FOR AN ALLOWABLE INTERRUPTION OF
STUDY INCLUDING, BUT NOT LIMITED TO, DEATH OF A FAMILY MEMBER, MEDICAL
LEAVE, MILITARY SERVICE, AND PARENTAL LEAVE, AS ESTABLISHED BY THE
CORPORATION IN REGULATION.
4. CONDITIONS. (A) AN APPLICANT WHO WOULD BE ELIGIBLE FOR A NEW YORK
STATE TUITION ASSISTANCE PROGRAM AWARD PURSUANT TO SECTION SIX HUNDRED
SIXTY-SEVEN OF THIS SUBPART AND/OR A FEDERAL PELL GRANT PURSUANT TO
SECTION ONE THOUSAND SEVENTY OF TITLE TWENTY OF THE UNITED STATES CODE,
ET. SEQ., IS REQUIRED TO APPLY FOR EACH SUCH AWARD.
(B) AN APPLICANT WHO HAS EARNED A BACHELOR'S DEGREE IS INELIGIBLE TO
RECEIVE AN AWARD PURSUANT TO THIS SECTION.
(C) AN APPLICANT WHO HAS EARNED AN ASSOCIATE'S DEGREE IS INELIGIBLE TO
RECEIVE AN AWARD FOR A TWO YEAR PROGRAM OF STUDY PURSUANT TO THIS
SECTION.
(D) NOTWITHSTANDING PARAGRAPH C OF SUBDIVISION FOUR OF SECTION SIX
HUNDRED SIXTY-ONE OF THIS PART, A SCHOOL SHALL CERTIFY THAT A RECIPIENT
HAS ACHIEVED A GRADE POINT AVERAGE NECESSARY FOR SUCCESSFUL COMPLETION
OF HIS OR HER COURSEWORK TO RECEIVE PAYMENT UNDER THE AWARD.
(E) A RECIPIENT SHALL AGREE TO RESIDE EXCLUSIVELY IN NEW YORK STATE,
AND SHALL NOT BE EMPLOYED IN ANY OTHER STATE, FOR A CONTINUOUS NUMBER OF
YEARS EQUAL TO THE DURATION OF THE AWARD RECEIVED WITHIN SIX MONTHS OF
RECEIPT OF HIS OR HER FINAL AWARD PAYMENT, AND SIGN A CONTRACT WITH THE
S. 2009--C 144 A. 3009--C
CORPORATION TO HAVE HIS OR HER FULL AWARD CONVERTED TO A STUDENT LOAN
ACCORDING TO A SCHEDULE TO BE DETERMINED BY THE CORPORATION IF SUCH
STUDENT FAILS TO FULFILL THIS REQUIREMENT. THE TERMS AND CONDITIONS OF
THIS PARAGRAPH MAY, AS ESTABLISHED BY THE RULES AND REGULATIONS OF THE
CORPORATION, BE DEFERRED: (I) TO COMPLETE UNDERGRADUATE STUDY; OR (II)
TO ATTEND GRADUATE SCHOOL ON AT LEAST A HALF-TIME BASIS. ANY OBLIGATION
TO COMPLY WITH SUCH PROVISIONS AS OUTLINED IN THIS PARAGRAPH MAY BE
CANCELLED UPON THE DEATH OF THE RECIPIENT. NOTWITHSTANDING ANY
PROVISIONS OF THIS PARAGRAPH TO THE CONTRARY, THE CORPORATION IS AUTHOR-
IZED TO PROMULGATE RULES AND REGULATIONS TO PROVIDE FOR THE WAIVER OR
SUSPENSION OF ANY FINANCIAL OBLIGATION WHICH WOULD INVOLVE EXTREME HARD-
SHIP.
(F) NOTWITHSTANDING PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION,
A STUDENT WHO OTHERWISE SATISFIES ALL OF THE REQUIREMENTS UNDER THIS
SECTION BUT FAILS TO COMPLETE AT LEAST THIRTY COMBINED CREDITS, OR ITS
EQUIVALENT, APPLICABLE TO HIS OR HER PROGRAM OR PROGRAMS OF STUDY IN ANY
YEAR SHALL BE ELIGIBLE TO RECEIVE AN AWARD PAYMENT FOR THE FIRST SEMES-
TER OF SUCH YEAR, PROVIDED HOWEVER, THE STUDENT SHALL BE INELIGIBLE FOR
ANY FURTHER PAYMENTS UNDER THIS SECTION.
5. RECIPIENT SELECTION. THE PRESIDENT MAY ESTABLISH: (A) AN APPLICA-
TION DEADLINE AND (B) A METHOD OF SELECTING RECIPIENTS IF IN ANY GIVEN
YEAR THERE ARE INSUFFICIENT FUNDS TO COVER THE NEEDS OF ALL THE APPLI-
CANTS PROVIDED THAT PRIORITY SHALL BE GIVEN TO ELIGIBLE APPLICANTS WHO
ARE CURRENTLY IN ATTENDANCE AT A PUBLIC INSTITUTION OF HIGHER EDUCATION.
6. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS, NECES-
SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION INCLUDING,
BUT NOT LIMITED TO, THE CRITERIA FOR DISTRIBUTING THE AWARDS, WHICH MAY
INCLUDE A LOTTERY OR OTHER FORM OF RANDOM SELECTION.
§ 2. This act shall take effect immediately.
PART III
Section 1. The education law is amended by adding a new section 667-d
to read as follows:
§ 667-D. ENHANCED TUITION AWARDS. 1. RECIPIENT QUALIFICATIONS. A.
ESTABLISHMENT. ENHANCED TUITION AWARDS ARE AVAILABLE FOR STUDENTS WHO
ARE ENROLLED IN APPROVED PROGRAMS IN PRIVATE NOT-FOR-PROFIT DEGREE
GRANTING INSTITUTIONS EXCEPT THOSE INSTITUTIONS SET FORTH IN PARAGRAPH B
OF SUBDIVISION FOUR OF SECTION SIX HUNDRED SIXTY-ONE OF THIS PART AND
WHO DEMONSTRATE THE ABILITY TO COMPLETE SUCH COURSES, IN ACCORDANCE WITH
STANDARDS ESTABLISHED BY THE COMMISSIONER; PROVIDED, THAT, NO AWARD
SHALL EXCEED ONE HUNDRED PERCENT OF THE AMOUNT OF TUITION CHARGED.
B. APPLICATION FOR OTHER AWARDS. A STUDENT WHO WOULD BE ELIGIBLE FOR A
TUITION ASSISTANCE PROGRAM AWARD PURSUANT TO SECTION SIX HUNDRED SIXTY-
SEVEN OF THIS SUBPART AND/OR A FEDERAL PELL GRANT PURSUANT TO SECTION
ONE THOUSAND SEVENTY OF TITLE TWENTY OF THE UNITED STATES CODE, ET.
SEQ., IS REQUIRED TO APPLY FOR EACH SUCH AWARD. ANY AWARD SHALL BE
APPLIED TO TUITION AFTER THE APPLICATION OF PAYMENTS RECEIVED UNDER THE
TUITION ASSISTANCE PROGRAM PURSUANT TO SECTION SIX HUNDRED SIXTY-SEVEN
OF THIS SUBPART.
C. GPA REQUIREMENTS. NOTWITHSTANDING PARAGRAPH C OF SUBDIVISION FOUR
OF SECTION SIX HUNDRED SIXTY-ONE OF THIS PART, A SCHOOL SHALL CERTIFY
THAT A RECIPIENT HAS ACHIEVED A GRADE POINT AVERAGE NECESSARY FOR
SUCCESSFUL COMPLETION OF HIS OR HER COURSEWORK TO RECEIVE PAYMENT UNDER
THE AWARD.
S. 2009--C 145 A. 3009--C
D. CREDIT REQUIREMENTS. AN AWARD SHALL BE MADE TO AN APPLICANT WHO:
(I) IF ENROLLED IN (A) A PRIVATE INSTITUTION OF HIGHER EDUCATION PRIOR
TO APPLICATION, HAS COMPLETED AT LEAST THIRTY COMBINED CREDITS PER YEAR
FOLLOWING THE STUDENT'S START DATE, OR ITS EQUIVALENT, APPLICABLE TO HIS
OR HER PROGRAM OR PROGRAMS OF STUDY OR (B) A PUBLIC INSTITUTION OF HIGH-
ER EDUCATION PRIOR TO APPLICATION, HAS COMPLETED AT LEAST THIRTY
COMBINED CREDITS PER YEAR FOLLOWING THE STUDENT'S START DATE, OR ITS
EQUIVALENT, APPLICABLE TO HIS OR HER PROGRAM OR PROGRAMS OF STUDY AND
WHICH WERE ACCEPTED UPON TRANSFER TO A PRIVATE INSTITUTION OF HIGHER
EDUCATION; (II) ENROLLS IN AT LEAST TWELVE CREDITS PER SEMESTER AND
COMPLETES AT LEAST THIRTY COMBINED CREDITS PER YEAR FOLLOWING THE
STUDENT'S START DATE, OR ITS EQUIVALENT, APPLICABLE TO HIS OR HER
PROGRAM OR PROGRAMS OF STUDY EXCEPT IN LIMITED CIRCUMSTANCES AS
PRESCRIBED BY THE CORPORATION IN REGULATION. NOTWITHSTANDING, IN THE
STUDENT'S LAST SEMESTER, THE STUDENT MAY TAKE AT LEAST ONE COURSE NEEDED
TO MEET HIS OR HER GRADUATION REQUIREMENTS AND ENROLL IN AND COMPLETE AT
LEAST TWELVE CREDIT HOURS OR ITS EQUIVALENT. FOR STUDENTS WHO ARE DISA-
BLED AS DEFINED BY THE AMERICANS WITH DISABILITIES ACT OF 1990, 42 USC
12101, THE CORPORATION SHALL PRESCRIBE RULES AND REGULATIONS THAT ALLOW
APPLICANTS WHO ARE DISABLED TO BE ELIGIBLE FOR AN AWARD PURSUANT TO THIS
SECTION BASED ON MODIFIED CRITERIA.
E. NOTWITHSTANDING PARAGRAPH D OF THIS SUBDIVISION, A STUDENT WHO
OTHERWISE SATISFIES ALL OF THE REQUIREMENTS UNDER THIS SECTION BUT FAILS
TO COMPLETE AT LEAST THIRTY COMBINED CREDITS, OR ITS EQUIVALENT, APPLI-
CABLE TO HIS OR HER PROGRAM OR PROGRAMS OF STUDY IN ANY YEAR SHALL BE
ELIGIBLE TO RECEIVE AN AWARD PAYMENT FOR THE FIRST SEMESTER OF SUCH
YEAR, PROVIDED HOWEVER, THE STUDENT SHALL BE INELIGIBLE FOR ANY FURTHER
PAYMENTS UNDER THIS SECTION.
F. ADDITIONAL REQUIREMENTS. A RECIPIENT SHALL AGREE TO RESIDE EXCLU-
SIVELY IN NEW YORK STATE, AND SHALL NOT BE EMPLOYED IN ANY OTHER STATE,
FOR A CONTINUOUS NUMBER OF YEARS EQUAL TO THE DURATION OF THE AWARD
RECEIVED WITHIN SIX MONTHS OF RECEIPT OF HIS OR HER FINAL AWARD PAYMENT,
AND SIGN A CONTRACT WITH THE CORPORATION TO HAVE HIS OR HER FULL AWARD
CONVERTED TO A STUDENT LOAN ACCORDING TO A SCHEDULE TO BE DETERMINED BY
THE CORPORATION IF SUCH STUDENT FAILS TO FULFILL THIS REQUIREMENT. THE
TERMS AND CONDITIONS OF THIS PARAGRAPH MAY, AS ESTABLISHED BY THE RULES
AND REGULATIONS OF THE CORPORATION, BE DEFERRED: (I) TO COMPLETE UNDER-
GRADUATE STUDY; OR (II) TO ATTEND GRADUATE SCHOOL ON AT LEAST A HALF-
TIME BASIS. ANY OBLIGATION TO COMPLY WITH SUCH PROVISIONS AS OUTLINED IN
THIS PARAGRAPH MAY BE CANCELLED UPON THE DEATH OF THE RECIPIENT.
NOTWITHSTANDING ANY PROVISIONS OF THIS PARAGRAPH TO THE CONTRARY, THE
CORPORATION IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS TO PROVIDE
FOR THE WAIVER OR SUSPENSION OF ANY FINANCIAL OBLIGATION WHICH WOULD
INVOLVE EXTREME HARDSHIP.
G. FAILURE TO MEET THE CONDITIONS OF THE AWARD SHALL NOT OTHERWISE
DISQUALIFY A STUDENT'S ELIGIBILITY TO RECEIVE AN AWARD UNDER SECTION SIX
HUNDRED SIXTY-SEVEN OF THIS SUBPART.
2. DURATION. NO UNDERGRADUATE SHALL BE ELIGIBLE FOR MORE THAN FOUR
ACADEMIC YEARS OF STUDY, OR FIVE ACADEMIC YEARS IF THE PROGRAM OF STUDY
NORMALLY REQUIRES FIVE YEARS. AN UNDERGRADUATE STUDENT ENROLLED IN AN
ELIGIBLE TWO-YEAR PROGRAM APPROVED BY THE COMMISSIONER SHALL BE ELIGIBLE
FOR NO MORE THAN TWO ACADEMIC YEARS. UNDER NO CIRCUMSTANCES SHALL A
STUDENT RECEIVE AN AWARD FOR A TWO-YEAR PROGRAM FOR MORE THAN TWO
CONSECUTIVE YEARS OF ACADEMIC STUDY OR FOUR CONSECUTIVE SEMESTERS OF
ACADEMIC STUDY; OR AT A FOUR OR FIVE-YEAR PROGRAM, FOR MORE THAN FOUR
CONSECUTIVE YEARS OR EIGHT CONSECUTIVE SEMESTERS OF ACADEMIC STUDY OR
S. 2009--C 146 A. 3009--C
FIVE CONSECUTIVE YEARS, OR TEN CONSECUTIVE SEMESTERS OF STUDY IF THE
PROGRAM NORMALLY REQUIRES FIVE YEARS. NOTWITHSTANDING, SUCH DURATION
MAY BE EXTENDED FOR AN ALLOWABLE INTERRUPTION OF STUDY INCLUDING, BUT
NOT LIMITED TO, DEATH OF A FAMILY MEMBER, MEDICAL LEAVE, MILITARY
SERVICE, AND PARENTAL LEAVE, AS ESTABLISHED BY THE CORPORATION IN REGU-
LATION.
3. INCOME. AN AWARD SHALL BE MADE TO AN APPLICANT WHO HAS AN ADJUSTED
GROSS INCOME, AS DEFINED IN THIS SUBDIVISION, EQUAL TO OR LESS THAN: (I)
ONE HUNDRED THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN AWARD IN THE
TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN ACADEMIC YEAR; (II) ONE
HUNDRED TEN THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN AWARD IN THE
TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN ACADEMIC YEAR; AND (III)
ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN
AWARD IN THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY ACADEMIC YEAR
AND THEREAFTER. ADJUSTED GROSS INCOME SHALL BE THE TOTAL OF THE COMBINED
ADJUSTED GROSS INCOME OF THE APPLICANT AND THE APPLICANT'S PARENTS OR
THE APPLICANT AND THE APPLICANT'S SPOUSE, IF MARRIED, AS REPORTED ON THE
FEDERAL INCOME TAX RETURN, OR AS OTHERWISE OBTAINED BY THE CORPORATION,
FOR THE CALENDAR YEAR COINCIDING WITH THE TAX YEAR ESTABLISHED BY THE
U.S. DEPARTMENT OF EDUCATION TO QUALIFY APPLICANTS FOR FEDERAL STUDENT
FINANCIAL AID PROGRAMS AUTHORIZED BY TITLE IV OF THE HIGHER EDUCATION
ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, FOR THE SCHOOL YEAR IN
WHICH APPLICATION FOR ASSISTANCE IS MADE.
4. AMOUNT. WITHIN THE AMOUNTS APPROPRIATED THEREFOR AND BASED ON
AVAILABILITY OF FUNDS, AWARDS SHALL BE GRANTED BEGINNING WITH THE TWO
THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN ACADEMIC YEAR AND THEREAFTER
TO APPLICANTS THAT THE CORPORATION HAS DETERMINED ARE ELIGIBLE TO
RECEIVE SUCH AWARDS. THE AMOUNT OF THE AWARD UNDER THIS PROGRAM SHALL BE
SUCH THAT THE SUM OF THE AWARD PLUS A STUDENT'S TUITION ASSISTANCE
PROGRAM AWARD PURSUANT TO SECTION SIX HUNDRED SIXTY-SEVEN OF THIS
SUBPART PLUS THE INSTITUTION'S MATCHING AWARD PURSUANT TO SUBDIVISION
FIVE OF THIS SECTION SHALL EQUAL SIX THOUSAND DOLLARS.
5. MATCHING AWARDS. COMMENCING WITH THE TWO THOUSAND SEVENTEEN--TWO
THOUSAND EIGHTEEN ACADEMIC YEAR AND THEREAFTER, PARTICIPATING INSTI-
TUTIONS SHALL CREDIT EACH RECIPIENT'S REMAINING TUITION EXPENSES IN AN
AMOUNT EQUAL TO THE RECIPIENT'S AWARD UNDER THIS SECTION. SUCH CREDIT
SHALL BE APPLIED AFTER THE RECIPIENT HAS RECEIVED AN INSTITUTIONAL AID
PACKAGE, IF ANY, TO ENSURE THAT THIS PROGRAM DOES NOT REDUCE INSTITU-
TIONAL AID THAT WOULD OTHERWISE BE GRANTED.
6. TUITION. THE RATE OF TUITION CHARGED TO AN INDIVIDUAL RECEIVING AN
AWARD SHALL NOT BE INCREASED FOR THE DURATION OF TIME THAT SUCH INDIVID-
UAL RECEIVES AN AWARD.
7. COLLEGE OPTION. AN INSTITUTION MAY CHOOSE NOT TO PARTICIPATE IN THE
PROGRAM AND STUDENTS ATTENDING ANY NON-PARTICIPATING COLLEGE MAY STILL
BE ELIGIBLE TO RECEIVE AN AWARD PURSUANT TO SECTION SIX HUNDRED SIXTY-
SEVEN OF THIS SUBPART.
8. RECIPIENT SELECTION. THE PRESIDENT MAY ESTABLISH: A. AN APPLICATION
DEADLINE AND B. A METHOD OF SELECTING RECIPIENTS IF IN ANY GIVEN YEAR
THERE ARE INSUFFICIENT FUNDS TO COVER THE NEEDS OF ALL THE APPLICANTS
PROVIDED THAT PRIORITY SHALL BE GIVEN TO ELIGIBLE APPLICANTS WHO ARE
CURRENTLY IN ATTENDANCE AT AN INSTITUTION OF HIGHER EDUCATION.
9. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS, NECES-
SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION INCLUDING,
BUT NOT LIMITED TO, THE CRITERIA FOR DISTRIBUTING THE AWARDS, WHICH MAY
INCLUDE A LOTTERY OR OTHER FORM OF RANDOM SELECTION.
S. 2009--C 147 A. 3009--C
§ 2. This act shall take effect immediately.
PART JJJ
Section 1. Subparagraph 4 of paragraph h of subdivision 2 of section
355 of the education law, as amended by section 1 of part D of chapter
54 of the laws of 2016, is amended to read as follows:
(4) The trustees shall not impose a differential tuition charge based
upon need or income. Except as hereinafter provided, all students
enrolled in programs leading to like degrees at state-operated insti-
tutions of the state university shall be charged a uniform rate of
tuition except for differential tuition rates based on state residency.
Provided, however, that the trustees may authorize the presidents of the
colleges of technology and the colleges of agriculture and technology to
set differing rates of tuition for each of the colleges for students
enrolled in degree-granting programs leading to an associate degree and
non-degree granting programs so long as such tuition rate does not
exceed the tuition rate charged to students who are enrolled in like
degree programs or degree-granting undergraduate programs leading to a
baccalaureate degree at other state-operated institutions of the state
university of New York. Notwithstanding any other provision of this
subparagraph, the trustees may authorize the setting of a separate cate-
gory of tuition rate, that shall be greater than the tuition rate for
resident students and less than the tuition rate for non-resident
students, only for students enrolled in distance learning courses who
are not residents of the state. Except as otherwise authorized in this
subparagraph, the trustees shall not adopt changes affecting tuition
charges prior to the enactment of the annual budget, provided however
that:
(i) Commencing with the two thousand eleven--two thousand twelve
academic year and ending in the two thousand fifteen--two thousand
sixteen academic year the state university of New York board of trustees
shall be empowered to increase the resident undergraduate rate of
tuition by not more than three hundred dollars over the resident under-
graduate rate of tuition adopted by the board of trustees in the prior
academic year, provided however that commencing with the two thousand
eleven--two thousand twelve academic year [and each year thereafter] AND
ENDING IN THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN ACADEMIC YEAR
if the annual resident undergraduate rate of tuition would exceed five
thousand dollars, then a tuition credit for each eligible student, as
determined and calculated by the New York state higher education
services corporation pursuant to section six hundred eighty-nine-a of
this title, shall be applied toward the tuition charged for each semes-
ter, quarter or term of study. Tuition for each semester, quarter or
term of study shall not be due for any student eligible to receive such
tuition credit until the tuition credit is calculated and applied
against the tuition charged for the corresponding semester, quarter or
term.
(ii) COMMENCING WITH THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
ACADEMIC YEAR AND ENDING IN THE TWO THOUSAND TWENTY--TWO THOUSAND TWEN-
TY-ONE ACADEMIC YEAR THE STATE UNIVERSITY OF NEW YORK BOARD OF TRUSTEES
SHALL BE EMPOWERED TO INCREASE THE RESIDENT UNDERGRADUATE RATE OF
TUITION BY NOT MORE THAN TWO HUNDRED DOLLARS OVER THE RESIDENT UNDER-
GRADUATE RATE OF TUITION ADOPTED BY THE BOARD OF TRUSTEES IN THE PRIOR
ACADEMIC YEAR, PROVIDED, HOWEVER THAT IF THE ANNUAL RESIDENT UNDERGRADU-
ATE RATE OF TUITION WOULD EXCEED FIVE THOUSAND DOLLARS, THEN A TUITION
S. 2009--C 148 A. 3009--C
CREDIT FOR EACH ELIGIBLE STUDENT, AS DETERMINED AND CALCULATED BY THE
NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION PURSUANT TO SECTION
SIX HUNDRED EIGHTY-NINE-A OF THIS TITLE, SHALL BE APPLIED TOWARD THE
TUITION CHARGED FOR EACH SEMESTER, QUARTER OR TERM OF STUDY. TUITION FOR
EACH SEMESTER, QUARTER OR TERM OF STUDY SHALL NOT BE DUE FOR ANY STUDENT
ELIGIBLE TO RECEIVE SUCH TUITION CREDIT UNTIL THE TUITION CREDIT IS
CALCULATED AND APPLIED AGAINST THE TUITION CHARGED FOR THE CORRESPONDING
SEMESTER, QUARTER OR TERM. PROVIDED, FURTHER THAT THE REVENUE RESULTING
FROM AN INCREASE IN THE RATE OF TUITION SHALL BE ALLOCATED TO EACH
CAMPUS PURSUANT TO A PLAN APPROVED BY THE BOARD OF TRUSTEES TO SUPPORT
INVESTMENTS IN NEW CLASSROOM FACULTY, INSTRUCTION, INITIATIVES TO
IMPROVE STUDENT SUCCESS AND ON-TIME COMPLETION AND A TUITION CREDIT FOR
EACH ELIGIBLE STUDENT.
(III) On or before November thirtieth, two thousand [eleven]
SEVENTEEN, the trustees shall approve and submit to the chairs of the
assembly ways and means committee and the senate finance committee and
to the director of the budget a master tuition plan setting forth the
tuition rates that the trustees propose for resident undergraduate
students for the [five] FOUR year period commencing with the two thou-
sand [eleven] SEVENTEEN--two thousand [twelve] EIGHTEEN academic year
and ending in the two thousand [fifteen] TWENTY--two thousand [sixteen]
TWENTY-ONE academic year, and shall submit any proposed amendments to
such plan by November thirtieth of each subsequent year thereafter
through November thirtieth, two thousand [fifteen] TWENTY, and provided
further, that with the approval of the board of trustees, each universi-
ty center may increase non-resident undergraduate tuition rates each
year by not more than ten percent over the tuition rates of the prior
academic year for a six year period commencing with the two thousand
eleven--two thousand twelve academic year and ending in the two thousand
sixteen--two thousand seventeen academic year.
[(iii)] (IV) Beginning in state fiscal year two thousand twelve-two
thousand thirteen and ending in state fiscal year two thousand fifteen-
-two thousand sixteen, the state shall appropriate and make available
general fund operating support, including fringe benefits, for the state
university in an amount not less than the amount appropriated and made
available in the prior state fiscal year; provided, however, that if the
governor declares a fiscal emergency, and communicates such emergency to
the temporary president of the senate and speaker of the assembly, state
support for operating expenses at the state university and city univer-
sity may be reduced in a manner proportionate to one another, and the
aforementioned provisions shall not apply.
(V) BEGINNING IN STATE FISCAL YEAR TWO THOUSAND SEVENTEEN--TWO THOU-
SAND EIGHTEEN AND ENDING IN STATE FISCAL YEAR TWO THOUSAND TWENTY--TWO
THOUSAND TWENTY-ONE, THE STATE SHALL APPROPRIATE AND MAKE AVAILABLE
GENERAL FUND OPERATING SUPPORT, INCLUDING FRINGE BENEFITS, FOR THE STATE
UNIVERSITY IN AN AMOUNT NOT LESS THAN THE AMOUNT APPROPRIATED AND MADE
AVAILABLE IN THE PRIOR STATE FISCAL YEAR; PROVIDED, HOWEVER, THAT IF THE
GOVERNOR DECLARES A FISCAL EMERGENCY, AND COMMUNICATES SUCH EMERGENCY TO
THE TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY, STATE
SUPPORT FOR OPERATING EXPENSES AT THE STATE UNIVERSITY AND CITY UNIVER-
SITY MAY BE REDUCED IN A MANNER PROPORTIONATE TO ONE ANOTHER, AND THE
AFOREMENTIONED PROVISIONS SHALL NOT APPLY; PROVIDED FURTHER, THE STATE
SHALL APPROPRIATE AND MAKE AVAILABLE GENERAL FUND SUPPORT TO FULLY FUND
THE TUITION CREDIT PURSUANT TO SUBDIVISION TWO OF SECTION SIX HUNDRED
SIXTY-NINE-H OF THIS TITLE.
S. 2009--C 149 A. 3009--C
[(iv)] (VI) For the state university fiscal years commencing two thou-
sand eleven--two thousand twelve and ending two thousand fifteen--two
thousand sixteen, each university center may set aside a portion of its
tuition revenues derived from tuition increases to provide increased
financial aid for New York state resident undergraduate students whose
net taxable income is eighty thousand dollars or more subject to the
approval of a NY-SUNY 2020 proposal by the governor and the chancellor
of the state university of New York. Nothing in this paragraph shall be
construed as to authorize that students whose net taxable income is
eighty thousand dollars or more are eligible for tuition assistance
program awards pursuant to section six hundred sixty-seven of this chap-
ter.
§ 2. Paragraph (a) of subdivision 7 of section 6206 of the education
law, as amended by section 2 of part D of chapter 54 of the laws of
2016, is amended to read as follows:
(a) The board of trustees shall establish positions, departments,
divisions and faculties; appoint and in accordance with the provisions
of law fix salaries of instructional and non-instructional employees
therein; establish and conduct courses and curricula; prescribe condi-
tions of student admission, attendance and discharge; and shall have the
power to determine in its discretion whether tuition shall be charged
and to regulate tuition charges, and other instructional and non-in-
structional fees and other fees and charges at the educational units of
the city university. The trustees shall review any proposed community
college tuition increase and the justification for such increase. The
justification provided by the community college for such increase shall
include a detailed analysis of ongoing operating costs, capital, debt
service expenditures, and all revenues. The trustees shall not impose a
differential tuition charge based upon need or income. All students
enrolled in programs leading to like degrees at the senior colleges
shall be charged a uniform rate of tuition, except for differential
tuition rates based on state residency. Notwithstanding any other
provision of this paragraph, the trustees may authorize the setting of a
separate category of tuition rate, that shall be greater than the
tuition rate for resident students and less than the tuition rate for
non-resident students, only for students enrolled in distance learning
courses who are not residents of the state; provided, however, that:
(i) Commencing with the two thousand eleven--two thousand twelve
academic year and ending in the two thousand fifteen--two thousand
sixteen academic year, the city university of New York board of trustees
shall be empowered to increase the resident undergraduate rate of
tuition by not more than three hundred dollars over the resident under-
graduate rate of tuition adopted by the board of trustees in the prior
academic year, provided however that commencing with the two thousand
eleven--two thousand twelve academic year and [each year thereafter]
ENDING WITH THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN ACADEMIC
YEAR if the annual resident undergraduate rate of tuition would exceed
five thousand dollars, then a tuition credit for each eligible student,
as determined and calculated by the New York state higher education
services corporation pursuant to section six hundred eighty-nine-a of
this chapter, shall be applied toward the tuition charged for each
semester, quarter or term of study. Tuition for each semester, quarter
or term of study shall not be due for any student eligible to receive
such tuition credit until the tuition credit is calculated and applied
against the tuition charged for the corresponding semester, quarter or
term.
S. 2009--C 150 A. 3009--C
(ii) COMMENCING WITH THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
ACADEMIC YEAR AND ENDING IN THE TWO THOUSAND TWENTY--TWO THOUSAND TWEN-
TY-ONE ACADEMIC YEAR THE CITY UNIVERSITY OF NEW YORK BOARD OF TRUSTEES
SHALL BE EMPOWERED TO INCREASE THE RESIDENT UNDERGRADUATE RATE OF
TUITION BY NOT MORE THAN TWO HUNDRED DOLLARS OVER THE RESIDENT UNDER-
GRADUATE RATE OF TUITION ADOPTED BY THE BOARD OF TRUSTEES IN THE PRIOR
ACADEMIC YEAR, PROVIDED HOWEVER THAT IF THE ANNUAL RESIDENT UNDERGRADU-
ATE RATE OF TUITION WOULD EXCEED FIVE THOUSAND DOLLARS, THEN A TUITION
CREDIT FOR EACH ELIGIBLE STUDENT, AS DETERMINED AND CALCULATED BY THE
NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION PURSUANT TO SECTION
SIX HUNDRED EIGHTY-NINE-A OF THIS TITLE, SHALL BE APPLIED TOWARD THE
TUITION CHARGED FOR EACH SEMESTER, QUARTER OR TERM OF STUDY. TUITION FOR
EACH SEMESTER, QUARTER OR TERM OF STUDY SHALL NOT BE DUE FOR ANY STUDENT
ELIGIBLE TO RECEIVE SUCH TUITION CREDIT UNTIL THE TUITION CREDIT IS
CALCULATED AND APPLIED AGAINST THE TUITION CHARGED FOR THE CORRESPONDING
SEMESTER, QUARTER OR TERM. PROVIDED, FURTHER THAT THE REVENUE RESULTING
FROM AN INCREASE IN THE RATE OF TUITION SHALL BE ALLOCATED TO EACH
CAMPUS PURSUANT TO A PLAN APPROVED BY THE BOARD OF TRUSTEES TO SUPPORT
INVESTMENTS IN NEW CLASSROOM FACULTY, INSTRUCTION, INITIATIVES TO
IMPROVE STUDENT SUCCESS AND ON-TIME COMPLETION AND A TUITION CREDIT FOR
EACH ELIGIBLE STUDENT.
(III) On or before November thirtieth, two thousand [eleven]
SEVENTEEN, the trustees shall approve and submit to the chairs of the
assembly ways and means committee and the senate finance committee and
to the director of the budget a master tuition plan setting forth the
tuition rates that the trustees propose for resident undergraduate
students for the [five] FOUR year period commencing with the two thou-
sand [eleven] SEVENTEEN--two thousand [twelve] EIGHTEEN academic year
and ending in the two thousand [fifteen] TWENTY--two thousand [sixteen]
TWENTY-ONE academic year, and shall submit any proposed amendments to
such plan by November thirtieth of each subsequent year thereafter
through November thirtieth, two thousand [fifteen] TWENTY.
[(iii)] (IV) Beginning in state fiscal year two thousand twelve--two
thousand thirteen and ending in state fiscal year two thousand fifteen-
-two thousand sixteen, the state shall appropriate and make available
state support for operating expenses, including fringe benefits, for the
city university in an amount not less than the amount appropriated and
made available in the prior state fiscal year; provided, however, that
if the governor declares a fiscal emergency, and communicates such emer-
gency to the temporary president of the senate and speaker of the assem-
bly, state support for operating expenses of the state university and
city university may be reduced in a manner proportionate to one another,
and the aforementioned provisions shall not apply.
(V) BEGINNING IN STATE FISCAL YEAR TWO THOUSAND SEVENTEEN--TWO THOU-
SAND EIGHTEEN AND ENDING IN STATE FISCAL YEAR TWO THOUSAND TWENTY--TWO
THOUSAND TWENTY-ONE, THE STATE SHALL APPROPRIATE AND MAKE AVAILABLE
GENERAL FUND OPERATING SUPPORT, INCLUDING FRINGE BENEFITS, FOR THE CITY
UNIVERSITY IN AN AMOUNT NOT LESS THAN THE AMOUNT APPROPRIATED AND MADE
AVAILABLE IN THE PRIOR STATE FISCAL YEAR; PROVIDED, HOWEVER, THAT IF THE
GOVERNOR DECLARES A FISCAL EMERGENCY, AND COMMUNICATES SUCH EMERGENCY TO
THE TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY, STATE
SUPPORT FOR OPERATING EXPENSES AT THE STATE UNIVERSITY AND CITY UNIVER-
SITY MAY BE REDUCED IN A MANNER PROPORTIONATE TO ONE ANOTHER, AND THE
AFOREMENTIONED PROVISIONS SHALL NOT APPLY; PROVIDED FURTHER, THE STATE
SHALL APPROPRIATE AND MAKE AVAILABLE GENERAL FUND SUPPORT TO FULLY FUND
S. 2009--C 151 A. 3009--C
THE TUITION CREDIT PURSUANT TO SUBDIVISION TWO OF SECTION SIX HUNDRED
SIXTY-NINE-H OF THIS CHAPTER.
§ 3. Section 359 of the education law is amended by adding a new
subdivision 6 to read as follows:
6. THE STATE UNIVERSITY TRUSTEES SHALL ANNUALLY REPORT ON HOW THE
REVENUE GENERATED HAS BEEN INVESTED IN FACULTY, INSTRUCTION, INITIATIVES
TO IMPROVE STUDENT SUCCESS AND ON-TIME COMPLETION AND STUDENT FINANCIAL
ASSISTANCE FOR THE DURATION OF THE FOUR YEAR TUITION PLAN. THE TRUSTEES
SHALL SUBMIT THE REPORT BY SEPTEMBER FIRST OF EACH SUBSEQUENT YEAR.
§ 4. Section 6206 of the education law is amended by adding a new
subdivision 19 to read as follows:
19. THE CITY UNIVERSITY TRUSTEES SHALL ANNUALLY REPORT ON HOW THE
REVENUE GENERATED HAS BEEN INVESTED IN FACULTY, INSTRUCTION, INITIATIVES
TO IMPROVE STUDENT SUCCESS AND ON-TIME COMPLETION AND STUDENT FINANCIAL
ASSISTANCE FOR THE DURATION OF THE FOUR YEAR TUITION PLAN. THE TRUSTEES
SHALL SUBMIT THE REPORT BY SEPTEMBER FIRST OF EACH SUBSEQUENT YEAR.
§ 5. Section 16 of chapter 260 of the laws of 2011 amending the educa-
tion law and the New York state urban development corporation act relat-
ing to establishing components of the NY-SUNY 2020 challenge grant
program, as amended by section 5 of part D of chapter 54 of the laws of
2016, is amended to read as follows:
§ 16. This act shall take effect July 1, 2011; provided that sections
one, two, three, four, five, six, eight, nine, ten, eleven, twelve and
thirteen of this act shall expire [6] 10 years after such effective date
when upon such date the provisions of this act shall be deemed repealed;
and provided further that sections fourteen and fifteen of this act
shall expire 5 years after such effective date when upon such date the
provisions of this act shall be deemed repealed.
§ 6. This act shall take effect immediately; provided that the amend-
ments to subparagraph 4 of paragraph h of subdivision 2 of section 355
of the education law made by section one of this act and the amendments
to paragraph (a) of subdivision 7 of section 6206 of the education law
made by section two of this act shall not affect the expiration of such
provisions and shall be deemed to expire therewith.
PART KKK
Section 1. The education law is amended by adding a new section
667-c-1 to read as follows:
§ 667-C-1. NEW YORK STATE PART-TIME SCHOLARSHIP (PTS) AWARD PROGRAM.
1. THE NEW YORK STATE PART-TIME SCHOLARSHIP (PTS) AWARD PROGRAM IS HERE-
BY ESTABLISHED FOR THE PURPOSE OF PROVIDING SCHOLARSHIP AWARDS TO
STUDENTS WHO ATTEND A COMMUNITY COLLEGE AT THE STATE UNIVERSITY OF NEW
YORK (SUNY) OR THE CITY UNIVERSITY OF NEW YORK (CUNY) ON A PART-TIME
BASIS.
2. TO BE ELIGIBLE, AN APPLICANT MUST MEET THE QUALIFICATIONS OF SUBDI-
VISIONS THREE AND FIVE OF SECTION SIX HUNDRED SIXTY-ONE OF THIS ARTICLE,
ENROLL IN AT LEAST SIX BUT LESS THEN TWELVE CREDIT HOURS AT A SUNY OR
CUNY COMMUNITY COLLEGE IN THE 2017-2018 ACADEMIC YEAR, OR THEREAFTER,
AND MAINTAIN A GRADE POINT AVERAGE OF 2.0.
3. A. SUCH AWARDS SHALL BE MADE TO ELIGIBLE APPLICANTS IN THE FOLLOW-
ING PRIORITY:
(I) FIRST, TO APPLICANTS WHO HAVE RECEIVED PAYMENT OF AN AWARD PURSU-
ANT TO THIS SECTION IN A PRIOR YEAR AND REMAIN IN GOOD ACADEMIC STAND-
ING; AND
S. 2009--C 152 A. 3009--C
(II) SECOND, TO APPLICANTS IN DESCENDING ORDER BASED ON FINANCIAL NEED
AS DETERMINED BY THE CORPORATION AND; PROVIDED THAT AWARDS MADE SHALL BE
PROPORTIONATE TO THE TOTAL APPLICATIONS RECEIVED FOR STUDENTS ACCEPTED
FOR UNDERGRADUATE STUDY AT SUNY AND CUNY RESPECTIVELY. PROVIDED, HOWEV-
ER, IN THE PROGRAM'S FIRST YEAR, FIRST PRIORITY SHALL BE IN ACCORDANCE
WITH THIS SUBPARAGRAPH.
B. IN THE EVENT THAT THERE ARE MORE APPLICANTS WHO HAVE THE SAME
PRIORITY THAN THERE ARE REMAINING SCHOLARSHIPS, THE PRESIDENT SHALL
DISTRIBUTE THE REMAINING NUMBER OF SUCH SCHOLARSHIPS BY MEANS OF A
LOTTERY OR OTHER FORM OF RANDOM SELECTION.
4. WITHIN AMOUNTS APPROPRIATED THEREFOR, THE PRESIDENT SHALL GRANT
AWARDS TO ELIGIBLE APPLICANTS TO COVER THE COST OF SIX CREDIT HOURS PER
SEMESTER AT A SUNY OR CUNY COMMUNITY COLLEGE, PROVIDED HOWEVER, THAT NO
SUCH AWARD SHALL EXCEED FIFTEEN HUNDRED DOLLARS PER SEMESTER.
5. PTS AWARDS SHALL BE GRANTED PURSUANT TO THIS SECTION FOR NO MORE
THAN FOUR CONSECUTIVE ACADEMIC SEMESTERS PURSUANT TO FUTURE APPROPRI-
ATIONS FOR THE CONTINUATION OF THIS PROGRAM.
6. THE CORPORATION IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS,
AND MAY PROMULGATE EMERGENCY REGULATIONS, NECESSARY FOR THE IMPLEMENTA-
TION OF THE PROVISIONS OF THIS SECTION.
§ 2. This act shall take effect immediately.
PART LLL
Section 1. On or before June 30, 2018, the president of the higher
education services corporation shall report on options to make college
more affordable for New York students and their families and shall issue
such report to the governor, the temporary president of the senate, the
speaker of the assembly, the senate finance committee, the assembly ways
and means committee and the higher education committees of the legisla-
ture.
§ 2. The report shall, at a minimum: (1) explore options for a program
to allow qualified residents to refinance student loan debt at favorable
interest rates including options to refinance student loan debt for
individuals who have been out of college for at least ten years; (2)
analyze alternative methods to provide student loan debt relief which
shall include a review of other states' policies on minimizing such
debt; (3) review student housing at the state university of New York and
city university of New York which shall include a comparison of student
charges and facility operational costs, as well as occupancy policies
and requirements; (4) review programs and options to enable families to
prepare for college costs through various programs including pre-paid
tuition programs and other college savings programs; (5) examine afford-
ability initiatives at public and private colleges which may include but
not be limited to textbook affordability, reducing the cost of student
housing, student transportation, reduction of administrative costs, and
the creation of on-campus or community job opportunity for students; (6)
and in consultation with the chancellor of the state university of New
York and the chancellor of the city university of New York examine the
process by which students, who are receiving support through opportunity
programs or other programs that provide additional academic support, are
able to maintain such support when such students transfer to a different
campus or transfer from a community college to a senior or state oper-
ated college. Information presented in the report will allow colleges
to explore opportunities to implement college affordability options.
S. 2009--C 153 A. 3009--C
§ 3. This act shall take effect immediately and shall expire and be
deemed repealed January 1, 2019.
PART MMM
Section 1. Legislative intent. The legislature hereby recognizes the
need to invest in individuals committed to working in the field of child
welfare by providing higher education incentives for current and
prospective employees. This workforce is in charge of ensuring the
health, safety, and well-being of our state's most vulnerable children
and families. By providing current and prospective employees the oppor-
tunity for affordable higher education, we are enhancing their ability
to meet the needs of the children and youth in care, many of whom have
experienced profound trauma, as well as providing the skills needed to
operate in today's changing health landscape.
§ 2. The education law is amended by adding a new section 679-h to
read as follows:
§ 679-H. NEW YORK STATE CHILD WELFARE WORKER INCENTIVE SCHOLARSHIP
PROGRAM. 1. PURPOSE. THE PRESIDENT SHALL GRANT SCHOLARSHIP AWARDS FOR
THE PURPOSE OF ENHANCING THE PROFICIENCY OF CURRENT CHILD WELFARE WORK-
ERS IN NEW YORK STATE. SUCH AWARDS SHALL BE MADE ON A COMPETITIVE BASIS
TO APPLICANTS WHO ARE CURRENTLY EMPLOYED AT A VOLUNTARY NOT-FOR-PROFIT
CHILD WELFARE AGENCY IN NEW YORK STATE LICENSED BY THE OFFICE OF CHIL-
DREN AND FAMILY SERVICES, OR EMPLOYED WITHIN SUCH STATE AGENCY AS A
CHILD WELFARE WORKER, WITH AT LEAST TWO YEARS' EXPERIENCE AND ARE
ENROLLING IN AN APPROVED PROGRAM TO OBTAIN A DEGREE THAT WILL ENHANCE
THEIR ABILITY TO WORK IN SUCH AGENCY.
2. ELIGIBILITY. TO BE ELIGIBLE FOR AN AWARD PURSUANT TO THIS SECTION,
APPLICANTS SHALL: A. BE CURRENTLY EMPLOYED AT A VOLUNTARY NOT-FOR-PRO-
FIT CHILD WELFARE AGENCY IN NEW YORK STATE LICENSED BY THE OFFICE OF
CHILDREN AND FAMILY SERVICES, WITH AT LEAST TWO YEARS OF QUALIFIED EXPE-
RIENCE;
B. BE MATRICULATED IN AN UNDERGRADUATE OR GRADUATE DEGREE PROGRAM AT
AN INSTITUTION OF HIGHER EDUCATION LOCATED WITHIN NEW YORK STATE IN A
PROGRAM OF STUDY THAT WOULD ENHANCE THEIR ABILITY TO WORK IN SUCH AGENCY
AS DETERMINED BY THE PRESIDENT;
C. AGREE TO WORK IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY IN
NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES AS
A CHILD WELFARE WORKER ON A FULL TIME BASIS FOR A PERIOD OF NO LESS THAN
FIVE CONTINUOUS YEARS UPON COMPLETION OF SUCH DEGREE PROGRAM WITHIN A
REASONABLE PERIOD OF TIME AND MAINTAIN RESIDENCY IN NEW YORK STATE FOR
SUCH PERIOD OF EMPLOYMENT; AND
D. COMPLY WITH SUBDIVISIONS THREE AND FIVE OF SECTION SIX HUNDRED
SIXTY-ONE OF THIS PART.
3. AWARD CONDITIONS AND REQUIREMENTS. A. WITHIN AMOUNTS APPROPRIATED
THEREFORE AND BASED ON AVAILABILITY OF FUNDS, SCHOLARSHIPS SHALL BE
GRANTED BEGINNING WITH THE TWO THOUSAND SEVENTEEN -- TWO THOUSAND EIGH-
TEEN ACADEMIC YEAR AND THEREAFTER ON A COMPETITIVE BASIS TO APPLICANTS
WHOM THE CORPORATION HAS CERTIFIED ARE ELIGIBLE TO RECEIVE SUCH AWARDS;
AND WHO AGREE TO WORK IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY
IN NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES
AS A CHILD WELFARE WORKER ON A FULL TIME BASIS FOR A PERIOD OF NO LESS
THAN FIVE CONTINUOUS YEARS UPON COMPLETION OF SUCH DEGREE WITHIN A
REASONABLE PERIOD OF TIME AND MAINTAIN RESIDENCY IN NEW YORK STATE FOR
SUCH PERIOD OF EMPLOYMENT.
S. 2009--C 154 A. 3009--C
B. AN APPLICANT MUST MAKE EVERY REASONABLE EFFORT TO OBTAIN EMPLOYMENT
IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY IN NEW YORK STATE
LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES AS A CHILD
WELFARE WORKER UPON GRADUATION.
4. AMOUNT. THE CORPORATION SHALL GRANT SUCH AWARDS WITHIN THE AMOUNTS
APPROPRIATED FOR SUCH PURPOSE AND BASED ON AVAILABILITY OF FUNDS ACCORD-
ING TO A SCHEDULE TO BE DETERMINED BY THE CORPORATION IN AN AMOUNT:
A. EQUAL TO THE TUITION CHARGED TO STATE RESIDENT STUDENTS ATTENDING
AN UNDERGRADUATE OR GRADUATE DEGREE PROGRAM, AS APPLICABLE, AT THE STATE
UNIVERSITY OF NEW YORK; THE AVERAGE MANDATORY FEES CHARGED AT THE STATE
UNIVERSITY OF NEW YORK, OR THE ACTUAL TUITION AND FEES CHARGED TO THE
RECIPIENT, WHICHEVER IS LESS; AND THE AVERAGE NON-TUITION COST OF
ATTENDANCE, AS DETERMINED BY THE CORPORATION AND AS APPROVED BY THE
DIRECTOR OF THE BUDGET, FOR A STUDENT AT THE STATE UNIVERSITY OF NEW
YORK OR ACTUAL NON-TUITION COST OF ATTENDANCE AT SUCH INSTITUTION,
WHICHEVER IS LESS PROVIDED THAT THE SCHOLARSHIP SHALL NOT EXCEED AN
AMOUNT THAT IS EQUAL TO THE TOTAL COST OF ATTENDANCE DETERMINED FOR
FEDERAL TITLE IV STUDENT FINANCIAL AID PURPOSES, LESS ALL OTHER SCHOLAR-
SHIPS AND GRANTS PROVIDED BY NEW YORK STATE, OTHER STATES, THE FEDERAL
GOVERNMENT, OR OTHER GOVERNMENTS, AND THE AMOUNT OF EDUCATIONAL BENEFITS
PAID UNDER ANY PROGRAM THAT WOULD DUPLICATE THE PURPOSES OF THIS
PROGRAM, PROVIDED THAT ANY SCHOLARSHIPS OR GRANTS PROVIDED TO A RECIPI-
ENT BY THE INSTITUTION WHICH ARE INTENDED TO FUND ANY PORTION OF THE
DIFFERENCE BETWEEN THE ANNUAL STATE AWARD AND THE ACTUAL COSTS OF
ATTENDANCE AT ANY SUCH INSTITUTION SHALL NOT BE CONSIDERED TO DUPLICATE
THE PURPOSES OF THIS PROGRAM.
B. NOT TO EXCEED TWENTY THOUSAND DOLLARS FOR A MASTER'S DEGREE PROGRAM
AT A PRIVATE INSTITUTION; THE AVERAGE MANDATORY FEES CHARGED AT THE
PRIVATE INSTITUTION, OR THE ACTUAL TUITION AND FEES CHARGED TO THE
RECIPIENT, WHICHEVER IS LESS; AND THE AVERAGE NON-TUITION COST OF
ATTENDANCE, AS DETERMINED BY THE CORPORATION AND AS APPROVED BY THE
DIRECTOR OF THE BUDGET, FOR A STUDENT AT SUCH PRIVATE INSTITUTION OR
ACTUAL NON-TUITION COST OF ATTENDANCE AT SUCH INSTITUTION, WHICHEVER IS
LESS, PROVIDED THAT THE SCHOLARSHIP SHALL NOT EXCEED AN AMOUNT THAT IS
EQUAL TO THE TOTAL COST OF ATTENDANCE DETERMINED FOR FEDERAL TITLE IV
STUDENT FINANCIAL AID PURPOSES, LESS ALL OTHER SCHOLARSHIPS AND GRANTS
PROVIDED BY NEW YORK STATE, OTHER STATES, THE FEDERAL GOVERNMENT, OR
OTHER GOVERNMENTS, AND THE AMOUNT OF EDUCATIONAL BENEFITS PAID UNDER ANY
PROGRAM THAT WOULD DUPLICATE THE PURPOSES OF THIS PROGRAM, PROVIDED THAT
ANY SCHOLARSHIPS OR GRANTS PROVIDED TO A RECIPIENT BY THE INSTITUTION
WHICH ARE INTENDED TO FUND ANY PORTION OF THE DIFFERENCE BETWEEN THE
ANNUAL STATE AWARD AND THE ACTUAL COSTS OF ATTENDANCE AT ANY SUCH INSTI-
TUTION SHALL NOT BE CONSIDERED TO DUPLICATE THE PURPOSES OF THIS
PROGRAM.
5. OTHER AWARDS. AWARD RECIPIENTS SHALL BE ELIGIBLE TO APPLY FOR OTHER
AWARDS.
6. DURATION. AN AWARD SHALL ENTITLE THE RECIPIENT TO ANNUAL PAYMENTS
FOR EITHER AN ASSOCIATE'S DEGREE, BACHELOR'S DEGREE, OR GRADUATE DEGREE.
AN ELIGIBLE RECIPIENT ENROLLED IN AN ELIGIBLE TWO YEAR PROGRAM OF STUDY
SHALL NOT RECEIVE AN AWARD FOR MORE THAN TWO ACADEMIC YEARS. AN ELIGIBLE
RECIPIENT ENROLLED IN AN ELIGIBLE UNDERGRADUATE PROGRAM OF STUDY SHALL
NOT RECEIVE AN AWARD FOR MORE THAN FOUR ACADEMIC YEARS OF UNDERGRADUATE
STUDY OR FIVE ACADEMIC YEARS IF THE PROGRAM OF STUDY NORMALLY REQUIRES
FIVE YEARS. AN ELIGIBLE RECIPIENT ENROLLED IN A GRADUATE PROGRAM OF
STUDY SHALL NOT RECEIVE AN AWARD FOR MORE THAN TWO ACADEMIC YEARS.
S. 2009--C 155 A. 3009--C
NOTWITHSTANDING, SUCH DURATION MAY BE EXTENDED FOR AN ALLOWABLE INTER-
RUPTION OF STUDY AS DETERMINED BY THE CORPORATION.
7. PENALTIES FOR NONCOMPLIANCE. A. THE CORPORATION MAY COLLECT THE
FULL AMOUNT OF THE AWARD GIVEN PURSUANT TO THIS SECTION, PLUS INTEREST,
ACCORDING TO A SCHEDULE TO BE DETERMINED BY THE CORPORATION, IF: (I) THE
RECIPIENT FAILS TO COMPLETE THEIR DEGREE PROGRAM WITHIN A REASONABLE
TIME AS DETERMINED BY THE CORPORATION; OR (II) ONE YEAR AFTER THE
COMPLETION OF THE DEGREE PROGRAM IT IS FOUND THAT A RECIPIENT DID NOT
BEGIN FULL-TIME EMPLOYMENT AT A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE
AGENCY IN NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY
SERVICES AS A CHILD WELFARE WORKER; OR (III) THE RECIPIENT FAILS TO
COMPLETE FIVE CONTINUOUS YEARS OF FULL-TIME EMPLOYMENT AT A VOLUNTARY
NOT-FOR-PROFIT CHILD WELFARE AGENCY IN THE STATE LICENSED BY THE OFFICE
OF CHILDREN AND FAMILY SERVICES AS A CHILD WELFARE WORKER OR MAINTAIN
RESIDENCY IN NEW YORK STATE FOR SUCH PERIOD OF EMPLOYMENT; OR (IV) THE
RECIPIENT FAILS TO RESPOND TO REQUESTS BY THE CORPORATION FOR THE STATUS
OF HIS OR HER ACADEMIC OR PROFESSIONAL PROGRESS. THE TERMS AND CONDI-
TIONS OF THIS SUBDIVISION SHALL BE DEFERRED FOR ANY INTERRUPTION IN AN
UNDERGRADUATE OR GRADUATE STUDY OR EMPLOYMENT AS ESTABLISHED BY THE
RULES AND REGULATIONS OF THE CORPORATION. ANY OBLIGATION TO COMPLY WITH
SUCH PROVISIONS AS OUTLINED IN THIS SECTION SHALL BE CANCELLED UPON THE
DEATH OF THE RECIPIENT. NOTWITHSTANDING ANY PROVISIONS OF THIS SUBDIVI-
SION TO THE CONTRARY, THE CORPORATION IS AUTHORIZED TO PROMULGATE RULES
AND REGULATIONS NECESSARY FOR THE WAIVER OF SUSPENSION OF ANY FINANCIAL
OBLIGATION WHICH WOULD INVOLVE EXTREME HARDSHIP.
8. RECIPIENT SELECTION. THE PRESIDENT MAY ESTABLISH:
A. AN APPLICATION DEADLINE; AND
B. A METHOD OF SELECTING RECIPIENTS IF IN ANY GIVEN YEAR THERE ARE
INSUFFICIENT FUNDS TO COVER THE NEEDS OF ALL APPLICANTS AND RETURNING
RECIPIENTS.
9. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS, NECES-
SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION INCLUDING,
BUT NOT LIMITED TO, THE CRITERIA TO DISTRIBUTING THE AWARDS, WHICH MAY
INCLUDE A LOTTERY OR OTHER FORM OF RANDOM SELECTION, AND THE RATE OF
INTEREST CHARGES FOR REPAYMENT OF THE STUDENT LOAN.
§ 3. The education law is amended by adding a new section 679-i to
read as follows:
§ 679-I. NEW YORK STATE CHILD WELFARE WORKER LOAN FORGIVENESS INCEN-
TIVE PROGRAM. 1. PURPOSE. THE PRESIDENT SHALL GRANT STUDENT LOAN
FORGIVENESS AWARDS FOR THE PURPOSE OF ATTRACTING WORKERS TO BE EMPLOYED
IN VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCIES IN NEW YORK STATE
LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES AS A CHILD
WELFARE WORKER. SUCH AWARDS SHALL BE MADE ON A COMPETITIVE BASIS, IN
ACCORDANCE WITH RULES AND REGULATIONS PROMULGATED BY THE CORPORATION FOR
SUCH PURPOSES, TO APPLICANTS WHO MEET THE ELIGIBILITY CRITERIA.
2. ELIGIBILITY. TO BE ELIGIBLE FOR AN AWARD PURSUANT TO THIS SECTION,
APPLICANTS SHALL:
A. HAVE GRADUATED AND OBTAINED AN UNDERGRADUATE OR GRADUATE DEGREE
FROM A COLLEGE OR UNIVERSITY LOCATED IN NEW YORK STATE;
B. HAVE OUTSTANDING STUDENT LOAN DEBT FROM OBTAINING SUCH DEGREE;
C. AGREE TO WORK IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY IN
NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES AS
A CHILD WELFARE WORKER, ON A FULL TIME BASIS FOR A PERIOD OF NO LESS
THAN FIVE YEARS;
D. APPLY FOR THIS PROGRAM WITHIN TWO YEARS OF COLLEGE GRADUATION; AND
S. 2009--C 156 A. 3009--C
E. COMPLY WITH SUBDIVISIONS THREE AND FIVE OF SECTION SIX HUNDRED
SIXTY-ONE OF THIS PART.
3. AWARDS. AWARDS SHALL BE GRANTED TO QUALIFIED APPLICANTS IN THE
AMOUNT OF UP TO TEN THOUSAND DOLLARS PER YEAR, PER APPLICANT, NOT TO
EXCEED A DURATION OF FIVE YEARS AND NOT TO EXCEED THE TOTAL AMOUNT OF
SUCH APPLICANT'S STUDENT LOAN DEBT. THE CORPORATION SHALL GRANT SUCH
AWARDS WITHIN AMOUNTS APPROPRIATED FOR SUCH PURPOSES AND BASED ON THE
AVAILABILITY OF FUNDS. NO ONE APPLICANT SHALL RECEIVE MORE THAN A TOTAL
OF FIFTY THOUSAND DOLLARS UPON THE END OF A FIVE-YEAR PERIOD.
4. PRIORITY. FIRST PRIORITY SHALL BE GIVEN TO APPLICANTS WHO HAVE
RECEIVED PAYMENT OF AN AWARD PURSUANT TO THIS SECTION IN A PRIOR YEAR
AND REMAIN ELIGIBLE. SECOND PRIORITY SHALL BE GIVEN TO APPLICANTS WHO
ARE COMPLETING THE SECOND, THIRD, FOURTH OR FIFTH YEAR OF FULL-TIME
EMPLOYMENT AT A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY IN NEW
YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES. THIRD
PRIORITY SHALL BE GIVEN TO AN APPLICANT WHO CAN DEMONSTRATE ECONOMIC
NEED BUT DID NOT RECEIVE AN AWARD DURING THE FIRST YEAR OF THIS
PROGRAM'S OPERATION. IF LARGER NUMBERS OF APPLICANTS ARE ELIGIBLE PURSU-
ANT TO THIS SUBDIVISION THAN FUNDS AVAILABLE, APPLICANTS SHALL BE CHOSEN
PURSUANT TO RULES AND REGULATIONS PROMULGATED BY THE CORPORATION;
PROVIDED, HOWEVER, THAT EACH APPLICANT CHOSEN SHALL RECEIVE AN AWARD OF
UP TO TEN THOUSAND DOLLARS IN EACH YEAR SUCH APPLICANT IS ACCEPTED INTO
THE PROGRAM.
5. RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS, NECES-
SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION.
§ 4. This act shall take effect immediately.
PART NNN
Section 1. This act enacts into law components of legislation which
are necessary to implement legislation relating to workers' compensation
and insurance. Each component is wholly contained within a Subpart iden-
tified as Subparts A through J. The effective date for each particular
provision contained within such Subpart is set forth in the last section
of such Subpart. Any provision in any section contained within a
Subpart, including the effective date of the Subpart, which makes a
reference to a section "of this act", when used in connection with that
particular component, shall be deemed to mean and refer to the corre-
sponding section of the Subpart in which it is found. Section three of
this act sets forth the general effective date of this act.
SUBPART A
Section 1. Paragraph w of subdivision 3 of section 15 of the workers'
compensation law, as amended by chapter 6 of the laws of 2007, is
amended to read as follows:
w. Other cases. In all other cases of permanent partial disability,
the compensation shall be sixty-six and two-thirds percent of the
difference between the injured employee's average weekly wages and his
or her wage-earning capacity thereafter in the same employment or other-
wise. Compensation under this paragraph shall be payable during the
continuance of such permanent partial disability, WITHOUT THE NECESSITY
FOR THE CLAIMANT WHO IS ENTITLED TO BENEFITS AT THE TIME OF CLASSIFICA-
TION TO DEMONSTRATE ONGOING ATTACHMENT TO THE LABOR MARKET, but subject
to reconsideration of the degree of such impairment by the board on its
S. 2009--C 157 A. 3009--C
own motion or upon application of any party in interest however, all
compensation payable under this paragraph shall not exceed (i) five
hundred twenty-five weeks in cases in which the loss of wage-earning
capacity is greater than ninety-five percent; (ii) five hundred weeks in
cases in which the loss of wage-earning capacity is greater than ninety
percent but not more than ninety-five percent; (iii) four hundred seven-
ty-five weeks in cases in which the loss of wage-earning capacity is
greater than eighty-five percent but not more than ninety percent; (iv)
four hundred fifty weeks in cases in which the loss of wage-earning
capacity is greater than eighty percent but not more than eighty-five
percent; (v) four hundred twenty-five weeks in cases in which the loss
of wage-earning capacity is greater than seventy-five percent but not
more than eighty percent; (vi) four hundred weeks in cases in which the
loss of wage-earning capacity is greater than seventy percent but not
more than seventy-five percent; (vii) three hundred seventy-five weeks
in cases in which the loss of wage-earning capacity is greater than
sixty percent but not more than seventy percent; (viii) three hundred
fifty weeks in cases in which the loss of wage-earning capacity is
greater than fifty percent but not more than sixty percent; (ix) three
hundred weeks in cases in which the loss of wage-earning capacity is
greater than forty percent but not more than fifty percent; (x) two
hundred seventy-five weeks in cases in which the loss of wage-earning
capacity is greater than thirty percent but not more than forty percent;
(xi) two hundred fifty weeks in cases in which the loss of wage-earning
capacity is greater than fifteen percent but not more than thirty
percent; and (xii) two hundred twenty-five weeks in cases in which the
loss of wage-earning capacity is fifteen percent or less. FOR A CLAIM-
ANT WITH A DATE OF ACCIDENT OR DISABLEMENT AFTER THE EFFECTIVE DATE OF
THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT AMENDED THIS
SUBDIVISION, WHERE THE CARRIER OR EMPLOYER HAS PROVIDED COMPENSATION
PURSUANT TO SUBDIVISION FIVE OF THIS SECTION BEYOND ONE HUNDRED THIRTY
WEEKS FROM THE DATE OF ACCIDENT OR DISABLEMENT, ALL SUBSEQUENT WEEKS IN
WHICH COMPENSATION WAS PAID SHALL BE CONSIDERED TO BE BENEFIT WEEKS FOR
PURPOSES OF THIS SECTION, WITH THE CARRIER OR EMPLOYER RECEIVING CREDIT
FOR ALL SUCH SUBSEQUENT WEEKS AGAINST THE AMOUNT OF MAXIMUM BENEFIT
WEEKS WHEN PERMANENT PARTIAL DISABILITY UNDER THIS SECTION IS DETER-
MINED. IN THE EVENT OF PAYMENT FOR INTERMITTENT TEMPORARY PARTIAL DISA-
BILITY PAID AFTER ONE HUNDRED THIRTY WEEKS FROM THE DATE OF ACCIDENT OR
DISABLEMENT, SUCH TIME SHALL BE REDUCED TO A NUMBER OF WEEKS, FOR WHICH
THE CARRIER WILL RECEIVE A CREDIT AGAINST THE MAXIMUM BENEFIT WEEKS.
FOR A CLAIMANT WITH A DATE OF ACCIDENT OR DISABLEMENT AFTER THE EFFEC-
TIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT
AMENDED THIS SUBDIVISION, WHEN PERMANENCY IS AT ISSUE, AND A CLAIMANT
HAS SUBMITTED MEDICAL EVIDENCE THAT HE OR SHE IS NOT AT MAXIMUM MEDICAL
IMPROVEMENT, AND THE CARRIER HAS PRODUCED OR HAS HAD A REASONABLE OPPOR-
TUNITY TO PRODUCE AN INDEPENDENT MEDICAL EXAMINATION CONCERNING MAXIMUM
MEDICAL IMPROVEMENT, AND THE BOARD HAS DETERMINED THAT THE CLAIMANT IS
NOT YET AT MAXIMUM MEDICAL IMPROVEMENT, THE CARRIER SHALL NOT RECEIVE A
CREDIT FOR BENEFIT WEEKS PRIOR TO A FINDING THAT THE CLAIMANT HAS
REACHED MAXIMUM MEDICAL IMPROVEMENT, AT WHICH TIME THE CARRIER SHALL
RECEIVE CREDIT FOR ANY WEEKS OF TEMPORARY DISABILITY PAID TO CLAIMANT
AFTER SUCH FINDING AGAINST THE MAXIMUM BENEFIT WEEKS AWARDED UNDER THIS
SUBDIVISION. For those claimants classified as permanently partially
disabled who no longer receive indemnity payments because they have
surpassed their number of maximum benefit weeks, the following
provisions will apply:
S. 2009--C 158 A. 3009--C
(1) There will be a presumption that medical services shall continue
notwithstanding the completion of the time period for compensation set
forth in this section and the burden of going forward and the burden of
proof will lie with the carrier, self-insured employer or state insur-
ance fund in any application before the board to discontinue or suspend
such services. Medical services will continue during the pendency of any
such application and any appeals thereto.
(2) The board is directed to promulgate regulations that establish an
independent review and appeal by an outside agent or entity of the
board's choosing of any administrative law judge's determination to
discontinue or suspend medical services before a final determination of
the board.
§ 2. Subdivisions 3 and 4 of section 35 of the workers' compensation
law, as added by chapter 6 of the laws of 2007, the opening paragraph of
subdivision 4 as further amended by section 104 of part A of chapter 62
of the laws of 2011, are amended to read as follows:
3. Extreme hardship redetermination. In cases where the loss of wage-
earning capacity is greater than [eighty] SEVENTY-FIVE percent, a claim-
ant may request, within the year prior to the scheduled exhaustion of
indemnity benefits under paragraph w of subdivision three of section
fifteen of this article, that the board reclassify the claimant to
permanent total disability or total industrial disability due to factors
reflecting extreme hardship.
4. Annual safety net reporting. The [commissioner of labor] BOARD, in
conjunction with the [board] COMMISSIONER OF LABOR and the superinten-
dent of financial services, shall track all claimants who have been
awarded permanent partial disability status and report annually on
December first, beginning in two thousand eight, to the governor, the
speaker of the assembly, the majority leader of the senate, and the
chairs of the labor, ways and means and finance committees of the assem-
bly and senate:
(i) The number of said claimants who have:
(1) returned to gainful employment;
(2) been recategorized as being totally industrially disabled;
(3) remain subject to duration limitations set forth in paragraph w of
subdivision three of section fifteen of this article; and
(4) not returned to work, and whose indemnity payments have expired.
(ii) The additional steps the commissioner contemplates are necessary
to minimize the number of workers who have neither returned to work nor
been recategorized from permanent partial disability.
§ 3. Section 23 of the workers' compensation law, as amended by
section 10 of part GG of chapter 57 of the laws of 2013, is amended to
read as follows:
§ 23. Appeals. An award or decision of the board shall be final and
conclusive upon all questions within its jurisdiction, as against the
state fund or between the parties, unless reversed or modified on appeal
therefrom as hereinafter provided. Any party may within thirty days
after notice of the filing of an award or decision of a referee, file
with the board an application in writing for a modification or rescis-
sion or review of such award or decision, as provided in this chapter.
The board shall render its decision upon such application in writing and
shall include in such decision a statement of the facts which formed the
basis of its action on the issues raised before it on such application.
Within thirty days after notice of the decision of the board upon such
application has been served upon the parties, or within thirty days
after notice of an administrative redetermination review decision by the
S. 2009--C 159 A. 3009--C
chair pursuant to subdivision five of section fifty-two, section one
hundred thirty-one or section one hundred forty-one-a of this chapter
has been served upon any party in interest, an appeal may be taken ther-
efrom to the appellate division of the supreme court, third department,
by any party in interest, including an employer insured in the state
fund; provided, however, that any party in interest may within thirty
days after notice of the filing of the board panel's decision with the
secretary of the board, make application in writing for review thereof
by the full board. If the decision or determination was that of a panel
of the board and there was a dissent from such decision or determination
other than a dissent the sole basis of which is to refer the case to an
impartial specialist, OR IF THERE WAS A DECISION OR DETERMINATION BY THE
PANEL WHICH REDUCED THE LOSS OF WAGE EARNING CAPACITY FINDING MADE BY A
COMPENSATION CLAIMS REFEREE PURSUANT TO SUBPARAGRAPH W OF SUBDIVISION
THREE OF SECTION FIFTEEN OF THIS ARTICLE FROM A PERCENTAGE AT OR ABOVE
THE PERCENTAGE SET FORTH IN SUBDIVISION THREE OF SECTION THIRTY-FIVE OF
THIS ARTICLE WHEREBY A CLAIMANT WOULD BE ELIGIBLE TO APPLY FOR AN
EXTREME HARDSHIP REDETERMINATION TO A PERCENTAGE BELOW THE THRESHOLD,
the full board shall review and affirm, modify or rescind such decision
or determination in the same manner as herein above provided for an
award or decision of a referee. If the decision or determination was
that of a unanimous panel of the board, or there was a dissent from such
decision or determination the sole basis of which is to refer the case
to an impartial specialist, the board may in its sole discretion review
and affirm, modify or rescind such decision or determination in the same
manner as herein above provided for an award or decision of a referee.
Failure to apply for review by the full board shall not bar any party in
interest from taking an appeal directly to the court as above provided.
The board may also, in its discretion certify to such appellate division
of the supreme court, questions of law involved in its decision. Such
appeals and the question so certified shall be heard in a summary manner
and shall have precedence over all other civil cases in such court. The
board shall be deemed a party to every such appeal from its decision
upon such application, and the chair shall be deemed a party to every
such appeal from an administrative redetermination review decision
pursuant to subdivision five of section fifty-two of this chapter. The
attorney general shall represent the board and the chair thereon. An
appeal may also be taken to the court of appeals in the same manner and
subject to the same limitations not inconsistent herewith as is now
provided in the civil practice law and rules. It shall not be necessary
to file exceptions to the rulings of the board. An appeal to the appel-
late division of the supreme court, third department, or to the court of
appeals, shall not operate as a stay of the payment of compensation
required by the terms of the award or of the payment of the cost of such
medical, dental, surgical, optometric or other attendance, treatment,
devices, apparatus or other necessary items the employer is required to
provide pursuant to section thirteen of this article which are found to
be fair and reasonable. Where such award is modified or rescinded upon
appeal, the appellant shall be entitled to reimbursement in a sum equal
to the compensation in dispute paid to the respondent in addition to a
sum equal to the cost of such medical, dental, surgical, optometric or
other attendance, treatment, devices, apparatus or other necessary items
the employer is required to provide pursuant to section thirteen of this
article paid by the appellant pending adjudication of the appeal. Such
reimbursement shall be paid from administration expenses as provided in
section one hundred fifty-one of this chapter upon audit and warrant of
S. 2009--C 160 A. 3009--C
the comptroller upon vouchers approved by the chair. Where such award is
subject to the provisions of section twenty-seven of this article, the
appellant shall pay directly to the claimant all compensation as it
becomes due during the pendency of the appeal, and upon affirmance shall
be entitled to credit for such payments. Neither the chair, the board,
the commissioners of the state insurance fund nor the claimant shall be
required to file a bond upon an appeal to the court of appeals. Upon
final determination of such an appeal, the board or chair, as the case
may be, shall enter an order in accordance therewith. Whenever a notice
of appeal is served or an application made to the board by the employer
or insurance carrier for a modification or rescission or review of an
award or decision, and the board shall find that such notice of appeal
was served or such application was made for the purpose of delay or upon
frivolous grounds, the board shall impose a penalty in the amount of
five hundred dollars upon the employer or insurance carrier, which
penalty shall be added to the compensation and paid to the claimant. The
penalties provided herein shall be collected in like manner as compen-
sation. A party against whom an award of compensation shall be made may
appeal from a part of such award. In such a case the payment of such
part of the award as is not appealed from shall not prejudice any rights
of such party on appeal, nor be taken as an admission against such
party. Any appeal by an employer from an administrative redetermination
review decision pursuant to subdivision five of section fifty-two of
this chapter shall in no way serve to relieve the employer from the
obligation to timely pay compensation and benefits otherwise payable in
accordance with the provisions of this chapter.
Nothing contained in this section shall be construed to inhibit the
continuing jurisdiction of the board as provided in section one hundred
twenty-three of this chapter.
§ 4. This act shall take effect immediately.
SUBPART B
Section 1. Subdivision 3 of section 15 of the workers' compensation
law is amended by adding a new paragraph x to read as follows:
X. IMPAIRMENT GUIDELINES. THE CHAIR SHALL CONSULT WITH REPRESENTATIVES
OF LABOR, BUSINESS, MEDICAL PROVIDERS, INSURANCE CARRIERS, AND SELF-IN-
SURED EMPLOYERS REGARDING REVISIONS TO PERMANENCY IMPAIRMENT GUIDELINES,
INCLUDING PERMITTING REVIEW AND COMMENT BY SUCH REPRESENTATIVES' CHOSEN
MEDICAL ADVISORS, AND AFTER CONSULTATION SHALL, IN ACCORDANCE WITH THE
STATE ADMINISTRATIVE PROCEDURE ACT, PROPOSE FOR PUBLIC COMMENT REVISED
PERMANENCY GUIDELINES CONCERNING MEDICAL EVALUATION OF IMPAIRMENT AND
THE DETERMINATION OF PERMANENCY AS SET FORTH IN PARAGRAPHS A THROUGH V
OF THIS SUBDIVISION BY SEPTEMBER FIRST, TWO THOUSAND SEVENTEEN, WITH
SUCH GUIDELINES TO BE ADOPTED BY THE CHAIR BY JANUARY FIRST, TWO THOU-
SAND EIGHTEEN. THE PERMANENCY IMPAIRMENT GUIDELINES SHALL BE REFLECTIVE
OF ADVANCES IN MODERN MEDICINE THAT ENHANCE HEALING AND RESULT IN BETTER
OUTCOMES. IN THE EVENT THE CHAIR FAILS TO ADOPT SUCH PERMANENCY GUIDE-
LINES TO BE EFFECTIVE BY JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE CHAIR
SHALL ADOPT, BY EMERGENCY REGULATION, PERMANENCY IMPAIRMENT GUIDELINES.
THE PERMANENCY IMPAIRMENT GUIDELINES ADOPTED BY EMERGENCY REGULATION
SHALL BE EITHER THE IMPAIRMENT GUIDELINES PROPOSED BY THE CHAIR ON
SEPTEMBER FIRST, TWO THOUSAND SEVENTEEN OR THE PERMANENCY IMPAIRMENT
GUIDELINES CREATED BY THE CONSULTANT TO THE BOARD AND SUBMITTED TO
REPRESENTATIVES OF LABOR, BUSINESS, MEDICAL PROVIDERS, INSURANCE CARRI-
ERS, AND SELF-INSURED EMPLOYERS, AS VOTED ON IN AN EMERGENCY MEETING OF
S. 2009--C 161 A. 3009--C
THE BOARD TO BE HELD ON DECEMBER TWENTY-NINTH, TWO THOUSAND SEVENTEEN.
IN THE EVENT THE BOARD IS UNABLE TO REACH A DECISION AT SUCH MEETING,
THE CHAIR SHALL SELECT THE PERMANENCY GUIDELINES TO BE ADOPTED BY EMER-
GENCY REGULATIONS. EMERGENCY REGULATIONS SHALL BE IN EFFECT FOR NINETY
DAYS OR UNTIL SUCH TIME AS PERMANENT REGULATIONS ARE ADOPTED BY THE
CHAIR. AS OF JANUARY FIRST, TWO THOUSAND EIGHTEEN THE 2012 PERMANENCY
IMPAIRMENT GUIDELINES PERTAINING TO PARAGRAPHS A THROUGH V OF SUBDIVI-
SION THREE OF SECTION FIFTEEN OF THIS ARTICLE ARE REPEALED, AND SHALL
HAVE NO EFFECT. THE BOARD SHALL TRAIN ADJUDICATION AND OTHER STAFF TO
ENSURE TIMELY AND EFFECTIVE IMPLEMENTATION.
§ 2. This act shall take effect immediately.
SUBPART C
Section 1. The workers' compensation law is amended by adding a new
section 13-p to read as follows:
§ 13-P. COMPREHENSIVE PRESCRIPTION DRUG FORMULARY. THE CHAIR SHALL
ESTABLISH A COMPREHENSIVE PRESCRIPTION DRUG FORMULARY ON OR BEFORE
DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN. THE PRESCRIPTION DRUG
FORMULARY SHALL INCLUDE A TIERED LIST OF HIGH-QUALITY, COST-EFFECTIVE
MEDICATIONS THAT ARE PRE-APPROVED TO BE PRESCRIBED AND DISPENSED, AS
WELL AS ADDITIONAL NON-PREFERRED DRUGS THAT CAN BE PRESCRIBED WITH PRIOR
APPROVAL. SUCH PRESCRIPTION DRUG FORMULARY, SHALL INCLUDE BUT NOT BE
LIMITED TO IMPLEMENTATION OF A PHARMACY REIMBURSEMENT STRATEGY, ADMINIS-
TRATION OF A PRESCRIPTION DRUG REBATE PROGRAM FOR FORMULARY DRUGS, A
PRE-APPROVAL PROGRAM, DRUG UTILIZATION REVIEW, AND LIMITATIONS ON THE
PRESCRIBING OF COMPOUNDED MEDICATIONS AND COMPOUNDED TOPICAL PREPARA-
TIONS. THE BOARD SHALL PROMULGATE REGULATIONS TO PERMIT AN INTERESTED
PARTY TO SUBMIT A REQUEST TO THE MEDICAL DIRECTOR OF THE BOARD TO ALTER
OR AMEND THE FORMULARY TO CONSIDER CHANGING THE STATUS OF A DRUG FROM
NON-PREFERRED TO PREFERRED. REGULATIONS MAY INCLUDE A PROVISION FOR
REASONABLE COSTS AND FEES ASSOCIATED WITH THE REVIEW.
§ 2. This act shall take effect immediately.
SUBPART D
Section 1. Paragraph (a) of subdivision 2 of section 25 of the work-
ers' compensation law, as amended by chapter 635 of the laws of 1996, is
amended to read as follows:
(a) In case the employer decides to controvert the right to compen-
sation, it shall, either on or before the eighteenth day after disabili-
ty or within ten days after it has knowledge of the alleged accident,
whichever period is the greater, file a notice with the chair, on a form
prescribed by the chair, that compensation is not being paid, giving the
name of the claimant, name of the employer, date of the alleged accident
and the reason why compensation is not being paid. WHEN A CLAIM FOR
COMPENSATION IS FILED WITH MEDICAL EVIDENCE OF WORK RELATED INJURY OR
ILLNESS, AND THE CLAIMANT IS DISABLED AND NOT WORKING, AND THE CLAIMANT
IS OTHERWISE ENTITLED TO COMPENSATION, AND THE EMPLOYER IS NOT MAKING
PAYMENT TO THE CLAIMANT AS REQUIRED HEREIN, AND THE EMPLOYER HAS NOT
CONTROVERTED THE CLAIM, AND THE EFFORTS TO RESOLVE THE ISSUE WITH THE
CARRIER HAVE NOT BEEN SUCCESSFUL, THE CLAIMANT MAY REQUEST, IN THE
FORMAT PRESCRIBED BY THE CHAIR, A HEARING TO BE HELD WITHIN FORTY-FIVE
DAYS OF THE BOARD'S RECEIPT OF SUCH REQUEST.
If the insurance carrier shall fail either to file notice of contro-
versy or begin payment of compensation within the prescribed period or
S. 2009--C 162 A. 3009--C
within ten days after receipt of a copy of the notice required in
section one hundred ten of this chapter, whichever period is the great-
er, the board may[, after a hearing,] impose a penalty in the amount of
three hundred dollars, which shall be in addition to all other penalties
provided for in this chapter and shall be paid to the claimant. Such
penalty shall be collected in like manner as an award of compensation.
§ 2. Subdivision 3 of section 25 of the workers' compensation law is
amended by adding a new paragraph (g) to read as follows:
(G) NOTWITHSTANDING ANY OTHER PROVISION IN THIS CHAPTER, THE CHAIR MAY
BY REGULATION ELECT TO ESTABLISH A PERFORMANCE STANDARD CONCERNING THE
SUBJECT OF ANY PENALTY OR ASSESSMENT PROVISION APPLICABLE TO AN INSUR-
ANCE CARRIER OR SELF-INSURED EMPLOYER, WHERE SUCH PENALTY OR ASSESSMENT
IS REMITTABLE TO THE NEW YORK STATE TREASURY, OR CHAIR, BUT NOT TO
CLAIMANTS OR ANY OTHER PAYEE OR FUND, AND IMPOSE A SINGLE PENALTY OR
ASSESSMENT UPON THE FAILURE TO MEET THAT PROMULGATED STANDARD, WITH
NOTICE TO THE CARRIER OR SELF-INSURED EMPLOYER. THE PENALTY OR ASSESS-
MENT IMPOSED IN THE AGGREGATE SHALL BE PAYABLE TO THE CHAIR. SUCH AGGRE-
GATE PENALTY OR ASSESSMENT SHALL BE BASED UPON THE NUMBER OF VIOLATIONS
AS MULTIPLIED AGAINST THE APPLICABLE PENALTY OR ASSESSMENT, BUT MAY BE
NEGOTIATED BY THE CHAIR'S DESIGNEE IN FULL SATISFACTION OF THE PENALTY
OR ASSESSMENT. A FINAL AGREEMENT BETWEEN THE CHAIR'S DESIGNEE AND THE
CARRIER OR SELF-INSURED EMPLOYER MAY BE SUBMITTED AND APPROVED SUBJECT
TO SECTION THIRTY-TWO OF THIS ARTICLE, WITHOUT NOTICE TO ANY CLAIMANT.
ANY AGGREGATE PENALTY OR ASSESSMENT ISSUED HEREIN SHALL BE ISSUED ADMIN-
ISTRATIVELY, AND THE BOARD, AND THE CHAIR MAY, BY REGULATION, SPECIFY
THE METHOD OF REVIEW OR REDETERMINATION, AND THE PRESENTMENT OF EVIDENCE
AND OBJECTIONS SHALL OCCUR SOLELY UPON THE DOCUMENTATION. THE CARRIER OR
SELF-INSURED EMPLOYER SHALL RECEIVE CREDIT FOR ANY INSTANCES IN WHICH
THE AGGREGATE PENALTY OR ASSESSMENT IS INCLUSIVE OF A PENALTY OR ASSESS-
MENT PREVIOUSLY ISSUED AND PAID IN AN INDIVIDUAL CLAIM OR PROCEEDING. A
FINAL DETERMINATION IS SUBJECT TO REVIEW UNDER SECTION TWENTY-THREE OF
THIS ARTICLE, EXCEPT THAT NO STAY IN PAYMENT OF THE PENALTY OR ASSESS-
MENT SHALL APPLY PENDING THE OUTCOME OF THE APPLICATION FOR ADMINISTRA-
TIVE REVIEW. FAILURE TO PAY THE FINALLY DETERMINED PENALTY OR ASSESS-
MENT, OR THE PENALTY OR ASSESSMENT AGREED UPON PURSUANT TO SECTION
THIRTY-TWO OF THIS ARTICLE, WITHIN TEN DAYS OF FILING, SHALL RESULT IN
THE IMPOSITION OF A TWENTY-PERCENT PENALTY, PAYABLE TO THE CHAIR. IN THE
EVENT OF THE CARRIER OR SELF-INSURED EMPLOYER INSTITUTING OR CONTINUING
AN ISSUE WITHOUT REASONABLE GROUNDS, THE PROVISIONS OF SUBDIVISION THREE
OF SECTION ONE HUNDRED FOURTEEN-A OF THIS CHAPTER SHALL BE APPLICABLE.
AGGREGATE PENALTIES SHALL BE BORNE EXCLUSIVELY BY INSURANCE CARRIERS AND
LICENSED REPRESENTATIVES PURSUANT TO SUBDIVISION THREE-B OF SECTION
FIFTY OF THIS ARTICLE AND THE COSTS SHALL NOT BE PASSED TO INSURED
EMPLOYERS.
§ 3. This act shall take effect immediately.
SUBPART E
Section 1. Subdivision 3 of section 50 of the workers' compensation
law, as amended by section 3 of part G of chapter 57 of the laws of
2011, the closing paragraph as further amended by section 104 of part A
of chapter 62 of the laws of 2011, is amended to read as follows:
3. By furnishing satisfactory proof to the chair of his financial
ability to pay such compensation for himself, or to pay such compen-
sation on behalf of a group of employers in accordance with subdivision
ten of this section, in which case the chair shall require the deposit
S. 2009--C 163 A. 3009--C
with the chair of such securities as the chair may deem necessary of the
kind prescribed in subdivisions one, two, three, four and five, and
subparagraph (a) of paragraph three of subdivision seven of section two
hundred thirty-five of the banking law, or the deposit of cash, or the
filing of irrevocable letters of credit issued by a qualified banking
institution as defined by rules promulgated by the chair or the filing
of a bond of a surety company authorized to transact business in this
state, in an amount to be determined by the chair, or the posting and
filing as aforesaid of a combination of such securities, cash, irrev-
ocable letters of credit and surety bond in an amount to be determined
by the chair, to secure his liability to pay the compensation provided
in this chapter. Any such surety bond must be approved as to form by the
chair. If an employer or group of employers posts and files a combina-
tion of securities, cash, irrevocable letters of credit and surety bond
as aforesaid, and if it becomes necessary to use the same to pay the
compensation provided in this chapter, the chair shall first use such
securities or cash or irrevocable letters of credit and, when the full
amount thereof has been exhausted, he shall then require the surety to
pay forthwith to the chair all or any part of the penal sum of the bond
for that purpose. The chair may also require an agreement on the part of
the employer or group of employers to pay any awards commuted under
section twenty-seven of this chapter, into the special fund of the state
fund, as a condition of his being allowed to remain uninsured pursuant
to this section. The chair shall have the authority to deny the applica-
tion of an employer or group of employers to pay such compensation for
himself or to revoke his consent furnished, under this section at any
time, for good cause shown. The employer or group of employers qualify-
ing under this subdivision shall be known as a self-insurer.
If for any reason the status of an employer or group of employers
under this subdivision is terminated, the securities or the surety bond,
or the securities, cash, or irrevocable letters of credit and surety
bond, on deposit referred to herein shall remain in the custody of the
chair for such time as the chair may deem proper and warranted under the
circumstances. In lieu thereof, and at the discretion of the chair, the
employer, his or her heirs or assigns or others carrying on or liquidat-
ing such business, may execute an assumption of workers' compensation
liability insurance policy [securing] AS DESCRIBED HEREIN. SEPARATELY,
THE CHAIR MAY EXECUTE AN ASSUMPTION OF WORKERS' COMPENSATION LIABILITY
INSURANCE POLICY AS DESCRIBED HEREIN ON BEHALF OF THE SPECIAL FUNDS
CREATED UNDER THE PROVISIONS OF SUBDIVISIONS EIGHT AND NINE OF SECTION
FIFTEEN AND SECTION TWENTY-FIVE-A OF THIS CHAPTER, AND NOTWITHSTANDING
ANY PROVISION TO THE CONTRARY THE CHAIR MAY EXECUTE AN ASSUMPTION OF
WORKERS' COMPENSATION LIABILITY INSURANCE POLICY ON BEHALF OF THE UNIN-
SURED EMPLOYERS' FUND. AN ASSUMPTION OF WORKERS' COMPENSATION LIABILITY
POLICY REFERRED TO HEREIN SHALL SECURE such further and future contin-
gent liability as may DIRECTLY OR INDIRECTLY arise from prior injuries
to workers and be incurred by reason of any change in condition of such
workers warranting the board making subsequent awards for payment of
additional compensation. Such policy shall be in a form approved by the
superintendent of financial services and issued by the state fund or any
insurance company licensed to issue this class of insurance in this
state OR, UPON APPLICATION BY THE CHAIR, ANY OTHER INSURANCE COMPANY
DEEMED BY THE SUPERINTENDENT OF FINANCIAL SERVICES TO BE AN ACCEPTABLE
ISSUER. In the event that such policy is issued by an insurance company
other than the state fund, then said policy shall be deemed of the kind
specified in paragraph fifteen of subsection (a) of section one thousand
S. 2009--C 164 A. 3009--C
one hundred thirteen of the insurance law and covered by the workers'
compensation security fund as created and governed by article six-A of
this chapter. It shall only be issued for a single complete premium
payment in advance [by the employer or group of employers] and in an
amount deemed acceptable by the chair and the superintendent of finan-
cial services. In lieu of the applicable premium charge ordinarily
required to be imposed by a carrier, said premium shall include a
surcharge in an amount to be determined by the chair to: (i) satisfy all
assessment liability due and owing to the board and/or the chair under
this chapter; and (ii) satisfy all future assessment liability under
this section, and which surcharge shall be adjusted from time to time to
reflect any changes to the assessment of group self-insured employers,
including any changes enacted by the chapter of the laws of two thousand
eleven amending sections fifteen and one hundred fifty-one of this chap-
ter. Said surcharge shall be payable to the board simultaneous to the
execution of the assumption of workers' compensation liability insurance
policy. However, the payment of said surcharge does not relieve the
carrier from any other liability, including liability owed to the super-
intendent of financial services pursuant to article six-A of this chap-
ter. When issued such policy shall be non-cancellable without recourse
for any cause during the continuance of the liability secured and so
covered.
§ 1-a. Subparagraph (b) of paragraph 2 of subdivision 3-a of section
50 of the workers' compensation law, as amended by section 4 of part G
of chapter 57 of the laws of 2011, is amended to read as follows:
(b) Where such plan is adopted the group self-insurer shall furnish
satisfactory proof to the chair of its financial ability to pay such
compensation for the members in the industry covered by it, its reven-
ues, their source and assurance of continuance. The chair shall require
the deposit with the chair of such securities as may be deemed necessary
of the kind prescribed in subdivisions one, two, three, four and five,
and subparagraph (a) of paragraph three of subdivision seven of section
two hundred thirty-five of the banking law or the deposit of cash or the
filing of irrevocable letters of credit issued by a qualified banking
institution as defined by rules promulgated by the chair or the filing
of a bond of a surety company authorized to transact business in this
state, in an amount to be determined to secure its liability to pay the
compensation of each employer as above provided. Such surety bond must
be approved as to form by the chair. The chair shall require each group
self-insurer to provide regular reports no less than annually, which
shall include but not be limited to audited financial statements, actu-
arial opinions and payroll information containing proof that it is fully
funded. Such reports shall also include a contribution year analysis
detailing contributions and expenses associated with each specific
contribution year. For purposes of this paragraph, proof that a group
self-insurer is fully funded shall at a minimum include proof of unre-
stricted cash and investments permitted by regulation of the chair of at
least one hundred percent of the total liabilities, including the esti-
mate presented in the actuarial opinion submitted by the group self-in-
surer in accordance with this chapter. The chair by regulation, may set
further financial standards for group self-insurers. Any group self-in-
surer that fails to show that it is fully funded shall be deemed under-
funded, and must submit a plan for achieving fully funded status which
may include a deficit assessment on members of such group self-insurer
which shall be subject to approval or modification by the chair. THE
AMOUNT OF SUCH UNDER-FUNDING, AS MEASURED BY THE ACTUARIAL OPINION OR
S. 2009--C 165 A. 3009--C
ASSUMPTION OF LOSS POLICY QUOTATION SUBMITTED BY THE GROUP, SHALL BE
CONSIDERED UNFUNDED CLAIMS AS SET FORTH IN SUBDIVISION TWO OF SECTION
SIXTEEN HUNDRED EIGHTY-Q OF THE PUBLIC AUTHORITIES LAW AS ADDED BY
SECTION 35 OF PART GG OF CHAPTER 57 OF THE LAWS OF 2013.
§ 2. Subdivision (i) of section 32 of the workers' compensation law,
as added by chapter 6 of the laws of 2007, paragraph 5 as further
amended by section 104 of part A of chapter 62 of the laws of 2011, is
amended to read as follows:
(i) (1) The waiver agreement management office may contract with AN
INSURANCE CARRIER, SELF-INSURED EMPLOYER, STATE INSURANCE FUND OR any
third party to ASSUME LIABILITY FOR, manage, administer, or settle
claims on its behalf, so long as (A) such contract is approved by the
special disability fund advisory committee and (B) such [third] party
shall agree to be subject to any guidelines or directives as the chair
may issue.
(2) The chair MAY, with approval of the special disability fund advi-
sory committee and on such terms as the committee deems appropriate,
[shall have discretion to] procure one or more private entities to
assume the liability for and [management, administration or settlement
of] MANAGE, ADMINISTER, OR SETTLE all or a portion of the claims in the
special disability fund INCLUDING, WITHOUT LIMITATION, BY OBTAINING "AN
ASSUMPTION OF WORKERS' COMPENSATION LIABILITY INSURANCE POLICY" AS
DEFINED IN SUBDIVISION THREE OF SECTION FIFTY OF THIS CHAPTER. ANY SUCH
POLICY SHALL EXPRESSLY PROVIDE AND, NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, OPERATE TO RELEASE FROM ANY FURTHER LIABILITY (I) THE SPECIAL
DISABILITY FUND AND (II) THE INSURANCE CARRIER, INCLUDING AS THE CASE
MAY BE THE STATE INSURANCE FUND, ORIGINALLY LIABLE FOR ANY CLAIM COVERED
BY THE ASSUMPTION OF WORKERS' COMPENSATION LIABILITY INSURANCE POLICY
SECURING SUCH FURTHER AND FUTURE CONTINGENT LIABILITY AS MAY ARISE FROM
ANY SUCH CLAIM, INCLUDING FROM PRIOR INJURIES TO EMPLOYEES AND BE
INCURRED BY REASON OF ANY CHANGE IN THE CONDITION OF SUCH EMPLOYEES FOR
PAYMENT OF ADDITIONAL COMPENSATION. NOTWITHSTANDING ANY OTHER PROVISIONS
OF LAW, NO CONSULTATION OR APPROVAL OF ANY EMPLOYER, INSURANCE CARRIER,
SELF-INSURER OR THE STATE INSURANCE FUND SHALL BE REQUIRED BEFORE SUCH
OFFICE MAY ENTER INTO ANY SUCH POLICY OF WAIVER AGREEMENT, OR BEFORE THE
BOARD MAY APPROVE SUCH WAIVER AGREEMENT. Any such procurement shall be
conducted in accordance with state finance law, except as otherwise set
forth below. The chair shall not award any contract that has not been
approved by the special disability fund advisory committee. Notwith-
standing the foregoing, the chair of the workers' compensation board
may, if approved by the special disability fund advisory committee, and
on such terms as the committee deems appropriate:
(A) waive any informality in a bid, and either reject all bids and
again advertise for bids, or interview at least two responsible quali-
fied bidders and negotiate and enter into a contract with one or more of
such bidders; or
(B) group claims to be assigned, in whole or in part, based on the
insurance carrier, self-insured employer or state insurance fund that is
receiving or will receive reimbursement on those claims from the second
disability fund. Such grouping shall be permissible notwithstanding that
any insurance carrier may have greater access to information, or may be
able to provide better terms, in regard to claims so grouped.
(3) [Any such contract shall expressly provide that the special disa-
bility fund is no longer liable for the claims covered by the contract,
and require security of either cash, an indemnity policy, or such secu-
rity as is otherwise sufficient to cover any losses incurred as a result
S. 2009--C 166 A. 3009--C
of the failure or default of the entity or entities awarded any such
contract, including as a result of the insolvency of any such entity.
The chair may waive all or part of such security, and may impose other
reasonable methods of insuring payment, upon approval of the special
disability fund advisory committee.] ANY POLICY EXECUTED BY THE CHAIR
PURSUANT TO THIS SECTION SHALL BE IN THE FORM OF AN ASSUMPTION OF WORK-
ERS' COMPENSATION LIABILITY INSURANCE POLICY SECURING SUCH FURTHER AND
FUTURE CONTINGENT LIABILITY AS MAY ARISE FROM ANY CLAIM COVERED BY SUCH
POLICY, INCLUDING PRIOR INJURIES TO WORKERS AND BE INCURRED BY REASON OF
ANY CHANGE IN THE CONDITION OF SUCH WORKERS WARRANTING THE BOARD MAKING
SUBSEQUENT AWARDS FOR PAYMENT OF ADDITIONAL COMPENSATION. SUCH POLICY
SHALL BE IN A FORM APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES
AND ISSUED BY THE STATE INSURANCE FUND OR ANY INSURANCE COMPANY LICENSED
TO ISSUE THIS CLASS OF INSURANCE IN THIS STATE, OR DEEMED ACCEPTABLE AS
AN ISSUER UPON APPLICATION BY THE CHAIR TO THE SUPERINTENDENT AS SPECI-
FIED IN SUBDIVISION THREE OF SECTION FIFTY OF THIS CHAPTER. IN THE EVENT
THAT SUCH POLICY IS ISSUED BY AN INSURANCE COMPANY OTHER THAN THE STATE
INSURANCE FUND, THEN SAID POLICY SHALL BE DEEMED OF THE KIND SPECIFIED
IN PARAGRAPH FIFTEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE
HUNDRED THIRTEEN OF THE INSURANCE LAW AND COVERED BY THE WORKERS'
COMPENSATION SECURITY FUND AS CREATED AND GOVERNED BY ARTICLE SIX-A OF
THIS CHAPTER. SUCH POLICY SHALL ONLY BE ISSUED FOR A SINGLE COMPLETE
PREMIUM PAID IN ADVANCE AND IN AN AMOUNT DEEMED ACCEPTABLE BY THE CHAIR
AND THE SUPERINTENDENT OF FINANCIAL SERVICES. WHEN ISSUED SUCH POLICY
SHALL BE NONCANCELLABLE WITHOUT RECOURSE FOR ANY CAUSE DURING THE
CONTINUANCE OF THE LIABILITY SECURED AND SO COVERED.
(4) Notwithstanding any other provision of this article, the waiver
agreement management office may request in writing any information rele-
vant to its entry into or management of waiver agreements from (A) any
insurance carrier, employer, or the state insurance fund, if that entity
has submitted a claim for reimbursement from the special disability fund
as to the claimant to whom the information relates; or (B) the special
funds conservation committee. The party to whom the request is made
shall provide the requested information within fourteen days of the
request, unless before that date it files an objection with the board to
any information which is subject to a recognized privilege or whose
production is otherwise barred by law. The objecting party shall provide
the requested information within five business days of the board's
rejection of its objection.
(5) No carrier, self-insured employer or the state insurance fund
shall assume the liability for, or management, administration or settle-
ment of any claims under this section on which it holds reserves, beyond
such reserves as are permitted by regulation of the superintendent of
financial services for purposes of this provision. No carrier may assume
liability for any claims in the special disability fund under this para-
graph unless the carrier maintains, on a stand alone basis, separate
from its parent or any affiliated entities, an interactive financial
strength rating from a nationally recognized statistical rating organ-
ization that is considered secure or deemed acceptable by the special
disability fund advisory committee.
(6) The director of the budget shall notify in writing the chairs of
the senate finance committee and the assembly ways and means committee
of any plans to transfer all or a portion of the portfolio of claims
determined to be eligible for reimbursement from the special disability
fund or to [contract with any party to take responsibility in whole or
in part for the administration of a material portion of the claims,
S. 2009--C 167 A. 3009--C
including the procurement process to be used to select parties involved
in such transfer or contract,] ENTER INTO AN ASSUMPTION OF WORKERS'
COMPENSATION LIABILITY INSURANCE POLICY, not less than forty-five days
prior to the commencement of such process. At any time borrowing is
anticipated to settle claims, the chief executive officer of the dormi-
tory authority of the state of New York and the director of the budget
shall provide a report to the chairs of the senate finance committee and
the assembly ways and means committee on a planned bond sale of the
authority and such report shall include, but not be limited to: (A) the
maximum amount of bonds expected to be sold by the authority in
connection with a sale agreement; (B) the expected maximum interest rate
and maturity date of such bonds; (C) the expected amount of the bonds
that will be fixed and/or variable interest rate; (D) the estimated
costs of issuance; (E) the estimated level or levels of reserve fund or
funds, if any; (F) the estimated cost of bond issuance, if any; (G) the
anticipated use or uses of the proceeds; (H) the maximum expected net
proceeds that will be paid to the state as a result of the issuance of
such bonds; and (I) the process to be used to select parties to the
transaction. Any such expectations and estimates in the report shall not
be deemed a substantive limitation on the authority of the dormitory
authority of the state of New York.
§ 3. This act shall take effect immediately.
SUBPART F
Section 1. Section 16 of chapter 11 of the laws of 2008 amending the
workers' compensation law, the insurance law, the volunteer ambulance
workers' benefit law and the volunteer firefighters' benefit law, relat-
ing to rates for workers' compensation insurance and setting forth
conditions for a workers' compensation rate service organization, as
amended by chapter 237 of the laws of 2012, is amended to read as
follows:
§ 16. This act shall take effect February 1, 2008; provided that the
amendments to paragraph 2 of subsection (a) of section 2316 of the
insurance law made by section eleven of this act shall take effect on
the same date that section 68 of chapter 6 of the laws of 2007 takes
effect; provided further that the amendments to section 2316 of the
insurance law made by section eleven of this act shall not affect the
expiration of such section pursuant to section 2342 of the insurance law
and shall be deemed expired therewith; and provided further that section
ten of this act shall expire and be deemed repealed June 2, [2018] 2028.
§ 2. Subsection (e) of section 2305 of the insurance law, as amended
by chapter 237 of the laws of 2012, is amended to read as follows:
(e) The superintendent: (1) by regulation may, in lieu of the waiting
period set forth in subsection (b) of this section, require workers'
compensation insurance rate filings to be specifically approved before
they become effective; and (2) shall hold a public hearing if a rate
service organization makes a loss cost filing for workers' compensation
that is an increase of [seven] FIVE percent or more over the approved
loss costs from the prior year. Until June second, two thousand [eigh-
teen] TWENTY-EIGHT, a rate service organization for workers' compen-
sation shall make a loss cost filing every year on or before June first,
or such earlier date as is set by the superintendent.
§ 3. Paragraph 4 of subdivision (t) of section 2313 of the insurance
law, as added by chapter 11 of the laws of 2008, is amended to read as
follows:
S. 2009--C 168 A. 3009--C
(4) A workers' compensation rate service organization shall have an
actuarial committee. It shall be the responsibility of the actuarial
committee to review methodology and data collection processes used to
develop loss costs. The American Federation of Labor - Congress of
Industrial Organizations of New York State and the Business Council of
New York State, Inc. shall together appoint one independent casualty
actuary who is a fellow or associate of the casualty actuarial society
to serve as a member of the actuarial committee. The appointment of such
actuary, and his or her compensation and terms and conditions of
retention, shall be subject to the approval of the superintendent as
reasonable and customary for such professional. The actuary shall be
paid by the workers' compensation rate service organization. Such actu-
ary shall have the same access to the workers' compensation rate service
organization data and documents as the other members of that committee.
The governing body of a workers' compensation rate service organization
shall select a chief actuary of the actuarial committee, who shall serve
at the pleasure of the governing body and whose terms and conditions of
employment shall be approved by the governing body. THE PUBLIC ACTUARY
SHALL ISSUE A REPORT ON OR BEFORE JUNE FIRST, TWO THOUSAND EIGHTEEN AND
EACH OF THE NEXT TEN YEARS, INDICATING THE OVERALL SAVINGS IN THE WORK-
ERS' COMPENSATION SYSTEM AS A RESULT OF THE TWO THOUSAND SEVENTEEN
REFORMS.
§ 4. The New York compensation insurance rating board shall make a
filing with the New York state department of financial services requir-
ing that the final premiums charged (i) on workers' compensation poli-
cies with an effective date between the effective date of this section
and September 30, 2017, and (ii) on the unexpired portion of workers'
compensation policies in force after the effective date of this section
with an effective date on or after October 1, 2016, shall reflect such
cost impact. Differences between premiums charged and the final premium
on such policies shall be settled between the insurance carrier and the
policyholder by or before December 31, 2018.
§ 5. This act shall take effect immediately; provided, however that
the amendments to subdivision (t) of section 2313 of the insurance law
made by section three of this act shall not affect the repeal of such
subdivision and shall be deemed repealed therewith.
SUBPART G
Section 1. Section 137 of the workers' compensation law is amended by
adding a new subdivision 12 to read as follows:
12. THE CHAIR SHALL CONDUCT A THOROUGH STUDY OF THE UTILIZATION OF
INDEPENDENT MEDICAL EXAMINATIONS UNDER THIS CHAPTER, TO OCCUR WITHIN
CALENDAR YEAR TWO THOUSAND EIGHTEEN, AND SHALL CONVENE AND PRESENT A
PRELIMINARY REPORT BASED ON THE STUDY TO AN ADVISORY COMMITTEE SET TO
COMMENCE ON OR ABOUT JANUARY FIRST, TWO THOUSAND NINETEEN. THE ADVISORY
COMMITTEE IS TO CONSIST OF REPRESENTATIVES OF ORGANIZED LABOR, BUSINESS,
CARRIERS, SELF-INSURED EMPLOYERS, MEDICAL PROVIDERS, AND OTHER STAKE-
HOLDERS AND EXPERTS AS THE CHAIR MAY DEEM FIT TO INCLUDE. THE ADVISORY
COMMITTEE SHALL MEET QUARTERLY, OR MORE FREQUENTLY IF DIRECTED BY THE
CHAIR. BY DECEMBER THIRTY-FIRST, TWO THOUSAND NINETEEN, THE COMMITTEE
SHALL PRESENT DETAILED RECOMMENDATIONS TO THE GOVERNOR, SPEAKER OF THE
ASSEMBLY, AND MAJORITY LEADER OF THE SENATE, REGARDING ADMINISTRATIVE
IMPROVEMENTS, AND REGULATORY AND STATUTORY PROPOSALS, THAT WILL ENSURE
FAIRNESS, AND HIGHEST MEDICAL QUALITY, WHILE IMPROVING METHODS OF
COMBATTING FRAUD. THE COMMITTEE SHALL REVIEW AND ANALYZE LEADING
S. 2009--C 169 A. 3009--C
STUDIES, BOTH IN NEW YORK STATE AND NATIONALLY. THE COMPENSATION INSUR-
ANCE RATING BOARD SHALL PROVIDE DATA, AND COOPERATE WITH THE CHAIR AND
COMMITTEE IN IDENTIFYING POTENTIAL ABUSE AND FRAUD. THE REPORT SHALL
CONSIDER, AMONG OTHER ITEMS, THE FEASIBILITY OF NEW METHODS OF ASSIGN-
ING INDEPENDENT MEDICAL EXAMINATIONS, SUCH AS THROUGH ROTATING PROVIDERS
OR PANELS, STATEWIDE NETWORKS, OR OTHER ARRANGEMENTS.
§ 2. This act shall take effect immediately.
SUBPART H
Section 1. Subparagraph 1 of paragraph c of subdivision 5 of section
50 of the workers' compensation law, as amended by chapter 139 of the
laws of 2008, is amended to read as follows:
(1) The chair and the department of audit and control as soon as prac-
ticable after May first, nineteen hundred sixty, and annually thereaft-
er, as soon as practicable after April first in each succeeding year,
shall ascertain the total amount of net expenses, including (a) adminis-
trative expenses, which shall include the direct costs of personal
services, the cost of maintenance and operation, the cost of retirement
contributions made and workers' compensation premiums paid by the State
for or on account of personnel, rentals for space occupied in state
owned or state leased buildings, and (b) all direct or indirect costs
incurred by the board during the preceding fiscal year in carrying out
the provisions of subdivision three and three-a of this section. Such
expenses shall be adjusted [quarterly] ANNUALLY to reflect any change in
circumstances, and shall be assessed against all private self-insured
employers, including for this purpose active and terminated group self-
insurers, active individual self-insured employers, and individual self-
insured employers who have ceased to exercise the privilege of self-in-
surance.
§ 2. This act shall take effect immediately.
SUBPART I
Section 1. Subdivision 3 of section 10 of the workers' compensation
law, as amended by section 173 of subpart B of part C of chapter 62 of
the laws of 2011, is amended to read as follows:
3. (A) Notwithstanding any other provisions of this chapter, where a
public safety worker, including but not limited to a firefighter, emer-
gency medical technician, police officer, correction officer, civilian
employee of the department of corrections and community supervision or
other person employed by the state to work within a correctional facili-
ty maintained by the department of corrections and community super-
vision, driver and medical observer, in the course of performing his or
her duties, is exposed to the blood or other bodily fluids of another
individual or individuals, the executive officer of the appropriate
ambulance, fire or police district may authorize such public safety
worker to obtain the care and treatment, including diagnosis, recom-
mended medicine and other medical care needed to ascertain whether such
individual was exposed to or contracted any communicable disease and
such care and treatment shall be the responsibility of the insurance
carrier of the appropriate ambulance, fire or police district or, if a
public safety worker was not so exposed in the course of performing his
or her duties for such a district, then such person shall be covered for
the treatment provided for in this subdivision by the carrier of his or
her employer when such person is acting in the scope of his or her
S. 2009--C 170 A. 3009--C
employment. For the purpose of this subdivision, the term "public safety
worker" shall include persons who act for payment or who act as volun-
teers in an organized group such as a rescue squad, police department,
correctional facility, ambulance corps, fire department, or fire compa-
ny.
(B) WHERE A POLICE OFFICER OR FIREFIGHTER SUBJECT TO SECTION THIRTY OF
THIS ARTICLE, OR EMERGENCY MEDICAL TECHNICIAN, PARAMEDIC, OR OTHER
PERSON CERTIFIED TO PROVIDE MEDICAL CARE IN EMERGENCIES, OR EMERGENCY
DISPATCHER FILES A CLAIM FOR MENTAL INJURY PREMISED UPON EXTRAORDINARY
WORK-RELATED STRESS INCURRED IN A WORK-RELATED EMERGENCY, THE BOARD MAY
NOT DISALLOW THE CLAIM, UPON A FACTUAL FINDING THAT THE STRESS WAS NOT
GREATER THAN THAT WHICH USUALLY OCCURS IN THE NORMAL WORK ENVIRONMENT.
§ 2. This act shall take effect immediately.
SUBPART J
Section 1. Subdivision 3 of section 151 of the workers' compensation
law, as added by section 22 of part GG of chapter 57 of the laws of
2013, is amended to read as follows:
3. The chair and department of audit and control annually as soon as
practicable after the first of April of each year shall ascertain the
actual total amount of expenses, including in addition to the direct
costs of personal service, the cost of maintenance and operation, the
cost of retirement contributions made and workers' compensation premiums
paid by the state for or on account of personnel, rentals for space
occupied in state owned or state leased buildings, such additional sum
as may be certified to the chair and the department of audit and control
as a reasonable compensation for services rendered by the department of
law and expenses incurred by such department, for transfer into the
training and educational program on occupational safety and health fund
created pursuant to chapter eight hundred eighty-six of the laws of
nineteen hundred eighty-five and section ninety-seven-c of the state
finance law, for the New York state occupational health clinics network,
for the department of labor occupational safety and health program and
for transfer into the uninsured employers' fund pursuant to subdivision
two of section twenty-six-a of this chapter, and all other direct or
indirect costs, incurred by the board in connection with the adminis-
tration of this chapter, except those expenses for which an assessment
is authorized for self-insurance pursuant to subdivision five of section
fifty of this chapter. Assessments pursuant to subparagraph four of
paragraph (h) of subdivision eight of section fifteen of this chapter
for the special disability fund, pursuant to section fifty-c of this
chapter for the self insurer offset fund, pursuant to subdivision three
of section twenty-five-a of this chapter for the fund for reopened
cases, and pursuant to section two hundred fourteen of this chapter for
the special fund for disability benefits shall be included in the total
amount of expenses for the purposes of this subdivision. Any overpayment
of annual assessments resulting from the requirements of this subdivi-
sion shall be applied as a credit against the future assessment rate
provided the fund balance shall not be reduced below [ten] FIVE percent
of the total amount assessed.
§ 2. There is hereby created a fiduciary fund, known as the workers'
compensation rate stabilization fund, which shall be established in the
joint custody of the comptroller and the chair of the workers' compen-
sation board. Such stabilization fund shall serve as the repository for
the funds released due to the reduction in the maximum fund balance,
S. 2009--C 171 A. 3009--C
provided pursuant to subdivision 3 of section 151 of the workers'
compensation law, from ten percent to five percent. Such funds shall be
used by the chair of the workers' compensation board over the next five
years to ensure assessment rate stability. The board shall ensure that
all funds in the stabilization fund are utilized no later than the 2022
assessment rate year. By April 1, 2018 and by April first in each of the
next four years, the chair shall be required to report to the governor,
the speaker of the assembly, the majority leader of the senate, the
senate coalition leader, the committee chairs of the assembly ways and
means committee, the assembly labor committee, the senate labor commit-
tee, and the committee chair and vice chair of the senate finance
committee on the opening fund balance, amount used to subsidize the
current rate year, remaining fund balance, and the impact the subsidy
had on the overall assessment rate.
§ 3. This act shall take effect immediately; provided, however, that
section two of this act shall expire and be deemed repealed March 31,
2024.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by a court of compe-
tent jurisdiction to be invalid, such judgment shall not affect, impair,
or invalidate the remainder thereof, but shall be confined in its opera-
tion to the clause, sentence, paragraph, subdivision, section or part
thereof directly involved in the controversy in which such judgment
shall have been rendered. It is hereby declared to be the intent of the
legislature that this act would have been enacted even if such invalid
provisions had not been included herein.
§ 3. This act shall take effect immediately provided, however, that
the applicable effective date of Subparts A through J of this act shall
be as specifically set forth in the last section of such Subparts.
PART OOO
Section 1. Subsection (d) of section 615 of the tax law is amended by
adding a new paragraph 5 to read as follows:
(5) THE FULL AMOUNT OF UNION DUES PAID DURING THE TAXABLE YEAR IF THE
TAXPAYER WAS NOT ALLOWED FEDERAL MISCELLANEOUS ITEMIZED DEDUCTIONS BY
OPERATION OF SECTION 67 OF THE INTERNAL REVENUE CODE. IF ANY AMOUNT OF
UNION DUES REPRESENTING FEDERAL MISCELLANEOUS ITEMIZED DEDUCTIONS WAS
ALLOWED, THEN THE AMOUNT ALLOWED AS A NEW YORK ITEMIZED DEDUCTION FOR
UNION DUES PAID SHALL BE A PERCENTAGE OF THE UNION DUES DISALLOWED BY
THE OPERATION OF SECTION 67 OF THE INTERNAL REVENUE CODE COMPUTED AS
FOLLOWS. THE AMOUNT ALLOWED AS A NEW YORK ITEMIZED DEDUCTION SHALL BE
COMPUTED BY MULTIPLYING THE TOTAL UNION DUES PAID BY THE TAXPAYER DURING
THE TAXABLE YEAR BY A PERCENTAGE DETERMINED BY SUBTRACTING FROM ONE, A
FRACTION WHERE THE NUMERATOR IS THE AMOUNT OF FEDERAL MISCELLANEOUS
DEDUCTIONS ALLOWED AND THE DENOMINATOR IS THE AGGREGATE FEDERAL MISCEL-
LANEOUS ITEMIZED DEDUCTIONS BEFORE APPLICATION OF THE TWO-PERCENT FLOOR
UNDER SECTION 67 OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
PARAGRAPH, UNION DUES ARE THOSE AMOUNTS THAT ARE DEDUCTIBLE AS UNION
DUES AND AGENCY SHOP FEES UNDER SECTION 162 OF THE INTERNAL REVENUE
CODE.
§ 2. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.
PART PPP
S. 2009--C 172 A. 3009--C
Section 1. The executive law is amended by adding a new article 4-B to
read as follows:
ARTICLE 4-B
OFFICE OF THE INSPECTOR GENERAL OF NEW YORK FOR TRANSPORTATION
SECTION 56. JURISDICTION.
57. ESTABLISHMENT AND ORGANIZATION.
58. FUNCTIONS AND DUTIES.
§ 56. JURISDICTION. 1. THIS ARTICLE SHALL, SUBJECT TO THE LIMITATIONS
CONTAINED HEREIN, CONFER UPON THE OFFICE OF THE INSPECTOR GENERAL OF NEW
YORK FOR TRANSPORTATION INVESTIGATIVE AND PROSECUTORIAL POWER OVER CRIM-
INAL AND UNETHICAL CONDUCT INVOLVING INDIVIDUALS SERVING AT A SENIOR
LEVEL IN OPERATIONS, FINANCING OR MANAGEMENT OF A TRANSPORTATION ENTITY
LOCATED IN A CITY OF A POPULATION OF ONE MILLION OR MORE WHERE SUCH
ACTION OR ACTIONS OCCURRED WITHIN THE STATE; AND INVESTIGATIVE AND
PROSECUTORIAL POWER OF CRIMINAL AND UNETHICAL CONDUCT INVOLVING MANAGE-
RIAL APPOINTEES OR MANAGERIAL EMPLOYEES OF ANY TRANSPORTATION ENTITY
WHERE SUCH ACTION OR ACTIONS OCCURRED WITHIN THE STATE.
2. FOR THE PURPOSES OF THIS ARTICLE: (A) "TRANSPORTATION ENTITY" SHALL
MEAN ANY PUBLIC ENTITY LOCATED WITHIN A CITY OF ONE MILLION OR MORE
INVOLVED IN THE TRANSPORTATION OF PERSONS, GOODS OR OTHER ITEMS WITHIN
OR TO AND FROM THE STATE OF NEW YORK WHERE AT LEAST ONE INDIVIDUAL
INVOLVED AT A SENIOR LEVEL IN OPERATIONS, FINANCING OR MANAGEMENT OF
SUCH ENTITY IS APPOINTED BY THE GOVERNOR;
(B) "INDIVIDUALS INVOLVED AT A SENIOR LEVEL IN OPERATIONS, FINANCING
OR MANAGEMENT" SHALL MEAN INDIVIDUALS THAT EXERT FULL OR PARTIAL CONTROL
OVER FORMAL ACTIONS TAKEN BY A TRANSPORTATION ENTITY OR ON BEHALF OF
SUCH ENTITY, OR EXERT INDEPENDENT JUDGMENT IN THE FULFILLMENT OF THEIR
DUTIES AND OBLIGATIONS, BUT SHALL NOT INCLUDE INDIVIDUALS WHOSE ACTIONS
ARE OF A ROUTINE OR CLERICAL NATURE; AND
(C) "MANAGERIAL APPOINTEE" OR "MANAGERIAL EMPLOYEE" SHALL MEAN ANY
INDIVIDUAL WHO (I) PARTICIPATES DIRECTLY OR AS PART OF A TEAM IN FORMU-
LATING POLICY; (II) MAY REASONABLY BE REQUIRED TO ASSIST DIRECTLY IN THE
PREPARATION FOR AND CONDUCT OF NEGOTIATIONS CONCERNING MAJOR FISCAL
MATTERS, PROCUREMENTS OR EXPENDITURES IN EXCESS OF ONE HUNDRED THOUSAND
DOLLARS PROVIDED THAT SUCH ROLE IS NOT OF A ROUTINE OR CLERICAL NATURE
AND REQUIRES THE EXERCISE OF INDEPENDENT JUDGMENT; OR (III) HAS A MAJOR
ROLE IN THE ADMINISTRATION OF PERSONNEL AGREEMENTS OR IN PERSONNEL
ADMINISTRATION, PROVIDED THAT SUCH ROLE IS NOT OF A ROUTINE OR CLERICAL
NATURE AND REQUIRES THE EXERCISE OF INDEPENDENT JUDGMENT.
3. NOTHING CONTAINED IN THIS SECTION SHALL REPLACE OR DIMINISH THE
JURISDICTION OF THE ATTORNEY GENERAL OR ANY DISTRICT ATTORNEY, OR THE
INSPECTOR GENERAL OF ANY TRANSPORTATION ENTITY.
4. THE INSPECTOR GENERAL SHALL BE AUTHORIZED TO:
(A) RECEIVE, INVESTIGATE AND PROSECUTE COMPLAINTS REGARDING ANY INDI-
VIDUALS INVOLVED AT A SENIOR LEVEL IN OPERATIONS, FINANCING OR MANAGE-
MENT OR MANAGERIAL APPOINTEE OR MANAGERIAL EMPLOYEE OF ANY TRANSPORTA-
TION ENTITY CONCERNING CORRUPTION, CONFLICTS OF INTEREST, FRAUD, WASTE
AND ABUSE, RECUSALS OR FAILURE TO RECUSE, OR CRIMINAL ACTIVITY IN ANY
CASE WHERE SUCH CONDUCT, ACTION OR FAILURE OCCURRED BEFORE OR AFTER THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT
ADDED THIS ARTICLE AND WHERE SUCH CONDUCT, ACTION OR FAILURE OCCURRED IN
NEW YORK;
(B) REPRESENT THE STATE IN ANY ADMINISTRATIVE HEARING OR ADMINISTRA-
TIVE PROCEEDING INVOLVING ANY CRIMINAL OR UNETHICAL CONDUCT OF INDIVID-
UALS INVOLVED AT A SENIOR LEVEL IN OPERATIONS, FINANCING OR MANAGEMENT
S. 2009--C 173 A. 3009--C
OR A MANAGERIAL APPOINTEE OR MANAGERIAL EMPLOYEE OF A TRANSPORTATION
ENTITY WHERE SUCH CONDUCT OCCURRED IN NEW YORK; AND
(C) REPRESENT THE STATE IN CIVIL ACTIONS INVOLVING ANY CRIMINAL OR
UNETHICAL CONDUCT OF INDIVIDUALS INVOLVED AT A SENIOR LEVEL IN OPER-
ATIONS, FINANCING OR MANAGEMENT OR A MANAGERIAL APPOINTEE OR MANAGERIAL
EMPLOYEE OF A TRANSPORTATION ENTITY WHERE SUCH CONDUCT OCCURRED IN NEW
YORK.
§ 57. ESTABLISHMENT AND ORGANIZATION. 1. THERE SHALL BE AN OFFICE OF
THE INSPECTOR GENERAL OF NEW YORK FOR TRANSPORTATION IN THE EXECUTIVE
DEPARTMENT. THE HEAD OF THE OFFICE SHALL BE THE INSPECTOR GENERAL OF NEW
YORK FOR TRANSPORTATION.
2. THE INSPECTOR GENERAL SHALL BE APPOINTED BY THE GOVERNOR AND SHALL
HOLD OFFICE UNTIL THE END OF THE TERM OF THE GOVERNOR BY WHOM HE OR SHE
IS APPOINTED AND UNTIL HIS OR HER SUCCESSOR IS APPOINTED.
3. THE INSPECTOR GENERAL MAY APPOINT A DEPUTY INSPECTOR GENERAL TO
SERVE AT HIS OR HER PLEASURE, WHO SHALL BE RESPONSIBLE FOR CONDUCTING
INVESTIGATIONS AND PROSECUTING VIOLATIONS OF LAW. THE INSPECTOR GENERAL
SHALL IDENTIFY A PROCESS FOR A COORDINATED APPROACH WITH PROSECUTORS TO
AVOID DUPLICATION AND PROVIDE FOR A TIMELY RESPONSE TO ALLEGED
VIOLATIONS.
4. THE SALARY OF THE INSPECTOR GENERAL SHALL BE ESTABLISHED BY THE
GOVERNOR WITHIN THE LIMIT OF FUNDS AVAILABLE THEREFORE.
§ 58. FUNCTIONS AND DUTIES. THE INSPECTOR GENERAL OF NEW YORK FOR
TRANSPORTATION SHALL HAVE THE FOLLOWING DUTIES AND RESPONSIBILITIES:
1. RECEIVE, INVESTIGATE, AND PROSECUTE COMPLAINTS FROM ANY SOURCE, OR
UPON HIS OR HER OWN INITIATIVE, CONCERNING ALLEGATIONS OF CORRUPTION,
CONFLICTS OF INTEREST, FRAUD, WASTE AND ABUSE, RECUSALS OR FAILURE TO
RECUSE, OR CRIMINAL ACTIVITY REGARDING ANY TRANSPORTATION ENTITY,
CONDUCT OR ACTIVITY OR FAILURE TO ACT BY ANY INDIVIDUALS INVOLVED AT A
SENIOR LEVEL IN OPERATIONS, FINANCING OR MANAGEMENT OR MANAGERIAL
APPOINTEE OR MANAGERIAL EMPLOYEE OF A TRANSPORTATION ENTITY OCCURRING
BEFORE OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
THOUSAND SEVENTEEN THAT ADDED THIS ARTICLE, IN VIOLATION OF NEW YORK LAW
AND OCCURRING IN NEW YORK;
2. INFORM THE TRANSPORTATION ENTITY OF SUCH ALLEGATIONS AND THE
PROGRESS OF INVESTIGATIONS RELATED THERETO, UNLESS SPECIAL CIRCUMSTANCES
REQUIRE CONFIDENTIALITY, PROVIDED THAT THE INSPECTOR GENERAL SHALL MAIN-
TAIN A WRITTEN RECORD THAT SPECIFIES THE REASON CONFIDENTIALITY IS
NECESSARY UNDER THIS PARAGRAPH;
3. ISSUE A SUBPOENA OR SUBPOENAS REQUIRING A PERSON OR PERSONS TO
APPEAR BEFORE THE GRAND JURY, TRIAL COURT, PRODUCE DOCUMENTS, PROVIDE A
SWORN STATEMENT UNDER OATH AND BE EXAMINED IN REFERENCE TO ANY MATTER
WITHIN THE JURISDICTION OF THE INSPECTOR GENERAL. A SUBPOENA ISSUED
UNDER THIS SECTION SHALL BE GOVERNED BY ARTICLE TWENTY-THREE OF THE
CIVIL PRACTICE LAW AND RULES OR ARTICLES ONE HUNDRED NINETY OR SIX
HUNDRED TEN OF THE CRIMINAL PROCEDURE LAW. THE INSPECTOR GENERAL OR HIS
OR HER DEPUTY OR ANY PERSON DESIGNATED IN WRITING BY THEM MAY ADMINISTER
AN OATH TO A WITNESS IN ANY SUCH INVESTIGATION OR PROSECUTION AND MAY
SEEK TO CONFER IMMUNITY FOR COMPELLED TESTIMONY PURSUANT TO ARTICLE
FIFTY OF THE CRIMINAL PROCEDURE LAW;
4. DETERMINE WITH RESPECT TO SUCH ALLEGATIONS WHETHER TO INITIATE
CIVIL OR CRIMINAL PROSECUTION, OR MAKE A REFERRAL FOR FURTHER INVESTI-
GATION BY AN APPROPRIATE FEDERAL, STATE OR LOCAL AGENCY OR ANY OTHER
OFFICE OF INSPECTOR GENERAL AS IS WARRANTED, AND TO ASSIST IN SUCH
INVESTIGATIONS; AND
S. 2009--C 174 A. 3009--C
5. PREPARE AND RELEASE TO THE PUBLIC WRITTEN REPORTS OF SUCH INVESTI-
GATIONS, AS APPROPRIATE AND TO THE EXTENT PERMITTED BY LAW, SUBJECT TO
REDACTION TO PROTECT THE CONFIDENTIALITY OF WITNESSES. THE RELEASE OF
ALL OR PORTIONS OF SUCH REPORTS MAY BE DEFERRED TO PROTECT THE CONFIDEN-
TIALITY OF ONGOING INVESTIGATIONS, PROVIDED THAT THE INSPECTOR GENERAL
SHALL MAINTAIN A WRITTEN RECORD THAT SPECIFIES THE REASON CONFIDENTIALI-
TY IS NECESSARY UNDER THIS SUBDIVISION.
§ 2. Subdivision 32 of section 1.20 of the criminal procedure law, as
amended by section 4 of part A of chapter 501 of the laws of 2012, is
amended to read as follows:
32. "District attorney" means a district attorney, an assistant
district attorney or a special district attorney, and, where appropri-
ate, the attorney general, an assistant attorney general, a deputy
attorney general, a special deputy attorney general, or the special
prosecutor and inspector general for the protection of people with
special needs or his or her assistants when acting pursuant to their
duties in matters arising under article twenty of the executive law, OR
THE INSPECTOR GENERAL OF NEW YORK FOR TRANSPORTATION OR HIS OR HER DEPU-
TIES WHEN ACTING PURSUANT TO ARTICLE FOUR-B OF THE EXECUTIVE LAW.
§ 3. Severability. The provisions of this act shall be severable, and
if the application of any clause, sentence, paragraph, subdivision,
section or part of this act to any person or circumstance shall be
adjudged by any court of competent jurisdiction to be invalid, such
judgment shall not necessarily affect, impair or invalidate the applica-
tion of any such clause, sentence, paragraph, subdivision, section, or
part of this act or remainder thereof, as the case may be, to any other
person or circumstance, but shall be confined in its operation to the
clause, sentence, paragraph, subdivision, section or part thereof
directly involved in the controversy in which such judgment shall have
been rendered.
§ 4. This act shall take effect immediately; provided, however, that
sections one and two of this act shall take effect on the thirtieth day
after it shall have become a law.
PART QQQ
Section 1. All expenditures and disbursements made against the appro-
priations contained in the chapter of the laws of 2017 making appropri-
ations for the support of government as proposed in legislative bills
numbers S.5492 and A.7068 shall, upon final action by the legislature on
appropriation bills submitted by the governor pursuant to article VII of
the state constitution for the support of government for the state
fiscal year beginning April 1, 2017, as contained in legislative bills
numbers S.2000-D/A.3000-D, S.2001/A.3001, S.2003-D/A.3003-D, and
S.2004-D/A.3004-D, be transferred by the comptroller as expenditures and
disbursements to such appropriations for all state departments, agen-
cies, the legislature and the judiciary, as applicable, in amounts equal
to the amounts charged against those appropriations in the chapter of
the laws of 2017 making appropriations for the support of government as
proposed in legislative bills numbers S.5492 and A.7068 for each such
department, agency, the legislature and the judiciary.
§ 2. A chapter of the laws of 2017 making appropriations for the
support of government, as proposed in legislative bills numbers S.5492
and A.7068, is REPEALED upon the passage of legislative bills numbers
S.2000-D and A.3000-D.
S. 2009--C 175 A. 3009--C
§ 3. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2017.
PART RRR
Section 1. Subdivision (a) of section 2 of part F of chapter 60 of the
laws of 2015 constituting the infrastructure investment act, is amended
to read as follows:
(a) (I) "authorized state entity" shall mean the New York state thru-
way authority, the department of transportation, the office of parks,
recreation and historic preservation, the department of environmental
conservation and the New York state bridge authority.
(II) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION 26 OF SECTION 1678
OF THE PUBLIC AUTHORITIES LAW, SECTION 8 OF THE PUBLIC BUILDINGS LAW,
SECTIONS 8 AND 9 OF SECTION 1 OF CHAPTER 359 OF THE LAWS OF 1968 AS
AMENDED, SECTION 103 OF THE GENERAL MUNICIPAL LAW, AND THE PROVISIONS OF
ANY OTHER LAW TO THE CONTRARY, THE TERM "AUTHORIZED STATE ENTITY" SHALL
ALSO REFER TO ONLY THOSE AGENCIES OR AUTHORITIES IDENTIFIED BELOW SOLELY
IN CONNECTION WITH THE FOLLOWING AUTHORIZED PROJECTS, PROVIDED THAT SUCH
AN AUTHORIZED STATE ENTITY MAY UTILIZE THE ALTERNATIVE DELIVERY METHOD
REFERRED TO AS DESIGN-BUILD CONTRACTS SOLELY IN CONNECTION WITH THE
FOLLOWING AUTHORIZED PROJECTS SHOULD THE TOTAL COST OF EACH SUCH PROJECT
NOT BE LESS THAN FIVE MILLION DOLLARS ($5,000,000):
AUTHORIZED PROJECTS AUTHORIZED STATE ENTITY
1. FRONTIER TOWN URBAN DEVELOPMENT CORPORATION
2. LIFE SCIENCES LABORATORY DORMITORY AUTHORITY & URBAN
DEVELOPMENT CORPORATION
3. WHITEFACE TRANSFORMATIVE PROJECTS NEW YORK STATE OLYMPIC REGIONAL
DEVELOPMENT AUTHORITY
4. GORE TRANSFORMATIVE PROJECTS NEW YORK STATE OLYMPIC REGIONAL
DEVELOPMENT AUTHORITY
5. BELLEAYRE TRANSFORMATIVE PROJECTS NEW YORK STATE OLYMPIC REGIONAL
DEVELOPMENT AUTHORITY
6. MT. VAN HOEVENBERG TRANSFORMATIVE NEW YORK STATE OLYMPIC REGIONAL
PROJECTS DEVELOPMENT AUTHORITY
7. STATE FAIR REVITALIZATION PROJECTS OFFICE OF GENERAL SERVICES
8. STATE POLICE FORENSIC LABORATORY OFFICE OF GENERAL SERVICES
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ALL RIGHTS OR
BENEFITS, INCLUDING TERMS AND CONDITIONS OF EMPLOYMENT, AND PROTECTION
OF CIVIL SERVICE AND COLLECTIVE BARGAINING STATUS OF ALL EXISTING
EMPLOYEES OF AUTHORIZED STATE ENTITIES SOLELY IN CONNECTION WITH THE
AUTHORIZED PROJECTS LISTED ABOVE, SHALL BE PRESERVED AND PROTECTED.
NOTHING IN THIS SECTION SHALL RESULT IN THE: (1) DISPLACEMENT OF ANY
CURRENTLY EMPLOYED WORKER OR LOSS OF POSITION (INCLUDING PARTIAL
DISPLACEMENT SUCH AS A REDUCTION IN THE HOURS OF NON-OVERTIME WORK,
WAGES, OR EMPLOYMENT BENEFITS) OR RESULT IN THE IMPAIRMENT OF EXISTING
COLLECTIVE BARGAINING AGREEMENTS; AND (2) TRANSFER OF EXISTING DUTIES
AND FUNCTIONS RELATED TO MAINTENANCE AND OPERATIONS CURRENTLY PERFORMED
S. 2009--C 176 A. 3009--C
BY EXISTING EMPLOYEES OF AUTHORIZED STATE ENTITIES TO A CONTRACTING
ENTITY. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO AFFECT (A) THE
EXISTING RIGHTS OF EMPLOYEES PURSUANT TO AN EXISTING COLLECTIVE BARGAIN-
ING AGREEMENT, AND (B) THE EXISTING REPRESENTATIONAL RELATIONSHIPS AMONG
EMPLOYEE ORGANIZATIONS OR THE BARGAINING RELATIONSHIPS BETWEEN THE
EMPLOYER AND AN EMPLOYEE ORGANIZATION.
IF OTHERWISE APPLICABLE, AUTHORIZED PROJECTS UNDERTAKEN BY THE AUTHOR-
IZED STATE ENTITIES LISTED ABOVE SOLELY IN CONNECTION WITH THE
PROVISIONS OF THIS ACT SHALL BE SUBJECT TO SECTION 135 OF THE STATE
FINANCE LAW, SECTION 101 OF THE GENERAL MUNICIPAL LAW, AND SECTION 222
OF THE LABOR LAW; PROVIDED, HOWEVER, THAT AN AUTHORIZED STATE ENTITY MAY
FULFILL ITS OBLIGATIONS UNDER SECTION 135 OF THE STATE FINANCE LAW OR
SECTION 101 OF THE GENERAL MUNICIPAL LAW BY REQUIRING THE CONTRACTOR TO
PREPARE SEPARATE SPECIFICATIONS IN ACCORDANCE WITH SECTION 135 OF THE
STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL LAW, AS THE
CASE MAY BE.
§ 2. Intentionally omitted.
§ 3. Section 3 of part F of chapter 60 of the laws of 2015 constitut-
ing the infrastructure investment act, is amended to read as follows:
§ 3. Notwithstanding the provisions of section 38 of the highway law,
section 136-a of the state finance law, section 359 of the public
authorities law, section 7210 of the education law, and the provisions
of any other law to the contrary, and in conformity with the require-
ments of this act, an authorized state entity may utilize the alterna-
tive delivery method referred to as design-build contracts, in consulta-
tion with relevant local labor organizations and construction industry,
for capital projects related to the state's physical infrastructure,
including, but not limited to, the state's highways, bridges, dams,
flood control projects, canals, and parks, including, but not limited
to, to repair damage caused by natural disaster, to correct health and
safety defects, to comply with federal and state laws, standards, and
regulations, to extend the useful life of or replace the state's high-
ways, bridges, dams, flood control projects, canals, and parks or to
improve or add to the state's highways, bridges, dams, flood control
projects, canals, and parks; provided that for the contracts executed by
the department of transportation, the office of parks, recreation and
historic preservation, or the department of environmental conservation,
the total cost of each such project shall not be less than [one] TEN
million [two hundred thousand] dollars [($1,200,000)] ($10,000,000).
§ 4. Section 4 of part F of chapter 60 of the laws of 2015 constitut-
ing the infrastructure investment act, is amended to read as follows:
§ 4. An entity selected by an authorized state entity to enter into a
design-build contract shall be selected through a two-step method, as
follows:
(a) Step one. Generation of a list of entities that have demonstrated
the general capability to perform the design-build contract. Such list
shall consist of a specified number of entities, as determined by an
authorized state entity, and shall be generated based upon the author-
ized state entity's review of responses to a publicly advertised request
for qualifications. The authorized state entity's request for qualifica-
tions shall include a general description of the project, the maximum
number of entities to be included on the list, [and] the selection
criteria to be used AND THE RELATIVE WEIGHT OF EACH CRITERIA in generat-
ing the list. Such selection criteria shall include the qualifications
and experience of the design and construction team, organization, demon-
strated responsibility, ability of the team or of a member or members of
S. 2009--C 177 A. 3009--C
the team to comply with applicable requirements, including the
provisions of articles 145, 147 and 148 of the education law, past
record of compliance with the labor law, and such other qualifications
the authorized state entity deems appropriate which may include but are
not limited to project understanding, financial capability and record of
past performance. The authorized state entity shall evaluate and rate
all entities responding to the request for qualifications. Based upon
such ratings, the authorized state entity shall list the entities that
shall receive a request for proposals in accordance with subdivision (b)
of this section. To the extent consistent with applicable federal law,
the authorized state entity shall consider, when awarding any contract
pursuant to this section, the participation of: (i) firms certified
pursuant to article 15-A of the executive law as minority or women-owned
businesses and the ability of other businesses under consideration to
work with minority and women-owned businesses so as to promote and
assist participation by such businesses; and (ii) small business
concerns identified pursuant to subdivision (b) of section 139-g of the
state finance law.
(b) Step two. Selection of the proposal which is the best value to the
[state] AUTHORIZED STATE ENTITY. The authorized state entity shall
issue a request for proposals to the entities listed pursuant to subdi-
vision (a) of this section. If such an entity consists of a team of
separate entities, the entities that comprise such a team must remain
unchanged from the entity as listed pursuant to subdivision (a) of this
section unless otherwise approved by the authorized state entity. The
request for proposals shall set forth the project's scope of work, and
other requirements, as determined by the authorized state entity. The
request for proposals shall specify the criteria to be used to evaluate
the responses and the relative weight of each such criteria. Such
criteria shall include the proposal's cost, the quality of the
proposal's solution, the qualifications and experience of the design-
build entity, and other factors deemed pertinent by the authorized state
entity, which may include, but shall not be limited to, the proposal's
project implementation, ability to complete the work in a timely and
satisfactory manner, maintenance costs of the completed project, mainte-
nance of traffic approach, and community impact. Any contract awarded
pursuant to this act shall be awarded to a responsive and responsible
entity that submits the proposal, which, in consideration of these and
other specified criteria deemed pertinent to the project, offers the
best value to the [state] AUTHORIZED STATE ENTITY, as determined by the
authorized state entity. THE REQUEST FOR PROPOSALS SHALL INCLUDE A
STATEMENT THAT ENTITIES SHALL DESIGNATE IN WRITING THOSE PORTIONS OF THE
PROPOSAL THAT CONTAIN TRADE SECRETS OR OTHER PROPRIETARY INFORMATION
THAT ARE TO REMAIN CONFIDENTIAL; THAT THE MATERIAL DESIGNATED AS CONFI-
DENTIAL SHALL BE READILY SEPARABLE FROM THE ENTITY'S PROPOSAL. Nothing
herein shall be construed to prohibit the authorized entity from negoti-
ating final contract terms and conditions including cost. ALL PROPOSALS
SUBMITTED SHALL BE SCORED ACCORDING TO THE CRITERIA LISTED IN THE
REQUEST FOR PROPOSALS AND SUCH FINAL SCORES SHALL BE PUBLISHED ON THE
AUTHORIZED STATE ENTITY'S WEBSITE.
§ 5. Intentionally omitted.
§ 6. Intentionally omitted.
§ 7. Intentionally omitted.
§ 8. Intentionally omitted.
§ 9. Intentionally omitted.
§ 10. Intentionally omitted.
S. 2009--C 178 A. 3009--C
§ 11. Section 13 of part F of chapter 60 of the laws of 2015 consti-
tuting the infrastructure investment act, is amended to read as follows:
§ 13. Alternative construction awarding processes. (a) Notwithstand-
ing the provisions of any other law to the contrary, the authorized
state entity may award a construction contract:
1. To the contractor offering the best value; or
2. Utilizing a cost-plus not to exceed guaranteed maximum price form
of contract in which the authorized state entity shall be entitled to
monitor and audit all project costs. In establishing the schedule and
process for determining a guaranteed maximum price, the contract between
the authorized state entity and the contractor shall:
(i) describe the scope of the work and the cost of performing such
work;
(ii) include a detailed line item cost breakdown;
(iii) include a list of all drawings, specifications and other infor-
mation on which the guaranteed maximum price is based;
(iv) include the dates for substantial and final completion on which
the guaranteed maximum price is based; and
(v) include a schedule of unit prices; or
3. Utilizing a lump sum contract in which the contractor agrees to
accept a set dollar amount for a contract which comprises a single bid
without providing a cost breakdown for all costs such as for equipment,
labor, materials, as well as such contractor's profit for completing all
items of work comprising the project.
(b) Capital projects undertaken by an authorized state entity may
include an incentive clause in the contract for various performance
objectives, but the incentive clause shall not include an incentive that
exceeds the quantifiable value of the benefit received by the [state]
AUTHORIZED STATE ENTITY. The authorized state entity shall establish
such performance and payment bonds as it deems necessary.
§ 12. Intentionally omitted.
§ 13. Intentionally omitted.
§ 14. Section 17 of part F of chapter 60 of the laws of 2015 consti-
tuting the infrastructure investment act, is amended to read as follows:
§ 17. This act shall take effect immediately and shall expire and be
deemed repealed [2] 4 years after such date, provided that, projects
with requests for qualifications issued prior to such repeal shall be
permitted to continue under this act notwithstanding such repeal.
§ 15. This act shall take effect immediately; provided, however that
the amendments to the infrastructure investment act made by sections one
through thirteen of this act shall not affect the repeal of such act and
shall be deemed repealed therewith.
PART SSS
Section 1. Subdivision 28 of section 501 of the retirement and social
security law, as added by chapter 298 of the laws of 2016, is amended to
read as follows:
28. "New York city enhanced plan member" shall mean (a) a New York
city police/fire revised plan member who becomes subject to the
provisions of this article on or after June fifteenth, two thousand
sixteen and who is a member of the New York city fire department pension
fund, (b) a police/fire member who is a member of the New York city fire
department pension fund and who makes an election, which shall be irrev-
ocable and shall be duly executed and filed with the administrative head
of such pension fund no later than one hundred twenty days after the
S. 2009--C 179 A. 3009--C
effective date of this subdivision, to be subject to the provisions of
this article related to New York city enhanced plan members, [or] (c) a
New York city police/fire revised plan member who became subject to the
provisions of this article before June fifteenth, two thousand sixteen,
who is a member of the New York city fire department pension fund, and
who makes an election, which shall be irrevocable and shall be duly
executed and filed with the administrative head of such pension fund no
later than one hundred twenty days after the effective date of this
subdivision, to be subject to the provisions of this article related to
New York city enhanced plan members, (D) A NEW YORK CITY POLICE/FIRE
REVISED PLAN MEMBER WHO BECOMES SUBJECT TO THE PROVISIONS OF THIS ARTI-
CLE ON OR AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN AND WHO IS A MEMBER
OF THE NEW YORK CITY POLICE PENSION FUND, (E) A POLICE/FIRE MEMBER WHO
IS A MEMBER OF THE NEW YORK CITY POLICE PENSION FUND AND WHO MAKES AN
ELECTION, WHICH SHALL BE IRREVOCABLE AND SHALL BE DULY EXECUTED AND
FILED WITH THE ADMINISTRATIVE HEAD OF SUCH PENSION FUND NO LATER THAN
ONE HUNDRED TWENTY DAYS AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE
LAWS OF TWO THOUSAND SEVENTEEN WHICH AMENDED THIS SUBDIVISION, TO BE
SUBJECT TO THE PROVISIONS OF THIS ARTICLE RELATED TO NEW YORK CITY
ENHANCED PLAN MEMBERS, OR (F) A NEW YORK CITY POLICE/FIRE REVISED PLAN
MEMBER WHO BECAME SUBJECT TO THE PROVISIONS OF THIS ARTICLE BEFORE APRIL
FIRST, TWO THOUSAND SEVENTEEN, WHO IS A MEMBER OF THE NEW YORK CITY
POLICE PENSION FUND, AND WHO MAKES AN ELECTION, WHICH SHALL BE IRREV-
OCABLE AND SHALL BE DULY EXECUTED AND FILED WITH THE ADMINISTRATIVE HEAD
OF SUCH PENSION FUND NO LATER THAN ONE HUNDRED TWENTY DAYS AFTER THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN
WHICH AMENDED THIS SUBDIVISION, TO BE SUBJECT TO THE PROVISIONS OF THIS
ARTICLE RELATED TO NEW YORK CITY ENHANCED PLAN MEMBERS.
§ 2. Subdivision h of section 517 of the retirement and social securi-
ty law, as added by chapter 298 of the laws of 2016, is amended to read
as follows:
h. Notwithstanding any inconsistent provision of subdivision a of this
section, New York city enhanced plan members WHO ARE MEMBERS OF THE NEW
YORK CITY FIRE DEPARTMENT PENSION FUND shall, as of the effective date
of this subdivision PURSUANT TO CHAPTER TWO HUNDRED NINETY-EIGHT OF THE
LAWS OF TWO THOUSAND SIXTEEN, contribute three percent of annual wages
to the pension fund in which they have membership, plus an additional
percentage of annual wages as set forth in the chapter of the laws of
two thousand sixteen which added this subdivision.
§ 3. Section 517 of the retirement and social security law is amended
by adding a new subdivision i to read as follows:
I. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SUBDIVISION A OF THIS
SECTION, NEW YORK CITY ENHANCED PLAN MEMBERS WHO ARE MEMBERS OF THE NEW
YORK CITY POLICE PENSION FUND SHALL, AS OF THE EFFECTIVE DATE OF THIS
SUBDIVISION, CONTRIBUTE THREE PERCENT OF ANNUAL WAGES TO THE PENSION
FUND IN WHICH THEY HAVE MEMBERSHIP, PLUS AN ADDITIONAL PERCENTAGE OF
ANNUAL WAGES AS SET FORTH IN THE CHAPTER OF THE LAWS OF TWO THOUSAND
SEVENTEEN WHICH ADDED THIS SUBDIVISION.
§ 4. New York city enhanced plan members, as defined in section 501 of
the retirement and social security law as amended by section one of this
act, shall contribute, pursuant to subdivision i of section 517 of the
retirement and social security law as added by section three of this
act, an additional one percent of annual wages to the pension fund in
which they have membership. Every three years from the effective date of
this act, the actuary of such pension fund shall prepare an analysis,
using current actuarial methods and assumptions in effect as of the date
S. 2009--C 180 A. 3009--C
of such analysis, assessing the total cost of providing the benefits
established by this act expressed as an employee contribution of a
percentage of annual wages of New York City enhanced plan members which
would require no additional employer contribution. On the basis of such
analysis, the additional percentage of annual wages provided for herein
shall be adjusted to equal one percent of annual wages plus any amount
by which the employee contribution calculated in such analysis exceeds
2.2 percent of annual wages, provided, however, that in no event shall
the additional percentage of annual wages exceed 3 percent.
§ 5. Section 81 of chapter 18 of the laws of 2012 shall not apply to
this act.
§ 6. This act shall take effect immediately.
FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
PROVISIONS OF PROPOSED LEGISLATION: The proposed legislation would
amend provisions of the Retirement and Social Security Law (RSSL) to
permit existing New York City Police Pension Fund (POLICE) Tier 3 and
Revised Tier 3 POLICE Members to elect to join the RSSL Article 14
Enhanced Plan, and require participation for those POLICE Members who
become subject to Article 14 on or after April 1, 2017. The Enhanced
Plan provides changes to Accidental Disability Retirement (ADR) and
Ordinary Disability Retirement (ODR) benefits, and includes a formula
for adjusting increased contribution rates within defined parameters.
The proposed legislation would also allow eligible POLICE Members to
utilize applicable statutory presumptions for purposes of ADR.
The Effective Date of the proposed legislation would be the date of
enactment.
For purposes of this Fiscal Note, all POLICE members subject to Arti-
cle 14 of the RSSL will be referred to as "Tier 3 POLICE Members." Tier
3 POLICE Members who have a date of membership prior to April 1, 2012
will be referred to as "Original Tier 3 POLICE Members." Tier 3 POLICE
Members who have a date of membership on or after April 1, 2012 will be
referred to as "Revised Tier 3 POLICE Members."
Tier 3 POLICE Members who are Members prior to April 1, 2017 would
have the option of remaining under the current benefit structure or
irrevocably electing, within 120 days of the effective date of the
proposed legislation, to be covered under the benefit structure
contained in the proposed legislation. Tier 3 POLICE Members who become
Members on and after April 1, 2017 would be subject to the benefit
structure contained in the proposed legislation. Tier 3 POLICE Members
who elect the benefits of this proposed legislation, and Tier 3 POLICE
Members who are subject to mandatory participation, are referred to as
"POLICE Enhanced Plan Members."
POLICE Enhanced Plan Members would, in addition to paying the current
contribution rate of 3% of annual wages, be required to contribute addi-
tional contributions initially at 1% of annual wages and, in the future,
ranging from 1% to 3% of annual wage depending on specified future cost
calculations of providing POLICE Enhanced Plan benefits.
CURRENT ODR BENEFITS PAYABLE: The current ODR benefits for Tier 3
POLICE Members are equal to the greater of:
* 33 1/3% of Final Average Salary (FAS), or
* 2% of FAS multiplied by years of credited service (not in excess of
22 years),
Reduced by:
* 50% of the Primary Social Security Disability benefits (determined
under RSSL Section 511), and
* 100% of Workers' Compensation benefits (if any).
S. 2009--C 181 A. 3009--C
FAS is a Three-Year Average (FAS3) for Original Tier 3 POLICE Members
and a Five-Year Average (FAS5) for Revised Tier 3 POLICE Members.
It is the understanding of the Actuary that POLICE Members are not
covered by Workers' Compensation.
IMPACT ON ODR BENEFITS PAYABLE: Under the proposed legislation, the
ODR benefits for POLICE Enhanced Plan Members would be revised to be
equal to the greater of:
* 33 1/3% of FAS5, or
* 2% of FAS5 multiplied by years of credited service (not in excess of
22 years).
Reduced by:
* 100% of Workers' Compensation benefits (if any).
It is the understanding of the Actuary that POLICE Members are not
covered by Workers' Compensation.
Eligibility for ODR benefits for Enhanced Plan Members would remain
the same.
In addition, the proposed legislation would NOT apply the Escalation
available under RSSL Section 510 to ODR benefits for POLICE Enhanced
Plan Members. However, such ODR benefits would still be eligible for
Cost-of-Living Adjustments (COLA) under Chapter 125 of the Laws of 2000.
CURRENT ADR BENEFITS PAYABLE: The current ADR benefits for Tier 3
POLICE Members is equal to:
* 50% multiplied by FAS,
Reduced by:
* 50% of Primary Social Security disability benefit or Primary Social
Security benefits, whichever begins first (determined under RSSL Section
511), and
* 100% of Workers' Compensation benefits (if any).
FAS is a FAS3 for Original Tier 3 POLICE Members and a FAS5 for
Revised Tier 3 POLICE Members.
It is the understanding of the Actuary that POLICE Members are not
covered by Workers' Compensation.
IMPACT ON ADR BENEFITS PAYABLE: Under the proposed legislation, the
eligibility requirements for ADR benefits for POLICE Enhanced Plan
Members would be the same as current Tier 3 POLICE Members. However,
these Members would also become eligible to utilize applicable statutory
presumptions (e.g., certain heart conditions) for purposes of ADR.
Under the proposed legislation, the ADR benefits for Enhanced Plan
Members would be revised to equal a retirement allowance of:
* 75% multiplied by FAS5,
Reduced by:
* 100% of Workers' Compensation benefits (if any).
It is the understanding of the Actuary that POLICE Members are not
covered by Workers' Compensation.
In addition, the proposed legislation would NOT apply the Escalation
available under RSSL Section 510 to ADR benefits for Enhanced Plan
Members. However, such ADR benefits would still be eligible for COLA
under Chapter 125 of the Laws of 2000.
FINANCIAL IMPACT - CHANGES IN PROJECTED ACTUARIAL PRESENT VALUE OF
FUTURE EMPLOYER CONTRIBUTIONS AND PROJECTED EMPLOYER CONTRIBUTIONS: For
purposes of this Fiscal Note, it is assumed that the changes in the
Actuarial Present Value (APV) of benefits (APVB), APV of member contrib-
utions, the Unfunded Actuarial Accrued Liability (UAAL) and APV of
future employer contributions would be reflected for the first time in
the June 30, 2016 actuarial valuation of POLICE. Under the One-Year Lag
Methodology (OYLM), the first year in which changes in benefits for
S. 2009--C 182 A. 3009--C
Enhanced Plan Members could impact employer contributions to POLICE
would be Fiscal Year 2018.
The estimated increases in employer contributions shown in Table 1 are
based upon the following projection assumptions:
* Level workforce (i.e., new employees are hired to replace those who
leave active status).
* Salary increases consistent with those used in projections to be
presented to the New York City Office of Management and Budget in April,
2017 (Preliminary Projections).
* New entrant salaries consistent with those used in the Preliminary
Projections.
OTHER COSTS: Not measured in this Fiscal Note are the following:
* The initial, additional administrative costs of POLICE to implement
the proposed legislation.
* The impact of this proposed legislation on Other Postemployment
Benefit (OPEB) costs.
CENSUS DATA: The starting census data used for the calculations
presented herein is the census data used in the Preliminary June 30,
2016 (Lag) actuarial valuation of POLICE to determine the Preliminary
Fiscal Year 2018 employer contributions.
The 3,211 Original Tier 3 POLICE members who have a date of membership
prior to April 1, 2012 had an average age of approximately 31.3, average
service of approximately 5.2 years and an average salary of approximate-
ly $87,300 as of June 30, 2016. The 7,998 Revised Tier 3 POLICE Members
who have a date of membership on or after April 1, 2012 had an average
age of approximately 28.4, average service of approximately 1.8 years
and an average salary of approximately $58,400 as of June 30, 2016.
ACTUARIAL ASSUMPTIONS AND METHODS: The additional employer contrib-
utions presented herein have been calculated based on the actuarial
assumptions and methods in effect for the Preliminary June 30, 2016
(Lag) actuarial valuations used to determine the Preliminary Fiscal Year
2018 employer contributions of POLICE.
In determining the change in employer contributions, the probabilities
of accidental disability used for Tier 3 POLICE members equal those
currently used for Tier 2 POLICE members who are not eligible for World
Trade Center benefits.
It has been further assumed that all Tier 3 POLICE members who became
members prior to April 1, 2017 will choose the new disability
provisions.
The actuarial valuation methodology does not include a calculation of
the value of an offset for Workers' Compensation benefits for Tier 3
POLICE members as it is the understanding of the Actuary that these
members are not covered by such benefits.
Employer contributions under current methodology have been estimated
assuming the additional APVB would be financed through future normal
contributions including an amortization of the new UAAL attributable to
this proposed legislation over a 15-year period (14 payments under the
OYLM Methodology).
New entrants were projected to replace the members expected to leave
the active population to maintain a steady-state population.
For purposes of estimating the financial impact of the changes
described above, an assumed Escalation rate of 2.5% was used for current
Tier 3 Police Member benefits, which is consistent with the underlying
Consumer Price Inflation (CPI) assumption of 2.5% per year. Consistent
with Chapter 125 of the Laws of 2000, a COLA rate of 1.5% per year
(i.e., 50% of CPI adjusted to recognize a 1.0% minimum and 3.0% maximum)
S. 2009--C 183 A. 3009--C
on the first $18,000 of benefit was assumed for purposes of valuing
proposed Enhanced Plan benefits.
In accordance with ACNY Section 13.638.2(k-2), new UAAL attributable
to benefit changes are to be amortized as determined by the Actuary but
generally over the remaining working lifetime of those impacted by the
benefit changes. As of June 30, 2016, the remaining working lifetime of
the Tier 3 POLICE members is approximately 18 years. Recognizing that
this period will decrease over time as the group of Enhanced Plan
Members matures, the Actuary would likely choose to amortize the new
UAAL attributable to this proposed legislation over a 15-year to 20-year
period (between 14 and 19 payments under the OYLM Methodology). For
purposes of this Fiscal Note, the Actuary has elected to amortize the
change in UAAL over a 15-year period (14 payments).
Table 1 presents an estimate of the increases in the APV of future
employer contributions and in employer contributions to POLICE for
Fiscal Years 2018 through 2022 due to the changes in ODR and ARD
provisions for Enhanced Plan Members based on the applicable actuarial
assumptions and methods noted herein:
Table 1
Estimated Financial Impact on POLICE
If certain Revisions are Made to
Provisions for ODR and ADR Benefits for Tier 3 POLICE Members
($ Millions)
Increase in APV of Increase
Fiscal Year Future Employer In Employer
Contributions Contributions
2018 $69.4 $13.1
2019 74.2 14.1
2020 77.7 15.1
2021 79.7 15.9
2022 80.7 16.3
Table 2 presents the total number of active employees of POLICE used
in the projections, assuming a level work force, and the cumulative
number (i.e., net of withdrawals) of Tier 3 Members as of each June 30
from 2016 thorough 2020.
Table 2
Surviving Actives from Census Data on June 30, 2016
and
Cumulative Tier 3 POLICE Members from 2016
Used in the Projections*
June 30 Tier 1 & 2 Tier 3 Total
2016 24,752 11,209 35,961
2017 22,798 13,163 35,961
2018 20,785 15,176 35,961
2019 18,976 16,985 35,961
2020 17,532 18,429 35,961
S. 2009--C 184 A. 3009--C
* Total active members included in the projections assume a level work
force based on the June 30, 2016 (Lag) actuarial valuation census data.
STATEMENT OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
ary for, and independent of, the New York City Pension Funds and Retire-
ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
Conference of Consulting Actuaries and a Member of the American Academy
of Actuaries. I meet the Qualifications Standards of the American Acade-
my of Actuaries to render the actuarial opinion contained herein.
FISCAL NOTE IDENTIFICATION: This Fiscal Note 2017-04 dated April 3,
2017 was prepared by the Chief Actuary for the New York City POLICE
Pension Fund. This estimate is intended for use only during the 2017
Legislative Session.
PART TTT
Section 1. The section heading of section 421-a of the real property
tax law, as amended by chapter 857 of the laws of 1975 and such section
as renumbered by chapter 110 of the laws of 1977, is amended to read as
follows:
[Exemption of new multiple dwellings from local taxation.] AFFORDABLE
NEW YORK HOUSING PROGRAM.
§ 2. Subparagraphs (i) and (iii) of paragraph (a) of subdivision 10 of
section 421-a of the real property tax law, as amended by chapter 15 of
the laws of 2008, are amended to read as follows:
(i) all rent stabilization registrations required to be filed on or
after January first, two thousand eight shall contain a designation
which identifies all units that are subject to the provisions of this
section as "[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM units" and
specifically identifies affordable units created pursuant to this
section and units which are required to be occupied by persons or fami-
lies who meet specified income limits pursuant to the provisions of a
local law enacted pursuant to this section as "[421-a] AFFORDABLE NEW
YORK HOUSING PROGRAM affordable units" and shall contain an explanation
of the requirements that apply to all such units. The owner of a unit
that is subject to the provisions of this section shall, in addition to
complying with the requirements of section 26-517 of the rent stabiliza-
tion law, file a copy of the rent registration for each such unit with
the local housing agency;
(iii) the local housing agency shall create a report which, at a mini-
mum, contains the following information for every building which
receives benefits pursuant to this section: address, commencement and
termination date of the benefits, total number of residential units,
number of "[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM units" and number
of "[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM affordable units",
apartment number or other designation of such units and the rent for
each of such units. The local housing agency with the cooperation of the
division of housing and community renewal shall maintain, and update
such report no less than annually, with information secured from annual
registrations. Such reports shall be available for public inspection in
a form that assigns a unique designation to each unit other than its
actual apartment number to maintain the privacy of such information; and
§ 3. Subdivision 16 of section 421-a of the real property tax law, as
added by section 63-c of part A of chapter 20 of the laws of 2015, is
amended to read as follows:
16. (a) Definitions. For the purposes of this subdivision:
S. 2009--C 185 A. 3009--C
(i) "[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits" shall mean
exemption from real property taxation pursuant to this subdivision.
(ii) "Affordability option A" shall mean that, within any eligible
site: (A) not less than ten percent of the dwelling units are afforda-
ble housing forty percent units; (B) not less than an additional ten
percent of the dwelling units are affordable housing sixty percent
units; (C) not less than an additional five percent of the dwelling
units are affordable housing one hundred thirty percent units; and (D)
such eligible site is developed without the substantial assistance of
grants, loans or subsidies provided by a federal, state or local govern-
mental agency or instrumentality pursuant to a program for the develop-
ment of affordable housing, except that such eligible site may receive
tax exempt bond proceeds and four percent tax credits.
(iii) "Affordability option B" shall mean that, within any eligible
site, (A) not less than ten percent of the dwelling units are affordable
housing seventy percent units, and (B) not less than an additional twen-
ty percent of the dwelling units are affordable housing one hundred
thirty percent units.
(iv) "Affordability option C" shall mean that, within any eligible
site excluding the geographic area south of ninety-sixth street in the
borough of Manhattan, and all other geographic areas in the city of New
York excluded pursuant to local law, (A) not less than thirty percent of
the dwelling units are affordable housing one hundred thirty percent
units, and (B) such eligible site is developed without the substantial
assistance of grants, loans or subsidies provided by a federal, state or
local governmental agency or instrumentality pursuant to a program for
the development of affordable housing.
(v) "Affordability option D" shall only apply to a homeownership
project, of which one hundred percent of the units shall have an average
assessed value not to exceed sixty-five thousand dollars upon the first
assessment following the completion date and where each owner of any
such unit shall agree, in writing, to maintain such unit as their prima-
ry residence for no less than five years from the acquisition of such
unit.
(VI) "AFFORDABILITY OPTION E" SHALL MEAN THAT, WITHIN ANY ELIGIBLE
SITE WITHIN THE ENHANCED AFFORDABILITY AREA, SUCH SITE MUST CONSIST OF
NO LESS THAN THREE HUNDRED RENTAL DWELLING UNITS OF WHICH (A) NOT LESS
THAN TEN PERCENT OF THE RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING
FORTY PERCENT UNITS; (B) NOT LESS THAN AN ADDITIONAL TEN PERCENT OF THE
RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING SIXTY PERCENT UNITS; (C)
NOT LESS THAN AN ADDITIONAL FIVE PERCENT OF THE RENTAL DWELLING UNITS
ARE AFFORDABLE HOUSING ONE HUNDRED TWENTY PERCENT UNITS; AND (D) SUCH
ELIGIBLE SITE IS DEVELOPED WITHOUT THE SUBSTANTIAL ASSISTANCE OF GRANTS,
LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE OR LOCAL GOVERNMENTAL
AGENCY OR INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE DEVELOPMENT OF
AFFORDABLE HOUSING, EXCEPT THAT SUCH ELIGIBLE SITE MAY RECEIVE TAX
EXEMPT BOND PROCEEDS AND FOUR PERCENT TAX CREDITS.
(VII) "AFFORDABILITY OPTION F" SHALL MEAN THAT, WITHIN ANY ELIGIBLE
SITE WITHIN THE ENHANCED AFFORDABILITY AREA, SUCH SITE MUST CONSIST OF
NO LESS THAN THREE HUNDRED RENTAL DWELLING UNITS OF WHICH (A) NOT LESS
THAN TEN PERCENT OF THE RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING
SEVENTY PERCENT UNITS; AND (B) NOT LESS THAN AN ADDITIONAL TWENTY
PERCENT OF THE RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING ONE HUNDRED
THIRTY PERCENT UNITS.
(VIII) "AFFORDABILITY OPTION G" SHALL MEAN THAT, WITHIN ANY ELIGIBLE
SITE LOCATED WITHIN THE BROOKLYN ENHANCED AFFORDABILITY AREA OR THE
S. 2009--C 186 A. 3009--C
QUEENS ENHANCED AFFORDABILITY AREA, SUCH SITE MUST CONSIST OF NO LESS
THAN THREE HUNDRED RENTAL DWELLING UNITS OF WHICH (A) NOT LESS THAN
THIRTY PERCENT OF THE RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING ONE-
HUNDRED THIRTY PERCENT UNITS; AND (B) SUCH ELIGIBLE SITE IS DEVELOPED
WITHOUT THE SUBSTANTIAL ASSISTANCE OF GRANTS, LOANS OR SUBSIDIES
PROVIDED BY A FEDERAL, STATE OR LOCAL GOVERNMENTAL AGENCY OR INSTRUMEN-
TALITY PURSUANT TO A PROGRAM FOR THE DEVELOPMENT OF AFFORDABLE HOUSING.
[(vi)] (IX) "Affordability percentage" shall mean a fraction, the
numerator of which is the number of affordable housing units in an
eligible site and the denominator of which is the total number of dwell-
ing units in such eligible site.
[(vii)] (X) "Affordable housing forty percent unit" shall mean a
dwelling unit that: (A) is situated within the eligible site for which
[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits are granted; and
(B) upon initial rental and upon each subsequent rental following a
vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
APPLICABLE, is affordable to and restricted to occupancy by individuals
or families whose household income does not exceed forty percent of the
area median income, adjusted for family size, at the time that such
household initially occupies such dwelling unit.
[(viii)] (XI) "Affordable housing sixty percent unit" shall mean a
dwelling unit that: (A) is situated within the eligible site for which
[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits are granted; and
(B) upon initial rental and upon each subsequent rental following a
vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
APPLICABLE, is affordable to and restricted to occupancy by individuals
or families whose household income does not exceed sixty percent of the
area median income, adjusted for family size, at the time that such
household initially occupies such dwelling unit.
[(ix)] (XII) "Affordable housing seventy percent unit" shall mean a
dwelling unit that: (A) is situated within the eligible site for which
[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits are granted; and
(B) upon initial rental and upon each subsequent rental following a
vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
APPLICABLE, is affordable to and restricted to occupancy by individuals
or families whose household income does not exceed seventy percent of
the area median income, adjusted for family size, at the time that such
household initially occupies such dwelling unit.
(XIII) "AFFORDABLE HOUSING ONE HUNDRED TWENTY PERCENT UNIT" SHALL MEAN
A DWELLING UNIT THAT: (A) IS SITUATED WITHIN THE ELIGIBLE SITE FOR WHICH
AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS ARE GRANTED; AND (B) UPON
INITIAL RENTAL AND UPON EACH SUBSEQUENT RENTAL FOLLOWING A VACANCY
DURING THE EXTENDED RESTRICTION PERIOD, IS AFFORDABLE TO AND RESTRICTED
TO OCCUPANCY BY INDIVIDUALS OR FAMILIES WHOSE HOUSEHOLD INCOME DOES NOT
EXCEED ONE HUNDRED TWENTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED
FOR FAMILY SIZE, AT THE TIME THAT SUCH HOUSEHOLD INITIALLY OCCUPIES SUCH
DWELLING UNIT.
[(x)] (XIV) "Affordable housing one hundred thirty percent unit" shall
mean a dwelling unit that: (A) is situated within the eligible site for
which [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits are granted;
and (B) upon initial rental and upon each subsequent rental following a
vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
APPLICABLE, is affordable to and restricted to occupancy by individuals
or families whose household income does not exceed one hundred thirty
percent of the area median income, adjusted for family size, at the time
that such household initially occupies such dwelling unit.
S. 2009--C 187 A. 3009--C
[(xi)] (XV) "Affordable housing unit" shall mean, collectively and
individually, affordable housing forty percent units, affordable housing
sixty percent units, affordable housing seventy percent units, AFFORDA-
BLE HOUSING ONE HUNDRED TWENTY PERCENT UNITS and affordable housing one
hundred thirty percent units.
[(xii)] (XVI) "Agency" shall mean the department of housing preserva-
tion and development.
[(xiii)] (XVII) "Application" shall mean an application for [421-a]
AFFORDABLE NEW YORK HOUSING PROGRAM benefits.
[(xiv)] (XVIII) "AVERAGE HOURLY WAGE" SHALL MEAN THE AMOUNT EQUAL TO
THE AGGREGATE AMOUNT OF ALL WAGES AND ALL EMPLOYEE BENEFITS PAID TO, OR
ON BEHALF OF, CONSTRUCTION WORKERS FOR CONSTRUCTION WORK DIVIDED BY THE
AGGREGATE NUMBER OF HOURS OF CONSTRUCTION WORK.
(XIX) "BROOKLYN ENHANCED AFFORDABILITY AREA" SHALL MEAN ANY TAX LOTS
NOW EXISTING OR HEREAFTER CREATED WHICH ARE LOCATED ENTIRELY WITHIN
COMMUNITY BOARDS ONE OR TWO OF THE BOROUGH OF BROOKLYN BOUNDED AND
DESCRIBED AS FOLLOWS: ALL THAT PIECE OR PARCEL OF LAND SITUATE AND BEING
IN THE BOROUGHS OF QUEENS AND BROOKLYN, NEW YORK. BEGINNING AT THE POINT
OF INTERSECTION OF THE CENTERLINE OF NEWTOWN CREEK AND THE WESTERLY
BOUNDS OF THE EAST RIVER; THENCE SOUTHEASTERLY ALONG THE CENTERLINE OF
NEWTOWN CREEK, SAID CENTERLINE ALSO BEING THE BOUNDARY BETWEEN QUEENS
COUNTY TO THE NORTHEAST AND KINGS COUNTY TO THE SOUTHWEST, TO THE POINT
OF INTERSECTION WITH GREENPOINT AVENUE; THENCE SOUTHWESTERLY ALONG
GREENPOINT AVENUE, TO THE INTERSECTION WITH KINGS LAND AVENUE; THENCE
SOUTHERLY ALONG KINGSLAND AVENUE TO THE INTERSECTION WITH MEEKER AVENUE;
THENCE SOUTHWESTERLY ALONG MEEKER AVENUE TO THE INTERSECTION WITH
LEONARD STREET; THENCE SOUTHERLY ALONG LEONARD STREET TO THE INTER-
SECTION WITH METROPOLITAN AVENUE; THENCE WESTERLY ALONG METROPOLITAN
AVENUE TO THE INTERSECTION WITH LORIMER STREET; THENCE SOUTHERLY ALONG
LORIMER STREET TO THE INTERSECTION WITH MONTROSE AVENUE; THENCE WESTERLY
ALONG MONTROSE AVENUE TO THE INTERSECTION WITH UNION AVENUE; THENCE
SOUTHERLY ALONG UNION AVENUE TO THE INTERSECTION WITH JOHNSON AVENUE;
THENCE WESTERLY ALONG JOHNSON AVENUE TO THE INTERSECTION WITH BROADWAY;
THENCE NORTHWESTERLY ALONG BROADWAY TO THE INTERSECTION WITH RUTLEDGE
STREET; THENCE SOUTHWESTERLY ALONG RUTLEDGE STREET TO THE INTERSECTION
WITH KENT AVENUE AND CLASSON AVENUE; THENCE SOUTHWESTERLY AND SOUTHERLY
ALONG CLASSON AVENUE TO THE INTERSECTION WITH DEKALB AVENUE; THENCE
WESTERLY ALONG DEKALB AVENUE TO THE INTERSECTION WITH BOND STREET;
THENCE SOUTHWESTERLY ALONG BOND STREET TO THE INTERSECTION WITH WYCKOFF
STREET; THENCE NORTHWESTERLY ALONG WYCKOFF STREET TO THE INTERSECTION
WITH HOYT STREET; THENCE SOUTHWESTERLY ALONG HOYT STREET TO THE INTER-
SECTION WITH WARREN STREET; THENCE NORTHWESTERLY ALONG WARREN STREET TO
THE INTERSECTION WITH COURT STREET; THENCE NORTHEASTERLY ALONG COURT
STREET TO THE INTERSECTION WITH ATLANTIC AVENUE; THENCE NORTHWESTERLY
ALONG ATLANTIC AVENUE, CROSSING UNDER THE BROOKLYN QUEENS EXPRESSWAY
(AKA INTERSTATE 278), TO THE TERMINUS OF ATLANTIC AVENUE AT THE BROOKLYN
BRIDGE PARK/PIER 6; THENCE NORTHWESTERLY PASSING THROUGH THE BROOKLYN
BRIDGE PARK TO THE BULKHEAD OF THE EAST RIVER AT PIER 6; THENCE IN A
GENERAL NORTHEASTERLY DIRECTION ALONG THE EASTERLY BULKHEAD OR SHORELINE
OF THE EAST RIVER TO THE INTERSECTION WITH THE CENTERLINE OF NEWTOWN
CREEK, AND THE POINT OR PLACE OF BEGINNING.
(XX) "Building service employee" shall mean any person who is regular-
ly employed at, and performs work in connection with the care or mainte-
nance of, an eligible site, including, but not limited to, a watchman,
guard, doorman, building cleaner, porter, handyman, janitor, gardener,
groundskeeper, elevator operator and starter, and window cleaner, but
S. 2009--C 188 A. 3009--C
not including persons regularly scheduled to work fewer than eight hours
per week at the eligible site.
[(xv)] (XXI) "Commencement date" shall mean, with respect to any
eligible multiple dwelling, the date upon which excavation and
construction of initial footings and foundations lawfully begins in good
faith or, for an eligible conversion, the date upon which the actual
construction of the conversion, alteration or improvement of the pre-ex-
isting building or structure lawfully begins in good faith.
[(xvi)] (XXII) "Completion date" shall mean, WITH RESPECT TO ANY
ELIGIBLE MULTIPLE DWELLING, the date upon which the local department of
buildings issues the first temporary or permanent certificate of occu-
pancy covering all residential areas of an eligible multiple dwelling.
[(xvii)] (XXIII) "Construction period" shall mean, with respect to any
eligible multiple dwelling, a period: (A) beginning on the later of the
commencement date of such eligible multiple dwelling or three years
before the completion date of such eligible multiple dwelling; and (B)
ending on the day preceding the completion date of such eligible multi-
ple dwelling.
(XXIV) "CONSTRUCTION WORK" SHALL MEAN THE PROVISION OF LABOR PERFORMED
ON AN ELIGIBLE SITE BETWEEN THE COMMENCEMENT DATE AND THE COMPLETION
DATE, WHEREBY MATERIALS AND CONSTITUENT PARTS ARE COMBINED TO INITIALLY
FORM, MAKE OR BUILD AN ELIGIBLE MULTIPLE DWELLING, INCLUDING WITHOUT
LIMITATION, PAINTING, OR PROVIDING OF MATERIAL, ARTICLES, SUPPLIES OR
EQUIPMENT IN THE ELIGIBLE MULTIPLE DWELLING, BUT EXCLUDING SECURITY
PERSONNEL AND WORK RELATED TO THE FIT-OUT OF COMMERCIAL SPACES.
(XXV) "CONSTRUCTION WORKERS" SHALL MEAN ALL PERSONS PERFORMING
CONSTRUCTION WORK WHO (A) ARE PAID ON AN HOURLY BASIS AND (B) ARE NOT IN
A MANAGEMENT OR EXECUTIVE ROLE OR POSITION.
(XXVI) "CONTRACTOR CERTIFIED PAYROLL REPORT" SHALL MEAN AN ORIGINAL
PAYROLL REPORT SUBMITTED BY A CONTRACTOR OR SUB-CONTRACTOR TO THE INDE-
PENDENT MONITOR SETTING FORTH TO THE BEST OF THE CONTRACTOR'S OR SUB-
CONTRACTOR'S KNOWLEDGE, THE TOTAL NUMBER OF HOURS OF CONSTRUCTION WORK
PERFORMED BY CONSTRUCTION WORKERS, THE AMOUNT OF WAGES AND EMPLOYEE
BENEFITS PAID TO CONSTRUCTION WORKERS FOR CONSTRUCTION WORK.
[(xviii)] (XXVII) "Eligible conversion" shall mean the conversion,
alteration or improvement of a pre-existing building or structure
resulting in a multiple dwelling in which no more than forty-nine
percent of the floor area consists of such pre-existing building or
structure.
[(xix)] (XXVIII) "Eligible multiple dwelling" shall mean a multiple
dwelling or homeownership project containing six or more dwelling units
created through new construction or eligible conversion for which the
commencement date is after December thirty-first, two thousand fifteen
and on or before June fifteenth, two thousand [nineteen] TWENTY-TWO, and
for which the completion date is on or before June fifteenth, two thou-
sand [twenty-three] TWENTY-SIX.
[(xx)] (XXIX) "Eligible site" shall mean either: (A) a tax lot
containing an eligible multiple dwelling; or (B) a zoning lot containing
two or more eligible multiple dwellings that are part of a single appli-
cation.
(XXX) "EMPLOYEE BENEFITS" SHALL MEAN ALL SUPPLEMENTAL COMPENSATION
PAID BY THE EMPLOYER, ON BEHALF OF CONSTRUCTION WORKERS, OTHER THAN
WAGES, INCLUDING, WITHOUT LIMITATION, ANY PREMIUMS OR CONTRIBUTIONS MADE
INTO PLANS OR FUNDS THAT PROVIDE HEALTH, WELFARE, NON-OCCUPATIONAL DISA-
BILITY COVERAGE, RETIREMENT, VACATION BENEFITS, HOLIDAY PAY, LIFE INSUR-
ANCE AND APPRENTICESHIP TRAINING. THE VALUE OF ANY EMPLOYEE BENEFITS
S. 2009--C 189 A. 3009--C
RECEIVED SHALL BE DETERMINED BASED ON THE PRORATED HOURLY COST TO THE
EMPLOYER OF THE EMPLOYEE BENEFITS RECEIVED BY CONSTRUCTION WORKERS.
(XXXI) "ENHANCED AFFORDABILITY AREA" SHALL MEAN THE MANHATTAN ENHANCED
AFFORDABILITY AREA, THE BROOKLYN ENHANCED AFFORDABILITY AREA AND THE
QUEENS ENHANCED AFFORDABILITY AREA.
(XXXII) "ENHANCED THIRTY-FIVE YEAR BENEFIT" SHALL MEAN: (A) FOR THE
CONSTRUCTION PERIOD, A ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY
TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS; AND (B) FOR THE
NEXT THIRTY-FIVE YEARS OF THE EXTENDED RESTRICTION PERIOD, A ONE HUNDRED
PERCENT EXEMPTION FROM REAL PROPERTY TAXATION, OTHER THAN ASSESSMENTS
FOR LOCAL IMPROVEMENTS.
(XXXIII) "EXTENDED RESTRICTION PERIOD" SHALL MEAN A PERIOD COMMENCING
ON THE COMPLETION DATE AND EXPIRING ON THE FORTIETH ANNIVERSARY OF THE
COMPLETION DATE, NOTWITHSTANDING ANY EARLIER TERMINATION OR REVOCATION
OF AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS.
[(xxi)] (XXXIV) "Fiscal officer" shall mean the comptroller or other
analogous officer in a city having a population of one million or more.
[(xxii)] (XXXV) "Floor area" shall mean the horizontal areas of the
several floors, or any portion thereof, of a dwelling or dwellings, and
accessory structures on a lot measured from the exterior faces of exte-
rior walls, or from the center line of party walls.
[(xxiii)] (XXXVI) "Four percent tax credits" shall mean federal low
income housing tax credits computed in accordance with clause (ii) of
subparagraph (B) of paragraph (1) of subsection (b) of section forty-two
of the internal revenue code of nineteen hundred eighty-six, as amended.
[(xxiv)] (XXXVII) "Homeownership project" shall mean a multiple dwell-
ing or portion thereof operated as condominium or cooperative housing,
however, it shall not include a multiple dwelling or portion thereof
operated as cooperative or condominium housing located within the
borough of Manhattan, and shall not include a multiple dwelling that
contains more than thirty-five units.
[(xxv)] (XXXVIII) "INDEPENDENT MONITOR" SHALL MEAN AN ACCOUNTANT
LICENSED AND IN GOOD STANDING PURSUANT TO ARTICLE ONE HUNDRED FORTY-NINE
OF THE EDUCATION LAW.
(XXXIX) "JOB ACTION" SHALL MEAN ANY DELAY, INTERRUPTION OR INTERFER-
ENCE WITH THE CONSTRUCTION WORK CAUSED BY THE ACTIONS OF ANY LABOR
ORGANIZATION OR CONCERTED ACTION OF ANY EMPLOYEES AT THE ELIGIBLE SITE,
INCLUDING WITHOUT LIMITATION, STRIKES, SYMPATHY STRIKES, WORK STOPPAGES,
WALK OUTS, SLOWDOWNS, PICKETING, BANNERING, HAND BILLING, DEMON-
STRATIONS, SICKOUTS, REFUSALS TO CROSS A PICKET LINE, REFUSALS TO HANDLE
STRUCK BUSINESS, AND USE OF THE RAT OR OTHER INFLATABLE BALLOONS OR
SIMILAR DISPLAYS.
(XL) "Market unit" shall mean a dwelling unit in an eligible multiple
dwelling other than an affordable housing unit.
[(xxvi)] (XLI) "Multiple dwelling" shall have the meaning set forth in
the multiple dwelling law.
[(xxvii)] (XLII) "Non-residential tax lot" shall mean a tax lot that
does not contain any dwelling units.
[(xxviii)] (XLIII) "MANHATTAN ENHANCED AFFORDABILITY AREA" SHALL MEAN
ANY TAX LOTS NOW EXISTING OR HEREAFTER CREATED LOCATED ENTIRELY SOUTH OF
96TH STREET IN THE BOROUGH OF MANHATTAN.
(XLIV) "PROJECT LABOR AGREEMENT" SHALL MEAN A PRE-HIRE COLLECTIVE
BARGAINING AGREEMENT SETTING FORTH THE TERMS AND CONDITIONS OF EMPLOY-
MENT FOR THE CONSTRUCTION WORKERS ON AN ELIGIBLE SITE.
(XLV) "PROJECT-WIDE CERTIFIED PAYROLL REPORT" SHALL MEAN A CERTIFIED
PAYROLL REPORT SUBMITTED BY THE INDEPENDENT MONITOR TO THE FISCAL OFFI-
S. 2009--C 190 A. 3009--C
CER BASED ON EACH CONTRACTOR CERTIFIED PAYROLL REPORT WHICH SETS FORTH
THE TOTAL NUMBER OF HOURS OF CONSTRUCTION WORK PERFORMED BY CONSTRUCTION
WORKERS, THE AGGREGATE AMOUNT OF WAGES AND EMPLOYEE BENEFITS PAID TO
CONSTRUCTION WORKERS FOR CONSTRUCTION WORK AND THE AVERAGE HOURLY WAGE.
(XLVI) "QUEENS ENHANCED AFFORDABILITY AREA" SHALL MEAN ANY TAX LOTS
NOW EXISTING OR HEREAFTER CREATED WHICH ARE LOCATED ENTIRELY WITHIN
COMMUNITY BOARDS ONE OR TWO OF THE BOROUGH OF QUEENS BOUNDED AND
DESCRIBED AS FOLLOWS: ALL THAT PIECE OR PARCEL OF LAND SITUATE AND BEING
IN THE BOROUGHS OF QUEENS AND BROOKLYN, NEW YORK. BEGINNING AT THE POINT
BEING THE INTERSECTION OF THE EASTERLY SHORE OF THE EAST RIVER WITH A
LINE OF PROLONGATION OF 20TH AVENUE PROJECTED NORTHWESTERLY; THENCE
SOUTHEASTERLY ON THE LINE OF PROLONGATION OF 20TH AVENUE AND ALONG 20TH
AVENUE TO THE INTERSECTION WITH 31ST STREET; THENCE SOUTHWESTERLY ALONG
31ST STREET TO THE INTERSECTION WITH NORTHERN BOULEVARD; THENCE SOUTH-
WESTERLY ALONG NORTHERN BOULEVARD TO THE INTERSECTION WITH QUEENS BOULE-
VARD (AKA ROUTE 25); THENCE SOUTHEASTERLY ALONG QUEENS BOULEVARD TO THE
INTERSECTION WITH VAN DAM STREET; THENCE SOUTHERLY ALONG VAN DAM STREET
TO THE INTERSECTION WITH BORDEN AVENUE; THENCE SOUTHWESTERLY ALONG VAN
DAM STREET TO THE INTERSECTION WITH GREENPOINT AVENUE AND REVIEW AVENUE;
THENCE SOUTHWESTERLY ALONG GREENPOINT AVENUE TO THE POINT OF INTER-
SECTION WITH THE CENTERLINE OF NEWTOWN CREEK, SAID CENTERLINE OF NEWTOWN
CREEK ALSO BEING THE BOUNDARY BETWEEN QUEENS COUNTY TO THE NORTH AND
KINGS COUNTY TO THE SOUTH; THENCE NORTHWESTERLY ALONG THE CENTERLINE OF
NEWTOWN CREEK, ALSO BEING THE BOUNDARY BETWEEN QUEENS COUNTY AND KINGS
COUNTY TO ITS INTERSECTION WITH THE EASTERLY BOUNDS OF THE EAST RIVER;
THENCE IN A GENERAL NORTHEASTERLY DIRECTION ALONG THE EASTERLY BULKHEAD
OR SHORELINE OF THE EAST RIVER TO THE POINT OR PLACE OF BEGINNING.
(XLVII) "Rent stabilization" shall mean, collectively, the rent
stabilization law of nineteen hundred sixty-nine, the rent stabilization
code, and the emergency tenant protection act of nineteen seventy-four,
all as in effect as of the effective date of the chapter of the laws of
two thousand fifteen that added this subdivision or as amended thereaft-
er, together with any successor statutes or regulations addressing
substantially the same subject matter.
[(xxix)] (XLVIII) "Rental project" shall mean an eligible site in
which all dwelling units included in any application are operated as
rental housing.
[(xxx)] (XLIX) "Residential tax lot" shall mean a tax lot that
contains dwelling units.
[(xxxi)] (L) "Restriction period" shall mean a period commencing on
the completion date and expiring on the thirty-fifth anniversary of the
completion date, notwithstanding any earlier termination or revocation
of [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits.
[(xxxii)] (LI) "Tax exempt bond proceeds" shall mean the proceeds of
an exempt facility bond, as defined in paragraph (7) of subsection (a)
of section one hundred forty-two of the internal revenue code of nine-
teen hundred eighty-six, as amended, the interest upon which is exempt
from taxation under section one hundred three of the internal revenue
code of nineteen hundred eighty-six, as amended.
(LII) "THIRD PARTY FUND ADMINISTRATOR" SHALL BE A PERSON OR ENTITY
THAT RECEIVES FUNDS PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION AND
OVERSEES AND MANAGES THE DISBURSAL OF SUCH FUNDS TO CONSTRUCTION WORK-
ERS. THE THIRD PARTY FUND ADMINISTRATOR SHALL BE A PERSON OR ENTITY
APPROVED BY THE FISCAL OFFICER AND RECOMMENDED BY ONE, OR MORE, REPRE-
SENTATIVE OR REPRESENTATIVES OF THE LARGEST TRADE ASSOCIATION OF RESI-
DENTIAL REAL ESTATE DEVELOPERS, EITHER FOR PROFIT OR NOT-FOR-PROFIT, IN
S. 2009--C 191 A. 3009--C
NEW YORK CITY AND ONE, OR MORE, REPRESENTATIVE OR REPRESENTATIVES OF THE
LARGEST TRADE LABOR ASSOCIATION REPRESENTING BUILDING AND CONSTRUCTION
WORKERS, WITH MEMBERSHIP IN NEW YORK CITY. THE THIRD PARTY FUND ADMIN-
ISTRATOR SHALL BE APPOINTED FOR A TERM OF THREE YEARS, PROVIDED, HOWEV-
ER, THAT THE ADMINISTRATOR IN PLACE AT THE END OF A THREE YEAR TERM
SHALL CONTINUE TO SERVE BEYOND THE END OF THE TERM UNTIL A REPLACEMENT
ADMINISTRATOR IS APPOINTED. THE FISCAL OFFICER AFTER PROVIDING NOTICE
AND AFTER MEETING WITH THE THIRD PARTY FUND ADMINISTRATOR, MAY REMOVE
SUCH ADMINISTRATOR FOR CAUSE UPON A FISCAL OFFICER DETERMINATION THAT
THE ADMINISTRATOR HAS BEEN INEFFECTIVE AT OVERSEEING OR MANAGING THE
DISBURSAL OF FUNDS TO THE CONSTRUCTION WORKERS. THE THIRD PARTY FUND
ADMINISTRATOR SHALL, AT THE REQUEST OF THE FISCAL OFFICER, SUBMIT
REPORTS TO THE FISCAL OFFICER.
[(xxxiii)] (LIII) "Thirty-five year benefit" shall mean: (A) for the
construction period, a one hundred percent exemption from real property
taxation, other than assessments for local improvements; (B) for the
first twenty-five years of the restriction period, a one hundred percent
exemption from real property taxation, other than assessments for local
improvements; and (C) for the final ten years of the restriction period,
an exemption from real property taxation, other than assessments for
local improvements, equal to the affordability percentage.
[(xxxiv)] (LIV) "Twenty year benefit" shall mean: (A) for the
construction period, a one hundred percent exemption from real property
taxation, other than assessments for local improvements; (B) for the
first fourteen years of the restriction period, a one hundred percent
exemption from real property taxation, other than assessments for local
improvements, provided, however, that no exemption shall be given for
any portion of a unit's assessed value that exceeds $65,000; and (C) for
the [final] NEXT six years of the restriction period, a twenty-five
percent exemption from real property taxation, other than assessments
for local improvements, provided, however, that no exemption shall be
given for any portion of a unit's assessed value that exceeds $65,000.
(LV) "WAGES" SHALL MEAN ALL COMPENSATION, REMUNERATION OR PAYMENTS OF
ANY KIND PAID TO, OR ON BEHALF OF, CONSTRUCTION WORKERS, INCLUDING,
WITHOUT LIMITATION, ANY HOURLY COMPENSATION PAID DIRECTLY TO THE
CONSTRUCTION WORKER, TOGETHER WITH EMPLOYEE BENEFITS, SUCH AS HEALTH,
WELFARE, NON-OCCUPATIONAL DISABILITY COVERAGE, RETIREMENT, VACATION
BENEFITS, HOLIDAY PAY, LIFE INSURANCE AND APPRENTICESHIP TRAINING, AND
PAYROLL TAXES, INCLUDING, TO THE EXTENT PERMISSIBLE BY LAW, ALL AMOUNTS
PAID FOR NEW YORK STATE UNEMPLOYMENT INSURANCE, NEW YORK STATE DISABILI-
TY INSURANCE, METROPOLITAN COMMUTER TRANSPORTATION MOBILITY TAX, FEDERAL
UNEMPLOYMENT INSURANCE AND PURSUANT TO THE FEDERAL INSURANCE CONTRIB-
UTIONS ACT OR ANY OTHER PAYROLL TAX THAT IS PAID BY THE EMPLOYER.
(b) Benefit. In cities having a population of one million or more,
notwithstanding the provisions of any other subdivision of this section
or of any general, special or local law to the contrary, new eligible
sites, except hotels, that comply with the provisions of this subdivi-
sion shall be exempt from real property taxation, other than assessments
for local improvements, in the amounts and for the periods specified in
this paragraph. A rental project that meets all of the requirements of
this subdivision shall receive a thirty-five year benefit and a homeown-
ership project that meets all of the requirements of this subdivision
shall receive a twenty year benefit. A RENTAL PROJECT THAT ALSO MEETS
ALL OF THE REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVISION SHALL
RECEIVE AN ENHANCED THIRTY-FIVE YEAR BENEFIT.
S. 2009--C 192 A. 3009--C
(C) IN ADDITION TO ALL OTHER REQUIREMENTS SET FORTH IN THIS SUBDIVI-
SION, RENTAL PROJECTS CONTAINING THREE HUNDRED OR MORE RENTAL DWELLING
UNITS LOCATED WITHIN THE ENHANCED AFFORDABILITY AREA SHALL COMPLY WITH
THE REQUIREMENTS SET FORTH IN THIS PARAGRAPH. FOR PURPOSES OF THIS PARA-
GRAPH, "CONTRACTOR" SHALL MEAN ANY ENTITY WHICH BY AGREEMENT WITH ANOTH-
ER PARTY (INCLUDING SUBCONTRACTORS) UNDERTAKES TO PERFORM CONSTRUCTION
WORK AT AN ELIGIBLE SITE AND "APPLICANT" SHALL MEAN AN APPLICANT FOR
AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS AND ANY SUCCESSOR THERETO.
(I) SUCH RENTAL PROJECT SHALL COMPLY WITH EITHER AFFORDABILITY OPTION
E, AFFORDABILITY OPTION F OR AFFORDABILITY OPTION G.
(II) THE MINIMUM AVERAGE HOURLY WAGE PAID TO CONSTRUCTION WORKERS ON
AN ELIGIBLE SITE WITHIN THE MANHATTAN ENHANCED AFFORDABILITY AREA SHALL
BE NO LESS THAN SIXTY DOLLARS PER HOUR. THREE YEARS FROM THE EFFECTIVE
DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED
THIS PARAGRAPH AND EVERY THREE YEARS THEREAFTER, THE MINIMUM AVERAGE
HOURLY WAGE SHALL BE INCREASED BY FIVE PERCENT; PROVIDED, HOWEVER, THAT
ANY BUILDING WITH A COMMENCEMENT DATE PRIOR TO THE DATE OF SUCH INCREASE
SHALL BE REQUIRED TO PAY THE MINIMUM AVERAGE HOURLY WAGE AS REQUIRED ON
ITS COMMENCEMENT DATE.
(III) THE MINIMUM AVERAGE HOURLY WAGE PAID TO CONSTRUCTION WORKERS ON
AN ELIGIBLE SITE WITHIN THE BROOKLYN ENHANCED AFFORDABILITY AREA OR THE
QUEENS ENHANCED AFFORDABILITY AREA SHALL BE NO LESS THAN FORTY-FIVE
DOLLARS PER HOUR. THREE YEARS FROM THE EFFECTIVE DATE OF THE CHAPTER OF
THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS PARAGRAPH AND EVERY
THREE YEARS THEREAFTER, THE MINIMUM AVERAGE HOURLY WAGE SHALL BE
INCREASED BY FIVE PERCENT; PROVIDED, HOWEVER, THAT ANY BUILDING WITH A
COMMENCEMENT DATE PRIOR TO THE DATE OF SUCH INCREASE SHALL BE REQUIRED
TO PAY THE MINIMUM AVERAGE HOURLY WAGE AS REQUIRED ON ITS COMMENCEMENT
DATE.
(IV) THE REQUIREMENTS OF SUBPARAGRAPHS (II) AND (III) OF THIS PARA-
GRAPH SHALL NOT BE APPLICABLE TO:
(A) AN ELIGIBLE MULTIPLE DWELLING IN WHICH AT LEAST FIFTY PERCENT OF
THE DWELLING UNITS UPON INITIAL RENTAL AND UPON EACH SUBSEQUENT RENTAL
FOLLOWING A VACANCY DURING THE EXTENDED RESTRICTION PERIOD, ARE AFFORDA-
BLE TO AND RESTRICTED TO OCCUPANCY BY INDIVIDUALS OR FAMILIES WHOSE
HOUSEHOLD INCOME DOES NOT EXCEED ONE HUNDRED TWENTY-FIVE PERCENT OF THE
AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, AT THE TIME THAT SUCH
HOUSEHOLD INITIALLY OCCUPIES SUCH DWELLING UNIT;
(B) ANY PORTION OF AN ELIGIBLE MULTIPLE DWELLING WHICH IS OWNED AND
OPERATED AS A CONDOMINIUM OR COOPERATIVE; OR
(C) AT THE OPTION OF THE APPLICANT, TO AN ELIGIBLE SITE SUBJECT TO A
PROJECT LABOR AGREEMENT.
(V) THE APPLICANT SHALL CONTRACT WITH AN INDEPENDENT MONITOR. SUCH
INDEPENDENT MONITOR SHALL SUBMIT TO THE FISCAL OFFICER WITHIN ONE YEAR
OF THE COMPLETION DATE A PROJECT-WIDE CERTIFIED PAYROLL REPORT. IN THE
EVENT SUCH PROJECT-WIDE CERTIFIED PAYROLL REPORT IS NOT SUBMITTED TO THE
FISCAL OFFICER WITHIN THE REQUISITE TIME, THE APPLICANT SHALL BE SUBJECT
TO A FINE OF ONE THOUSAND DOLLARS PER WEEK, OR ANY PORTION THEREOF;
PROVIDED THAT THE MAXIMUM FINE SHALL BE SEVENTY-FIVE THOUSAND DOLLARS.
IN THE EVENT THAT THE AVERAGE HOURLY WAGE IS LESS THAN THE MINIMUM AVER-
AGE HOURLY WAGE SET FORTH IN SUBPARAGRAPH (II) OR (III) OF THIS PARA-
GRAPH AS APPLICABLE, THE PROJECT-WIDE CERTIFIED PAYROLL REPORT SHALL
ALSO SET FORTH THE AGGREGATE AMOUNT OF SUCH DEFICIENCY.
(VI) THE CONTRACTOR CERTIFIED PAYROLL REPORT SHALL BE SUBMITTED BY
EACH CONTRACTOR AND SUB-CONTRACTOR NO LATER THAN NINETY DAYS AFTER THE
COMPLETION OF CONSTRUCTION WORK BY SUCH CONTRACTOR OR SUB-CONTRACTOR. IN
S. 2009--C 193 A. 3009--C
THE EVENT THAT A CONTRACTOR OR SUB-CONTRACTOR FAILS OR REFUSES TO SUBMIT
THE CONTRACTOR CERTIFIED PAYROLL REPORT WITHIN THE TIME PRESCRIBED IN
THIS SUBPARAGRAPH, THE INDEPENDENT MONITOR SHALL NOTIFY THE FISCAL OFFI-
CER AND THE FISCAL OFFICER SHALL BE AUTHORIZED TO FINE SUCH CONTRACTOR
OR SUB-CONTRACTOR IN THE AMOUNT OF ONE THOUSAND DOLLARS PER WEEK, OR ANY
PORTION THEREOF, PROVIDED THAT THE MAXIMUM FINE SHALL BE SEVENTY-FIVE
THOUSAND DOLLARS.
(VII) IN THE EVENT THAT THE PROJECT-WIDE CERTIFIED PAYROLL REPORT
SHOWS THAT THE AVERAGE HOURLY WAGE AS REQUIRED BY SUBPARAGRAPH (II) OR
(III) OF THIS PARAGRAPH, AS APPLICABLE, WAS NOT PAID, (A) IF THE AVERAGE
HOURLY WAGE IS WITHIN FIFTEEN PERCENT OF THE AVERAGE HOURLY WAGE
REQUIRED BY SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH, AS APPLICABLE,
THEN NO LATER THAN ONE HUNDRED TWENTY DAYS FROM THE DATE OF SUBMISSION
OF SUCH PROJECT-WIDE CERTIFIED PAYROLL REPORT, THE APPLICANT SHALL PAY
TO THE THIRD PARTY FUND ADMINISTRATOR AN AMOUNT EQUAL TO THE AMOUNT OF
THE DEFICIENCY SET FORTH IN THE PROJECT-WIDE CERTIFIED PAYROLL REPORT.
THE THIRD PARTY FUND ADMINISTRATOR SHALL DISTRIBUTE SUCH PAYMENT TO THE
CONSTRUCTION WORKERS WHO PERFORMED CONSTRUCTION WORK ON SUCH ELIGIBLE
SITE. PRIOR TO MAKING SUCH REPAYMENT, THE THIRD PARTY FUND ADMINISTRATOR
SHALL SUBMIT TO THE FISCAL OFFICER A PLAN SUBJECT TO THE FISCAL OFFI-
CER'S APPROVAL SETTING FORTH THE MANNER IN WHICH THE THIRD PARTY FUND
ADMINISTRATOR WILL REACH THE REQUIRED AVERAGE WAGE WITHIN ONE HUNDRED
FIFTY DAYS OF RECEIVING THE PAYMENT FROM THE APPLICANT AND HOW ANY
REMAINING FUNDS WILL BE DISBURSED IN THE EVENT THAT THE THIRD PARTY FUND
ADMINISTRATOR CANNOT DISTRIBUTE THE FUNDS TO THE CONSTRUCTION WORKERS
WITHIN ONE YEAR OF RECEIVING FISCAL OFFICER APPROVAL. IN THE EVENT THAT
THE APPLICANT FAILS TO MAKE SUCH PAYMENT WITHIN THE TIME PERIOD
PRESCRIBED IN THIS SUBPARAGRAPH, THE APPLICANT SHALL BE SUBJECT TO A
FINE OF ONE THOUSAND DOLLARS PER WEEK PROVIDED THAT THE MAXIMUM FINE
SHALL BE SEVENTY-FIVE THOUSAND DOLLARS; OR (B) IF THE AVERAGE HOURLY
WAGE IS MORE THAN FIFTEEN PERCENT BELOW THE MINIMUM AVERAGE HOURLY WAGE
REQUIRED BY SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH, AS APPLICABLE,
THEN NO LATER THAN ONE HUNDRED TWENTY DAYS FROM THE DATE OF SUBMISSION
OF SUCH PROJECT-WIDE CERTIFIED PAYROLL REPORT, THE APPLICANT SHALL PAY
TO THE THIRD PARTY FUND ADMINISTRATOR AN AMOUNT EQUAL TO THE AMOUNT OF
THE DEFICIENCY SET FORTH IN THE PROJECT-WIDE PAYROLL REPORT. THE THIRD
PARTY FUND ADMINISTRATOR SHALL DISTRIBUTE SUCH PAYMENT TO THE
CONSTRUCTION WORKERS WHO PERFORMED CONSTRUCTION WORK ON SUCH ELIGIBLE
SITE. PRIOR TO MAKING SUCH REPAYMENT, THE THIRD PARTY FUND ADMINISTRATOR
SHALL SUBMIT TO THE FISCAL OFFICER A PLAN SUBJECT TO THE FISCAL OFFI-
CER'S APPROVAL SETTING FORTH THE MANNER IN WHICH THE THIRD PARTY FUND
ADMINISTRATOR WILL REACH THE REQUIRED AVERAGE WAGE WITHIN ONE HUNDRED
FIFTY DAYS OF RECEIVING THE PAYMENT FROM THE APPLICANT AND HOW ANY
REMAINING FUNDS WILL BE DISBURSED IN THE EVENT THAT THE THIRD PARTY FUND
ADMINISTRATOR CANNOT DISTRIBUTE THE FUNDS TO THE CONSTRUCTION WORKERS
WITHIN ONE YEAR OF RECEIVING FISCAL OFFICER APPROVAL. IN ADDITION, THE
FISCAL OFFICER SHALL IMPOSE A PENALTY ON THE APPLICANT IN AN AMOUNT
EQUAL TO TWENTY-FIVE PERCENT OF THE AMOUNT OF THE DEFICIENCY, PROVIDED,
HOWEVER, THAT THE FISCAL OFFICER SHALL NOT IMPOSE SUCH PENALTY WHERE THE
ELIGIBLE MULTIPLE DWELLING HAS BEEN THE SUBJECT OF A JOB ACTION WHICH
RESULTS IN A WORK DELAY. IN THE EVENT THAT THE APPLICANT FAILS TO MAKE
SUCH PAYMENT WITHIN THE TIME PERIOD PRESCRIBED IN THIS SUBPARAGRAPH, THE
APPLICANT SHALL BE SUBJECT TO A FINE OF ONE THOUSAND DOLLARS PER WEEK,
PROVIDED THAT THE MAXIMUM FINE SHALL BE SEVENTY-FIVE THOUSAND DOLLARS.
NOTWITHSTANDING ANY PROVISION OF THIS PARAGRAPH, THE APPLICANT SHALL NOT
BE LIABLE IN ANY RESPECT WHATSOEVER FOR ANY PAYMENTS, FINES OR PENALTIES
S. 2009--C 194 A. 3009--C
RELATED TO OR RESULTING FROM CONTRACTOR FRAUD, MISTAKE, OR NEGLIGENCE OR
FOR FRAUDULENT OR INACCURATE CONTRACTOR CERTIFIED PAYROLL REPORTS OR FOR
FRAUDULENT OR INACCURATE PROJECT-WIDE CERTIFIED PAYROLL REPORTS,
PROVIDED, HOWEVER, THAT PAYMENT TO THE THIRD PARTY FUND ADMINISTRATOR IN
THE AMOUNT SET FORTH IN THE PROJECT-WIDE CERTIFIED PAYROLL REPORT AS
DESCRIBED IN THIS SUBPARAGRAPH SHALL STILL BE MADE BY THE CONTRACTOR OR
SUB-CONTRACTOR IN THE EVENT OF UNDERPAYMENT RESULTING FROM OR CAUSED BY
THE CONTRACTOR OR SUB-CONTRACTOR, AND THAT THE APPLICANT WILL BE LIABLE
FOR UNDERPAYMENT TO THE THIRD PARTY FUND ADMINISTRATOR UNLESS THE FISCAL
OFFICER DETERMINES, IN ITS SOLE DISCRETION, THAT THE UNDERPAYMENT WAS
THE RESULT OF, OR CAUSED BY, CONTRACTOR FRAUD, MISTAKE OR NEGLIGENCE
AND/OR FOR FRAUDULENT OR INACCURATE CONTRACTOR CERTIFIED PAYROLL REPORTS
AND/OR PROJECT-WIDE CERTIFIED PAYROLL REPORTS. THE APPLICANT SHALL
OTHERWISE NOT BE LIABLE IN ANY WAY WHATSOEVER ONCE THE PAYMENT TO THE
THIRD PARTY FUND ADMINISTRATOR HAS BEEN MADE IN THE AMOUNT SET FORTH IN
THE PROJECT-WIDE CERTIFIED PAYROLL REPORT. OTHER THAN THE UNDERPAYMENT,
WHICH MUST BE PAID TO THE THIRD PARTY FUND ADMINISTRATOR, ALL FINES AND
PENALTIES SET FORTH IN THIS PARAGRAPH IMPOSED BY THE FISCAL OFFICER
SHALL BE PAID TO THE AGENCY AND USED BY THE AGENCY TO PROVIDE AFFORDABLE
HOUSING.
(VIII) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO CONFER A
PRIVATE RIGHT OF ACTION TO ENFORCE THE PROVISIONS OF THIS PARAGRAPH,
PROVIDED, HOWEVER, THAT THIS SENTENCE SHALL NOT BE CONSTRUED AS A WAIVER
OF ANY EXISTING RIGHTS OF CONSTRUCTION WORKERS OR THEIR REPRESENTATIVES
RELATED TO WAGE AND BENEFIT COLLECTION, WAGE THEFT OR OTHER LABOR
PROTECTIONS OR RIGHTS AND PROVIDED, FURTHER, THAT NOTHING IN THIS PARA-
GRAPH RELIEVES ANY OBLIGATIONS PURSUANT TO A COLLECTIVE BARGAINING
AGREEMENT.
(IX) A RENTAL PROJECT CONTAINING THREE HUNDRED OR MORE RESIDENTIAL
DWELLING UNITS NOT LOCATED WITHIN THE ENHANCED AFFORDABILITY AREA MAY
ELECT TO COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH AND BE ELIGIBLE
TO RECEIVE AN ENHANCED THIRTY-FIVE YEAR BENEFIT. SUCH ELECTION SHALL BE
MADE IN THE APPLICATION AND SHALL NOT THEREAFTER BE CHANGED. SUCH RENTAL
PROJECT SHALL COMPLY WITH ALL OF THE REQUIREMENTS OF THIS PARAGRAPH AND
SHALL BE DEEMED TO BE LOCATED WITHIN THE BROOKLYN ENHANCED AFFORDABILITY
AREA OR THE QUEENS ENHANCED AFFORDABILITY AREA FOR THE PURPOSES OF THIS
PARAGRAPH.
(X) THE FISCAL OFFICER SHALL HAVE THE SOLE AUTHORITY TO DETERMINE AND
ENFORCE ANY LIABILITY FOR UNDERPAYMENT OWING TO THE THIRD PARTY FUND
ADMINISTRATOR FROM THE APPLICANT AND/OR THE CONTRACTOR (AS A RESULT OF
CONTRACTOR FRAUD, MISTAKE OR NEGLIGENCE AND/OR FOR FRAUDULENT OR INACCU-
RATE CONTRACTOR CERTIFIED PAYROLL REPORTS AND/OR PROJECT-WIDE CERTIFIED
PAYROLL REPORTS), AS SET FORTH IN SUBPARAGRAPH (VII) OF THIS PARAGRAPH.
THE FISCAL OFFICER SHALL EXPEDITIOUSLY CONDUCT AN INVESTIGATION AND
HEARING AT THE NEW YORK CITY OFFICE OF ADMINISTRATIVE TRIALS AND HEAR-
INGS, SHALL DETERMINE THE ISSUES RAISED THEREON AND SHALL MAKE AND FILE
AN ORDER IN HIS OR HER OFFICE STATING SUCH DETERMINATION AND FORTHWITH
SERVE A COPY OF SUCH ORDER, EITHER PERSONALLY OR BY MAIL, TOGETHER WITH
NOTICE OF FILING, UPON THE PARTIES TO SUCH PROCEEDINGS. THE FISCAL
OFFICER IN SUCH AN INVESTIGATION SHALL BE DEEMED TO BE ACTING IN A JUDI-
CIAL CAPACITY AND SHALL HAVE THE RIGHTS TO ISSUE SUBPOENAS, ADMINISTER
OATHS AND EXAMINE WITNESSES. THE ENFORCEMENT OF A SUBPOENA ISSUED UNDER
THIS SUBPARAGRAPH SHALL BE REGULATED BY THE CIVIL PRACTICE LAW AND
RULES. THE FILING OF SUCH ORDER SHALL HAVE THE FULL FORCE AND EFFECT OF
A JUDGMENT DULY DOCKETED IN THE OFFICE OF THE COUNTY CLERK. THE ORDER
MAY BE ENFORCED BY AND IN THE NAME OF THE FISCAL OFFICER IN THE SAME
S. 2009--C 195 A. 3009--C
MANNER, AND WITH LIKE EFFECT, AS THAT PRESCRIBED BY THE CIVIL PRACTICE
LAW AND RULES FOR THE ENFORCEMENT OF A MONEY JUDGMENT.
[(c)] (D) Tax payments. In addition to any other amounts payable
pursuant to this subdivision, the owner of any eligible site receiving
[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits shall pay, in each
tax year in which such [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM bene-
fits are in effect, real property taxes and assessments as follows:
(i) with respect to each eligible multiple dwelling constructed on
such eligible site, real property taxes on the assessed valuation of
such land and any improvements thereon in effect during the tax year
prior to the commencement date of such eligible multiple dwelling, with-
out regard to any exemption from or abatement of real property taxation
in effect during such tax year, which real property taxes shall be
calculated using the tax rate in effect at the time such taxes are due;
and
(ii) all assessments for local improvements.
[(d)] (E) Limitation on benefits for non-residential space. If the
aggregate floor area of commercial, community facility and accessory use
space in an eligible site, other than parking which is located not more
than twenty-three feet above the curb level, exceeds twelve percent of
the aggregate floor area in such eligible site, any [421-a] AFFORDABLE
NEW YORK HOUSING PROGRAM benefits shall be reduced by a percentage equal
to such excess. If an eligible site contains multiple tax lots, the tax
arising out of such reduction in [421-a] AFFORDABLE NEW YORK HOUSING
PROGRAM benefits shall first be apportioned pro rata among any non-resi-
dential tax lots. After any such non-residential tax lots are fully
taxable, the remainder of the tax arising out of such reduction in
[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits, if any, shall be
apportioned pro rata among the remaining residential tax lots.
[(e)] (F) Calculation of benefit. Based on the certification of the
agency certifying the applicant's eligibility for [421-a] AFFORDABLE NEW
YORK HOUSING PROGRAM benefits, the assessors shall certify to the
collecting officer the amount of taxes to be exempted.
[(f)] (G) Affordability requirements. During the restriction period, a
rental project shall comply with either affordability option A, afforda-
bility option B, or affordability option C or for purposes of a homeown-
ership project, such project shall comply with affordability option D.
Such election shall be made in the application and shall not thereafter
be changed. The rental project shall also comply with all provisions of
this paragraph during the restriction period and with subparagraph (iii)
of this paragraph both during and after the restriction period to the
extent provided in such subparagraph. A RENTAL PROJECT CONTAINING THREE
HUNDRED OR MORE RENTAL DWELLING UNITS LOCATED IN THE ENHANCED AFFORDA-
BILITY AREA OR A RENTAL PROJECT CONTAINING THREE HUNDRED OR MORE RENTAL
DWELLING UNITS NOT LOCATED WITHIN THE ENHANCED AFFORDABILITY AREA WHICH
ELECTS TO COMPLY WITH THE REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVI-
SION SHALL COMPLY WITH EITHER AFFORDABILITY OPTION E, AFFORDABILITY
OPTION F, OR AFFORDABILITY OPTION G. SUCH ELECTION SHALL BE MADE IN THE
APPLICATION AND SHALL NOT THEREAFTER BE CHANGED. SUCH RENTAL PROJECT
SHALL ALSO COMPLY WITH ALL PROVISIONS OF THIS PARAGRAPH DURING THE
EXTENDED RESTRICTION PERIOD AND WITH SUBPARAGRAPH (III) OF THIS PARA-
GRAPH BOTH DURING AND AFTER THE EXTENDED RESTRICTION PERIOD TO THE
EXTENT PROVIDED IN SUCH PARAGRAPH.
(i) [Affordable units] ALL RENTAL DWELLING UNITS IN AN ELIGIBLE MULTI-
PLE DWELLING shall share the same common entrances and common areas as
market rate units IN SUCH ELIGIBLE MULTIPLE DWELLING, and shall not be
S. 2009--C 196 A. 3009--C
isolated to a specific floor or area of [a building] AN ELIGIBLE MULTI-
PLE DWELLING. Common entrances shall mean any area regularly used by
any resident OF A RENTAL DWELLING UNIT IN THE ELIGIBLE MULTIPLE DWELLING
for ingress and egress from [a] SUCH ELIGIBLE multiple dwelling; and
(ii) Unless preempted by the requirements of a federal, state or local
housing program, either (A) the affordable housing units in an eligible
site shall have a unit mix proportional to the market units, or (B) at
least fifty percent of the affordable housing units in an eligible site
shall have two or more bedrooms and no more than twenty-five percent of
the affordable housing units shall have less than one bedroom.
(iii) Notwithstanding any provision of rent stabilization to the
contrary, all affordable housing units shall be fully subject to rent
stabilization during the restriction period OR EXTENDED RESTRICTION
PERIOD, AS APPLICABLE, provided that tenants holding a lease and in
occupancy of such affordable housing units at the expiration of the
restriction period OR EXTENDED RESTRICTION PERIOD, AS APPLICABLE, shall
have the right to remain as rent stabilized tenants for the duration of
their occupancy.
(iv) All rent stabilization registrations required to be filed pursu-
ant to subparagraph (iii) of this paragraph shall contain a designation
that specifically identifies affordable housing units created pursuant
to this subdivision as "[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM
affordable housing units" and shall contain an explanation of the
requirements that apply to all such affordable housing units.
(v) Failure to comply with the provisions of this paragraph that
require the creation, maintenance, rent stabilization compliance and
occupancy of affordable housing units or for purposes of a homeownership
project the failure to comply with affordability option D shall result
in revocation of any [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM bene-
fits for the period of such non-compliance.
(vi) Nothing in this subdivision shall (A) prohibit the occupancy of
an affordable housing unit by individuals or families whose income at
any time is less than the maximum percentage of the area median income,
adjusted for family size, specified for such affordable housing unit
pursuant to this subdivision, or (B) prohibit the owner of an eligible
site from requiring, upon initial rental or upon any rental following a
vacancy, the occupancy of any affordable housing unit by such lower
income individuals or families.
(vii) Following issuance of a temporary certificate of occupancy and
upon each vacancy thereafter, an affordable housing unit shall promptly
be offered for rental by individuals or families whose income does not
exceed the maximum percentage of the area median income, adjusted for
family size, specified for such affordable housing unit pursuant to this
subdivision and who intend to occupy such affordable housing unit as
their primary residence. An affordable housing unit shall not be (A)
rented to a corporation, partnership or other entity, or (B) held off
the market for a period longer than is reasonably necessary to perform
repairs needed to make such affordable housing unit available for occu-
pancy.
(viii) An affordable housing unit shall not be rented on a temporary,
transient or short-term basis. Every lease and renewal thereof for an
affordable housing unit shall be for a term of one or two years, at the
option of the tenant.
(ix) An affordable housing unit shall not be converted to cooperative
or condominium ownership.
S. 2009--C 197 A. 3009--C
(x) The agency may establish by rule such requirements as the agency
deems necessary or appropriate for (A) the marketing of affordable hous-
ing units, both upon initial occupancy and upon any vacancy, (B) moni-
toring compliance with the provisions of this paragraph and (C) the
marketing and monitoring of any homeownership project that is granted an
exemption pursuant to this subdivision. Such requirements may include,
but need not be limited to, retaining a monitor approved by the agency
and paid for by the owner.
(xi) Notwithstanding any provision of this subdivision to the contra-
ry, a market unit shall be subject to rent stabilization unless, in the
absence of [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits, the
owner would be entitled to remove such market unit from rent stabiliza-
tion upon vacancy by reason of the monthly rent exceeding any limit
established thereunder.
[(g)] (H) Building service employees. (i) For the purposes of this
paragraph, "applicant" shall mean an applicant for [421-a] AFFORDABLE
NEW YORK HOUSING PROGRAM benefits, any successor to such applicant, or
any employer of building service employees for such applicant, includ-
ing, but not limited to, a property management company or contractor.
(ii) All building service employees employed by the applicant at the
eligible site shall receive the applicable prevailing wage for the
entire restriction period OR EXTENDED RESTRICTION PERIOD, AS APPLICABLE.
(iii) The fiscal officer shall have the power to enforce the
provisions of this paragraph. In enforcing such provisions, the fiscal
officer shall have the power:
(A) to investigate or cause an investigation to be made to determine
the prevailing wages for building service employees; in making such
investigation, the fiscal officer may utilize wage and fringe benefit
data from various sources, including, but not limited to, data and
determinations of federal, state or other governmental agencies;
(B) to institute and conduct inspections at the site of the work or
elsewhere;
(C) to examine the books, documents and records pertaining to the
wages paid to, and the hours of work performed by, building service
employees;
(D) to hold hearings and, in connection therewith, to issue subpoenas,
administer oaths and examine witnesses; the enforcement of a subpoena
issued under this paragraph shall be regulated by the civil practice law
and rules;
(E) to make a classification by craft, trade or other generally recog-
nized occupational category of the building service employees and to
determine whether such work has been performed by the building service
employees in such classification;
(F) to require the applicant to file with the fiscal officer a record
of the wages actually paid by such applicant to the building service
employees and of their hours of work;
(G) to delegate any of the foregoing powers to his or her deputy or
other authorized representative; and
(H) to promulgate rules as he or she shall consider necessary for the
proper execution of the duties, responsibilities and powers conferred
upon him or her by the provisions of this subparagraph.
(iv) If the fiscal officer finds that the applicant has failed to
comply with the provisions of this paragraph, he or she shall present
evidence of such noncompliance to the agency.
(v) Subparagraph (ii) of this paragraph shall not be applicable to:
S. 2009--C 198 A. 3009--C
(A) an eligible multiple dwelling containing less than thirty dwelling
units; or
(B) an eligible multiple dwelling in which all of the dwelling units
are affordable housing units and not less than fifty percent of such
affordable housing units, upon initial rental and upon each subsequent
rental following a vacancy during the restriction period OR EXTENDED
RESTRICTION PERIOD, AS APPLICABLE, are affordable to and restricted to
occupancy by individuals or families whose household income does not
exceed one hundred twenty-five percent of the area median income,
adjusted for family size, at the time that such household initially
occupies such dwelling unit.
[(h)] (I) Replacement ratio. If the land on which an eligible site is
located contained any dwelling units three years prior to the commence-
ment date of the first eligible multiple dwelling thereon, then such
eligible site shall contain at least one affordable housing unit for
each dwelling unit that existed on such date and was thereafter demol-
ished, removed or reconfigured.
[(i)] (J) Concurrent exemptions or abatements. An eligible multiple
dwelling receiving [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits
shall not receive any exemption from or abatement of real property taxa-
tion under any other law.
[(j)] (K) Voluntary renunciation or termination. Notwithstanding the
provisions of any general, special or local law to the contrary, an
owner shall not be entitled to voluntarily renounce or terminate any
[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits unless the agency
authorizes such renunciation or termination in connection with the
commencement of a new tax exemption pursuant to either the private hous-
ing finance law or section four hundred twenty-c of this title.
[(k)] (L) Termination or revocation. The agency may terminate or
revoke [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits for noncom-
pliance with this subdivision, PROVIDED, HOWEVER, THAT THE AGENCY SHALL
NOT TERMINATE OR REVOKE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS FOR
A FAILURE TO COMPLY WITH PARAGRAPH (C) OF THIS SUBDIVISION. If [421-a]
AFFORDABLE NEW YORK HOUSING PROGRAM benefits are terminated or revoked
for noncompliance with this subdivision, [all of the affordable housing
units shall remain subject to rent stabilization or for a homeownership
project such project shall continue to comply with affordability option
D of this subdivision and all other requirements of this subdivision for
the restriction period and any additional period expressly provided in
this subdivision, as if the 421-a benefits had not been terminated or
revoked] (I) ALL OF THE AFFORDABLE HOUSING UNITS SHALL REMAIN SUBJECT TO
RENT STABILIZATION AND ALL OTHER REQUIREMENTS OF THIS SUBDIVISION FOR
THE RESTRICTION PERIOD OR EXTENDED RESTRICTION PERIOD, AS APPLICABLE,
AND ANY ADDITIONAL PERIOD EXPRESSLY PROVIDED IN THIS SUBDIVISION, AS IF
THE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS HAD NOT BEEN TERMINATED
OR REVOKED; (II) ALL OF THE MARKET RATE HOUSING UNITS SHALL REMAIN
SUBJECT TO RENT STABILIZATION AND ALL OTHER REQUIREMENTS OF THIS SUBDI-
VISION FOR THE RESTRICTION PERIOD OR EXTENDED RESTRICTION PERIOD, AS
APPLICABLE, AND ANY ADDITIONAL PERIOD EXPRESSLY PROVIDED IN THIS SUBDI-
VISION, AS IF THE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS HAD NOT
BEEN TERMINATED OR REVOKED, PROVIDED, HOWEVER, THAT THE OWNER SHALL
STILL BE ENTITLED TO REMOVE SUCH MARKET UNIT FROM RENT STABILIZATION
UPON VACANCY BY REASON OF THE MONTHLY RENT EXCEEDING ANY LIMIT ESTAB-
LISHED THEREUNDER; (III) OR FOR A HOMEOWNERSHIP PROJECT SUCH PROJECT
SHALL CONTINUE TO COMPLY WITH AFFORDABILITY OPTION D OF THIS SUBDIVISION
AND ALL OTHER REQUIREMENTS OF THIS SUBDIVISION FOR THE RESTRICTION PERI-
S. 2009--C 199 A. 3009--C
OD AND ANY ADDITIONAL PERIOD EXPRESSLY PROVIDED IN THIS SUBDIVISION, AS
IF THE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS HAD NOT BEEN TERMI-
NATED OR REVOKED.
[(l)] (M) Powers cumulative. The enforcement provisions of this subdi-
vision shall not be exclusive, and are in addition to any other rights,
remedies, or enforcement powers set forth in any other law or available
at law or in equity.
[(m)] (N) Multiple tax lots. If an eligible site contains multiple tax
lots, an application may be submitted with respect to one or more of
such tax lots. The agency shall determine eligibility for [421-a]
AFFORDABLE NEW YORK HOUSING PROGRAM benefits based upon the tax lots
included in such application AND BENEFITS FOR EACH MULTIPLE DWELLING
SHALL BE BASED UPON THE COMPLETION DATE OF SUCH MULTIPLE DWELLING.
[(n)] (O) Applications. (i) The application with respect to any eligi-
ble multiple dwelling shall be filed with the agency not later than one
year after the completion date of such eligible multiple dwelling.
(ii) Notwithstanding the provisions of any general, special or local
law to the contrary, the agency may require by rule that applications be
filed electronically.
(iii) The agency may rely on certification by an architect or engineer
submitted by an applicant in connection with the filing of an applica-
tion. A false certification by such architect or engineer shall be
deemed to be professional misconduct pursuant to section sixty-five
hundred nine of the education law. Any licensee found guilty of such
misconduct under the procedures prescribed in section sixty-five hundred
ten of the education law shall be subject to the penalties prescribed in
section sixty-five hundred eleven of the education law, and shall there-
after be ineligible to submit a certification pursuant to this subdivi-
sion.
(IV) THE AGENCY SHALL NOT REQUIRE THAT THE APPLICANT DEMONSTRATE
COMPLIANCE WITH THE REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVISION AS
A CONDITION TO APPROVAL OF THE APPLICATION.
[(o)] (P) Filing fee. The agency may require a filing fee of three
thousand dollars per dwelling unit in connection with any application.
However, the agency may promulgate rules imposing a lesser fee for
eligible sites containing eligible multiple dwellings constructed with
the substantial assistance of grants, loans or subsidies provided by a
federal, state or local governmental agency or instrumentality pursuant
to a program for the development of affordable housing.
[(p)] (Q) Rules.
[The agency] EXCEPT AS PROVIDED IN PARAGRAPHS (C) AND (H) OF THIS
SUBDIVISION, THE AGENCY SHALL HAVE THE SOLE AUTHORITY TO ENFORCE THE
PROVISIONS OF THIS SUBDIVISION AND may promulgate rules to carry out the
provisions of this subdivision.
[(q) Authority of city to enact local law. Except as otherwise speci-
fied in this subdivision, a city to which this subdivision is applicable
may enact a local law to restrict, limit or condition the eligibility
for or the scope or amount of 421-a benefits in any manner, provided
that such local law may not grant 421-a benefits beyond those provided
in this subdivision and provided further that such local law shall not
take effect sooner than one year after it is enacted. The provisions of
sections 11-245 and 11-245.1 of the administrative code of the city of
New York or of any other local law of the city of New York that were
enacted on or before the effective date of the chapter of the laws of
two thousand fifteen which added this paragraph shall not restrict,
S. 2009--C 200 A. 3009--C
limit or condition the eligibility for or the scope or amount of 421-a
benefits pursuant to this subdivision.]
(r) Election. Notwithstanding anything in this subdivision to the
contrary, [if a memorandum of understanding pursuant to subdivision
sixteen-a of this section has been executed and noticed,] a rental
project or homeownership project with a commencement date on or before
December thirty-first, two thousand fifteen that has not received bene-
fits pursuant to this section prior to the effective date of the chapter
of the laws of two thousand fifteen that added this subdivision may
elect to comply with this subdivision and receive [421-a] AFFORDABLE NEW
YORK HOUSING PROGRAM benefits pursuant to this subdivision.
§ 4. Subdivision 16-a of section 421-a of the real property tax law is
REPEALED.
§ 5. On or before May 31, 2021 the commissioner of the division of
housing and community renewal shall issue a report to the governor, the
temporary president of the senate and the speaker of the assembly exam-
ining the economic impact of the Affordable New York Housing Program on
the development of affordable dwelling units, jobs and social opportu-
nities created by the Affordable New York Housing Program, the cost of
the Affordable New York Housing Program, the impact on communities with
Affordable New York Housing Program developments, and other such factors
as the commissioner of the division of housing and community renewal
deems appropriate. The division of housing and community renewal may
exercise all authority granted to it by this or any other statute. The
division of housing and community renewal may request and shall receive
cooperation and assistance from all departments, divisions, boards,
bureaus, commissions, public benefit corporations or agencies of the
state of New York, the city of New York or any other political subdivi-
sions thereof, or any entity receiving benefits pursuant to section
421-a of the real property tax law.
§ 6. 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.
§ 7. This act shall take effect immediately; and provided, however,
that sections one, two, and three of this act shall be deemed to have
been in full force and effect on and after January 1, 2016.
PART UUU
Section 1. The economic development law is amended by adding a new
section 100-a to read as follows:
§ 100-A. COMPREHENSIVE ECONOMIC DEVELOPMENT REPORTING. THE DEPARTMENT
SHALL PREPARE AN ANNUAL COMPREHENSIVE ECONOMIC DEVELOPMENT REPORT, NO
LATER THAN DECEMBER THIRTY-FIRST OF EACH YEAR, LISTING ECONOMIC DEVELOP-
MENT ASSISTANCE PROVIDED BY THE NEW YORK STATE URBAN DEVELOPMENT CORPO-
RATION AND THE DEPARTMENT, INCLUDING BUT NOT LIMITED TO TAX EXPENDI-
TURES, MARKETING AND ADVERTISING, GRANTS, AWARDS AND LOANS. SUCH
COMPREHENSIVE REPORT SHALL INCLUDE AGGREGATE TOTALS FOR EACH ECONOMIC
DEVELOPMENT PROGRAM ADMINISTERED BY THE NEW YORK STATE URBAN DEVELOPMENT
CORPORATION AND THE DEPARTMENT, INCLUDING BUT NOT LIMITED TO PROGRAM
S. 2009--C 201 A. 3009--C
PROGRESS, PROGRAM PARTICIPATION RATES, ECONOMIC IMPACT, REGIONAL
DISTRIBUTION, INDUSTRY TRENDS, AND ANY OTHER INFORMATION DEEMED NECES-
SARY BY THE COMMISSIONER. THE DEPARTMENT SHALL PROMINENTLY POST THE
COMPREHENSIVE ECONOMIC DEVELOPMENT REPORT ON ITS WEBSITE NO LATER THAN
JANUARY FIRST OF EACH YEAR.
§ 2. Section 438 of the economic development law is REPEALED.
§ 3. Subdivision 1 of section 433 of the economic development law, as
added by section 1 of part A of chapter 68 of the laws of 2013, is
amended to read as follows:
1. In order to participate in the START-UP NY program, a business must
satisfy all of the following criteria.
(a) The mission and activities of the business must align with or
further the academic mission of the campus, college or university spon-
soring the tax-free NY area in which it seeks to locate, and the busi-
ness's participation in the START-UP NY program must have positive
community and economic benefits.
(b) The business must demonstrate that it will, in its first year of
operation, create net new jobs. After its first year of operation, the
business must maintain net new jobs. In addition, the average number of
employees of the business and its related persons in the state during
the year must equal or exceed the sum of: (i) the average number of
employees of the business and its related persons in the state during
the year immediately preceding the year in which the business submits
its application to locate in a tax-free NY area; and (ii) net new jobs
of the business in the tax-free NY area during the year. The average
number of employees of the business and its related persons in the state
shall be determined by adding together the total number of employees of
the business and its related persons in the state on March thirty-first,
June thirtieth, September thirtieth and December thirty-first and divid-
ing the total by the number of such dates occurring within such year.
(c) Except as provided in paragraphs [(g)] (F) and [(h)] (G) of this
subdivision, at the time it submits its application for the START-UP NY
program, the business must be a new business to the state.
(d) The business may be organized as a corporation, a partnership,
limited liability company or a sole proprietorship.
[(e) Upon completion of its first year in the START-UP NY program and
thereafter, the business must complete and timely file the annual report
required under section four hundred thirty-eight of this article.
(f)] (E) Except as provided in paragraphs [(g)] (F) and [(h)] (G) of
this subdivision, the business must not be engaged in a line of business
that is currently or was previously conducted by the business or a
related person in the last five years in New York state.
[(g)] (F) If a business does not satisfy the eligibility standard set
forth in paragraph (c) or [(f)] (E) of this subdivision, because at one
point in time it operated in New York state but moved its operations out
of New York state on or before June first, two thousand thirteen, the
commissioner shall grant that business permission to apply to partic-
ipate in the START-UP NY program if the commissioner determines that the
business has demonstrated that it will substantially restore the jobs in
New York state that it previously had moved out of state.
[(h)] (G) If a business seeks to expand its current operations in New
York state into a tax-free NY area but the business does not qualify as
a new business because it does not satisfy the criteria in paragraph (c)
of subdivision six of section four hundred thirty-one of this article or
the business does not satisfy the eligibility standard set forth in
paragraph [(f)] (E) of this subdivision, the commissioner shall grant
S. 2009--C 202 A. 3009--C
the business permission to apply to participate in the START-UP NY
program if the commissioner determines that the business has demon-
strated that it will create net new jobs in the tax-free NY area and
that it or any related person has not eliminated any jobs in the state
in connection with this expansion.
§ 4. This act shall take effect immediately.
PART VVV
Section 1. Section 60.45 of the criminal procedure law is amended by
adding a new subdivision 3 to read as follows:
3. (A) WHERE A PERSON IS SUBJECT TO CUSTODIAL INTERROGATION BY A
PUBLIC SERVANT AT A DETENTION FACILITY, THE ENTIRE CUSTODIAL INTERRO-
GATION, INCLUDING THE GIVING OF ANY REQUIRED ADVICE OF THE RIGHTS OF THE
INDIVIDUAL BEING QUESTIONED, AND THE WAIVER OF ANY RIGHTS BY THE INDI-
VIDUAL, SHALL BE RECORDED BY AN APPROPRIATE VIDEO RECORDING DEVICE IF
THE INTERROGATION INVOLVES A CLASS A-1 FELONY, EXCEPT ONE DEFINED IN
ARTICLE TWO HUNDRED TWENTY OF THE PENAL LAW; FELONY OFFENSES DEFINED IN
SECTION 130.95 AND 130.96 OF THE PENAL LAW; OR A FELONY OFFENSE DEFINED
IN ARTICLE ONE HUNDRED TWENTY-FIVE OR ONE HUNDRED THIRTY OF SUCH LAW
THAT IS DEFINED AS A CLASS B VIOLENT FELONY OFFENSE IN SECTION 70.02 OF
THE PENAL LAW. FOR PURPOSES OF THIS PARAGRAPH, THE TERM "DETENTION
FACILITY" SHALL MEAN A POLICE STATION, CORRECTIONAL FACILITY, HOLDING
FACILITY FOR PRISONERS, PROSECUTOR'S OFFICE OR OTHER FACILITY WHERE
PERSONS ARE HELD IN DETENTION IN CONNECTION WITH CRIMINAL CHARGES THAT
HAVE BEEN OR MAY BE FILED AGAINST THEM.
(B) NO CONFESSION, ADMISSION OR OTHER STATEMENT SHALL BE SUBJECT TO A
MOTION TO SUPPRESS PURSUANT TO SUBDIVISION THREE OF SECTION 710.20 OF
THIS CHAPTER BASED SOLELY UPON THE FAILURE TO VIDEO RECORD SUCH INTERRO-
GATION IN A DETENTION FACILITY AS DEFINED IN PARAGRAPH (A) OF THIS
SUBDIVISION. HOWEVER, WHERE THE PEOPLE OFFER INTO EVIDENCE A CONFESSION,
ADMISSION OR OTHER STATEMENT MADE BY A PERSON IN CUSTODY WITH RESPECT TO
HIS OR HER PARTICIPATION OR LACK OF PARTICIPATION IN AN OFFENSE SPECI-
FIED IN PARAGRAPH (A) OF THIS SUBDIVISION, THAT HAS NOT BEEN VIDEO
RECORDED, THE COURT SHALL CONSIDER THE FAILURE TO RECORD AS A FACTOR,
BUT NOT AS THE SOLE FACTOR, IN ACCORDANCE WITH PARAGRAPH (C) OF THIS
SUBDIVISION IN DETERMINING WHETHER SUCH CONFESSION, ADMISSION OR OTHER
STATEMENT SHALL BE ADMISSIBLE.
(C) NOTWITHSTANDING THE REQUIREMENT OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, UPON A SHOWING OF GOOD CAUSE BY THE PROSECUTOR, THE CUSTODIAL
INTERROGATION NEED NOT BE RECORDED. GOOD CAUSE SHALL INCLUDE, BUT NOT BE
LIMITED TO:
(I) IF ELECTRONIC RECORDING EQUIPMENT MALFUNCTIONS.
(II) IF ELECTRONIC RECORDING EQUIPMENT IS NOT AVAILABLE BECAUSE IT WAS
OTHERWISE BEING USED.
(III) IF STATEMENTS ARE MADE IN RESPONSE TO QUESTIONS THAT ARE
ROUTINELY ASKED DURING ARREST PROCESSING.
(IV) IF THE STATEMENT IS SPONTANEOUSLY MADE BY THE SUSPECT AND NOT IN
RESPONSE TO POLICE QUESTIONING.
(V) IF THE STATEMENT IS MADE DURING AN INTERROGATION THAT IS CONDUCTED
WHEN THE INTERVIEWER IS UNAWARE THAT A QUALIFYING OFFENSE HAS OCCURRED.
(VI) IF THE STATEMENT IS MADE AT A LOCATION OTHER THAN THE "INTERVIEW
ROOM" BECAUSE THE SUSPECT CANNOT BE BROUGHT TO SUCH ROOM, E.G., THE
SUSPECT IS IN A HOSPITAL OR THE SUSPECT IS OUT OF STATE AND THAT STATE
IS NOT GOVERNED BY A LAW REQUIRING THE RECORDATION OF AN INTERROGATION.
S. 2009--C 203 A. 3009--C
(VII) IF THE STATEMENT IS MADE AFTER A SUSPECT HAS REFUSED TO PARTIC-
IPATE IN THE INTERROGATION IF IT IS RECORDED, AND APPROPRIATE EFFORT TO
DOCUMENT SUCH REFUSAL IS MADE.
(VIII) IF SUCH STATEMENT IS NOT RECORDED AS A RESULT OF AN INADVERTENT
ERROR OR OVERSIGHT, NOT THE RESULT OF ANY INTENTIONAL CONDUCT BY LAW
ENFORCEMENT PERSONNEL.
(IX) IF IT IS LAW ENFORCEMENT'S REASONABLE BELIEF THAT SUCH RECORDING
WOULD JEOPARDIZE THE SAFETY OF ANY PERSON OR REVEAL THE IDENTITY OF A
CONFIDENTIAL INFORMANT.
(X) IF SUCH STATEMENT IS MADE AT A LOCATION NOT EQUIPPED WITH A VIDEO
RECORDING DEVICE AND THE REASON FOR USING THAT LOCATION IS NOT TO
SUBVERT THE INTENT OF THE LAW. FOR PURPOSES OF THIS SECTION, THE TERM
"LOCATION" SHALL INCLUDE THOSE LOCATIONS SPECIFIED IN PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION 305.2 OF THE FAMILY COURT ACT.
(D) IN THE EVENT THE COURT FINDS THAT THE PEOPLE HAVE NOT SHOWN GOOD
CAUSE FOR THE NON-RECORDING OF THE CONFESSION, ADMISSION, OR OTHER
STATEMENT, BUT DETERMINES THAT A NON-RECORDED CONFESSION, ADMISSION OR
OTHER STATEMENT IS NEVERTHELESS ADMISSIBLE BECAUSE IT WAS VOLUNTARILY
MADE THEN, UPON REQUEST OF THE DEFENDANT, THE COURT MUST INSTRUCT THE
JURY THAT THE PEOPLE'S FAILURE TO RECORD THE DEFENDANT'S CONFESSION,
ADMISSION OR OTHER STATEMENT AS REQUIRED BY THIS SECTION MAY BE WEIGHED
AS A FACTOR, BUT NOT AS THE SOLE FACTOR, IN DETERMINING WHETHER SUCH
CONFESSION, ADMISSION OR OTHER STATEMENT WAS VOLUNTARILY MADE, OR WAS
MADE AT ALL.
(E) VIDEO RECORDING AS REQUIRED BY THIS SECTION SHALL BE CONDUCTED IN
ACCORDANCE WITH STANDARDS ESTABLISHED BY RULE OF THE DIVISION OF CRIMI-
NAL JUSTICE SERVICES.
§ 2. Subdivision 3 of section 344.2 of the family court act is renum-
bered subdivision 4 and a new subdivision 3 is added to read as follows:
3. WHERE A RESPONDENT IS SUBJECT TO CUSTODIAL INTERROGATION BY A
PUBLIC SERVANT AT A FACILITY SPECIFIED IN SUBDIVISION FOUR OF SECTION
305.2 OF THIS ARTICLE, THE ENTIRE CUSTODIAL INTERROGATION, INCLUDING THE
GIVING OF ANY REQUIRED ADVICE OF THE RIGHTS OF THE INDIVIDUAL BEING
QUESTIONED, AND THE WAIVER OF ANY RIGHTS BY THE INDIVIDUAL, SHALL BE
RECORDED AND GOVERNED IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS
(A), (B), (C), (D) AND (E) OF SUBDIVISION THREE OF SECTION 60.45 OF THE
CRIMINAL PROCEDURE LAW.
§ 3. Section 60.25 of the criminal procedure law, subparagraph (ii) of
paragraph (a) of subdivision 1 as amended by chapter 479 of the laws of
1977, is amended to read as follows:
§ 60.25 Rules of evidence; identification by means of previous recogni-
tion, in absence of present identification.
1. In any criminal proceeding in which the defendant's commission of
an offense is in issue, testimony as provided in subdivision two may be
given by a witness when:
(a) Such witness testifies that:
(i) He OR SHE observed the person claimed by the people to be the
defendant either at the time and place of the commission of the offense
or upon some other occasion relevant to the case; and
(ii) On a subsequent occasion he OR SHE observed, under circumstances
consistent with such rights as an accused person may derive under the
constitution of this state or of the United States, a person OR, WHERE
THE OBSERVATION IS MADE PURSUANT TO A BLIND OR BLINDED PROCEDURE AS
DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION, A PICTORIAL, PHOTOGRAPHIC,
ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF A PERSON whom he OR
S. 2009--C 204 A. 3009--C
SHE recognized as the same person whom he OR SHE had observed on the
first or incriminating occasion; and
(iii) He OR SHE is unable at the proceeding to state, on the basis of
present recollection, whether or not the defendant is the person in
question; and
(b) It is established that the defendant is in fact the person whom
the witness observed and recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC,
ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION THE WITNESS OBSERVED
AND RECOGNIZED on the second occasion. Such fact may be established by
testimony of another person or persons to whom the witness promptly
declared his OR HER recognition on such occasion AND BY SUCH PICTORIAL,
PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION.
(C) FOR PURPOSES OF THIS SECTION, A "BLIND OR BLINDED PROCEDURE" IS
ONE IN WHICH THE WITNESS IDENTIFIES A PERSON IN AN ARRAY OF PICTORIAL,
PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTIONS UNDER
CIRCUMSTANCES WHERE, AT THE TIME THE IDENTIFICATION IS MADE, THE PUBLIC
SERVANT ADMINISTERING SUCH PROCEDURE: (I) DOES NOT KNOW WHICH PERSON IN
THE ARRAY IS THE SUSPECT, OR (II) DOES NOT KNOW WHERE THE SUSPECT IS IN
THE ARRAY VIEWED BY THE WITNESS. THE FAILURE OF A PUBLIC SERVANT TO
FOLLOW SUCH A PROCEDURE SHALL BE ASSESSED SOLELY FOR PURPOSES OF THIS
ARTICLE AND SHALL RESULT IN THE PRECLUSION OF TESTIMONY REGARDING THE
IDENTIFICATION PROCEDURE AS EVIDENCE IN CHIEF, BUT SHALL NOT CONSTITUTE
A LEGAL BASIS TO SUPPRESS EVIDENCE MADE PURSUANT TO SUBDIVISION SIX OF
SECTION 710.20 OF THIS CHAPTER. THIS ARTICLE NEITHER LIMITS NOR EXPANDS
SUBDIVISION SIX OF SECTION 710.20 OF THIS CHAPTER.
2. Under circumstances prescribed in subdivision one OF THIS SECTION,
such witness may testify at the criminal proceeding that the person whom
he OR SHE observed and recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC,
ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION HE OR SHE OBSERVED AND
RECOGNIZED on the second occasion is the same person whom he OR SHE
observed on the first or incriminating occasion. Such testimony,
together with the evidence that the defendant is in fact the person whom
the witness observed and recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC,
ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION HE OR SHE OBSERVED AND
RECOGNIZED on the second occasion, constitutes evidence in chief.
§ 4. Section 60.30 of the criminal procedure law, as amended by chap-
ter 479 of the laws of 1977, is amended to read as follows:
§ 60.30 Rules of evidence; identification by means of previous recogni-
tion, in addition to present identification.
In any criminal proceeding in which the defendant's commission of an
offense is in issue, a witness who testifies that (a) he OR SHE observed
the person claimed by the people to be the defendant either at the time
and place of the commission of the offense or upon some other occasion
relevant to the case, and (b) on the basis of present recollection, the
defendant is the person in question and (c) on a subsequent occasion he
OR SHE observed the defendant, OR WHERE THE OBSERVATION IS MADE PURSUANT
TO A BLIND OR BLINDED PROCEDURE, AS DEFINED IN PARAGRAPH (C) OF SUBDIVI-
SION ONE OF SECTION 60.25 OF THIS ARTICLE, A PICTORIAL, PHOTOGRAPHIC,
ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF THE DEFENDANT,
under circumstances consistent with such rights as an accused person may
derive under the constitution of this state or of the United States, and
then also recognized him OR HER OR THE PICTORIAL, PHOTOGRAPHIC, ELEC-
TRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF HIM OR HER as the same
person whom he OR SHE had observed on the first or incriminating occa-
sion, may, in addition to making an identification of the defendant at
the criminal proceeding on the basis of present recollection as the
S. 2009--C 205 A. 3009--C
person whom he OR SHE observed on the first or incriminating occasion,
also describe his OR HER previous recognition of the defendant and
testify that the person whom he OR SHE observed OR WHOSE PICTORIAL,
PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION HE OR
SHE OBSERVED on such second occasion is the same person whom he OR SHE
had observed on the first or incriminating occasion. Such testimony AND
SUCH PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED
REPRODUCTION constitutes evidence in chief.
§ 5. Subdivision 6 of section 710.20 of the criminal procedure law, as
amended by chapter 8 of the laws of 1976 and as renumbered by chapter
481 of the laws of 1983, is amended to read as follows:
6. Consists of potential testimony regarding an observation of the
defendant either at the time or place of the commission of the offense
or upon some other occasion relevant to the case, which potential testi-
mony would not be admissible upon the prospective trial of such charge
owing to an improperly made previous identification of the defendant OR
OF A PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED
REPRODUCTION OF THE DEFENDANT by the prospective witness. A CLAIM THAT
THE PREVIOUS IDENTIFICATION OF THE DEFENDANT OR OF A PICTORIAL, PHOTO-
GRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF THE
DEFENDANT BY A PROSPECTIVE WITNESS DID NOT COMPLY WITH PARAGRAPH (C) OF
SUBDIVISION ONE OF SECTION 60.25 OF THIS CHAPTER OR WITH THE PROTOCOL
PROMULGATED IN ACCORDANCE WITH SUBDIVISION TWENTY-ONE OF SECTION EIGHT
HUNDRED THIRTY-SEVEN OF THE EXECUTIVE LAW SHALL NOT CONSTITUTE A LEGAL
BASIS TO SUPPRESS EVIDENCE PURSUANT TO THIS SUBDIVISION. A CLAIM THAT A
PUBLIC SERVANT FAILED TO COMPLY WITH PARAGRAPH (C) OF SUBDIVISION ONE OF
SECTION 60.25 OF THIS CHAPTER OR OF SUBDIVISION TWENTY-ONE OF SECTION
EIGHT HUNDRED THIRTY-SEVEN OF THE EXECUTIVE LAW SHALL NEITHER EXPAND NOR
LIMIT THE RIGHTS AN ACCUSED PERSON MAY DERIVE UNDER THE CONSTITUTION OF
THIS STATE OR OF THE UNITED STATES.
§ 6. Subdivision 1 of section 710.30 of the criminal procedure law, as
separately amended by chapters 8 and 194 of the laws of 1976, is amended
to read as follows:
1. Whenever the people intend to offer at a trial (a) evidence of a
statement made by a defendant to a public servant, which statement if
involuntarily made would render the evidence thereof suppressible upon
motion pursuant to subdivision three of section 710.20, or (b) testimony
regarding an observation of the defendant either at the time or place of
the commission of the offense or upon some other occasion relevant to
the case, to be given by a witness who has previously identified him OR
HER OR A PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED
REPRODUCTION OF HIM OR HER as such, they must serve upon the defendant a
notice of such intention, specifying the evidence intended to be
offered.
§ 7. Section 343.3 of the family court act, as added by chapter 920 of
the laws of 1982, is amended to read as follows:
§ 343.3. Rules of evidence; identification by means of previous recog-
nition in absence of present identification. 1. In any juvenile delin-
quency proceeding in which the respondent's commission of a crime is in
issue, testimony as provided in subdivision two may be given by a
witness when:
(a) such witness testifies that:
(i) he OR SHE observed the person claimed by the presentment agency to
be the respondent either at the time and place of the commission of the
crime or upon some other occasion relevant to the case; and
S. 2009--C 206 A. 3009--C
(ii) on a subsequent occasion he OR SHE observed, under circumstances
consistent with such rights as an accused person may derive under the
constitution of this state or of the United States, a person, OR, WHERE
THE OBSERVATION IS MADE PURSUANT TO A BLIND OR BLINDED PROCEDURE AS
DEFINED HEREIN, A PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO
RECORDED REPRODUCTION OF A PERSON whom he OR SHE recognized as the same
person whom he OR SHE had observed on the first incriminating occasion;
and
(iii) he OR SHE is unable at the proceeding to state, on the basis of
present recollection, whether or not the respondent is the person in
question; and
(b) it is established that the respondent is in fact the person whom
the witness observed and recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC,
ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION THE WITNESS OBSERVED
AND RECOGNIZED on the second occasion. Such fact may be established by
testimony of another person or persons to whom the witness promptly
declared his OR HER recognition on such occasion AND BY SUCH PICTORIAL,
PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION.
(C) FOR PURPOSES OF THIS SECTION, A "BLIND OR BLINDED PROCEDURE" IS
ONE IN WHICH THE WITNESS IDENTIFIES A PERSON IN AN ARRAY OF PICTORIAL,
PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTIONS UNDER
CIRCUMSTANCES WHERE, AT THE TIME THE IDENTIFICATION IS MADE, THE PUBLIC
SERVANT ADMINISTERING SUCH PROCEDURE: (I) DOES NOT KNOW WHICH PERSON IN
THE ARRAY IS THE SUSPECT, OR (II) DOES NOT KNOW WHERE THE SUSPECT IS IN
THE ARRAY VIEWED BY THE WITNESS. THE FAILURE OF A PUBLIC SERVANT TO
FOLLOW SUCH A PROCEDURE SHALL BE ASSESSED SOLELY FOR PURPOSES OF THIS
ARTICLE AND SHALL RESULT IN THE PRECLUSION OF TESTIMONY REGARDING THE
IDENTIFICATION PROCEDURE AS EVIDENCE IN CHIEF, BUT SHALL NOT CONSTITUTE
A LEGAL BASIS TO SUPPRESS EVIDENCE MADE PURSUANT TO SUBDIVISION SIX OF
SECTION 710.20 OF THE CRIMINAL PROCEDURE LAW. THIS ARTICLE NEITHER
LIMITS NOT EXPANDS SUBDIVISION SIX OF SECTION 710.20 OF THE CRIMINAL
PROCEDURE LAW.
2. Under circumstances prescribed in subdivision one, such witness may
testify at the proceeding that the person whom he OR SHE observed and
recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO
RECORDED REPRODUCTION HE OR SHE OBSERVED AND RECOGNIZED on the second
occasion is the same person whom he OR SHE observed on the first or
incriminating occasion. Such testimony, together with the evidence that
the respondent is in fact the person whom the witness observed and
recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO
RECORDED REPRODUCTION HE OR SHE OBSERVED AND RECOGNIZED on the second
occasion, constitutes evidence in chief.
§ 8. Section 343.4 of the family court act, as added by chapter 920 of
the laws of 1982, is amended to read as follows:
§ 343.4. Rules of evidence; identification by means of previous recog-
nition, in addition to present identification. In any juvenile delin-
quency proceeding in which the respondent's commission of a crime is in
issue, a witness who testifies that: (a) he OR SHE observed the person
claimed by the presentment agency to be the respondent either at the
time and place of the commission of the crime or upon some other occa-
sion relevant to the case, and (b) on the basis of present recollection,
the respondent is the person in question, and (c) on a subsequent occa-
sion he OR SHE observed the respondent, OR, WHERE THE OBSERVATION IS
MADE PURSUANT TO A BLIND OR BLINDED PROCEDURE, A PICTORIAL, PHOTOGRAPH-
IC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF THE RESPONDENT
under circumstances consistent with such rights as an accused person may
S. 2009--C 207 A. 3009--C
derive under the constitution of this state or of the United States, and
then also recognized him OR HER OR THE PICTORIAL, PHOTOGRAPHIC, ELEC-
TRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF HIM OR HER as the same
person whom he OR SHE had observed on the first or incriminating occa-
sion, may, in addition to making an identification of the respondent at
the delinquency proceeding on the basis of present recollection as the
person whom he OR SHE observed on the first or incriminating occasion,
also describe his OR HER previous recognition of the respondent and
testify that the person whom he OR SHE observed OR WHOSE PICTORIAL,
PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION HE OR
SHE OBSERVED on such second occasion is the same person whom he OR SHE
had observed on the first or incriminating occasion. Such testimony AND
SUCH PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED
REPRODUCTION constitutes evidence in chief. FOR PURPOSES OF THIS
SECTION, A "BLIND OR BLINDED PROCEDURE" SHALL BE AS DEFINED IN PARAGRAPH
(C) OF SUBDIVISION ONE OF SECTION 343.3 OF THIS PART.
§ 9. Section 837 of the executive law is amended by adding a new
subdivision 21 to read as follows:
21. PROMULGATE A STANDARDIZED AND DETAILED WRITTEN PROTOCOL THAT IS
GROUNDED IN EVIDENCE-BASED PRINCIPLES FOR THE ADMINISTRATION OF PHOTO-
GRAPHIC ARRAY AND LIVE LINEUP IDENTIFICATION PROCEDURES FOR POLICE AGEN-
CIES AND STANDARDIZED FORMS FOR USE BY SUCH AGENCIES IN THE REPORTING
AND RECORDING OF SUCH IDENTIFICATION PROCEDURE. THE PROTOCOL SHALL
ADDRESS THE FOLLOWING TOPICS:
(A) THE SELECTION OF PHOTOGRAPHIC ARRAY AND LIVE LINEUP FILLER PHOTO-
GRAPHS OR PARTICIPANTS;
(B) INSTRUCTIONS GIVEN TO A WITNESS BEFORE CONDUCTING A PHOTOGRAPHIC
ARRAY OR LIVE LINEUP IDENTIFICATION PROCEDURE;
(C) THE DOCUMENTATION AND PRESERVATION OF RESULTS OF A PHOTOGRAPHIC
ARRAY OR LIVE LINEUP IDENTIFICATION PROCEDURE;
(D) PROCEDURES FOR ELICITING AND DOCUMENTING THE WITNESS'S CONFIDENCE
IN HIS OR HER IDENTIFICATION FOLLOWING A PHOTOGRAPHIC ARRAY OR LIVE
LINEUP IDENTIFICATION PROCEDURE, IN THE EVENT THAT AN IDENTIFICATION IS
MADE; AND
(E) PROCEDURES FOR ADMINISTERING A PHOTOGRAPHIC ARRAY OR LIVE LINEUP
IDENTIFICATION PROCEDURE IN A MANNER DESIGNED TO PREVENT OPPORTUNITIES
TO INFLUENCE THE WITNESS.
§ 10. Subdivision 4 of section 840 of the executive law is amended by
adding a new paragraph (c) to read as follows:
(C) DISSEMINATE THE WRITTEN POLICIES AND PROCEDURES PROMULGATED IN
ACCORDANCE WITH SUBDIVISION TWENTY-ONE OF SECTION EIGHT HUNDRED THIRTY-
SEVEN OF THIS ARTICLE TO ALL POLICE DEPARTMENTS IN THIS STATE AND IMPLE-
MENT A TRAINING PROGRAM FOR ALL CURRENT AND NEW POLICE OFFICERS REGARD-
ING THE POLICIES AND PROCEDURES ESTABLISHED PURSUANT TO SUCH
SUBDIVISION.
§ 11. Section 722-e of the county law, as added by chapter 878 of the
laws of 1965, is amended to read as follows:
§ 722-e. Expenses. All expenses for providing counsel and services
other than counsel hereunder shall be a county charge or in the case of
a county wholly located within a city a city charge to be paid out of an
appropriation for such purposes. PROVIDED, HOWEVER, THAT ANY SUCH ADDI-
TIONAL EXPENSES INCURRED FOR THE PROVISION OF COUNSEL AND SERVICES AS A
RESULT OF THE IMPLEMENTATION OF A PLAN ESTABLISHED PURSUANT TO SUBDIVI-
SION FOUR OF SECTION EIGHT HUNDRED THIRTY-TWO OF THE EXECUTIVE LAW,
INCLUDING ANY INTERIM STEPS TAKEN TO IMPLEMENT SUCH PLAN, SHALL BE REIM-
BURSED BY THE STATE TO THE COUNTY OR CITY PROVIDING SUCH SERVICES. SUCH
S. 2009--C 208 A. 3009--C
PLANS SHALL BE SUBMITTED BY THE OFFICE OF INDIGENT LEGAL SERVICES TO THE
DIRECTOR OF THE DIVISION OF BUDGET FOR REVIEW AND APPROVAL. HOWEVER, THE
DIRECTOR'S APPROVAL SHALL BE LIMITED SOLELY TO THE PLAN'S PROJECTED
FISCAL IMPACT OF THE REQUIRED APPROPRIATION FOR THE IMPLEMENTATION OF
SUCH PLAN, AND HIS OR HER APPROVAL SHALL NOT BE UNREASONABLY WITHHELD.
THE STATE SHALL APPROPRIATE FUNDS SUFFICIENT TO PROVIDE FOR THE
REIMBURSEMENT REQUIRED BY THIS SECTION.
§ 12. Section 832 of the executive law is amended by adding a new
subdivision 4 to read as follows:
4. ADDITIONAL DUTIES AND RESPONSIBILITIES. THE OFFICE SHALL, IN
CONSULTATION WITH THE INDIGENT LEGAL SERVICES BOARD ESTABLISHED PURSUANT
TO SECTION EIGHT HUNDRED THIRTY-THREE OF THIS ARTICLE, HAVE THE FOLLOW-
ING DUTIES AND RESPONSIBILITIES, AND ANY PLAN DEVELOPED PURSUANT TO THIS
SUBDIVISION SHALL BE SUBMITTED BY THE OFFICE TO THE DIRECTOR OF THE
DIVISION OF BUDGET FOR REVIEW AND APPROVAL, PROVIDED, HOWEVER THAT THE
DIRECTOR'S APPROVAL SHALL BE LIMITED SOLELY TO THE PLAN'S PROJECTED
FISCAL IMPACT OF THE REQUIRED APPROPRIATION FOR THE IMPLEMENTATION OF
SUCH PLAN AND HIS OR HER APPROVAL SHALL NOT BE UNREASONABLY WITHHELD:
(A) COUNSEL AT ARRAIGNMENT. DEVELOP AND IMPLEMENT A WRITTEN PLAN TO
ENSURE THAT EACH CRIMINAL DEFENDANT WHO IS ELIGIBLE FOR PUBLICLY FUNDED
LEGAL REPRESENTATION IS REPRESENTED BY COUNSEL IN PERSON AT HIS OR HER
ARRAIGNMENT; PROVIDED, HOWEVER, THAT A TIMELY ARRAIGNMENT WITH COUNSEL
SHALL NOT BE DELAYED PENDING A DETERMINATION OF A DEFENDANT'S ELIGIBIL-
ITY.
(I) FOR THE PURPOSES OF THE PLAN DEVELOPED PURSUANT TO THIS SUBDIVI-
SION, THE TERM "ARRAIGNMENT" SHALL MEAN THE FIRST APPEARANCE BY A PERSON
CHARGED WITH A CRIME BEFORE A JUDGE OR MAGISTRATE, WITH THE EXCEPTION OF
AN APPEARANCE WHERE NO PROSECUTOR APPEARS AND NO ACTION OCCURS OTHER
THAN THE ADJOURNMENT OF THE CRIMINAL PROCESS AND THE UNCONDITIONAL
RELEASE OF THE PERSON CHARGED (IN WHICH EVENT "ARRAIGNMENT" SHALL MEAN
THE PERSON'S NEXT APPEARANCE BEFORE A JUDGE OR MAGISTRATE).
(II) THE WRITTEN PLAN DEVELOPED PURSUANT TO THIS SUBDIVISION SHALL BE
COMPLETED BY DECEMBER FIRST, TWO THOUSAND SEVENTEEN AND SHALL INCLUDE
INTERIM STEPS FOR EACH COUNTY AND THE CITY OF NEW YORK FOR ACHIEVING
COMPLIANCE WITH THE PLAN.
(III) EACH COUNTY AND THE CITY OF NEW YORK SHALL, IN CONSULTATION WITH
THE OFFICE, UNDERTAKE GOOD FAITH EFFORTS TO IMPLEMENT THE PLAN AND SUCH
PLAN SHALL BE FULLY IMPLEMENTED AND ADHERED TO IN EACH COUNTY AND THE
CITY OF NEW YORK BY APRIL FIRST, TWO THOUSAND TWENTY-THREE. PURSUANT TO
SECTION SEVEN HUNDRED TWENTY-TWO-E OF THE COUNTY LAW, THE STATE SHALL
REIMBURSE EACH COUNTY AND THE CITY OF NEW YORK FOR ANY COSTS INCURRED AS
A RESULT OF IMPLEMENTING SUCH PLAN.
(IV) THE OFFICE SHALL, ON AN ONGOING BASIS, MONITOR AND PERIODICALLY
REPORT ON THE IMPLEMENTATION OF, AND COMPLIANCE WITH, THE PLAN IN EACH
COUNTY AND THE CITY OF NEW YORK.
(B) CASELOAD RELIEF. DEVELOP AND IMPLEMENT A WRITTEN PLAN THAT ESTAB-
LISHES NUMERICAL CASELOAD/WORKLOAD STANDARDS FOR EACH PROVIDER OF
CONSTITUTIONALLY MANDATED PUBLICLY FUNDED REPRESENTATION IN CRIMINAL
CASES FOR PEOPLE WHO ARE UNABLE TO AFFORD COUNSEL.
(I) SUCH STANDARDS SHALL APPLY TO ALL PROVIDERS WHETHER PUBLIC DEFEN-
DER, LEGAL AID SOCIETY, ASSIGNED COUNSEL PROGRAM OR CONFLICT DEFENDER IN
EACH COUNTY AND THE CITY OF NEW YORK.
(II) THE WRITTEN PLAN DEVELOPED PURSUANT TO THIS SUBDIVISION SHALL BE
COMPLETED BY DECEMBER FIRST, TWO THOUSAND SEVENTEEN AND SHALL INCLUDE
INTERIM STEPS FOR EACH COUNTY AND THE CITY OF NEW YORK FOR ACHIEVING
COMPLIANCE WITH THE PLAN. SUCH PLAN SHALL INCLUDE THE NUMBER OF ATTOR-
S. 2009--C 209 A. 3009--C
NEYS, INVESTIGATORS AND OTHER NON-ATTORNEY STAFF AND THE AMOUNT OF
IN-KIND RESOURCES NECESSARY FOR EACH PROVIDER OF MANDATED REPRESENTATION
TO IMPLEMENT SUCH PLAN.
(III) EACH COUNTY AND THE CITY OF NEW YORK SHALL, IN CONSULTATION
WITH THE OFFICE, UNDERTAKE GOOD FAITH EFFORTS TO IMPLEMENT THE
CASELOAD/WORKLOAD STANDARDS AND SUCH STANDARDS SHALL BE FULLY IMPLE-
MENTED AND ADHERED TO IN EACH COUNTY AND THE CITY OF NEW YORK BY APRIL
FIRST, TWO THOUSAND TWENTY-THREE. PURSUANT TO SECTION SEVEN HUNDRED
TWENTY-TWO-E OF THE COUNTY LAW, THE STATE SHALL REIMBURSE EACH COUNTY
AND THE CITY OF NEW YORK FOR ANY COSTS INCURRED AS A RESULT OF IMPLE-
MENTING SUCH PLAN.
(IV) THE OFFICE SHALL, ON AN ONGOING BASIS, MONITOR AND PERIODICALLY
REPORT ON THE IMPLEMENTATION OF, AND COMPLIANCE WITH, THE PLAN IN EACH
COUNTY AND THE CITY OF NEW YORK.
(C) INITIATIVES TO IMPROVE THE QUALITY OF INDIGENT DEFENSE. (I) DEVEL-
OP AND IMPLEMENT A WRITTEN PLAN TO IMPROVE THE QUALITY OF CONSTITU-
TIONALLY MANDATED PUBLICLY FUNDED REPRESENTATION IN CRIMINAL CASES FOR
PEOPLE WHO ARE UNABLE TO AFFORD COUNSEL AND ENSURE THAT ATTORNEYS
PROVIDING SUCH REPRESENTATION: (A) RECEIVE EFFECTIVE SUPERVISION AND
TRAINING; (B) HAVE ACCESS TO AND APPROPRIATELY UTILIZE INVESTIGATORS,
INTERPRETERS AND EXPERT WITNESSES ON BEHALF OF CLIENTS; (C) COMMUNICATE
EFFECTIVELY WITH THEIR CLIENTS; (D) HAVE THE NECESSARY QUALIFICATIONS
AND EXPERIENCE; AND (E) IN THE CASE OF ASSIGNED COUNSEL ATTORNEYS, ARE
ASSIGNED TO CASES IN ACCORDANCE WITH ARTICLE EIGHTEEN-B OF THE COUNTY
LAW AND IN A MANNER THAT ACCOUNTS FOR THE ATTORNEY'S LEVEL OF EXPERIENCE
AND CASELOAD/WORKLOAD.
(II) THE OFFICE SHALL, ON AN ONGOING BASIS, MONITOR AND PERIODICALLY
REPORT ON THE IMPLEMENTATION OF, AND COMPLIANCE WITH, THE PLAN IN EACH
COUNTY AND THE CITY OF NEW YORK.
(III) THE WRITTEN PLAN DEVELOPED PURSUANT TO THIS SUBDIVISION SHALL BE
COMPLETED BY DECEMBER FIRST, TWO THOUSAND SEVENTEEN AND SHALL INCLUDE
INTERIM STEPS FOR EACH COUNTY AND THE CITY OF NEW YORK FOR ACHIEVING
COMPLIANCE WITH THE PLAN.
(IV) EACH COUNTY AND THE CITY OF NEW YORK SHALL, IN CONSULTATION WITH
THE OFFICE, UNDERTAKE GOOD FAITH EFFORTS TO IMPLEMENT THE INITIATIVES TO
IMPROVE THE QUALITY OF INDIGENT DEFENSE AND SUCH INITIATIVES SHALL BE
FULLY IMPLEMENTED AND ADHERED TO IN EACH COUNTY AND THE CITY OF NEW YORK
BY APRIL FIRST, TWO THOUSAND TWENTY-THREE. PURSUANT TO SECTION SEVEN
HUNDRED TWENTY-TWO-E OF THE COUNTY LAW, THE STATE SHALL REIMBURSE EACH
COUNTY AND THE CITY OF NEW YORK FOR ANY COSTS INCURRED AS A RESULT OF
IMPLEMENTING SUCH PLAN.
(D) APPROPRIATION OF FUNDS. IN NO EVENT SHALL A COUNTY AND A CITY OF
NEW YORK BE OBLIGATED TO UNDERTAKE ANY STEPS TO IMPLEMENT THE WRITTEN
PLANS UNDER PARAGRAPHS (A), (B) AND (C) OF THIS SUBDIVISION UNTIL FUNDS
HAVE BEEN APPROPRIATED BY THE STATE FOR SUCH PURPOSE.
§ 13. This act shall take effect immediately; provided, however, that
sections one and two of this act shall take effect April 1, 2018 and
shall apply to confessions, admissions or statements made on or after
such effective date; provided, further sections three through ten of
this act shall take effect July 1, 2017.
PART WWW
Section 1. Section 1.20 of the criminal procedure law is amended by
adding a new subdivision 44 to read as follows:
S. 2009--C 210 A. 3009--C
44. "ADOLESCENT OFFENDER" MEANS A PERSON CHARGED WITH A FELONY COMMIT-
TED ON OR AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN WHEN HE OR SHE WAS
SIXTEEN YEARS OF AGE OR ON OR AFTER OCTOBER FIRST, TWO THOUSAND NINE-
TEEN, WHEN HE OR SHE WAS SEVENTEEN YEARS OF AGE.
§ 1-a. The criminal procedure law is amended by adding a new article
722 to read as follows:
ARTICLE 722
PROCEEDINGS AGAINST JUVENILE OFFENDERS AND ADOLESCENT
OFFENDERS; ESTABLISHMENT OF YOUTH
PART AND RELATED PROCEDURES
SECTION 722.00 PROBATION CASE PLANS.
722.10 YOUTH PART OF THE SUPERIOR COURT ESTABLISHED.
722.20 PROCEEDINGS UPON FELONY COMPLAINT; JUVENILE OFFENDER.
722.21 PROCEEDINGS UPON FELONY COMPLAINT; ADOLESCENT OFFENDER.
722.22 MOTION TO REMOVE JUVENILE OFFENDER TO FAMILY COURT.
722.23 REMOVAL OF ADOLESCENT OFFENDERS TO FAMILY COURT.
722.24 APPLICABILITY OF CHAPTER TO ACTIONS AND MATTERS INVOLVING
JUVENILE OFFENDERS OR ADOLESCENT OFFENDERS.
§ 722.00 PROBATION CASE PLANS.
1. ALL JUVENILE OFFENDERS AND ADOLESCENT OFFENDERS SHALL BE NOTIFIED
OF THE AVAILABILITY OF SERVICES THROUGH THE LOCAL PROBATION DEPARTMENT.
SUCH SERVICES SHALL INCLUDE THE ABILITY OF THE PROBATION DEPARTMENT TO
CONDUCT A RISK AND NEEDS ASSESSMENT, UTILIZING A VALIDATED RISK ASSESS-
MENT TOOL, IN ORDER TO HELP DETERMINE SUITABLE AND INDIVIDUALIZED
PROGRAMMING AND REFERRALS. PARTICIPATION IN SUCH RISK AND NEEDS ASSESS-
MENT SHALL BE VOLUNTARY AND THE ADOLESCENT OFFENDER OR JUVENILE OFFENDER
MAY BE ACCOMPANIED BY COUNSEL DURING ANY SUCH ASSESSMENT. BASED UPON
THE ASSESSMENT FINDINGS, THE PROBATION DEPARTMENT SHALL REFER THE
ADOLESCENT OFFENDER OR JUVENILE OFFENDER TO AVAILABLE AND APPROPRIATE
SERVICES.
2. NOTHING SHALL PRECLUDE THE PROBATION DEPARTMENT AND THE ADOLESCENT
OFFENDER OR JUVENILE OFFENDER FROM ENTERING INTO A VOLUNTARY SERVICE
PLAN WHICH MAY INCLUDE ALCOHOL, SUBSTANCE USE AND MENTAL HEALTH TREAT-
MENT AND SERVICES. TO THE EXTENT PRACTICABLE, SUCH SERVICES SHALL
CONTINUE THROUGH THE PENDENCY OF THE ACTION AND SHALL FURTHER CONTINUE
WHERE SUCH ACTION IS REMOVED IN ACCORDANCE WITH THIS ARTICLE.
3. WHEN PREPARING A PRE-SENTENCE INVESTIGATION REPORT OF ANY SUCH
ADOLESCENT OFFENDER OR JUVENILE OFFENDER, THE PROBATION DEPARTMENT SHALL
INCORPORATE A SUMMARY OF ANY ASSESSMENT FINDINGS, REFERRALS AND PROGRESS
WITH RESPECT TO MITIGATING RISK AND ADDRESSING ANY IDENTIFIED NEEDS.
4. THE PROBATION SERVICE SHALL NOT TRANSMIT OR OTHERWISE COMMUNICATE
TO THE DISTRICT ATTORNEY OR THE YOUTH PART ANY STATEMENT MADE BY THE
JUVENILE OR ADOLESCENT OFFENDER TO A PROBATION OFFICER. HOWEVER, THE
PROBATION SERVICE MAY MAKE A RECOMMENDATION REGARDING THE COMPLETION OF
HIS OR HER CASE PLAN TO THE YOUTH PART AND PROVIDE SUCH INFORMATION AS
IT SHALL DEEM RELEVANT.
5. NO STATEMENT MADE TO THE PROBATION SERVICE MAY BE ADMITTED INTO
EVIDENCE AT A FACT-FINDING HEARING AT ANY TIME PRIOR TO A CONVICTION.
§ 722.10 YOUTH PART OF THE SUPERIOR COURT ESTABLISHED.
1. THE CHIEF ADMINISTRATOR OF THE COURTS IS HEREBY DIRECTED TO ESTAB-
LISH, IN A SUPERIOR COURT IN EACH COUNTY OF THE STATE, A PART OF THE
COURT TO BE KNOWN AS THE YOUTH PART OF THE SUPERIOR COURT FOR THE COUNTY
IN WHICH SUCH COURT PRESIDES. JUDGES PRESIDING IN THE YOUTH PART SHALL
BE FAMILY COURT JUDGES, AS DESCRIBED IN ARTICLE SIX, SECTION ONE OF THE
CONSTITUTION. TO AID IN THEIR WORK, SUCH JUDGES SHALL RECEIVE TRAINING
IN SPECIALIZED AREAS, INCLUDING, BUT NOT LIMITED TO, JUVENILE JUSTICE,
S. 2009--C 211 A. 3009--C
ADOLESCENT DEVELOPMENT, CUSTODY AND CARE OF YOUTHS AND EFFECTIVE TREAT-
MENT METHODS FOR REDUCING UNLAWFUL CONDUCT BY YOUTHS, AND SHALL BE
AUTHORIZED TO MAKE APPROPRIATE DETERMINATIONS WITHIN THE POWER OF SUCH
SUPERIOR COURT WITH RESPECT TO THE CASES OF YOUTHS ASSIGNED TO SUCH
PART. THE YOUTH PART SHALL HAVE EXCLUSIVE JURISDICTION IN ALL
PROCEEDINGS IN RELATION TO JUVENILE OFFENDERS AND ADOLESCENT OFFENDERS,
EXCEPT AS PROVIDED IN THIS ARTICLE OR ARTICLE SEVEN HUNDRED TWENTY-FIVE
OF THIS CHAPTER.
2. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL ALSO DIRECT THE PRESID-
ING JUSTICE OF THE APPELLATE DIVISION, IN EACH JUDICIAL DEPARTMENT OF
THE STATE, TO DESIGNATE JUDGES AUTHORIZED BY LAW TO EXERCISE CRIMINAL
JURISDICTION TO SERVE AS ACCESSIBLE MAGISTRATES, FOR THE PURPOSE OF
ACTING IN PLACE OF THE YOUTH PART FOR CERTAIN FIRST APPEARANCE
PROCEEDINGS INVOLVING YOUTHS, AS PROVIDED BY LAW. WHEN DESIGNATING SUCH
MAGISTRATES, THE PRESIDING JUSTICE SHALL ENSURE THAT ALL AREAS OF A
COUNTY ARE WITHIN A REASONABLE DISTANCE OF A DESIGNATED MAGISTRATE. A
JUDGE AUTHORIZED TO PRESIDE AS SUCH A MAGISTRATE SHALL HAVE RECEIVED
TRAINING IN SPECIALIZED AREAS, INCLUDING, BUT NOT LIMITED TO, JUVENILE
JUSTICE, ADOLESCENT DEVELOPMENT, CUSTODY AND CARE OF YOUTHS AND EFFEC-
TIVE TREATMENT METHODS FOR REDUCING UNLAWFUL CONDUCT BY YOUTHS.
§ 722.20 PROCEEDINGS UPON FELONY COMPLAINT; JUVENILE OFFENDER.
1. WHEN A JUVENILE OFFENDER IS ARRAIGNED BEFORE A YOUTH PART, THE
PROVISIONS OF THIS SECTION SHALL APPLY. IF THE YOUTH PART IS NOT IN
SESSION, THE DEFENDANT SHALL BE BROUGHT BEFORE THE MOST ACCESSIBLE
MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE SUPREME COURT TO
ACT AS A YOUTH PART FOR THE PURPOSE OF MAKING A DETERMINATION WHETHER
SUCH JUVENILE SHALL BE DETAINED. IF THE DEFENDANT IS ORDERED TO BE
DETAINED, HE OR SHE SHALL BE BROUGHT BEFORE THE NEXT SESSION OF THE
YOUTH PART. IF THE DEFENDANT IS NOT DETAINED, HE OR SHE SHALL BE ORDERED
TO APPEAR AT THE NEXT SESSION OF THE YOUTH PART.
2. IF THE DEFENDANT WAIVES A HEARING UPON THE FELONY COMPLAINT, THE
COURT MUST ORDER THAT THE DEFENDANT BE HELD FOR THE ACTION OF THE GRAND
JURY WITH RESPECT TO THE CHARGE OR CHARGES CONTAINED IN THE FELONY
COMPLAINT.
3. IF THERE BE A HEARING, THEN AT THE CONCLUSION OF THE HEARING, THE
YOUTH PART COURT MUST DISPOSE OF THE FELONY COMPLAINT AS FOLLOWS:
(A) IF THERE IS REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT COMMIT-
TED A CRIME FOR WHICH A PERSON UNDER THE AGE OF SIXTEEN IS CRIMINALLY
RESPONSIBLE, THE COURT MUST ORDER THAT THE DEFENDANT BE HELD FOR THE
ACTION OF A GRAND JURY; OR
(B) IF THERE IS NOT REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT
COMMITTED A CRIME FOR WHICH A PERSON UNDER THE AGE OF SIXTEEN IS CRIMI-
NALLY RESPONSIBLE BUT THERE IS REASONABLE CAUSE TO BELIEVE THAT THE
DEFENDANT IS A "JUVENILE DELINQUENT" AS DEFINED IN SUBDIVISION ONE OF
SECTION 301.2 OF THE FAMILY COURT ACT, THE COURT MUST SPECIFY THE ACT OR
ACTS IT FOUND REASONABLE CAUSE TO BELIEVE THE DEFENDANT DID AND DIRECT
THAT THE ACTION BE REMOVED TO THE FAMILY COURT IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF THIS TITLE; OR
(C) IF THERE IS NOT REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT
COMMITTED ANY CRIMINAL ACT, THE COURT MUST DISMISS THE FELONY COMPLAINT
AND DISCHARGE THE DEFENDANT FROM CUSTODY IF HE IS IN CUSTODY, OR IF HE
IS AT LIBERTY ON BAIL, IT MUST EXONERATE THE BAIL.
4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS TWO AND THREE OF
THIS SECTION, THE COURT SHALL, AT THE REQUEST OF THE DISTRICT ATTORNEY,
ORDER REMOVAL OF AN ACTION AGAINST A JUVENILE OFFENDER TO THE FAMILY
COURT PURSUANT TO THE PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF
S. 2009--C 212 A. 3009--C
THIS TITLE IF, UPON CONSIDERATION OF THE CRITERIA SPECIFIED IN SUBDIVI-
SION TWO OF SECTION 722.22 OF THIS ARTICLE, IT IS DETERMINED THAT TO DO
SO WOULD BE IN THE INTERESTS OF JUSTICE. WHERE, HOWEVER, THE FELONY
COMPLAINT CHARGES THE JUVENILE OFFENDER WITH MURDER IN THE SECOND DEGREE
AS DEFINED IN SECTION 125.25 OF THE PENAL LAW, RAPE IN THE FIRST DEGREE
AS DEFINED IN SUBDIVISION ONE OF SECTION 130.35 OF THE PENAL LAW, CRIMI-
NAL SEXUAL ACT IN THE FIRST DEGREE AS DEFINED IN SUBDIVISION ONE OF
SECTION 130.50 OF THE PENAL LAW, OR AN ARMED FELONY AS DEFINED IN PARA-
GRAPH (A) OF SUBDIVISION FORTY-ONE OF SECTION 1.20 OF THIS CHAPTER, A
DETERMINATION THAT SUCH ACTION BE REMOVED TO THE FAMILY COURT SHALL, IN
ADDITION, BE BASED UPON A FINDING OF ONE OR MORE OF THE FOLLOWING
FACTORS: (I) MITIGATING CIRCUMSTANCES THAT BEAR DIRECTLY UPON THE MANNER
IN WHICH THE CRIME WAS COMMITTED; OR (II) WHERE THE DEFENDANT WAS NOT
THE SOLE PARTICIPANT IN THE CRIME, THE DEFENDANT'S PARTICIPATION WAS
RELATIVELY MINOR ALTHOUGH NOT SO MINOR AS TO CONSTITUTE A DEFENSE TO THE
PROSECUTION; OR (III) POSSIBLE DEFICIENCIES IN PROOF OF THE CRIME.
5. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TWO, THREE, OR FOUR
OF THIS SECTION, IF A CURRENTLY UNDETERMINED FELONY COMPLAINT AGAINST A
JUVENILE OFFENDER IS PENDING, AND THE DEFENDANT HAS NOT WAIVED A HEARING
PURSUANT TO SUBDIVISION TWO OF THIS SECTION AND A HEARING PURSUANT TO
SUBDIVISION THREE OF THIS SECTION HAS NOT COMMENCED, THE DEFENDANT MAY
MOVE TO REMOVE THE ACTION TO FAMILY COURT PURSUANT TO 722.22 OF THIS
ARTICLE. THE PROCEDURAL RULES OF SUBDIVISIONS ONE AND TWO OF SECTION
210.45 OF THIS CHAPTER ARE APPLICABLE TO A MOTION PURSUANT TO THIS
SUBDIVISION. UPON SUCH MOTION, THE COURT SHALL PROCEED AND DETERMINE THE
MOTION AS PROVIDED IN SECTION 722.22 OF THIS ARTICLE; PROVIDED, HOWEVER,
THAT THE EXCEPTION PROVISIONS OF PARAGRAPH (B) OF SUBDIVISION ONE OF
SECTION 722.22 OF THIS ARTICLE SHALL NOT APPLY WHEN THERE IS NOT REASON-
ABLE CAUSE TO BELIEVE THAT THE JUVENILE OFFENDER COMMITTED ONE OR MORE
OF THE CRIMES ENUMERATED THEREIN, AND IN SUCH EVENT THE PROVISIONS OF
PARAGRAPH (A) THEREOF SHALL APPLY.
6. (A) IF THE COURT ORDERS REMOVAL OF THE ACTION TO FAMILY COURT, IT
SHALL STATE ON THE RECORD THE FACTOR OR FACTORS UPON WHICH ITS DETERMI-
NATION IS BASED, AND THE COURT SHALL GIVE ITS REASONS FOR REMOVAL IN
DETAIL AND NOT IN CONCLUSORY TERMS.
(B) THE DISTRICT ATTORNEY SHALL STATE UPON THE RECORD THE REASONS FOR
HIS CONSENT TO REMOVAL OF THE ACTION TO THE FAMILY COURT WHERE SUCH
CONSENT IS REQUIRED. THE REASONS SHALL BE STATED IN DETAIL AND NOT IN
CONCLUSORY TERMS.
(C) FOR THE PURPOSE OF MAKING A DETERMINATION PURSUANT TO SUBDIVISION
FOUR OR FIVE OF THIS SECTION, THE COURT MAY MAKE SUCH INQUIRY AS IT
DEEMS NECESSARY. ANY EVIDENCE WHICH IS NOT LEGALLY PRIVILEGED MAY BE
INTRODUCED. IF THE DEFENDANT TESTIFIES, HIS TESTIMONY MAY NOT BE INTRO-
DUCED AGAINST HIM IN ANY FUTURE PROCEEDING, EXCEPT TO IMPEACH HIS TESTI-
MONY AT SUCH FUTURE PROCEEDING AS INCONSISTENT PRIOR TESTIMONY.
(D) WHERE A MOTION FOR REMOVAL BY THE DEFENDANT PURSUANT TO SUBDIVI-
SION FIVE OF THIS SECTION HAS BEEN DENIED, NO FURTHER MOTION PURSUANT TO
THIS SECTION OR SECTION 722.22 OF THIS ARTICLE MAY BE MADE BY THE JUVE-
NILE OFFENDER WITH RESPECT TO THE SAME OFFENSE OR OFFENSES.
(E) EXCEPT AS PROVIDED BY PARAGRAPH (F) OF THIS SUBDIVISION, THIS
SECTION SHALL NOT BE CONSTRUED TO LIMIT THE POWERS OF THE GRAND JURY.
(F) WHERE A MOTION BY THE DEFENDANT PURSUANT TO SUBDIVISION FIVE OF
THIS SECTION HAS BEEN GRANTED, THERE SHALL BE NO FURTHER PROCEEDINGS
AGAINST THE JUVENILE OFFENDER IN ANY LOCAL OR SUPERIOR CRIMINAL COURT
INCLUDING THE YOUTH PART OF THE SUPERIOR COURT FOR THE OFFENSE OR
OFFENSES WHICH WERE THE SUBJECT OF THE REMOVAL ORDER.
S. 2009--C 213 A. 3009--C
§ 722.21 PROCEEDINGS UPON FELONY COMPLAINT; ADOLESCENT OFFENDER.
1. WHEN AN ADOLESCENT OFFENDER IS ARRAIGNED BEFORE A YOUTH PART, THE
PROVISIONS OF THIS SECTION SHALL APPLY. IF THE YOUTH PART IS NOT IN
SESSION, THE DEFENDANT SHALL BE BROUGHT BEFORE THE MOST ACCESSIBLE
MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE SUPREME COURT TO
ACT AS A YOUTH PART FOR THE PURPOSE OF MAKING A DETERMINATION WHETHER
SUCH ADOLESCENT OFFENDER SHALL BE DETAINED. IF THE DEFENDANT IS ORDERED
TO BE DETAINED, HE OR SHE SHALL BE BROUGHT BEFORE THE NEXT SESSION OF
THE YOUTH PART. IF THE DEFENDANT IS NOT DETAINED, HE OR SHE SHALL BE
ORDERED TO APPEAR AT THE NEXT SESSION OF THE YOUTH PART.
2. IF THE DEFENDANT WAIVES A HEARING UPON THE FELONY COMPLAINT, THE
COURT MUST ORDER THAT THE DEFENDANT BE HELD FOR THE ACTION OF THE GRAND
JURY WITH RESPECT TO THE CHARGE OR CHARGES CONTAINED IN THE FELONY
COMPLAINT.
3. IF THERE BE A HEARING, THEN AT THE CONCLUSION OF THE HEARING, THE
YOUTH PART COURT MUST DISPOSE OF THE FELONY COMPLAINT AS FOLLOWS:
(A) IF THERE IS REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT COMMIT-
TED A FELONY, THE COURT MUST ORDER THAT THE DEFENDANT BE HELD FOR THE
ACTION OF A GRAND JURY; OR
(B) IF THERE IS NOT REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT
COMMITTED A FELONY BUT THERE IS REASONABLE CAUSE TO BELIEVE THAT THE
DEFENDANT IS A "JUVENILE DELINQUENT" AS DEFINED IN SUBDIVISION ONE OF
SECTION 301.2 OF THE FAMILY COURT ACT, THE COURT MUST SPECIFY THE ACT OR
ACTS IT FOUND REASONABLE CAUSE TO BELIEVE THE DEFENDANT DID AND DIRECT
THAT THE ACTION BE TRANSFERRED TO THE FAMILY COURT IN ACCORDANCE WITH
THE PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF THIS TITLE,
PROVIDED, HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION OF LAW, SECTION
308.1 OF THE FAMILY COURT ACT SHALL APPLY TO ACTIONS TRANSFERRED PURSU-
ANT TO THIS SUBDIVISION AND SUCH ACTIONS SHALL NOT BE CONSIDERED
REMOVALS SUBJECT TO SUBDIVISION THIRTEEN OF SUCH SECTION 308.1; OR
(C) IF THERE IS NOT REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT
COMMITTED ANY CRIMINAL ACT, THE COURT MUST DISMISS THE FELONY COMPLAINT
AND DISCHARGE THE DEFENDANT FROM CUSTODY IF HE IS IN CUSTODY, OR IF HE
IS AT LIBERTY ON BAIL, IT MUST EXONERATE THE BAIL.
4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS TWO AND THREE OF
THIS SECTION, WHERE THE DEFENDANT IS CHARGED WITH A FELONY, OTHER THAN A
CLASS A FELONY DEFINED OUTSIDE ARTICLE TWO HUNDRED TWENTY OF THE PENAL
LAW, A VIOLENT FELONY DEFINED IN SECTION 70.02 OF THE PENAL LAW OR A
FELONY LISTED IN PARAGRAPH ONE OR TWO OF SUBDIVISION FORTY-TWO OF
SECTION 1.20 OF THIS CHAPTER, EXCEPT AS PROVIDED IN PARAGRAPH (C) OF
SUBDIVISION TWO OF SECTION 722.23 OF THIS ARTICLE, THE COURT SHALL, UPON
NOTICE FROM THE DISTRICT ATTORNEY THAT HE OR SHE WILL NOT FILE A MOTION
TO PREVENT REMOVAL PURSUANT TO SECTION 722.23 OF THIS ARTICLE, ORDER
TRANSFER OF AN ACTION AGAINST AN ADOLESCENT OFFENDER TO THE FAMILY COURT
PURSUANT TO THE PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF THIS
TITLE, PROVIDED, HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
SECTION 308.1 OF THE FAMILY COURT ACT SHALL APPLY TO ACTIONS TRANSFERRED
PURSUANT TO THIS SUBDIVISION AND SUCH ACTIONS SHALL NOT BE CONSIDERED
REMOVALS SUBJECT TO SUBDIVISION THIRTEEN OF SUCH SECTION 308.1.
5. NOTWITHSTANDING SUBDIVISIONS TWO AND THREE OF THIS SECTION, AT THE
REQUEST OF THE DISTRICT ATTORNEY, THE COURT SHALL ORDER REMOVAL OF AN
ACTION AGAINST AN ADOLESCENT OFFENDER CHARGED WITH AN OFFENSE LISTED IN
PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION 722.23 OF THIS ARTICLE, TO
THE FAMILY COURT PURSUANT TO THE PROVISIONS OF ARTICLE SEVEN HUNDRED
TWENTY-FIVE OF THIS TITLE AND UPON CONSIDERATION OF THE CRITERIA SPECI-
FIED IN SUBDIVISION TWO OF SECTION 722.22 OF THIS ARTICLE, IT IS DETER-
S. 2009--C 214 A. 3009--C
MINED THAT TO DO SO WOULD BE IN THE INTERESTS OF JUSTICE. WHERE, HOWEV-
ER, THE FELONY COMPLAINT CHARGES THE ADOLESCENT OFFENDER WITH MURDER IN
THE SECOND DEGREE AS DEFINED IN SECTION 125.25 OF THE PENAL LAW, RAPE IN
THE FIRST DEGREE AS DEFINED IN SUBDIVISION ONE OF SECTION 130.35 OF THE
PENAL LAW, CRIMINAL SEXUAL ACT IN THE FIRST DEGREE AS DEFINED IN SUBDI-
VISION ONE OF SECTION 130.50 OF THE PENAL LAW, OR AN ARMED FELONY AS
DEFINED IN PARAGRAPH (A) OF SUBDIVISION FORTY-ONE OF SECTION 1.20 OF
THIS CHAPTER, A DETERMINATION THAT SUCH ACTION BE REMOVED TO THE FAMILY
COURT SHALL, IN ADDITION, BE BASED UPON A FINDING OF ONE OR MORE OF THE
FOLLOWING FACTORS: (I) MITIGATING CIRCUMSTANCES THAT BEAR DIRECTLY UPON
THE MANNER IN WHICH THE CRIME WAS COMMITTED; OR (II) WHERE THE DEFENDANT
WAS NOT THE SOLE PARTICIPANT IN THE CRIME, THE DEFENDANT'S PARTICIPATION
WAS RELATIVELY MINOR ALTHOUGH NOT SO MINOR AS TO CONSTITUTE A DEFENSE TO
THE PROSECUTION; OR (III) POSSIBLE DEFICIENCIES IN PROOF OF THE CRIME.
6. (A) IF THE COURT ORDERS REMOVAL OF THE ACTION TO FAMILY COURT
PURSUANT TO SUBDIVISION FIVE OF THIS SECTION, IT SHALL STATE ON THE
RECORD THE FACTOR OR FACTORS UPON WHICH ITS DETERMINATION IS BASED, AND
THE COURT SHALL GIVE ITS REASONS FOR REMOVAL IN DETAIL AND NOT IN
CONCLUSORY TERMS.
(B) THE DISTRICT ATTORNEY SHALL STATE UPON THE RECORD THE REASONS FOR
HIS CONSENT TO REMOVAL OF THE ACTION TO THE FAMILY COURT WHERE SUCH
CONSENT IS REQUIRED. THE REASONS SHALL BE STATED IN DETAIL AND NOT IN
CONCLUSORY TERMS.
(C) FOR THE PURPOSE OF MAKING A DETERMINATION PURSUANT TO SUBDIVISION
FIVE THE COURT MAY MAKE SUCH INQUIRY AS IT DEEMS NECESSARY. ANY EVIDENCE
WHICH IS NOT LEGALLY PRIVILEGED MAY BE INTRODUCED. IF THE DEFENDANT
TESTIFIES, HIS TESTIMONY MAY NOT BE INTRODUCED AGAINST HIM IN ANY FUTURE
PROCEEDING, EXCEPT TO IMPEACH HIS TESTIMONY AT SUCH FUTURE PROCEEDING AS
INCONSISTENT PRIOR TESTIMONY.
(D) EXCEPT AS PROVIDED BY PARAGRAPH (E), THIS SECTION SHALL NOT BE
CONSTRUED TO LIMIT THE POWERS OF THE GRAND JURY.
(E) WHERE AN ACTION AGAINST A DEFENDANT HAS BEEN REMOVED TO THE FAMILY
COURT PURSUANT TO THIS SECTION, THERE SHALL BE NO FURTHER PROCEEDINGS
AGAINST THE ADOLESCENT OFFENDER IN ANY LOCAL OR SUPERIOR CRIMINAL COURT
INCLUDING THE YOUTH PART OF THE SUPERIOR COURT FOR THE OFFENSE OR
OFFENSES WHICH WERE THE SUBJECT OF THE REMOVAL ORDER.
§ 722.22 MOTION TO REMOVE JUVENILE OFFENDER TO FAMILY COURT.
1. AFTER A MOTION BY A JUVENILE OFFENDER, PURSUANT TO SUBDIVISION FIVE
OF SECTION 722.20 OF THIS ARTICLE, OR AFTER ARRAIGNMENT OF A JUVENILE
OFFENDER UPON AN INDICTMENT, THE COURT MAY, ON MOTION OF ANY PARTY OR ON
ITS OWN MOTION:
(A) EXCEPT AS OTHERWISE PROVIDED BY PARAGRAPH (B) OF THIS SUBDIVISION,
ORDER REMOVAL OF THE ACTION TO THE FAMILY COURT PURSUANT TO THE
PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF THIS TITLE, IF, AFTER
CONSIDERATION OF THE FACTORS SET FORTH IN SUBDIVISION TWO OF THIS
SECTION, THE COURT DETERMINES THAT TO DO SO WOULD BE IN THE INTERESTS OF
JUSTICE; OR
(B) WITH THE CONSENT OF THE DISTRICT ATTORNEY, ORDER REMOVAL OF AN
ACTION INVOLVING AN INDICTMENT CHARGING A JUVENILE OFFENDER WITH MURDER
IN THE SECOND DEGREE AS DEFINED IN SECTION 125.25 OF THE PENAL LAW; RAPE
IN THE FIRST DEGREE, AS DEFINED IN SUBDIVISION ONE OF SECTION 130.35 OF
THE PENAL LAW; CRIMINAL SEXUAL ACT IN THE FIRST DEGREE, AS DEFINED IN
SUBDIVISION ONE OF SECTION 130.50 OF THE PENAL LAW; OR AN ARMED FELONY
AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION FORTY-ONE OF SECTION 1.20 OF
THIS CHAPTER, TO THE FAMILY COURT PURSUANT TO THE PROVISIONS OF ARTICLE
SEVEN HUNDRED TWENTY-FIVE OF THIS TITLE IF THE COURT FINDS ONE OR MORE
S. 2009--C 215 A. 3009--C
OF THE FOLLOWING FACTORS: (I) MITIGATING CIRCUMSTANCES THAT BEAR DIRECT-
LY UPON THE MANNER IN WHICH THE CRIME WAS COMMITTED; (II) WHERE THE
DEFENDANT WAS NOT THE SOLE PARTICIPANT IN THE CRIME, THE DEFENDANT'S
PARTICIPATION WAS RELATIVELY MINOR ALTHOUGH NOT SO MINOR AS TO CONSTI-
TUTE A DEFENSE TO THE PROSECUTION; OR (III) POSSIBLE DEFICIENCIES IN THE
PROOF OF THE CRIME, AND, AFTER CONSIDERATION OF THE FACTORS SET FORTH IN
SUBDIVISION TWO OF THIS SECTION, THE COURT DETERMINED THAT REMOVAL OF
THE ACTION TO THE FAMILY COURT WOULD BE IN THE INTERESTS OF JUSTICE.
2. IN MAKING ITS DETERMINATION PURSUANT TO SUBDIVISION ONE OF THIS
SECTION THE COURT SHALL, TO THE EXTENT APPLICABLE, EXAMINE INDIVIDUALLY
AND COLLECTIVELY, THE FOLLOWING:
(A) THE SERIOUSNESS AND CIRCUMSTANCES OF THE OFFENSE;
(B) THE EXTENT OF HARM CAUSED BY THE OFFENSE;
(C) THE EVIDENCE OF GUILT, WHETHER ADMISSIBLE OR INADMISSIBLE AT
TRIAL;
(D) THE HISTORY, CHARACTER AND CONDITION OF THE DEFENDANT;
(E) THE PURPOSE AND EFFECT OF IMPOSING UPON THE DEFENDANT A SENTENCE
AUTHORIZED FOR THE OFFENSE;
(F) THE IMPACT OF A REMOVAL OF THE CASE TO THE FAMILY COURT ON THE
SAFETY OR WELFARE OF THE COMMUNITY;
(G) THE IMPACT OF A REMOVAL OF THE CASE TO THE FAMILY COURT UPON THE
CONFIDENCE OF THE PUBLIC IN THE CRIMINAL JUSTICE SYSTEM;
(H) WHERE THE COURT DEEMS IT APPROPRIATE, THE ATTITUDE OF THE
COMPLAINANT OR VICTIM WITH RESPECT TO THE MOTION; AND
(I) ANY OTHER RELEVANT FACT INDICATING THAT A JUDGMENT OF CONVICTION
IN THE CRIMINAL COURT WOULD SERVE NO USEFUL PURPOSE.
3. THE PROCEDURE FOR BRINGING ON A MOTION PURSUANT TO SUBDIVISION ONE
OF THIS SECTION, SHALL ACCORD WITH THE PROCEDURE PRESCRIBED IN SUBDIVI-
SIONS ONE AND TWO OF SECTION 210.45 OF THIS CHAPTER. AFTER ALL PAPERS OF
BOTH PARTIES HAVE BEEN FILED AND AFTER ALL DOCUMENTARY EVIDENCE, IF ANY,
HAS BEEN SUBMITTED, THE COURT MUST CONSIDER THE SAME FOR THE PURPOSE OF
DETERMINING WHETHER THE MOTION IS DETERMINABLE ON THE MOTION PAPERS
SUBMITTED AND, IF NOT, MAY MAKE SUCH INQUIRY AS IT DEEMS NECESSARY FOR
THE PURPOSE OF MAKING A DETERMINATION.
4. FOR THE PURPOSE OF MAKING A DETERMINATION PURSUANT TO THIS SECTION,
ANY EVIDENCE WHICH IS NOT LEGALLY PRIVILEGED MAY BE INTRODUCED. IF THE
DEFENDANT TESTIFIES, HIS TESTIMONY MAY NOT BE INTRODUCED AGAINST HIM IN
ANY FUTURE PROCEEDING, EXCEPT TO IMPEACH HIS TESTIMONY AT SUCH FUTURE
PROCEEDING AS INCONSISTENT PRIOR TESTIMONY.
5. A. IF THE COURT ORDERS REMOVAL OF THE ACTION TO FAMILY COURT, IT
SHALL STATE ON THE RECORD THE FACTOR OR FACTORS UPON WHICH ITS DETERMI-
NATION IS BASED, AND, THE COURT SHALL GIVE ITS REASONS FOR REMOVAL IN
DETAIL AND NOT IN CONCLUSORY TERMS.
B. THE DISTRICT ATTORNEY SHALL STATE UPON THE RECORD THE REASONS FOR
HIS CONSENT TO REMOVAL OF THE ACTION TO THE FAMILY COURT. THE REASONS
SHALL BE STATED IN DETAIL AND NOT IN CONCLUSORY TERMS.
§ 722.23 REMOVAL OF ADOLESCENT OFFENDERS TO FAMILY COURT.
1. (A) FOLLOWING THE ARRAIGNMENT OF A DEFENDANT CHARGED WITH A CRIME
COMMITTED WHEN HE OR SHE WAS SIXTEEN, OR COMMENCING OCTOBER FIRST, TWO
THOUSAND NINETEEN, SEVENTEEN YEARS OF AGE, OTHER THAN ANY CLASS A FELONY
EXCEPT FOR THOSE DEFINED IN ARTICLE TWO HUNDRED TWENTY OF THE PENAL LAW,
A VIOLENT FELONY DEFINED IN SECTION 70.02 OF THE PENAL LAW OR A FELONY
LISTED IN PARAGRAPH ONE OR TWO OF SUBDIVISION FORTY-TWO OF SECTION 1.20
OF THIS CHAPTER, OR AN OFFENSE SET FORTH IN THE VEHICLE AND TRAFFIC LAW,
THE COURT SHALL ORDER THE REMOVAL OF THE ACTION TO THE FAMILY COURT IN
ACCORDANCE WITH THE APPLICABLE PROVISIONS OF ARTICLE SEVEN HUNDRED TWEN-
S. 2009--C 216 A. 3009--C
TY-FIVE OF THIS TITLE UNLESS, WITHIN THIRTY CALENDAR DAYS OF SUCH
ARRAIGNMENT, THE DISTRICT ATTORNEY MAKES A MOTION TO PREVENT REMOVAL OF
THE ACTION PURSUANT TO THIS SUBDIVISION. IF THE DEFENDANT FAILS TO
REPORT TO THE PROBATION DEPARTMENT AS DIRECTED, THE THIRTY DAY TIME
PERIOD SHALL BE TOLLED UNTIL SUCH TIME AS HE OR SHE REPORTS TO THE
PROBATION DEPARTMENT.
(B) A MOTION TO PREVENT REMOVAL OF AN ACTION IN YOUTH PART SHALL BE
MADE IN WRITING AND UPON PROMPT NOTICE TO THE DEFENDANT. THE MOTION
SHALL CONTAIN ALLEGATIONS OF SWORN FACT BASED UPON PERSONAL KNOWLEDGE OF
THE AFFIANT, AND SHALL INDICATE IF THE DISTRICT ATTORNEY IS REQUESTING A
HEARING. THE MOTION SHALL BE NOTICED TO BE HEARD PROMPTLY.
(C) THE DEFENDANT SHALL BE GIVEN AN OPPORTUNITY TO REPLY. THE DEFEND-
ANT SHALL BE GRANTED ANY REASONABLE REQUEST FOR A DELAY. EITHER PARTY
MAY REQUEST A HEARING ON THE FACTS ALLEGED IN THE MOTION TO PREVENT
REMOVAL OF THE ACTION. THE HEARING SHALL BE HELD EXPEDITIOUSLY.
(D) THE COURT SHALL DENY THE MOTION TO PREVENT REMOVAL OF THE ACTION
IN YOUTH PART UNLESS THE COURT MAKES A DETERMINATION UPON SUCH MOTION BY
THE DISTRICT ATTORNEY THAT EXTRAORDINARY CIRCUMSTANCES EXIST THAT SHOULD
PREVENT THE TRANSFER OF THE ACTION TO FAMILY COURT.
(E) THE COURT SHALL MAKE A DETERMINATION IN WRITING OR ON THE RECORD
WITHIN FIVE DAYS OF THE CONCLUSION OF THE HEARING OR SUBMISSION BY THE
DEFENSE, WHICHEVER IS LATER. SUCH DETERMINATION SHALL INCLUDE FINDINGS
OF FACT AND TO THE EXTENT PRACTICABLE CONCLUSIONS OF LAW.
(F) FOR THE PURPOSES OF THIS SECTION, THERE SHALL BE A PRESUMPTION
AGAINST CUSTODY AND CASE PLANNING SERVICES SHALL BE MADE AVAILABLE TO
THE DEFENDANT.
(G) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, SECTION 308.1 OF THE
FAMILY COURT ACT SHALL APPLY TO ALL ACTIONS TRANSFERRED PURSUANT TO THIS
SECTION PROVIDED, HOWEVER, SUCH CASES SHALL NOT BE CONSIDERED REMOVALS
SUBJECT TO SUBDIVISION THIRTEEN OF SUCH SECTION 308.1.
(H) NOTHING IN THIS SUBDIVISION SHALL PRECLUDE, AND A COURT MAY ORDER,
THE REMOVAL OF AN ACTION TO FAMILY COURT WHERE ALL PARTIES AGREE OR
PURSUANT TO THIS CHAPTER.
2. (A) UPON THE ARRAIGNMENT OF A DEFENDANT CHARGED WITH A CRIME
COMMITTED WHEN HE OR SHE WAS SIXTEEN OR, COMMENCING OCTOBER FIRST, TWO
THOUSAND NINETEEN, SEVENTEEN YEARS OF AGE ON A CLASS A FELONY, OTHER
THAN THOSE DEFINED IN ARTICLE 220 OF THE PENAL LAW, OR A VIOLENT FELONY
DEFINED IN SECTION 70.02 OF THE PENAL LAW, THE COURT SHALL SCHEDULE AN
APPEARANCE NO LATER THAN SIX CALENDAR DAYS FROM SUCH ARRAIGNMENT FOR THE
PURPOSE OF REVIEWING THE ACCUSATORY INSTRUMENT PURSUANT TO THIS SUBDIVI-
SION. THE COURT SHALL NOTIFY THE DISTRICT ATTORNEY AND DEFENDANT
REGARDING THE PURPOSE OF SUCH APPEARANCE.
(B) UPON SUCH APPEARANCE, THE COURT SHALL REVIEW THE ACCUSATORY
INSTRUMENT AND ANY OTHER RELEVANT FACTS FOR THE PURPOSE OF MAKING A
DETERMINATION PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION. BOTH
PARTIES MAY BE HEARD AND SUBMIT INFORMATION RELEVANT TO THE DETERMI-
NATION.
(C) THE COURT SHALL ORDER THE ACTION TO PROCEED IN ACCORDANCE WITH
SUBDIVISION ONE OF THIS SECTION UNLESS, AFTER REVIEWING THE PAPERS AND
HEARING FROM THE PARTIES, THE COURT DETERMINES IN WRITING THAT THE
DISTRICT ATTORNEY PROVED BY A PREPONDERANCE OF THE EVIDENCE ONE OR MORE
OF THE FOLLOWING AS SET FORTH IN THE ACCUSATORY INSTRUMENT:
(I) THE DEFENDANT CAUSED SIGNIFICANT PHYSICAL INJURY TO A PERSON OTHER
THAN A PARTICIPANT IN THE OFFENSE; OR
(II) THE DEFENDANT DISPLAYED A FIREARM, SHOTGUN, RIFLE OR DEADLY WEAP-
ON AS DEFINED IN THE PENAL LAW IN FURTHERANCE OF SUCH OFFENSE; OR
S. 2009--C 217 A. 3009--C
(III) THE DEFENDANT UNLAWFULLY ENGAGED IN SEXUAL INTERCOURSE, ORAL
SEXUAL CONDUCT, ANAL SEXUAL CONDUCT OR SEXUAL CONTACT AS DEFINED IN
SECTION 130.00 OF THE PENAL LAW.
(D) WHERE THE COURT MAKES A DETERMINATION THAT THE ACTION SHALL NOT
PROCEED IN ACCORDANCE WITH SUBDIVISION ONE OF THIS SECTION, SUCH DETER-
MINATION SHALL BE MADE IN WRITING OR ON THE RECORD AND SHALL INCLUDE
FINDINGS OF FACT AND TO THE EXTENT PRACTICABLE CONCLUSIONS OF LAW.
(E) NOTHING IN THIS SUBDIVISION SHALL PRECLUDE, AND THE COURT MAY
ORDER, THE REMOVAL OF AN ACTION TO FAMILY COURT WHERE ALL PARTIES AGREE
OR PURSUANT TO THIS CHAPTER.
3. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IF AT ANY TIME ONE
OR MORE CHARGES IN THE ACCUSATORY INSTRUMENT ARE REDUCED, SUCH THAT THE
ELEMENTS OF THE HIGHEST REMAINING CHARGE WOULD BE REMOVABLE PURSUANT TO
SUBDIVISIONS ONE OR TWO OF THIS SECTION, THEN THE COURT, SUA SPONTE OR
IN RESPONSE TO A MOTION PURSUANT TO SUBDIVISIONS ONE OR TWO OF THIS
SECTION BY THE DEFENDANT, SHALL PROMPTLY NOTIFY THE PARTIES AND DIRECT
THAT THE MATTER PROCEED IN ACCORDANCE WITH SUBDIVISION ONE OF THIS
SECTION, PROVIDED, HOWEVER, THAT IN SUCH INSTANCE, THE DISTRICT ATTORNEY
MUST FILE ANY MOTION TO PREVENT REMOVAL WITHIN THIRTY DAYS OF EFFECTING
OR RECEIVING NOTICE OF SUCH REDUCTION.
4. A DEFENDANT MAY WAIVE REVIEW OF THE ACCUSATORY INSTRUMENT BY THE
COURT AND THE OPPORTUNITY FOR REMOVAL IN ACCORDANCE WITH THIS SECTION,
PROVIDED THAT SUCH WAIVER IS MADE BY THE DEFENDANT KNOWINGLY, VOLUNTAR-
ILY AND IN OPEN COURT, IN THE PRESENCE OF AND WITH THE APPROVAL OF HIS
OR HER COUNSEL AND THE COURT. AN EARLIER WAIVER SHALL NOT CONSTITUTE A
WAIVER OF REVIEW AND THE OPPORTUNITY FOR REMOVAL UNDER THIS SECTION.
§ 722.24 APPLICABILITY OF CHAPTER TO ACTIONS AND MATTERS INVOLVING JUVE-
NILE OFFENDERS OR ADOLESCENT OFFENDERS.
EXCEPT WHERE INCONSISTENT WITH THIS ARTICLE, ALL PROVISIONS OF THIS
CHAPTER SHALL APPLY TO ALL CRIMINAL ACTIONS AND PROCEEDINGS, AND ALL
APPEALS AND POST-JUDGMENT MOTIONS RELATING OR ATTACHED THERETO, INVOLV-
ING A JUVENILE OFFENDER OR ADOLESCENT OFFENDER.
§ 2. The opening paragraph and subdivisions 2 and 3 of section 725.05
of the criminal procedure law, as added by chapter 481 of the laws of
1978, are amended to read as follows:
When a [court] YOUTH PART directs that an action or charge is to be
removed to the family court the [court] YOUTH PART must issue an order
of removal in accordance with this section. Such order must be as
follows:
2. Where the direction is authorized pursuant to paragraph (b) of
subdivision three of [section 180.75] SECTIONS 722.20 OR 722.21 of this
[chapter] TITLE, it must specify the act or acts it found reasonable
cause to believe the defendant did.
3. Where the direction is authorized pursuant to subdivision four of
[section 180.75] SECTION 722.20 OR SECTION 722.21 of this [chapter]
TITLE, it must specify the act or acts it found reasonable cause to
allege.
§ 3. Section 725.20 of the criminal procedure law, as added by chapter
481 of the laws of 1978, subdivisions 1 and 2 as amended by chapter 411
of the laws of 1979, is amended to read as follows:
§ 725.20 Record of certain actions removed.
1. The provisions of this section shall apply in any case where an
order of removal to the family court is entered pursuant to a direction
authorized by [subdivision four of section 180.75 or section 210.43,]
ARTICLE 722 OF THIS TITLE, or subparagraph (iii) of paragraph [(h)] (G)
S. 2009--C 218 A. 3009--C
of subdivision five of section 220.10 of this chapter, or section 330.25
of this chapter.
2. When such an action is removed the court that directed the removal
must cause the following additional records to be filed with the clerk
of the county court or in the city of New York with the clerk of the
supreme court of the county wherein the action was pending and with the
division of criminal justice services:
(a) A certified copy of the order of removal;
(b) [Where the direction is one authorized by subdivision four of
section 180.75 of this chapter, a copy of the statement of the district
attorney made pursuant to paragraph (b) of subdivision six of section
180.75 of this chapter;
(c) Where the direction is authorized by section 180.75, a copy of
the portion of the minutes containing the statement by the court pursu-
ant to paragraph (a) of subdivision six of such section 180.75;
(d)] Where the direction is one authorized by subparagraph (iii) of
paragraph [(h)] (G) of subdivision five of section 220.10 or section
330.25 of this chapter, a copy of the minutes of the plea of guilty,
including the minutes of the memorandum submitted by the district attor-
ney and the court;
[(e) Where the direction is one authorized by subdivision one of
section 210.43 of this chapter, a copy of that portion of the minutes
containing the statement by the court pursuant to paragraph (a) of
subdivision five of section 210.43;
(f) Where the direction is one authorized by paragraph (b) of subdi-
vision one of section 210.43 of this chapter, a copy of that portion of
the minutes containing the statement of the district attorney made
pursuant to paragraph (b) of subdivision five of section 210.43;] and
[(g)] (C) In addition to the records specified in this subdivision,
such further statement or submission of additional information pertain-
ing to the proceeding in criminal court in accordance with standards
established by the commissioner of the division of criminal justice
services, subject to the provisions of subdivision three of this
section.
3. It shall be the duty of said clerk to maintain a separate file for
copies of orders and minutes filed pursuant to this section. Upon
receipt of such orders and minutes the clerk must promptly delete such
portions as would identify the defendant, but the clerk shall neverthe-
less maintain a separate confidential system to enable correlation of
the documents so filed with identification of the defendant. After
making such deletions the orders and minutes shall be placed within the
file and must be available for public inspection. Information permit-
ting correlation of any such record with the identity of any defendant
shall not be divulged to any person except upon order of a justice of
the supreme court based upon a finding that the public interest or the
interests of justice warrant disclosure in a particular cause for a
particular case or for a particular purpose or use.
§ 4. The article heading of article 100 of the criminal procedure law
is amended to read as follows:
COMMENCEMENT OF ACTION IN LOCAL
CRIMINAL COURT OR YOUTH PART OF A SUPERIOR COURT--[LOCAL
CRIMINAL COURT] ACCUSATORY INSTRUMENTS
§ 5. The first undesignated paragraph of section 100.05 of the crimi-
nal procedure law is amended to read as follows:
A criminal action is commenced by the filing of an accusatory instru-
ment with a criminal court, OR, IN THE CASE OF A JUVENILE OFFENDER OR
S. 2009--C 219 A. 3009--C
ADOLESCENT OFFENDER, OTHER THAN AN ADOLESCENT OFFENDER CHARGED WITH ONLY
A VIOLATION OR TRAFFIC INFRACTION, THE YOUTH PART OF THE SUPERIOR COURT,
and if more than one such instrument is filed in the course of the same
criminal action, such action commences when the first of such instru-
ments is filed. The only way in which a criminal action can be
commenced in a superior court, OTHER THAN A CRIMINAL ACTION AGAINST A
JUVENILE OFFENDER OR ADOLESCENT OFFENDER is by the filing therewith by a
grand jury of an indictment against a defendant who has never been held
by a local criminal court for the action of such grand jury with respect
to any charge contained in such indictment. Otherwise, a criminal
action can be commenced only in a local criminal court, by the filing
therewith of a local criminal court accusatory instrument, namely:
§ 6. The section heading and subdivision 5 of section 100.10 of the
criminal procedure law are amended to read as follows:
Local criminal court AND YOUTH PART OF THE SUPERIOR COURT accusatory
instruments; definitions thereof.
5. A "felony complaint" is a verified written accusation by a person,
filed with a local criminal court, OR YOUTH PART OF THE SUPERIOR COURT,
charging one or more other persons with the commission of one or more
felonies. It serves as a basis for the commencement of a criminal
action, but not as a basis for prosecution thereof.
§ 7. The section heading of section 100.40 of the criminal procedure
law is amended to read as follows:
Local criminal court AND YOUTH PART OF THE SUPERIOR COURT accusatory
instruments; sufficiency on face.
§ 8. The criminal procedure law is amended by adding a new section
100.60 to read as follows:
§ 100.60 YOUTH PART OF THE SUPERIOR COURT ACCUSATORY INSTRUMENTS; IN
WHAT COURTS FILED.
ANY YOUTH PART OF THE SUPERIOR COURT ACCUSATORY INSTRUMENT MAY BE
FILED WITH THE YOUTH PART OF THE SUPERIOR COURT OF A PARTICULAR COUNTY
WHEN AN OFFENSE CHARGED THEREIN WAS ALLEGEDLY COMMITTED IN SUCH COUNTY
OR THAT PART THEREOF OVER WHICH SUCH COURT HAS JURISDICTION.
§ 9. The article heading of article 110 of the criminal procedure law
is amended to read as follows:
REQUIRING DEFENDANT'S APPEARANCE
IN LOCAL CRIMINAL COURT OR YOUTH PART OF SUPERIOR COURT
FOR ARRAIGNMENT
§ 10. Section 110.10 of the criminal procedure law is amended to read
as follows:
§ 110.10 Methods of requiring defendant's appearance in local criminal
court OR YOUTH PART OF THE SUPERIOR COURT for arraignment;
in general.
1. After a criminal action has been commenced in a local criminal
court OR YOUTH PART OF THE SUPERIOR COURT by the filing of an accusatory
instrument therewith, a defendant who has not been arraigned in the
action and has not come under the control of the court may under certain
circumstances be compelled or required to appear for arraignment upon
such accusatory instrument by:
(a) The issuance and execution of a warrant of arrest, as provided in
article one hundred twenty; or
(b) The issuance and service upon him of a summons, as provided in
article one hundred thirty; or
(c) Procedures provided in articles five hundred sixty, five hundred
seventy, five hundred eighty, five hundred ninety and six hundred for
S. 2009--C 220 A. 3009--C
securing attendance of defendants in criminal actions who are not at
liberty within the state.
2. Although no criminal action against a person has been commenced in
any court, he may under certain circumstances be compelled or required
to appear in a local criminal court OR YOUTH PART OF A SUPERIOR COURT
for arraignment upon an accusatory instrument to be filed therewith at
or before the time of his appearance by:
(a) An arrest made without a warrant, as provided in article one
hundred forty; or
(b) The issuance and service upon him of an appearance ticket, as
provided in article one hundred fifty.
§ 11. Section 110.20 of the criminal procedure law, as amended by
chapter 843 of the laws of 1980, is amended to read as follows:
§ 110.20 Local criminal court OR YOUTH PART OF THE SUPERIOR COURT accu-
satory instruments; notice thereof to district attorney.
When a criminal action in which a crime is charged is commenced in a
local criminal court, OR YOUTH PART OF THE SUPERIOR COURT other than the
criminal court of the city of New York, a copy of the accusatory instru-
ment shall be promptly transmitted to the appropriate district attorney
upon or prior to the arraignment of the defendant on the accusatory
instrument. If a police officer or a peace officer is the complainant
or the filer of a simplified information, or has arrested the defendant
or brought him before the local criminal court OR YOUTH PART OF THE
SUPERIOR COURT on behalf of an arresting person pursuant to subdivision
one of section 140.20, such officer or his agency shall transmit the
copy of the accusatory instrument to the appropriate district attorney.
In all other cases, the clerk of the court in which the defendant is
arraigned shall so transmit it.
§ 12. The opening paragraph of subdivision 1 of section 120.20 of the
criminal procedure law, as amended by chapter 506 of the laws of 2000,
is amended to read as follows:
When a criminal action has been commenced in a local criminal court OR
YOUTH PART OF THE SUPERIOR COURT by the filing therewith of an accusato-
ry instrument, other than a simplified traffic information, against a
defendant who has not been arraigned upon such accusatory instrument and
has not come under the control of the court with respect thereto:
§ 13. Section 120.30 of the criminal procedure law is amended to read
as follows:
§ 120.30 Warrant of arrest; by what courts issuable and in what courts
returnable.
1. A warrant of arrest may be issued only by the local criminal court
OR YOUTH PART OF THE SUPERIOR COURT with which the underlying accusatory
instrument has been filed, and it may be made returnable in such issuing
court only.
2. The particular local criminal court or courts OR YOUTH PART OF THE
SUPERIOR COURT with which any particular local criminal court OR YOUTH
PART OF THE SUPERIOR COURT accusatory instrument may be filed for the
purpose of obtaining a warrant of arrest are determined, generally, by
the provisions of section 100.55 OR 100.60 OF THIS TITLE. If, however, a
particular accusatory instrument may pursuant to said section 100.55 be
filed with a particular town court and such town court is not available
at the time such instrument is sought to be filed and a warrant
obtained, such accusatory instrument may be filed with the town court of
any adjoining town of the same county. If such instrument may be filed
pursuant to said section 100.55 with a particular village court and such
village court is not available at the time, it may be filed with the
S. 2009--C 221 A. 3009--C
town court of the town embracing such village, or if such town court is
not available either, with the town court of any adjoining town of the
same county.
§ 14. Section 120.55 of the criminal procedure law, as amended by
section 71 of subpart B of part C of chapter 62 of the laws of 2011, is
amended to read as follows:
§ 120.55 Warrant of arrest; defendant under parole or probation super-
vision.
If the defendant named within a warrant of arrest issued by a local
criminal court OR YOUTH PART OF THE SUPERIOR COURT pursuant to the
provisions of this article, or by a superior court issued pursuant to
subdivision three of section 210.10 of this chapter, is under the super-
vision of the state department of corrections and community supervision
or a local or state probation department, then a warrant for his or her
arrest may be executed by a parole officer or probation officer, when
authorized by his or her probation director, within his or her geograph-
ical area of employment. The execution of the warrant by a parole offi-
cer or probation officer shall be upon the same conditions and conducted
in the same manner as provided for execution of a warrant by a police
officer.
§ 15. Subdivision 1 of section 120.70 of the criminal procedure law is
amended to read as follows:
1. A warrant of arrest issued by a district court, by the New York
City criminal court, THE YOUTH PART OF A SUPERIOR COURT or by a superior
court judge sitting as a local criminal court may be executed anywhere
in the state.
§ 16. Subdivisions 1, 6 and 7 of section 120.90 of the criminal proce-
dure law, subdivision 1 as amended by chapter 492 of the laws of 2016,
subdivisions 6 and 7 as amended by chapter 424 of the laws of 1998, are
amended and a new subdivision 5-a is added to read as follows:
1. Upon arresting a defendant for any offense pursuant to a warrant of
arrest in the county in which the warrant is returnable or in any
adjoining county, or upon so arresting him or her for a felony in any
other county, a police officer, if he or she be one to whom the warrant
is addressed, must without unnecessary delay bring the defendant before
the local criminal court OR YOUTH PART OF THE SUPERIOR COURT in which
such warrant is returnable, provided that, where a local criminal court
OR YOUTH PART OF THE SUPERIOR COURT in the county in which the warrant
is returnable hereunder is operating an off-hours arraignment part
designated in accordance with paragraph (w) of subdivision one of
section two hundred twelve of the judiciary law at the time of defend-
ant's return, such police officer may bring the defendant before such
local criminal court OR YOUTH PART OF THE SUPERIOR COURT.
5-A. WHENEVER A POLICE OFFICER IS REQUIRED, PURSUANT TO THIS SECTION,
TO BRING AN ARRESTED DEFENDANT BEFORE A YOUTH PART OF A SUPERIOR COURT
IN WHICH A WARRANT OF ARREST IS RETURNABLE, AND IF SUCH COURT IS NOT IN
SESSION, SUCH OFFICER MUST BRING SUCH DEFENDANT BEFORE THE MOST ACCESSI-
BLE MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE SUPREME COURT
IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH PART.
6. Before bringing a defendant arrested pursuant to a warrant before
the local criminal court OR YOUTH PART OF A SUPERIOR COURT in which such
warrant is returnable, a police officer must without unnecessary delay
perform all fingerprinting and other preliminary police duties required
in the particular case. In any case in which the defendant is not
brought by a police officer before such court but, following his arrest
in another county for an offense specified in subdivision one of section
S. 2009--C 222 A. 3009--C
160.10, is released by a local criminal court of such other county on
his own recognizance or on bail for his appearance on a specified date
before the local criminal court before which the warrant is returnable,
the latter court must, upon arraignment of the defendant before it,
direct that he be fingerprinted by the appropriate officer or agency,
and that he appear at an appropriate designated time and place for such
purpose.
7. Upon arresting a juvenile offender OR ADOLESCENT OFFENDER, the
police officer shall immediately notify the parent or other person
legally responsible for his care or the person with whom he is domi-
ciled, that the juvenile offender OR ADOLESCENT OFFENDER has been
arrested, and the location of the facility where he is being detained.
§ 17. Subdivision 1 of section 130.10 of the criminal procedure law,
as amended by chapter 446 of the laws of 1993, is amended to read as
follows:
1. A summons is a process issued by a local criminal court directing a
defendant designated in an information, a prosecutor's information, a
felony complaint or a misdemeanor complaint filed with such court, OR A
YOUTH PART OF A SUPERIOR COURT DIRECTING A DEFENDANT DESIGNATED IN A
FELONY COMPLAINT, or by a superior court directing a defendant desig-
nated in an indictment filed with such court, to appear before it at a
designated future time in connection with such accusatory instrument.
The sole function of a summons is to achieve a defendant's court appear-
ance in a criminal action for the purpose of arraignment upon the accu-
satory instrument by which such action was commenced.
§ 18. Section 130.30 of the criminal procedure law, as amended by
chapter 506 of the laws of 2000, is amended to read as follows:
§ 130.30 Summons; when issuable.
A local criminal court OR YOUTH PART OF THE SUPERIOR COURT may issue a
summons in any case in which, pursuant to section 120.20, it is author-
ized to issue a warrant of arrest based upon an information, a
prosecutor's information, a felony complaint or a misdemeanor complaint.
If such information, prosecutor's information, felony complaint or
misdemeanor complaint is not sufficient on its face as prescribed in
section 100.40, and if the court is satisfied that on the basis of the
available facts or evidence it would be impossible to draw and file an
authorized accusatory instrument that is sufficient on its face, the
court must dismiss the accusatory instrument. A superior court may issue
a summons in any case in which, pursuant to section 210.10, it is
authorized to issue a warrant of arrest based upon an indictment.
§ 19. Section 140.20 of the criminal procedure law is amended by
adding a new subdivision 8 to read as follows:
8. IF THE ARREST IS FOR A JUVENILE OFFENDER OR ADOLESCENT OFFENDER
OTHER THAN AN ARREST FOR A VIOLATION OR A TRAFFIC INFRACTION, SUCH
OFFENDER SHALL BE BROUGHT BEFORE THE YOUTH PART OF THE SUPERIOR COURT.
IF THE YOUTH PART IS NOT IN SESSION, SUCH OFFENDER SHALL BE BROUGHT
BEFORE THE MOST ACCESSIBLE MAGISTRATE DESIGNATED BY THE APPELLATE DIVI-
SION OF THE SUPREME COURT IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH
PART.
§ 20. Subdivision 6 of section 140.20 of the criminal procedure law,
as added by chapter 411 of the laws of 1979, is amended to read as
follows:
6. Upon arresting a juvenile offender OR A PERSON SIXTEEN OR COMMENC-
ING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN YEARS OF AGE without
a warrant, the police officer shall immediately notify the parent or
other person legally responsible for his OR HER care or the person with
S. 2009--C 223 A. 3009--C
whom he OR SHE is domiciled, that [the juvenile] SUCH offender OR PERSON
has been arrested, and the location of the facility where he OR SHE is
being detained. IF THE OFFICER DETERMINES THAT IT IS NECESSARY TO QUES-
TION A JUVENILE OFFENDER OR SUCH PERSON, THE OFFICER MUST TAKE HIM OR
HER TO A FACILITY DESIGNATED BY THE CHIEF ADMINISTRATOR OF THE COURTS AS
A SUITABLE PLACE FOR THE QUESTIONING OF CHILDREN OR, UPON THE CONSENT OF
A PARENT OR OTHER PERSON LEGALLY RESPONSIBLE FOR THE CARE OF THE JUVE-
NILE OR SUCH PERSON, TO HIS OR HER RESIDENCE AND THERE QUESTION HIM OR
HER FOR A REASONABLE PERIOD OF TIME. A JUVENILE OR SUCH PERSON SHALL NOT
BE QUESTIONED PURSUANT TO THIS SECTION UNLESS HE OR SHE AND A PERSON
REQUIRED TO BE NOTIFIED PURSUANT TO THIS SUBDIVISION, IF PRESENT, HAVE
BEEN ADVISED:
(A) OF THE JUVENILE OFFENDER'S OR SUCH PERSON'S RIGHT TO REMAIN
SILENT;
(B) THAT THE STATEMENTS MADE BY HIM OR HER MAY BE USED IN A COURT OF
LAW;
(C) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PRESENT AT SUCH QUESTION-
ING; AND
(D) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PROVIDED FOR HIM OR HER
WITHOUT CHARGE IF HE OR SHE IS UNABLE TO AFFORD COUNSEL.
IN DETERMINING THE SUITABILITY OF QUESTIONING AND DETERMINING THE
REASONABLE PERIOD OF TIME FOR QUESTIONING SUCH A JUVENILE OFFENDER OR
PERSON, HIS OR HER AGE, THE PRESENCE OR ABSENCE OF HIS OR HER PARENTS OR
OTHER PERSONS LEGALLY RESPONSIBLE FOR HIS OR HER CARE AND NOTIFICATION
PURSUANT TO THIS SUBDIVISION SHALL BE INCLUDED AMONG RELEVANT CONSIDER-
ATIONS.
§ 21. Subdivision 2 of section 140.27 of the criminal procedure law,
as amended by chapter 843 of the laws of 1980, is amended to read as
follows:
2. Upon arresting a person without a warrant, a peace officer, except
as otherwise provided in subdivision three OR THREE-A, must without
unnecessary delay bring him or cause him to be brought before a local
criminal court, as provided in section 100.55 and subdivision one of
section 140.20, and must without unnecessary delay file or cause to be
filed therewith an appropriate accusatory instrument. If the offense
which is the subject of the arrest is one of those specified in subdivi-
sion one of section 160.10, the arrested person must be fingerprinted
and photographed as therein provided. In order to execute the required
post-arrest functions, such arresting peace officer may perform such
functions himself or he may enlist the aid of a police officer for the
performance thereof in the manner provided in subdivision one of section
140.20.
§ 22. Section 140.27 of the criminal procedure law is amended by
adding a new subdivision 3-a to read as follows:
3-A. IF THE ARREST IS FOR A JUVENILE OFFENDER OR ADOLESCENT OFFENDER
OTHER THAN AN ARREST FOR VIOLATIONS OR TRAFFIC INFRACTIONS, SUCH OFFEN-
DER SHALL BE BROUGHT BEFORE THE YOUTH PART OF THE SUPERIOR COURT. IF THE
YOUTH PART IS NOT IN SESSION, SUCH OFFENDER SHALL BE BROUGHT BEFORE THE
MOST ACCESSIBLE MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE
SUPREME COURT IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH PART.
§ 23. Subdivision 5 of section 140.27 of the criminal procedure law,
as added by chapter 411 of the laws of 1979, is amended to read as
follows:
5. Upon arresting a juvenile offender OR A PERSON SIXTEEN OR COMMENC-
ING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN YEARS OF AGE without
a warrant, the peace officer shall immediately notify the parent or
S. 2009--C 224 A. 3009--C
other person legally responsible for his OR HER care or the person with
whom he OR SHE is domiciled, that [the juvenile] SUCH offender OR PERSON
has been arrested, and the location of the facility where he OR SHE is
being detained. IF THE OFFICER DETERMINES THAT IT IS NECESSARY TO QUES-
TION A JUVENILE OFFENDER OR SUCH PERSON, THE OFFICER MUST TAKE HIM OR
HER TO A FACILITY DESIGNATED BY THE CHIEF ADMINISTRATOR OF THE COURTS AS
A SUITABLE PLACE FOR THE QUESTIONING OF CHILDREN OR, UPON THE CONSENT OF
A PARENT OR OTHER PERSON LEGALLY RESPONSIBLE FOR THE CARE OF A JUVENILE
OFFENDER OR SUCH PERSON, TO HIS OR HER RESIDENCE AND THERE QUESTION HIM
OR HER FOR A REASONABLE PERIOD OF TIME. A JUVENILE OFFENDER OR SUCH
PERSON SHALL NOT BE QUESTIONED PURSUANT TO THIS SECTION UNLESS THE JUVE-
NILE OFFENDER OR SUCH PERSON AND A PERSON REQUIRED TO BE NOTIFIED PURSU-
ANT TO THIS SUBDIVISION, IF PRESENT, HAVE BEEN ADVISED:
(A) OF HIS OR HER RIGHT TO REMAIN SILENT;
(B) THAT THE STATEMENTS MADE BY THE JUVENILE OFFENDER OR SUCH PERSON
MAY BE USED IN A COURT OF LAW;
(C) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PRESENT AT SUCH QUESTION-
ING; AND
(D) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PROVIDED FOR HIM OR HER
WITHOUT CHARGE IF HE OR SHE IS UNABLE TO AFFORD COUNSEL.
IN DETERMINING THE SUITABILITY OF QUESTIONING AND DETERMINING THE
REASONABLE PERIOD OF TIME FOR QUESTIONING SUCH A JUVENILE OFFENDER OR
SUCH PERSON, HIS OR HER AGE, THE PRESENCE OR ABSENCE OF HIS OR HER
PARENTS OR OTHER PERSONS LEGALLY RESPONSIBLE FOR HIS OR HER CARE AND
NOTIFICATION PURSUANT TO THIS SUBDIVISION SHALL BE INCLUDED AMONG RELE-
VANT CONSIDERATIONS.
§ 24. Subdivision 5 of section 140.40 of the criminal procedure law,
as added by chapter 411 of the laws of 1979, is amended to read as
follows:
5. If a police officer takes an arrested juvenile offender OR A
PERSON SIXTEEN OR COMMENCING OCTOBER FIRST, TWO THOSUAND NINETEEN,
SEVENTEEN YEARS OF AGE into custody, the police officer shall immediate-
ly notify the parent or other person legally responsible for his OR HER
care or the person with whom he OR SHE is domiciled, that [the juvenile]
SUCH offender OR PERSON has been arrested, and the location of the
facility where he OR SHE is being detained. IF THE OFFICER DETERMINES
THAT IT IS NECESSARY TO QUESTION A JUVENILE OFFENDER OR SUCH PERSON THE
OFFICER MUST TAKE HIM OR HER TO A FACILITY DESIGNATED BY THE CHIEF
ADMINISTRATOR OF THE COURTS AS A SUITABLE PLACE FOR THE QUESTIONING OF
CHILDREN OR, UPON THE CONSENT OF A PARENT OR OTHER PERSON LEGALLY
RESPONSIBLE FOR THE CARE OF THE JUVENILE OFFENDER OR SUCH PERSON, TO HIS
OR HER RESIDENCE AND THERE QUESTION HIM OR HER FOR A REASONABLE PERIOD
OF TIME. A JUVENILE OFFENDER OR SUCH PERSON SHALL NOT BE QUESTIONED
PURSUANT TO THIS SECTION UNLESS HE OR SHE AND A PERSON REQUIRED TO BE
NOTIFIED PURSUANT TO THIS SUBDIVISION, IF PRESENT, HAVE BEEN ADVISED:
(A) OF HIS OR HER RIGHT TO REMAIN SILENT;
(B) THAT THE STATEMENTS MADE BY THE JUVENILE OFFENDER OR SUCH PERSON
MAY BE USED IN A COURT OF LAW;
(C) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PRESENT AT SUCH QUESTION-
ING; AND
(D) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PROVIDED FOR HIM OR HER
WITHOUT CHARGE IF HE OR SHE IS UNABLE TO AFFORD COUNSEL.
IN DETERMINING THE SUITABILITY OF QUESTIONING AND DETERMINING THE
REASONABLE PERIOD OF TIME FOR QUESTIONING SUCH A JUVENILE OFFENDER OR
SUCH PERSON, HIS OR HER AGE, THE PRESENCE OR ABSENCE OF HIS OR HER
PARENTS OR OTHER PERSONS LEGALLY RESPONSIBLE FOR HIS OR HER CARE AND
S. 2009--C 225 A. 3009--C
NOTIFICATION PURSUANT TO THIS SUBDIVISION SHALL BE INCLUDED AMONG RELE-
VANT CONSIDERATIONS.
§ 25. Subdivisions 2, 3, 4, 5 and 6 of section 180.75 of the criminal
procedure law are REPEALED.
§ 26. Subdivision 1 of section 180.75 of the criminal procedure law,
as added by chapter 481 of the laws of 1978, is amended to read as
follows:
1. When a juvenile offender OR ADOLESCENT OFFENDER is arraigned before
[a local criminal court] THE YOUTH PART OF A SUPERIOR COURT OR THE MOST
ACCESSIBLE MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE
SUPREME COURT IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH PART, the
provisions of [this section] ARTICLE SEVEN HUNDRED TWENTY-TWO OF THIS
CHAPTER shall apply in lieu of the provisions of sections 180.30, 180.50
and 180.70 of this article.
§ 27. The opening paragraph of section 180.80 of the criminal proce-
dure law, as amended by chapter 556 of the laws of 1982, is amended to
read as follows:
Upon application of a defendant against whom a felony complaint has
been filed with a local criminal court OR THE YOUTH PART OF A SUPERIOR
COURT, and who, since the time of his arrest or subsequent thereto, has
been held in custody pending disposition of such felony complaint, and
who has been confined in such custody for a period of more than one
hundred twenty hours or, in the event that a Saturday, Sunday or legal
holiday occurs during such custody, one hundred forty-four hours, with-
out either a disposition of the felony complaint or commencement of a
hearing thereon, the [local criminal] court must release him on his own
recognizance unless:
§ 27-a. Section 190.80 of the criminal procedure law, the opening
paragraph as amended by chapter 411 of the laws of 1979, is amended to
read as follows:
§ 190.80 Grand jury; release of defendant upon failure of timely grand
jury action.
Upon application of a defendant who on the basis of a felony complaint
has been held by a local criminal court for the action of a grand jury,
and who, at the time of such order or subsequent thereto, has been
committed to the custody of the sheriff pending such grand jury action,
and who has been confined in such custody for a period of more than
forty-five days, or, in the case of a juvenile offender OR ADOLESCENT
OFFENDER, thirty days, without the occurrence of any grand jury action
or disposition pursuant to subdivision one, two or three of section
190.60, the superior court by which such grand jury was or is to be
impaneled must release him on his own recognizance unless:
(a) The lack of a grand jury disposition during such period of
confinement was due to the defendant's request, action or condition, or
occurred with his consent; or
(b) The people have shown good cause why such order of release should
not be issued. Such good cause must consist of some compelling fact or
circumstance which precluded grand jury action within the prescribed
period or rendered the same against the interest of justice.
§ 28. Subdivision (b) of section 190.71 of the criminal procedure law,
as added by chapter 481 of the laws of 1978, is amended to read as
follows:
(b) A grand jury may vote to file a request to remove a charge to the
family court if it finds that a person [thirteen, fourteen or fifteen]
SIXTEEN, OR COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN
years of age OR YOUNGER did an act which, if done by a person over the
S. 2009--C 226 A. 3009--C
age of sixteen, OR COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN,
SEVENTEEN, would constitute a crime provided (1) such act is one for
which it may not indict; (2) it does not indict such person for a crime;
and (3) the evidence before it is legally sufficient to establish that
such person did such act and competent and admissible evidence before it
provides reasonable cause to believe that such person did such act.
§ 29. Subdivision 6 of section 200.20 of the criminal procedure law,
as added by chapter 136 of the laws of 1980, is amended to read as
follows:
6. Where an indictment charges at least one offense against a defend-
ant who was under the age of [sixteen] SEVENTEEN, OR COMMENCING OCTOBER
FIRST, TWO THOUSAND NINETEEN, EIGHTEEN at the time of the commission of
the crime and who did not lack criminal responsibility for such crime by
reason of infancy, the indictment may, in addition, charge in separate
counts one or more other offenses for which such person would not have
been criminally responsible by reason of infancy, if:
(a) the offense for which the defendant is criminally responsible and
the one or more other offenses for which he OR SHE would not have been
criminally responsible by reason of infancy are based upon the same act
or upon the same criminal transaction, as that term is defined in subdi-
vision two of section 40.10 of this chapter; or
(b) the offenses are of such nature that either proof of the first
offense would be material and admissible as evidence in chief upon a
trial of the second, or proof of the second would be material and admis-
sible as evidence in chief upon a trial of the first.
§ 29-a. Subdivision 7 of section 210.30 of the criminal procedure law,
as added by chapter 136 of the laws of 1980, is amended to read as
follows:
7. Notwithstanding any other provision of law, where the indictment is
filed against a juvenile offender OR ADOLESCENT OFFENDER, the court
shall dismiss the indictment or count thereof where the evidence before
the grand jury was not legally sufficient to establish the offense
charged or any lesser included offense for which the defendant is crimi-
nally responsible. Upon such dismissal, unless the court shall authorize
the people to resubmit the charge to a subsequent grand jury, and upon a
finding that there was sufficient evidence to believe defendant is a
juvenile delinquent as defined in subdivision (a) of section seven
hundred twelve of the family court act and upon specifying the act or
acts it found sufficient evidence to believe defendant committed, the
court may direct that such matter be removed to family court in accord-
ance with the provisions of article seven hundred twenty-five of this
chapter.
§ 30. Section 210.43 of the criminal procedure law is REPEALED.
§ 31. Intentionally omitted.
§ 31-a. Paragraph (a) of subdivision 1 of section 255.10 of the crimi-
nal procedure law, as amended by chapter 209 of the laws of 1990, is
amended to read as follows:
(a) dismissing or reducing an indictment pursuant to article 210 or
removing an action to the family court pursuant to [section 210.43]
ARTICLE 722; or
§ 31-b. Subdivisions 1 and 2 of section 330.25 of the criminal proce-
dure law, subdivision 1 as added by chapter 481 of the laws of 1978 and
subdivision 2 as amended by chapter 920 of the laws of 1982, are amended
to read as follows:
1. Where a defendant is a juvenile offender OR AN ADOLESCENT OFFENDER
who does not stand convicted of murder in the second degree, upon motion
S. 2009--C 227 A. 3009--C
and with the consent of the district attorney, the action may be removed
to the family court in the interests of justice pursuant to article
seven hundred twenty-five of this chapter notwithstanding the verdict.
2. If the district attorney consents to the motion for removal pursu-
ant to this section, he shall file a subscribed memorandum with the
court setting forth (1) a recommendation that the interests of justice
would best be served by removal of the action to the family court; and
(2) if the conviction is of an offense set forth in paragraph (b) of
subdivision one of section [210.43] 722.22 of this chapter, specific
factors, one or more of which reasonably support the recommendation,
showing, (i) mitigating circumstances that bear directly upon the manner
in which the crime was committed, or (ii) where the defendant was not
the sole participant in the crime, that the defendant's participation
was relatively minor although not so minor as to constitute a defense to
prosecution, or (iii) where the juvenile offender has no previous adju-
dications of having committed a designated felony act, as defined in
subdivision eight of section 301.2 of the family court act, regardless
of the age of the offender at the time of commission of the act, that
the criminal act was not part of a pattern of criminal behavior and, in
view of the history of the offender, is not likely to be repeated.
§ 32. Subdivision 2 of section 410.40 of the criminal procedure law,
as amended by chapter 652 of the laws of 2008, is amended to read as
follows:
2. Warrant. (A) Where the probation officer has requested that a
probation warrant be issued, the court shall, within seventy-two hours
of its receipt of the request, issue or deny the warrant or take any
other lawful action including issuance of a notice to appear pursuant to
subdivision one of this section. If at any time during the period of a
sentence of probation or of conditional discharge the court has reason-
able grounds to believe that the defendant has violated a condition of
the sentence, the court may issue a warrant to a police officer or to an
appropriate peace officer directing him or her to take the defendant
into custody and bring the defendant before the court without unneces-
sary delay; provided, however, if the court in which the warrant is
returnable is a superior court, and such court is not available, and the
warrant is addressed to a police officer or appropriate probation offi-
cer certified as a peace officer, such executing officer may UNLESS
OTHERWISE SPECIFIED UNDER PARAGRAPH (B) OF THIS SUBDIVISION, bring the
defendant to the local correctional facility of the county in which such
court sits, to be detained there until not later than the commencement
of the next session of such court occurring on the next business day; or
if the court in which the warrant is returnable is a local criminal
court, and such court is not available, and the warrant is addressed to
a police officer or appropriate probation officer certified as a peace
officer, such executing officer must without unnecessary delay bring the
defendant before an alternate local criminal court, as provided in
subdivision five of section 120.90 of this chapter. A court which issues
such a warrant may attach thereto a summary of the basis for the
warrant. In any case where a defendant arrested upon the warrant is
brought before a local criminal court other than the court in which the
warrant is returnable, such local criminal court shall consider such
summary before issuing a securing order with respect to the defendant.
(B) IF THE COURT IN WHICH THE WARRANT IS RETURNABLE IS A SUPERIOR
COURT, AND SUCH COURT IS NOT AVAILABLE, AND THE WARRANT IS ADDRESSED TO
A POLICE OFFICER OR APPROPRIATE PROBATION OFFICER CERTIFIED AS A PEACE
OFFICER, SUCH EXECUTING OFFICER SHALL, WHERE A DEFENDANT IS SIXTEEN
S. 2009--C 228 A. 3009--C
YEARS OF AGE OR YOUNGER WHO ALLEGEDLY COMMITS AN OFFENSE OR A VIOLATION
OF HIS OR HER PROBATION OR CONDITIONAL DISCHARGE IMPOSED FOR AN OFFENSE
ON OR AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN, OR WHERE A DEFENDANT
IS SEVENTEEN YEARS OF AGE OR YOUNGER WHO ALLEGEDLY COMMITS AN OFFENSE OR
A VIOLATION OF HIS OR HER PROBATION OR CONDITIONAL DISCHARGE IMPOSED FOR
AN OFFENSE ON OR AFTER OCTOBER FIRST, TWO THOUSAND NINETEEN, BRING THE
DEFENDANT WITHOUT UNNECESSARY DELAY BEFORE THE YOUTH PART, PROVIDED,
HOWEVER THAT IF THE YOUTH PART IS NOT IN SESSION, THE DEFENDANT SHALL BE
BROUGHT BEFORE THE MOST ACCESSIBLE MAGISTRATE DESIGNATED BY THE APPEL-
LATE DIVISION.
§ 33. Intentionally omitted.
§ 34. Intentionally omitted.
§ 35. The criminal procedure law is amended by adding a new section
410.90-a to read as follows:
§ 410.90-A SUPERIOR COURT; YOUTH PART.
NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ARTICLE, ALL PROCEEDINGS
RELATING TO A JUVENILE OFFENDER OR ADOLESCENT OFFENDER SHALL BE HEARD IN
THE YOUTH PART OF THE SUPERIOR COURT HAVING JURISDICTION AND ANY INTRA-
STATE TRANSFERS UNDER THIS ARTICLE SHALL BE BETWEEN COURTS DESIGNATED AS
A YOUTH PART PURSUANT TO ARTICLE SEVEN HUNDRED TWENTY-TWO OF THIS CHAP-
TER.
§ 36. Section 510.15 of the criminal procedure law, as amended by
chapter 411 of the laws of 1979, subdivision 1 as designated and subdi-
vision 2 as added by chapter 359 of the laws of 1980, is amended to read
as follows:
§ 510.15 Commitment of principal under [sixteen] SEVENTEEN OR EIGHTEEN.
1. When a principal who is under the age of sixteen is committed to
the custody of the sheriff the court must direct that the principal be
taken to and lodged in a place certified by the [state division for
youth] OFFICE OF CHILDREN AND FAMILY SERVICES as a juvenile detention
facility for the reception of children. WHEN A PRINCIPAL WHO (A)
COMMENCING OCTOBER FIRST, TWO THOUSAND EIGHTEEN, IS SIXTEEN YEARS OF
AGE; OR (B) COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, IS SIXTEEN
OR SEVENTEEN YEARS OF AGE, IS COMMITTED TO THE CUSTODY OF THE SHERIFF,
THE COURT MUST DIRECT THAT THE PRINCIPAL BE TAKEN TO AND LODGED IN A
PLACE CERTIFIED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES IN
CONJUNCTION WITH THE STATE COMMISSION OF CORRECTION AS A SPECIALIZED
SECURE JUVENILE DETENTION FACILITY FOR OLDER YOUTH. Where such a direc-
tion is made the sheriff shall deliver the principal in accordance ther-
ewith and such person shall although lodged and cared for in a juvenile
detention facility continue to be deemed to be in the custody of the
sheriff. No principal under the age [of sixteen] SPECIFIED to whom the
provisions of this section may apply shall be detained in any prison,
jail, lockup, or other place used for adults convicted of a crime or
under arrest and charged with the commission of a crime without the
approval of the [state division for youth] OFFICE OF CHILDREN AND FAMILY
SERVICES WHICH SHALL CONSULT WITH THE COMMISSION OF CORRECTION IF THE
PRINCIPAL IS SIXTEEN YEARS OF AGE OR OLDER in the case of each principal
and the statement of its reasons therefor. The sheriff shall not be
liable for any acts done to or by such principal resulting from negli-
gence in the detention of and care for such principal, when the princi-
pal is not in the actual custody of the sheriff.
2. Except upon consent of the defendant or for good cause shown, in
any case in which a new securing order is issued for a principal previ-
ously committed to the custody of the sheriff pursuant to this section,
such order shall further direct the sheriff to deliver the principal
S. 2009--C 229 A. 3009--C
from a juvenile detention facility to the person or place specified in
the order.
§ 36-a. The correction law is amended by adding a new section 500-p to
read as follows:
§ 500-P. PROHIBITION ON THE CUSTODY OF YOUTH IN RIKERS ISLAND FACILI-
TIES. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, NO YOUTH UNDER THE
AGE OF EIGHTEEN SHALL BE PLACED OR HELD IN RIKERS ISLAND CORRECTIONAL
FACILITY OR ANY FACILITY LOCATED ON RIKERS ISLAND LOCATED IN THE CITY OF
NEW YORK ON OR AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, TO THE EXTENT
PRACTICABLE, BUT IN NO EVENT AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN
AND SUCH YOUTH SHALL BE TAKEN TO AND LODGED IN PLACES CERTIFIED BY THE
OFFICE OF CHILDREN AND FAMILY SERVICES IN CONJUNCTION WITH THE COMMIS-
SION OF CORRECTION AND OPERATED BY THE NEW YORK CITY ADMINISTRATION FOR
CHILDREN'S SERVICES IN CONJUNCTION WITH THE NEW YORK CITY DEPARTMENT OF
CORRECTIONS AS A SPECIALIZED JUVENILE DETENTION FACILITY FOR THAT
PURPOSE.
§ 37. Intentionally omitted.
§ 38. Section 30.00 of the penal law, as amended by chapter 481 of the
laws of 1978, subdivision 2 as amended by chapter 7 of the laws of 2007,
is amended to read as follows:
§ 30.00 Infancy.
1. Except as provided in [subdivision] SUBDIVISIONS two AND THREE of
this section, a person less than [sixteen] SEVENTEEN, OR COMMENCING
OCTOBER FIRST, TWO THOUSAND NINETEEN, A PERSON LESS THAN EIGHTEEN years
old is not criminally responsible for conduct.
2. A person thirteen, fourteen or, fifteen years of age is criminally
responsible for acts constituting murder in the second degree as defined
in subdivisions one and two of section 125.25 and in subdivision three
of such section provided that the underlying crime for the murder charge
is one for which such person is criminally responsible or for such
conduct as a sexually motivated felony, where authorized pursuant to
section 130.91 of [the penal law] THIS CHAPTER; and a person fourteen
or, fifteen years of age is criminally responsible for acts constituting
the crimes defined in section 135.25 (kidnapping in the first degree);
150.20 (arson in the first degree); subdivisions one and two of section
120.10 (assault in the first degree); 125.20 (manslaughter in the first
degree); subdivisions one and two of section 130.35 (rape in the first
degree); subdivisions one and two of section 130.50 (criminal sexual act
in the first degree); 130.70 (aggravated sexual abuse in the first
degree); 140.30 (burglary in the first degree); subdivision one of
section 140.25 (burglary in the second degree); 150.15 (arson in the
second degree); 160.15 (robbery in the first degree); subdivision two of
section 160.10 (robbery in the second degree) of this chapter; or
section 265.03 of this chapter, where such machine gun or such firearm
is possessed on school grounds, as that phrase is defined in subdivision
fourteen of section 220.00 of this chapter; or defined in this chapter
as an attempt to commit murder in the second degree or kidnapping in the
first degree, or for such conduct as a sexually motivated felony, where
authorized pursuant to section 130.91 of [the penal law] THIS CHAPTER.
3. A PERSON SIXTEEN OR COMMENCING OCTOBER FIRST, TWO THOUSAND NINE-
TEEN, SEVENTEEN YEARS OF AGE IS CRIMINALLY RESPONSIBLE FOR ACTS CONSTI-
TUTING:
(A) A FELONY, AS DEFINED IN SUBDIVISION FIVE OF SECTION 10.00 OF THIS
CHAPTER;
(B) A TRAFFIC INFRACTION, AS DEFINED IN SUBDIVISION TWO OF SECTION
10.00 OF THIS CHAPTER;
S. 2009--C 230 A. 3009--C
(C) A VIOLATION, AS DEFINED IN SUBDIVISION THREE OF SECTION 10.00 OF
THIS CHAPTER;
(D) A MISDEMEANOR AS DEFINED IN SUBDIVISION FOUR OF SECTION 10.00 OF
THIS CHAPTER, BUT ONLY WHEN THE CHARGE FOR SUCH MISDEMEANOR IS:
(I) ACCOMPANIED BY A FELONY CHARGE THAT IS SHOWN TO HAVE BEEN COMMIT-
TED AS A PART OF THE SAME CRIMINAL TRANSACTION, AS DEFINED IN SUBDIVI-
SION TWO OF SECTION 40.10 OF THE CRIMINAL PROCEDURE LAW;
(II) RESULTS FROM REDUCTION OR DISMISSAL IN SATISFACTION OF A CHARGE
FOR A FELONY OFFENSE, IN ACCORDANCE WITH A PLEA OF GUILTY PURSUANT TO
SUBDIVISION FOUR OF SECTION 220.10 OF THE CRIMINAL PROCEDURE LAW; OR
(III) A MISDEMEANOR DEFINED IN THE VEHICLE AND TRAFFIC LAW.
4. In any prosecution for an offense, lack of criminal responsibility
by reason of infancy, as defined in this section, is a defense.
§ 39. Intentionally omitted.
§ 40. Intentionally omitted.
§ 40-a. Subdivision 5 of section 70.00 of the penal law, as amended by
chapter 482 of the laws of 2009, is amended to read as follows:
5. Life imprisonment without parole. Notwithstanding any other
provision of law, a defendant sentenced to life imprisonment without
parole shall not be or become eligible for parole or conditional
release. For purposes of commitment and custody, other than parole and
conditional release, such sentence shall be deemed to be an indetermi-
nate sentence. A defendant may be sentenced to life imprisonment without
parole upon conviction for the crime of murder in the first degree as
defined in section 125.27 of this chapter and in accordance with the
procedures provided by law for imposing a sentence for such crime. A
defendant WHO WAS EIGHTEEN YEARS OF AGE OR OLDER AT THE TIME OF THE
COMMISSION OF THE CRIME must be sentenced to life imprisonment without
parole upon conviction for the crime of terrorism as defined in section
490.25 of this chapter, where the specified offense the defendant
committed is a class A-I felony; the crime of criminal possession of a
chemical weapon or biological weapon in the first degree as defined in
section 490.45 of this chapter; or the crime of criminal use of a chemi-
cal weapon or biological weapon in the first degree as defined in
section 490.55 of this chapter; provided, however, that nothing in this
subdivision shall preclude or prevent a sentence of death when the
defendant is also convicted of the crime of murder in the first degree
as defined in section 125.27 of this chapter. A DEFENDANT WHO WAS
SEVENTEEN YEARS OF AGE OR YOUNGER AT THE TIME OF THE COMMISSION OF THE
CRIME MAY BE SENTENCED, IN ACCORDANCE WITH LAW, TO THE APPLICABLE INDE-
TERMINATE SENTENCE WITH A MAXIMUM TERM OF LIFE IMPRISONMENT. A defendant
must be sentenced to life imprisonment without parole upon conviction
for the crime of murder in the second degree as defined in subdivision
five of section 125.25 of this chapter or for the crime of aggravated
murder as defined in subdivision one of section 125.26 of this chapter.
A defendant may be sentenced to life imprisonment without parole upon
conviction for the crime of aggravated murder as defined in subdivision
two of section 125.26 of this chapter.
§ 41. The penal law is amended by adding a new section 60.10-a to read
as follows:
§ 60.10-A AUTHORIZED DISPOSITION; ADOLESCENT OFFENDER.
WHEN AN ADOLESCENT OFFENDER IS CONVICTED OF AN OFFENSE, THE COURT
SHALL SENTENCE THE DEFENDANT TO ANY SENTENCE AUTHORIZED TO BE IMPOSED ON
A PERSON WHO COMMITTED SUCH OFFENSE AT AGE EIGHTEEN OR OLDER. WHEN A
SENTENCE IS IMPOSED, THE COURT SHALL CONSIDER THE AGE OF THE DEFENDANT
IN EXERCISING ITS DISCRETION AT SENTENCING.
S. 2009--C 231 A. 3009--C
§ 42. Intentionally omitted.
§ 43. Subdivision 2 of section 70.20 of the penal law, as amended by
chapter 437 of the laws of 2013, is amended to read as follows:
2. [(a)] Definite sentence. Except as provided in subdivision four of
this section, when a definite sentence of imprisonment is imposed, the
court shall commit the defendant to the county or regional correctional
institution for the term of his sentence and until released in accord-
ance with the law.
[(b) The court in committing a defendant who is not yet eighteen years
of age to the local correctional facility shall inquire as to whether
the parents or legal guardian of the defendant, if present, will grant
to the minor the capacity to consent to routine medical, dental and
mental health services and treatment.
(c) Nothing in this subdivision shall preclude a parent or legal guar-
dian of an inmate who is not yet eighteen years of age from making a
motion on notice to the local correction facility pursuant to article
twenty-two of the civil practice law and rules and section one hundred
forty of the correction law, objecting to routine medical, dental or
mental health services and treatment being provided to such inmate under
the provisions of paragraph (b) of this subdivision.]
§ 44. Paragraph (a) of subdivision 4 of section 70.20 of the penal
law, as amended by section 124 of subpart B of part C of chapter 62 of
the laws of 2011, is amended and two new paragraphs (a-1) and (a-2) are
added to read as follows:
(a) Notwithstanding any other provision of law to the contrary, a
juvenile offender, ADOLESCENT OFFENDER, or a juvenile offender OR
ADOLESCENT OFFENDER who is adjudicated a youthful offender [and], WHO IS
given an indeterminate, DETERMINATE or a definite sentence, AND WHO IS
UNDER THE AGE OF TWENTY-ONE AT THE TIME OF SENTENCING, shall be commit-
ted to the custody of the commissioner of the office of children and
family services who shall arrange for the confinement of such offender
in secure facilities of the office; PROVIDED, HOWEVER IF AN ADOLESCENT
OFFENDER WHO COMMITTED A CRIME ON OR AFTER THE YOUTH'S SIXTEENTH BIRTH-
DAY RECEIVES A DEFINITE SENTENCE NOT EXCEEDING ONE YEAR, THE JUDGE MAY
ORDER THAT THE ADOLESCENT OFFENDER SERVE SUCH SENTENCE IN A SPECIALIZED
SECURE JUVENILE DETENTION FACILITY FOR OLDER YOUTH CERTIFIED BY THE
OFFICE OF CHILDREN AND FAMILY SERVICES IN CONJUNCTION WITH THE STATE
COMMISSION OF CORRECTION AND OPERATED PURSUANT TO SECTION TWO HUNDRED
EIGHTEEN-A OF THE COUNTY LAW. The release or transfer of such JUVENILE
offenders OR ADOLESCENT OFFENDERS from the office of children and family
services shall be governed by section five hundred eight of the execu-
tive law.
(A-1) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, AN ADOLESCENT
OFFENDER, OR AN ADOLESCENT OFFENDER WHO IS ADJUDICATED A YOUTHFUL OFFEN-
DER, WHO IS GIVEN AN INDETERMINATE OR DETERMINATE SENTENCE SHALL BE
COMMITTED TO THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION AND
IF SUCH PERSON IS UNDER EIGHTEEN YEARS OF AGE AT SENTENCING, HE OR SHE
SHALL BE PLACED IN AN ADOLESCENT OFFENDER FACILITY PURSUANT TO SECTION
SEVENTY-SEVEN OF THE CORRECTION LAW, OPERATED BY SUCH DEPARTMENT.
(A-2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A
PERSON SIXTEEN YEARS OF AGE WHO COMMITS A VEHICLE AND TRAFFIC LAW
OFFENSE THAT DOES NOT CONSTITUTE AN ADOLESCENT OFFENDER OFFENSE ON OR
AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN AND A PERSON SEVENTEEN YEARS
OF AGE WHO COMMITS SUCH AN OFFENSE ON OR AFTER OCTOBER FIRST, TWO THOU-
SAND NINETEEN WHO IS SENTENCED TO A TERM OF IMPRISONMENT WHO IS UNDER
THE AGE OF TWENTY-ONE AT THE TIME HE OR SHE IS SENTENCED SHALL BE
S. 2009--C 232 A. 3009--C
COMMITTED TO A SPECIALIZED SECURE DETENTION FACILITY FOR OLDER YOUTH
CERTIFIED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES IN CONJUNCTION
WITH THE STATE COMMISSION OF CORRECTION.
§ 44-a. Intentionally omitted.
§ 44-b. Intentionally omitted.
§ 45. Intentionally omitted.
§ 46. Intentionally omitted.
§ 47. Intentionally omitted.
§ 48. The criminal procedure law is amended by adding a new section
160.59 to read as follows:
§ 160.59 SEALING OF CERTAIN CONVICTIONS.
1. DEFINITIONS: AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
(A) "ELIGIBLE OFFENSE" SHALL MEAN ANY CRIME DEFINED IN THE LAWS OF
THIS STATE OTHER THAN A SEX OFFENSE DEFINED IN ARTICLE ONE HUNDRED THIR-
TY OF THE PENAL LAW, AN OFFENSE DEFINED IN ARTICLE TWO HUNDRED SIXTY-
THREE OF THE PENAL LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED
TWENTY-FIVE OF THE PENAL LAW, A VIOLENT FELONY OFFENSE DEFINED IN
SECTION 70.02 OF THE PENAL LAW, A CLASS A FELONY OFFENSE DEFINED IN THE
PENAL LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED FIVE OF THE
PENAL LAW WHERE THE UNDERLYING OFFENSE IS NOT AN ELIGIBLE OFFENSE, AN
ATTEMPT TO COMMIT AN OFFENSE THAT IS NOT AN ELIGIBLE OFFENSE IF THE
ATTEMPT IS A FELONY, OR AN OFFENSE FOR WHICH REGISTRATION AS A SEX
OFFENDER IS REQUIRED PURSUANT TO ARTICLE SIX-C OF THE CORRECTION LAW.
FOR THE PURPOSES OF THIS SECTION, WHERE THE DEFENDANT IS CONVICTED OF
MORE THAN ONE ELIGIBLE OFFENSE, COMMITTED AS PART OF THE SAME CRIMINAL
TRANSACTION AS DEFINED IN SUBDIVISION TWO OF SECTION 40.10 OF THIS CHAP-
TER, THOSE OFFENSES SHALL BE CONSIDERED ONE ELIGIBLE OFFENSE.
(B) "SENTENCING JUDGE" SHALL MEAN THE JUDGE WHO PRONOUNCED SENTENCE
UPON THE CONVICTION UNDER CONSIDERATION, OR IF THAT JUDGE IS NO LONGER
SITTING IN A COURT IN THE JURISDICTION IN WHICH THE CONVICTION WAS
OBTAINED, ANY OTHER JUDGE WHO IS SITTING IN THE CRIMINAL COURT WHERE THE
JUDGMENT OF CONVICTION WAS ENTERED.
1-A. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL, PURSUANT TO SECTION
10.40 OF THIS CHAPTER, PRESCRIBE A FORM APPLICATION WHICH MAY BE USED BY
A DEFENDANT TO APPLY FOR SEALING PURSUANT TO THIS SECTION. SUCH FORM
APPLICATION SHALL INCLUDE ALL THE ESSENTIAL ELEMENTS REQUIRED BY THIS
SECTION TO BE INCLUDED IN AN APPLICATION FOR SEALING. NOTHING IN THIS
SUBDIVISION SHALL BE READ TO REQUIRE A DEFENDANT TO USE SUCH FORM APPLI-
CATION TO APPLY FOR SEALING.
2. (A) A DEFENDANT WHO HAS BEEN CONVICTED OF UP TO TWO ELIGIBLE
OFFENSES BUT NOT MORE THAN ONE FELONY OFFENSE MAY APPLY TO THE COURT IN
WHICH HE OR SHE WAS CONVICTED OF THE MOST SERIOUS OFFENSE TO HAVE SUCH
CONVICTION SEALED. IF ALL OFFENSES ARE OFFENSES WITH THE SAME CLASSI-
FICATION, THE APPLICATION SHALL BE MADE TO THE COURT IN WHICH THE
DEFENDANT WAS LAST CONVICTED.
(B) AN APPLICATION SHALL CONTAIN (I) A COPY OF A CERTIFICATE OF DISPO-
SITION OR OTHER SIMILAR DOCUMENTATION FOR ANY OFFENSE FOR WHICH THE
DEFENDANT HAS BEEN CONVICTED, OR AN EXPLANATION OF WHY SUCH CERTIFICATE
OR OTHER DOCUMENTATION IS NOT AVAILABLE; (II) A SWORN STATEMENT OF THE
DEFENDANT AS TO WHETHER HE OR SHE HAS FILED, OR THEN INTENDS TO FILE,
ANY APPLICATION FOR SEALING OF ANY OTHER ELIGIBLE OFFENSE; (III) A COPY
OF ANY OTHER SUCH APPLICATION THAT HAS BEEN FILED; (IV) A SWORN STATE-
MENT AS TO THE CONVICTION OR CONVICTIONS FOR WHICH RELIEF IS BEING
SOUGHT; AND (V) A SWORN STATEMENT OF THE REASON OR REASONS WHY THE COURT
S. 2009--C 233 A. 3009--C
SHOULD, IN ITS DISCRETION, GRANT SUCH SEALING, ALONG WITH ANY SUPPORTING
DOCUMENTATION.
(C) A COPY OF ANY APPLICATION FOR SUCH SEALING SHALL BE SERVED UPON
THE DISTRICT ATTORNEY OF THE COUNTY IN WHICH THE CONVICTION, OR, IF MORE
THAN ONE, THE CONVICTIONS, WAS OR WERE OBTAINED. THE DISTRICT ATTORNEY
SHALL NOTIFY THE COURT WITHIN FORTY-FIVE DAYS IF HE OR SHE OBJECTS TO
THE APPLICATION FOR SEALING.
(D) WHEN SUCH APPLICATION IS FILED WITH THE COURT, IT SHALL BE
ASSIGNED TO THE SENTENCING JUDGE UNLESS MORE THAN ONE APPLICATION IS
FILED IN WHICH CASE THE APPLICATION SHALL BE ASSIGNED TO THE COUNTY
COURT OR THE SUPREME COURT OF THE COUNTY IN WHICH THE CRIMINAL COURT IS
LOCATED, WHO SHALL REQUEST AND RECEIVE FROM THE DIVISION OF CRIMINAL
JUSTICE SERVICES A FINGERPRINT BASED CRIMINAL HISTORY RECORD OF THE
DEFENDANT, INCLUDING ANY SEALED OR SUPPRESSED RECORDS. THE DIVISION OF
CRIMINAL JUSTICE SERVICES ALSO SHALL INCLUDE A CRIMINAL HISTORY REPORT,
IF ANY, FROM THE FEDERAL BUREAU OF INVESTIGATION REGARDING ANY CRIMINAL
HISTORY INFORMATION THAT OCCURRED IN OTHER JURISDICTIONS. THE DIVISION
IS HEREBY AUTHORIZED TO RECEIVE SUCH INFORMATION FROM THE FEDERAL BUREAU
OF INVESTIGATION FOR THIS PURPOSE, AND TO MAKE SUCH INFORMATION AVAIL-
ABLE TO THE COURT, WHICH MAY MAKE THIS INFORMATION AVAILABLE TO THE
DISTRICT ATTORNEY AND THE DEFENDANT.
3. THE SENTENCING JUDGE, OR COUNTY OR SUPREME COURT SHALL SUMMARILY
DENY THE DEFENDANT'S APPLICATION WHEN:
(A) THE DEFENDANT IS REQUIRED TO REGISTER AS A SEX OFFENDER PURSUANT
TO ARTICLE SIX-C OF THE CORRECTION LAW; OR
(B) THE DEFENDANT HAS PREVIOUSLY OBTAINED SEALING OF THE MAXIMUM
NUMBER OF CONVICTIONS ALLOWABLE UNDER SECTION 160.58 OF THE CRIMINAL
PROCEDURE LAW; OR
(C) THE DEFENDANT HAS PREVIOUSLY OBTAINED SEALING OF THE MAXIMUM
NUMBER OF CONVICTIONS ALLOWABLE UNDER SUBDIVISION FOUR OF THIS SECTION;
OR
(D) THE TIME PERIOD SPECIFIED IN SUBDIVISION FIVE OF THIS SECTION HAS
NOT YET BEEN SATISFIED; OR
(E) THE DEFENDANT HAS AN UNDISPOSED ARREST OR CHARGE PENDING; OR
(F) THE DEFENDANT WAS CONVICTED OF ANY CRIME AFTER THE DATE OF THE
ENTRY OF JUDGEMENT OF THE LAST CONVICTION FOR WHICH SEALING IS SOUGHT;
OR
(G) THE DEFENDANT HAS FAILED TO PROVIDE THE COURT WITH THE REQUIRED
SWORN STATEMENT OF THE REASONS WHY THE COURT SHOULD GRANT THE RELIEF
REQUESTED; OR
(H) THE DEFENDANT HAS BEEN CONVICTED OF TWO OR MORE FELONIES OR MORE
THAN TWO CRIMES.
4. PROVIDED THAT THE APPLICATION IS NOT SUMMARILY DENIED FOR THE
REASONS SET FORTH IN SUBDIVISION THREE OF THIS SECTION, A DEFENDANT WHO
STANDS CONVICTED OF UP TO TWO ELIGIBLE OFFENSES, MAY OBTAIN SEALING OF
NO MORE THAN TWO ELIGIBLE OFFENSES BUT NOT MORE THAN ONE FELONY OFFENSE.
5. ANY ELIGIBLE OFFENSE MAY BE SEALED ONLY AFTER AT LEAST TEN YEARS
HAVE PASSED SINCE THE IMPOSITION OF THE SENTENCE ON THE DEFENDANT'S
LATEST CONVICTION OR, IF THE DEFENDANT WAS SENTENCED TO A PERIOD OF
INCARCERATION, INCLUDING A PERIOD OF INCARCERATION IMPOSED IN CONJUNC-
TION WITH A SENTENCE OF PROBATION, THE DEFENDANT'S LATEST RELEASE FROM
INCARCERATION. IN CALCULATING THE TEN YEAR PERIOD UNDER THIS SUBDIVI-
SION, ANY PERIOD OF TIME THE DEFENDANT SPENT INCARCERATED AFTER THE
CONVICTION FOR WHICH THE APPLICATION FOR SEALING IS SOUGHT, SHALL BE
EXCLUDED AND SUCH TEN YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR PERI-
ODS EQUAL TO THE TIME SERVED UNDER SUCH INCARCERATION.
S. 2009--C 234 A. 3009--C
6. UPON DETERMINING THAT THE APPLICATION IS NOT SUBJECT TO MANDATORY
DENIAL PURSUANT TO SUBDIVISION THREE OF THIS SECTION AND THAT THE APPLI-
CATION IS OPPOSED BY THE DISTRICT ATTORNEY, THE SENTENCING JUDGE OR
COUNTY OR SUPREME COURT SHALL CONDUCT A HEARING ON THE APPLICATION IN
ORDER TO CONSIDER ANY EVIDENCE OFFERED BY EITHER PARTY THAT WOULD AID
THE SENTENCING JUDGE IN HIS OR HER DECISION WHETHER TO SEAL THE RECORDS
OF THE DEFENDANT'S CONVICTIONS. NO HEARING IS REQUIRED IF THE DISTRICT
ATTORNEY DOES NOT OPPOSE THE APPLICATION.
7. IN CONSIDERING ANY SUCH APPLICATION, THE SENTENCING JUDGE OR COUNTY
OR SUPREME COURT SHALL CONSIDER ANY RELEVANT FACTORS, INCLUDING BUT NOT
LIMITED TO:
(A) THE AMOUNT OF TIME THAT HAS ELAPSED SINCE THE DEFENDANT'S LAST
CONVICTION;
(B) THE CIRCUMSTANCES AND SERIOUSNESS OF THE OFFENSE FOR WHICH THE
DEFENDANT IS SEEKING RELIEF, INCLUDING WHETHER THE ARREST CHARGE WAS NOT
AN ELIGIBLE OFFENSE;
(C) THE CIRCUMSTANCES AND SERIOUSNESS OF ANY OTHER OFFENSES FOR WHICH
THE DEFENDANT STANDS CONVICTED;
(D) THE CHARACTER OF THE DEFENDANT, INCLUDING ANY MEASURES THAT THE
DEFENDANT HAS TAKEN TOWARD REHABILITATION, SUCH AS PARTICIPATING IN
TREATMENT PROGRAMS, WORK, OR SCHOOLING, AND PARTICIPATING IN COMMUNITY
SERVICE OR OTHER VOLUNTEER PROGRAMS;
(E) ANY STATEMENTS MADE BY THE VICTIM OF THE OFFENSE FOR WHICH THE
DEFENDANT IS SEEKING RELIEF;
(F) THE IMPACT OF SEALING THE DEFENDANT'S RECORD UPON HIS OR HER REHA-
BILITATION AND UPON HIS OR HER SUCCESSFUL AND PRODUCTIVE REENTRY AND
REINTEGRATION INTO SOCIETY; AND
(G) THE IMPACT OF SEALING THE DEFENDANT'S RECORD ON PUBLIC SAFETY AND
UPON THE PUBLIC'S CONFIDENCE IN AND RESPECT FOR THE LAW.
8. WHEN A SENTENCING JUDGE OR COUNTY OR SUPREME COURT ORDERS SEALING
PURSUANT TO THIS SECTION, ALL OFFICIAL RECORDS AND PAPERS RELATING TO
THE ARRESTS, PROSECUTIONS, AND CONVICTIONS, INCLUDING ALL DUPLICATES AND
COPIES THEREOF, ON FILE WITH THE DIVISION OF CRIMINAL JUSTICE SERVICES
OR ANY COURT SHALL BE SEALED AND NOT MADE AVAILABLE TO ANY PERSON OR
PUBLIC OR PRIVATE AGENCY EXCEPT AS PROVIDED FOR IN SUBDIVISION NINE OF
THIS SECTION; PROVIDED, HOWEVER, THE DIVISION SHALL RETAIN ANY FINGER-
PRINTS, PALMPRINTS AND PHOTOGRAPHS, OR DIGITAL IMAGES OF THE SAME. THE
CLERK OF SUCH COURT SHALL IMMEDIATELY NOTIFY THE COMMISSIONER OF THE
DIVISION OF CRIMINAL JUSTICE SERVICES REGARDING THE RECORDS THAT SHALL
BE SEALED PURSUANT TO THIS SECTION. THE CLERK ALSO SHALL NOTIFY ANY
COURT IN WHICH THE DEFENDANT HAS STATED, PURSUANT TO PARAGRAPH (B) OF
SUBDIVISION TWO OF THIS SECTION, THAT HE OR SHE HAS FILED OR INTENDS TO
FILE AN APPLICATION FOR SEALING OF ANY OTHER ELIGIBLE OFFENSE.
9. RECORDS SEALED PURSUANT TO THIS SECTION SHALL BE MADE AVAILABLE TO:
(A) THE DEFENDANT OR THE DEFENDANT'S DESIGNATED AGENT;
(B) QUALIFIED AGENCIES, AS DEFINED IN SUBDIVISION NINE OF SECTION
EIGHT HUNDRED THIRTY-FIVE OF THE EXECUTIVE LAW, AND FEDERAL AND STATE
LAW ENFORCEMENT AGENCIES, WHEN ACTING WITHIN THE SCOPE OF THEIR LAW
ENFORCEMENT DUTIES; OR
(C) ANY STATE OR LOCAL OFFICER OR AGENCY WITH RESPONSIBILITY FOR THE
ISSUANCE OF LICENSES TO POSSESS GUNS, WHEN THE PERSON HAS MADE APPLICA-
TION FOR SUCH A LICENSE; OR
(D) ANY PROSPECTIVE EMPLOYER OF A POLICE OFFICER OR PEACE OFFICER AS
THOSE TERMS ARE DEFINED IN SUBDIVISIONS THIRTY-THREE AND THIRTY-FOUR OF
SECTION 1.20 OF THIS CHAPTER, IN RELATION TO AN APPLICATION FOR EMPLOY-
MENT AS A POLICE OFFICER OR PEACE OFFICER; PROVIDED, HOWEVER, THAT EVERY
S. 2009--C 235 A. 3009--C
PERSON WHO IS AN APPLICANT FOR THE POSITION OF POLICE OFFICER OR PEACE
OFFICER SHALL BE FURNISHED WITH A COPY OF ALL RECORDS OBTAINED UNDER
THIS PARAGRAPH AND AFFORDED AN OPPORTUNITY TO MAKE AN EXPLANATION THERE-
TO; OR
(E) THE CRIMINAL JUSTICE INFORMATION SERVICES DIVISION OF THE FEDERAL
BUREAU OF INVESTIGATION, FOR THE PURPOSES OF RESPONDING TO QUERIES TO
THE NATIONAL INSTANT CRIMINAL BACKGROUND CHECK SYSTEM REGARDING ATTEMPTS
TO PURCHASE OR OTHERWISE TAKE POSSESSION OF FIREARMS, AS DEFINED IN 18
USC 921 (A) (3).
10. A CONVICTION WHICH IS SEALED PURSUANT TO THIS SECTION IS INCLUDED
WITHIN THE DEFINITION OF A CONVICTION FOR THE PURPOSES OF ANY CRIMINAL
PROCEEDING IN WHICH THE FACT OF A PRIOR CONVICTION WOULD ENHANCE A
PENALTY OR IS AN ELEMENT OF THE OFFENSE CHARGED.
11. NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO WAIVE ELIGIBILITY
FOR SEALING PURSUANT TO THIS SECTION AS PART OF A PLEA OF GUILTY,
SENTENCE OR ANY AGREEMENT RELATED TO A CONVICTION FOR AN ELIGIBLE
OFFENSE AND ANY SUCH WAIVER SHALL BE DEEMED VOID AND WHOLLY ENFORCEABLE.
§ 48-a. Subdivision 16 of section 296 of the executive law, as sepa-
rately amended by section 3 of part N and section 14 of part AAA of
chapter 56 of the laws of 2009, is amended to read as follows:
16. It shall be an unlawful discriminatory practice, unless specif-
ically required or permitted by statute, for any person, agency, bureau,
corporation or association, including the state and any political subdi-
vision thereof, to make any inquiry about, whether in any form of appli-
cation or otherwise, or to act upon adversely to the individual
involved, any arrest or criminal accusation of such individual not then
pending against that individual which was followed by a termination of
that criminal action or proceeding in favor of such individual, as
defined in subdivision two of section 160.50 of the criminal procedure
law, or by a youthful offender adjudication, as defined in subdivision
one of section 720.35 of the criminal procedure law, or by a conviction
for a violation sealed pursuant to section 160.55 of the criminal proce-
dure law or by a conviction which is sealed pursuant to section 160.59
OR 160.58 of the criminal procedure law, in connection with the licens-
ing, employment or providing of credit or insurance to such individual;
provided, further, that no person shall be required to divulge informa-
tion pertaining to any arrest or criminal accusation of such individual
not then pending against that individual which was followed by a termi-
nation of that criminal action or proceeding in favor of such individ-
ual, as defined in subdivision two of section 160.50 of the criminal
procedure law, or by a youthful offender adjudication, as defined in
subdivision one of section 720.35 of the criminal procedure law, or by a
conviction for a violation sealed pursuant to section 160.55 of the
criminal procedure law, or by a conviction which is sealed pursuant to
section 160.58 OR 160.59 of the criminal procedure law. The provisions
of this subdivision shall not apply to the licensing activities of
governmental bodies in relation to the regulation of guns, firearms and
other deadly weapons or in relation to an application for employment as
a police officer or peace officer as those terms are defined in subdivi-
sions thirty-three and thirty-four of section 1.20 of the criminal
procedure law; provided further that the provisions of this subdivision
shall not apply to an application for employment or membership in any
law enforcement agency with respect to any arrest or criminal accusation
which was followed by a youthful offender adjudication, as defined in
subdivision one of section 720.35 of the criminal procedure law, or by a
conviction for a violation sealed pursuant to section 160.55 of the
S. 2009--C 236 A. 3009--C
criminal procedure law, or by a conviction which is sealed pursuant to
section 160.58 OR 160.59 of the criminal procedure law.
§ 49. Intentionally omitted.
§ 50. Intentionally omitted.
§ 51. Intentionally omitted.
§ 52. Intentionally omitted.
§ 53. Intentionally omitted.
§ 54. Intentionally omitted.
§ 55. Intentionally omitted.
§ 56. Subdivision 1 of section 301.2 of the family court act, as added
by chapter 920 of the laws of 1982, is amended to read as follows:
1. "Juvenile delinquent" means a person over seven and less than
sixteen years of age, OR COMMENCING ON OCTOBER FIRST, TWO THOUSAND EIGH-
TEEN A PERSON OVER SEVEN AND LESS THAN SEVENTEEN YEARS OF AGE, AND
COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN A PERSON OVER SEVEN AND
LESS THAN EIGHTEEN YEARS OF AGE, who, having committed an act that would
constitute a crime, OR A VIOLATION, WHERE SUCH VIOLATION IS ALLEGED TO
HAVE OCCURRED IN THE SAME TRANSACTION OR OCCURRENCE OF THE ALLEGED CRIM-
INAL ACT, if committed by an adult, (a) is not criminally responsible
for such conduct by reason of infancy, or (b) is the defendant in an
action ordered removed from a criminal court to the family court pursu-
ant to article seven hundred twenty-five of the criminal procedure law.
§ 56-a. Section 302.1 of the family court act is amended by adding a
new subdivision 3 to read as follows:
3. WHENEVER A CRIME AND A VIOLATION ARISE OUT OF THE SAME TRANSACTION
OR OCCURRENCE, A CHARGE ALLEGING BOTH OFFENSES SHALL BE MADE RETURNABLE
BEFORE THE COURT HAVING JURISDICTION OVER THE CRIME. NOTHING HEREIN
PROVIDED SHALL BE CONSTRUED TO PREVENT A COURT, HAVING JURISDICTION OVER
A VIOLATION RELATING TO A CRIMINAL ACT FROM LAWFULLY ENTERING AN ORDER
IN ACCORDANCE WITH 345.1 OF THIS ARTICLE WHERE SUCH ORDER IS NOT BASED
UPON THE COUNT OR COUNTS OF THE PETITION ALLEGING SUCH CRIMINAL ACT.
§ 56-b. Section 352.2 of the family court act is amended by adding a
new subdivision 4 to read as follows:
4. WHERE A YOUTH RECEIVES A JUVENILE DELINQUENCY ADJUDICATION FOR
CONDUCT COMMITTED WHEN THE YOUTH WAS AGE SIXTEEN OR OLDER THAT WOULD
CONSTITUTE A VIOLATION, THE COURT SHALL HAVE THE POWER TO ENTER AN ORDER
OF DISPOSITION IN ACCORDANCE WITH PARAGRAPHS (A) AND (B) OF SUBDIVISION
ONE OF THIS SECTION.
§ 57. Subdivisions 8 and 9 of section 301.2 of the family court act,
subdivision 8 as amended by chapter 7 of the laws of 2007 and subdivi-
sion 9 as added by chapter 920 of the laws of 1982, are amended to read
as follows:
8. "Designated felony act" means an act which, if done by an adult,
would be a crime: (i) defined in sections 125.27 (murder in the first
degree); 125.25 (murder in the second degree); 135.25 (kidnapping in the
first degree); or 150.20 (arson in the first degree) of the penal law
committed by a person thirteen, fourteen [or], fifteen, OR SIXTEEN, OR
COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN years of age;
or such conduct committed as a sexually motivated felony, where author-
ized pursuant to section 130.91 of the penal law; (ii) defined in
sections 120.10 (assault in the first degree); 125.20 (manslaughter in
the first degree); 130.35 (rape in the first degree); 130.50 (criminal
sexual act in the first degree); 130.70 (aggravated sexual abuse in the
first degree); 135.20 (kidnapping in the second degree) but only where
the abduction involved the use or threat of use of deadly physical
force; 150.15 (arson in the second degree) or 160.15 (robbery in the
S. 2009--C 237 A. 3009--C
first degree) of the penal law committed by a person thirteen, fourteen
[or], fifteen, OR SIXTEEN, OR, COMMENCING OCTOBER FIRST, TWO THOUSAND
NINETEEN, SEVENTEEN years of age; or such conduct committed as a sexual-
ly motivated felony, where authorized pursuant to section 130.91 of the
penal law; (iii) defined in the penal law as an attempt to commit murder
in the first or second degree or kidnapping in the first degree commit-
ted by a person thirteen, fourteen [or], fifteen, OR SIXTEEN, OR
COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN years of age;
or such conduct committed as a sexually motivated felony, where author-
ized pursuant to section 130.91 of the penal law; (iv) defined in
section 140.30 (burglary in the first degree); subdivision one of
section 140.25 (burglary in the second degree); subdivision two of
section 160.10 (robbery in the second degree) of the penal law; or
section 265.03 of the penal law, where such machine gun or such firearm
is possessed on school grounds, as that phrase is defined in subdivision
fourteen of section 220.00 of the penal law committed by a person four-
teen or fifteen years of age; or such conduct committed as a sexually
motivated felony, where authorized pursuant to section 130.91 of the
penal law; (v) defined in section 120.05 (assault in the second degree)
or 160.10 (robbery in the second degree) of the penal law committed by a
person fourteen [or], fifteen, OR SIXTEEN OR, COMMENCING OCTOBER FIRST,
TWO THOUSAND NINETEEN, SEVENTEEN years of age but only where there has
been a prior finding by a court that such person has previously commit-
ted an act which, if committed by an adult, would be the crime of
assault in the second degree, robbery in the second degree or any desig-
nated felony act specified in paragraph (i), (ii), or (iii) of this
subdivision regardless of the age of such person at the time of the
commission of the prior act; [or] (vi) other than a misdemeanor commit-
ted by a person at least seven but less than [sixteen] SEVENTEEN years
of age, AND COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, A PERSON AT
LEAST SEVEN BUT LESS THAN EIGHTEEN YEARS OF AGE, but only where there
has been two prior findings by the court that such person has committed
a prior felony.
9. "Designated class A felony act" means a designated felony act
[defined in paragraph (i) of subdivision eight] THAT WOULD CONSTITUTE A
CLASS A FELONY IF COMMITTED BY AN ADULT.
§ 58. Intentionally omitted.
§ 59. Section 304.1 of the family court act, as added by chapter 920
of the laws of 1982, subdivision 2 as amended by chapter 419 of the laws
of 1987, is amended to read as follows:
§ 304.1. Detention. 1. A facility certified by the [state division for
youth] OFFICE OF CHILDREN AND FAMILY SERVICES as a juvenile DETENTION
facility must be operated in conformity with the regulations of the
[state division for youth and shall be subject to the visitation and
inspection of the state board of social welfare] OFFICE OF CHILDREN AND
FAMILY SERVICES.
2. No child to whom the provisions of this article may apply shall be
detained in any prison, jail, lockup, or other place used for adults
convicted of crime or under arrest and charged with crime without the
approval of the [state division for youth] OFFICE OF CHILDREN AND FAMILY
SERVICES in the case of each child and the statement of its reasons
therefor. The [state division for youth] OFFICE OF CHILDREN AND FAMILY
SERVICES shall promulgate and publish the rules which it shall apply in
determining whether approval should be granted pursuant to this subdivi-
sion.
S. 2009--C 238 A. 3009--C
3. The detention of a child under ten years of age in a secure
detention facility shall not be directed under any of the provisions of
this article.
4. A detention facility which receives a child under subdivision four
of section 305.2 OF THIS PART shall immediately notify the child's
parent or other person legally responsible for his OR HER care or, if
such legally responsible person is unavailable the person with whom the
child resides, that he OR SHE has been placed in detention.
§ 60. Intentionally omitted.
§ 61. Subdivision 1 of section 305.1 of the family court act, as added
by chapter 920 of the laws of 1982, is amended to read as follows:
1. A private person may take a child [under the age of sixteen] WHO
MAY BE SUBJECT TO THE PROVISIONS OF THIS ARTICLE FOR COMMITTING AN ACT
THAT WOULD BE A CRIME IF COMMITTED BY AN ADULT into custody in cases in
which [he] SUCH PRIVATE PERSON may arrest an adult for a crime under
section 140.30 of the criminal procedure law.
§ 62. Subdivision 2 of section 305.2 of the family court act, as added
by chapter 920 of the laws of 1982, is amended to read as follows:
2. An officer may take a child [under the age of sixteen] WHO MAY BE
SUBJECT TO THE PROVISIONS OF THIS ARTICLE FOR COMMITTING AN ACT THAT
WOULD BE A CRIME IF COMMITTED BY AN ADULT into custody without a warrant
in cases in which [he] THE OFFICER may arrest a person for a crime under
article one hundred forty of the criminal procedure law.
§ 63. Paragraph (b) of subdivision 4 of section 305.2 of the family
court act, as amended by chapter 492 of the laws of 1987, is amended to
read as follows:
(b) forthwith and with all reasonable speed take the child directly,
and without his first being taken to the police station house, to the
family court located in the county in which the act occasioning the
taking into custody allegedly was committed, OR, WHEN THE FAMILY COURT
IS NOT IN SESSION, TO THE MOST ACCESSIBLE MAGISTRATE, IF ANY, DESIGNATED
BY THE APPELLATE DIVISION OF THE SUPREME COURT IN THE APPLICABLE DEPART-
MENT TO CONDUCT A HEARING UNDER SECTION 307.4 OF THIS PART, unless the
officer determines that it is necessary to question the child, in which
case he OR SHE may take the child to a facility designated by the chief
administrator of the courts as a suitable place for the questioning of
children or, upon the consent of a parent or other person legally
responsible for the care of the child, to the child's residence and
there question him OR HER for a reasonable period of time; or
§ 64. Intentionally omitted.
§ 65. Subdivision 4 of section 307.3 of the family court act, as added
by chapter 920 of the laws of 1982, is amended to read as follows:
4. If the agency for any reason does not release a child under this
section, such child shall be brought before the appropriate family
court, OR WHEN SUCH FAMILY COURT IS NOT IN SESSION, TO THE MOST ACCESSI-
BLE MAGISTRATE, IF ANY, DESIGNATED BY THE APPELLATE DIVISION OF THE
SUPREME COURT IN THE APPLICABLE DEPARTMENT; PROVIDED, HOWEVER, THAT IF
SUCH FAMILY COURT IS NOT IN SESSION AND IF A MAGISTRATE IS NOT AVAIL-
ABLE, SUCH YOUTH SHALL BE BROUGHT BEFORE SUCH FAMILY COURT within seven-
ty-two hours or the next day the court is in session, whichever is soon-
er. Such agency shall thereupon file an application for an order
pursuant to section 307.4 OF THIS PART and shall forthwith serve a copy
of the application upon the appropriate presentment agency. Nothing in
this subdivision shall preclude the adjustment of suitable cases pursu-
ant to section 308.1.
§ 66. Intentionally omitted.
S. 2009--C 239 A. 3009--C
§ 67. Paragraph (c) of subdivision 3 of section 311.1 of the family
court act, as added by chapter 920 of the laws of 1982, is amended to
read as follows:
(c) the fact that the respondent is a person [under sixteen years of]
OF THE NECESSARY age TO BE A JUVENILE DELINQUENT at the time of the
alleged act or acts;
§ 68. Intentionally omitted.
§ 69. Paragraphs (a) and (b) of subdivision 5 of section 322.2 of the
family court act, paragraph (a) as amended by chapter 37 of the laws of
2016 and paragraph (b) as added by chapter 920 of the laws of 1982, are
amended to read as follows:
(a) If the court finds that there is probable cause to believe that
the respondent committed a felony, it shall order the respondent commit-
ted to the custody of the commissioner of mental health or the commis-
sioner of THE OFFICE FOR PEOPLE WITH developmental disabilities for an
initial period not to exceed one year from the date of such order. Such
period may be extended annually upon further application to the court by
the commissioner having custody or his or her designee. Such application
must be made not more than sixty days prior to the expiration of such
period on forms that have been prescribed by the chief administrator of
the courts. At that time, the commissioner must give written notice of
the application to the respondent, the counsel representing the respond-
ent and the mental hygiene legal service if the respondent is at a resi-
dential facility. Upon receipt of such application, the court must
conduct a hearing to determine the issue of capacity. If, at the conclu-
sion of a hearing conducted pursuant to this subdivision, the court
finds that the respondent is no longer incapacitated, he or she shall be
returned to the family court for further proceedings pursuant to this
article. If the court is satisfied that the respondent continues to be
incapacitated, the court shall authorize continued custody of the
respondent by the commissioner for a period not to exceed one year. Such
extensions shall not continue beyond a reasonable period of time neces-
sary to determine whether the respondent will attain the capacity to
proceed to a fact finding hearing in the foreseeable future but in no
event shall continue beyond the respondent's eighteenth birthday OR, IF
THE RESPONDENT WAS AT LEAST SIXTEEN YEARS OF AGE WHEN THE ACT WAS
COMMITTED, BEYOND THE RESPONDENT'S TWENTY-FIRST BIRTHDAY.
(b) If a respondent is in the custody of the commissioner upon the
respondent's eighteenth birthday, OR IF THE RESPONDENT WAS AT LEAST
SIXTEEN YEARS OF AGE WHEN THE ACT RESULTING IN THE RESPONDENT'S PLACE-
MENT WAS COMMITTED, BEYOND THE RESPONDENT'S TWENTY-FIRST BIRTHDAY, the
commissioner shall notify the clerk of the court that the respondent was
in his custody on such date and the court shall dismiss the petition.
§ 70. Subdivisions 1 and 5 of section 325.1 of the family court act,
subdivision 1 as amended by chapter 398 of the laws of 1983, subdivision
5 as added by chapter 920 of the laws of 1982, are amended to read as
follows:
1. At the initial appearance, if the respondent denies a charge
contained in the petition and the court determines that [he] THE
RESPONDENT shall be detained for more than three days pending a fact-
finding hearing, the court shall schedule a probable-cause hearing to
determine the issues specified in section 325.3 OF THIS PART.
5. Where the petition consists of an order of removal pursuant to
article seven hundred twenty-five of the criminal procedure law, unless
the removal was pursuant to subdivision three of section 725.05 of such
law and the respondent was not afforded a probable cause hearing pursu-
S. 2009--C 240 A. 3009--C
ant to subdivision three of section [180.75] 722.20 of such law [for a
reason other than his waiver thereof pursuant to subdivision two of
section 180.75 of such law], the petition shall be deemed to be based
upon a determination that probable cause exists to believe the respond-
ent is a juvenile delinquent and the respondent shall not be entitled to
any further inquiry on the subject of whether probable cause exists.
After the filing of any such petition the court must, however, exercise
independent, de novo discretion with respect to release or detention as
set forth in section 320.5 OF THIS PART.
§ 70-a. Section 350.3 of the family court act is amended by adding a
new subdivision 4 to read as follows:
4. THE VICTIM HAS THE RIGHT TO MAKE A STATEMENT WITH REGARD TO ANY
MATTER RELEVANT TO THE QUESTION OF DISPOSITION. IF THE VICTIM CHOOSES TO
MAKE A STATEMENT, SUCH INDIVIDUAL SHALL NOTIFY THE COURT AT LEAST TEN
DAYS PRIOR TO THE DATE OF THE DISPOSITIONAL HEARING. THE COURT SHALL
NOTIFY THE RESPONDENT NO LESS THAN SEVEN DAYS PRIOR TO THE DISPOSITIONAL
HEARING OF THE VICTIM'S INTENT TO MAKE A STATEMENT. THE VICTIM SHALL NOT
BE MADE AWARE OF THE FINAL DISPOSITION OF THE CASE.
§ 70-b. Section 350.4 of the family court act is amended by adding a
new subdivision 5-a to read as follows:
5-A. THE VICTIM SHALL BE ALLOWED TO MAKE AN ORAL OR WRITTEN STATEMENT.
§ 70-c. Subdivision 4 of section 351.1 of the family court act, as
amended by chapter 317 of the laws of 2004, is amended to read as
follows:
4. [When it appears that such information would be relevant to the
findings of the court or the order of disposition, each] EACH investi-
gation report prepared pursuant to this section shall [contain a] AFFORD
THE VICTIM THE RIGHT TO MAKE A STATEMENT. SUCH victim impact statement
[which] shall include an analysis of the victim's version of the
offense, the extent of injury or economic loss AND THE ACTUAL OUT-OF-
POCKET LOSS or damage to the victim, including the amount of unreim-
bursed medical expenses, if any, and the views of the victim relating to
disposition including the amount of restitution sought by the victim,
subject to availability of such information. In the case [of a homicide
or] where the victim is unable to assist in the preparation of the
victim impact statement, the information may be acquired from the
victim's family. Nothing contained in this section shall be interpreted
to require that a victim or his or her family supply information for the
preparation of an investigation report or that the dispositional hearing
should be delayed in order to obtain such information.
§ 71. Intentionally omitted.
§ 72. The opening paragraph of subparagraph (iii) of paragraph (a) and
paragraph (d) of subdivision 4 of section 353.5 of the family court act,
as amended by section 6 of subpart A of part G of chapter 57 of the laws
of 2012, are amended to read as follows:
after the period set under subparagraph (ii) of this paragraph, the
respondent shall be placed in a residential facility for a period of
twelve months; provided, however, that if the respondent has been placed
from a family court in a social services district operating an approved
juvenile justice services close to home initiative pursuant to section
four hundred four of the social services law FOR AN ACT COMMITTED WHEN
THE RESPONDENT WAS UNDER SIXTEEN YEARS OF AGE, once the time frames in
subparagraph (ii) of this paragraph are met:
(d) Upon the expiration of the initial period of placement, or any
extension thereof, the placement may be extended in accordance with
section 355.3 on a petition of any party or the office of children and
S. 2009--C 241 A. 3009--C
family services, or, if applicable, a social services district operating
an approved juvenile justice services close to home initiative pursuant
to section four hundred four of the social services law, after a dispo-
sitional hearing, for an additional period not to exceed twelve months,
but no initial placement or extension of placement under this section
may continue beyond the respondent's twenty-first birthday, OR, FOR AN
ACT THAT WAS COMMITTED WHEN THE RESPONDENT WAS SIXTEEN YEARS OF AGE OR
OLDER, THE RESPONDENT'S TWENTY-THIRD BIRTHDAY.
§ 73. Paragraph (d) of subdivision 4 of section 353.5 of the family
court act, as amended by chapter 398 of the laws of 1983, is amended to
read as follows:
(d) Upon the expiration of the initial period of placement, or any
extension thereof, the placement may be extended in accordance with
section 355.3 on a petition of any party or the [division for youth]
OFFICE OF CHILDREN AND FAMILY SERVICES after a dispositional hearing,
for an additional period not to exceed twelve months, but no initial
placement or extension of placement under this section may continue
beyond the respondent's twenty-first birthday, OR, FOR AN ACT THAT WAS
COMMITTED WHEN THE RESPONDENT WAS SIXTEEN YEARS OF AGE OR OLDER, THE
RESPONDENT'S TWENTY-THIRD BIRTHDAY.
§ 74. Intentionally omitted.
§ 75. Subdivision 6 of section 355.3 of the family court act, as
amended by chapter 663 of the laws of 1985, is amended to read as
follows:
6. Successive extensions of placement under this section may be grant-
ed, but no placement may be made or continued beyond the respondent's
eighteenth birthday without the child's consent FOR ACTS COMMITTED
BEFORE THE RESPONDENT'S SIXTEENTH BIRTHDAY and in no event past the
child's twenty-first birthday EXCEPT AS PROVIDED FOR IN SUBDIVISION FOUR
OF SECTION 353.5 OF THIS PART.
§ 76. Paragraph (b) of subdivision 3 of section 355.5 of the family
court act, as amended by chapter 145 of the laws of 2000, is amended to
read as follows:
(b) subsequent permanency hearings shall be held no later than every
twelve months following the respondent's initial twelve months in place-
ment BUT IN NO EVENT PAST THE RESPONDENT'S TWENTY-FIRST BIRTHDAY;
provided, however, that they shall be held in conjunction with an exten-
sion of placement hearing held pursuant to section 355.3 of this [arti-
cle] PART.
§ 77. Subdivision 6 of section 375.2 of the family court act, as added
by chapter 926 of the laws of 1982 and as renumbered by chapter 398 of
the laws of 1983, is amended to read as follows:
6. Such a motion cannot be filed until the respondent's sixteenth
birthday, OR, COMMENCING OCTOBER FIRST, TWO THOUSAND EIGHTEEN, THE
RESPONDENT'S SEVENTEENTH BIRTHDAY, OR COMMENCING OCTOBER FIRST, TWO
THOUSAND NINETEEN, THE RESPONDENT'S EIGHTEENTH BIRTHDAY.
§ 78. Subdivisions 5 and 6 of section 371 of the social services law,
subdivision 5 as added by chapter 690 of the laws of 1962, and subdivi-
sion 6 as amended by chapter 596 of the laws of 2000, are amended to
read as follows:
5. "Juvenile delinquent" means a person [over seven and less than
sixteen years of age who does any act which, if done by an adult, would
constitute a crime] AS DEFINED IN SECTION 301.2 OF THE FAMILY COURT ACT.
6. "Person in need of supervision" means a person [less than eighteen
years of age who is habitually truant or who is incorrigible, ungoverna-
ble or habitually disobedient and beyond the lawful control of a parent
S. 2009--C 242 A. 3009--C
or other person legally responsible for such child's care, or other
lawful authority] AS DEFINED IN SECTION SEVEN HUNDRED TWELVE OF THE
FAMILY COURT ACT.
§ 78-a. Subdivision 2 of section 40 of the correction law, as added by
chapter 865 of the laws of 1975, is amended to read as follows:
2. "Local correctional facility" means any county jail, county peni-
tentiary, county lockup, city jail, police station jail, town or village
jail or lockup, court detention pen [or], hospital prison ward OR
SPECIALIZED SECURE JUVENILE DETENTION FACILITY FOR OLDER YOUTH.
§ 79. Subdivisions 3 and 4 of section 502 of the executive law, subdi-
vision 3 as amended by section 1 of subpart B of part Q of chapter 58 of
the laws of 2011 and subdivision 4 as added by chapter 465 of the laws
of 1992, are amended to read as follows:
3. "Detention" means the temporary care and maintenance of youth held
away from their homes pursuant to article three or seven of the family
court act, or held pending a hearing for alleged violation of the condi-
tions of release from an office of children and family services facility
or authorized agency, or held pending a hearing for alleged violation of
the condition of parole as a juvenile offender, YOUTHFUL OFFENDER OR
ADOLESCENT OFFENDER or held pending return to a jurisdiction other than
the one in which the youth is held, or held pursuant to a securing order
of a criminal court if the youth named therein as principal is charged
as a juvenile offender, YOUTHFUL OFFENDER OR ADOLESCENT OFFENDER or held
pending a hearing on an extension of placement or held pending transfer
to a facility upon commitment or placement by a court. Only alleged or
convicted juvenile offenders, YOUTHFUL OFFENDERS OR ADOLESCENT OFFENDERS
who have not attained their eighteenth OR, COMMENCING OCTOBER FIRST, TWO
THOUSAND EIGHTEEN, THEIR TWENTY-FIRST birthday shall be subject to
detention in a detention facility. COMMENCING OCTOBER FIRST, TWO THOU-
SAND EIGHTEEN, A YOUTH WHO ON OR AFTER SUCH DATE COMMITTED AN OFFENSE
WHEN THE YOUTH WAS SIXTEEN YEARS OF AGE; OR COMMENCING OCTOBER FIRST,
TWO THOUSAND NINETEEN, A YOUTH WHO COMMITTED AN OFFENSE ON OR AFTER SUCH
DATE WHEN THE YOUTH WAS SEVENTEEN YEARS OF AGE HELD PURSUANT TO A SECUR-
ING ORDER OF A CRIMINAL COURT IF THE YOUTH IS CHARGED AS AN ADOLESCENT
OFFENDER OR HELD PENDING A HEARING FOR ALLEGED VIOLATION OF THE CONDI-
TION OF PAROLE AS AN ADOLESCENT OFFENDER, MUST BE HELD IN A SPECIALIZED
SECURE JUVENILE DETENTION FACILITY FOR OLDER YOUTH CERTIFIED BY THE
STATE OFFICE OF CHILDREN AND FAMILY SERVICES IN CONJUNCTION WITH THE
STATE COMMISSION OF CORRECTION.
4. For purposes of this article, the term "youth" shall [be synonymous
with the term "child" and means] MEAN a person not less than seven years
of age and not more than twenty OR COMMENCING OCTOBER FIRST, TWO THOU-
SAND NINETEEN, NOT MORE THAN TWENTY-TWO years of age.
§ 79-a. Section 503 of the executive law is amended by adding a new
subdivision 9 to read as follows:
9. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE OFFICE OF CHILDREN
AND FAMILY SERVICES IN CONSULTATION WITH THE STATE COMMISSION OF
CORRECTION SHALL JOINTLY REGULATE, CERTIFY, INSPECT AND SUPERVISE
SPECIALIZED SECURE DETENTION FACILITIES FOR ADOLESCENT OFFENDERS.
§ 79-b. Paragraph (b) of subdivision 4 of section 507-a of the execu-
tive law, as amended by chapter 465 of the laws of 1992, is amended to
read as follows:
(b) The [division] OFFICE OF CHILDREN AND FAMILY SERVICES shall admit
a child placed with the [division] OFFICE to a facility of the [divi-
sion] OFFICE within fifteen days of the date of the order of placement
with the [division] OFFICE and shall admit a juvenile offender, YOUTHFUL
S. 2009--C 243 A. 3009--C
OFFENDER OR ADOLESCENT OFFENDER committed to the [division] OFFICE to a
facility of the [division] OFFICE within ten days of the date of the
order of commitment to the [division] OFFICE, except as provided in
section five hundred seven-b of this article.
§ 80. Paragraph (a) of subdivision 2 and subdivision 5 of section
507-a of the executive law, as amended by chapter 465 of the laws of
1992, are amended to read as follows:
(a) Consistent with other provisions of law, only those youth who have
reached the age of seven but who have not reached the age of twenty-one
may be placed in[, committed to or remain in] the [division's] custody
OF THE OFFICE OF CHILDREN AND FAMILY SERVICES. EXCEPT AS PROVIDED FOR IN
PARAGRAPH (A-1) OF THIS SUBDIVISION, NO YOUTH WHO HAS REACHED THE AGE OF
TWENTY-ONE MAY REMAIN IN CUSTODY OF THE OFFICE OF CHILDREN AND FAMILY
SERVICES.
(A-1) (I) A YOUTH WHO IS COMMITTED TO THE OFFICE OF CHILDREN AND FAMI-
LY SERVICES AS A JUVENILE OFFENDER OR A JUVENILE OFFENDER ADJUDICATED AS
A YOUTHFUL OFFENDER MAY REMAIN IN THE CUSTODY OF THE OFFICE DURING THE
PERIOD OF HIS OR HER SENTENCE BEYOND THE AGE OF TWENTY-ONE IN ACCORDANCE
WITH THE PROVISIONS OF SUBDIVISION FIVE OF SECTION FIVE HUNDRED EIGHT OF
THIS TITLE BUT IN NO EVENT MAY SUCH A YOUTH REMAIN IN THE CUSTODY OF THE
OFFICE BEYOND HIS OR HER TWENTY-THIRD BIRTHDAY; AND (II) A YOUTH FOUND
TO HAVE COMMITTED A DESIGNATED CLASS A FELONY ACT WHO IS RESTRICTIVELY
PLACED WITH THE OFFICE UNDER SUBDIVISION FOUR OF SECTION 353.5 OF THE
FAMILY COURT ACT FOR COMMITTING AN ACT ON OR AFTER THE YOUTH'S SIXTEENTH
BIRTHDAY MAY REMAIN IN THE CUSTODY OF THE OFFICE OF CHILDREN AND FAMILY
SERVICES UP TO THE AGE OF TWENTY-THREE IN ACCORDANCE WITH HIS OR HER
PLACEMENT ORDER.
(A-2) Whenever it shall appear to the satisfaction of the [division]
OFFICE OF CHILDREN AND FAMILY SERVICES that any youth placed therewith
is not of proper age to be so placed or is not properly placed, or is
mentally or physically incapable of being materially benefited by the
program of the [division] OFFICE, the [division] OFFICE shall cause the
return of such youth to the county from which placement was made.
5. Consistent with other provisions of law, in the discretion of the
[director, youth] COMMISSIONER OF THE OFFICE OF CHILDREN AND FAMILY
SERVICES, YOUTH PLACED WITHIN THE OFFICE UNDER THE FAMILY COURT ACT who
attain the age of eighteen while in [division] custody OF THE OFFICE AND
WHO ARE NOT REQUIRED TO REMAIN IN THE PLACEMENT WITH THE OFFICE AS A
RESULT OF A DISPOSITIONAL ORDER OF THE FAMILY COURT may reside in a
non-secure facility until the age of twenty-one, provided that such
youth attend a full-time vocational or educational program and are like-
ly to benefit from such program.
§ 81. Intentionally omitted.
§ 81-a. The correction law is amended by adding a new section 77 to
read as follows:
§ 77. ADOLESCENT OFFENDER FACILITIES. 1. (A) THE STATE SHALL ESTAB-
LISH ONE OR MORE FACILITIES WITH ENHANCED SECURITY FEATURES AND SPECIAL-
LY TRAINED STAFF TO SERVE THE ADOLESCENT OFFENDERS SENTENCED TO A DETER-
MINATE OR INDETERMINATE SENTENCE FOR COMMITTING OFFENSES ON OR AFTER
THEIR SIXTEENTH BIRTHDAY WHO ARE DETERMINED TO NEED AN ENHANCED LEVEL OF
SECURE CARE WHICH SHALL BE MANAGED BY THE DEPARTMENT WITH THE OFFICE OF
CHILDREN AND FAMILY SERVICES ASSISTANCE, AND SERVICES OR PROGRAMS.
(B) A COUNCIL COMPRISED OF THE COMMISSIONER, AND THE OFFICE OF CHIL-
DREN AND FAMILY SERVICES, THE COMMISSIONER OF THE STATE COMMISSION OF
CORRECTION, AND THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE
SERVICES SHALL BE ESTABLISHED TO ASSESS THE OPERATION OF THE FACILITY.
S. 2009--C 244 A. 3009--C
THE GOVERNOR SHALL DESIGNATE THE CHAIR OF THE COUNCIL. THE COUNCIL SHALL
HAVE THE POWER TO PERFORM ALL ACTS NECESSARY TO CARRY OUT ITS DUTIES
INCLUDING MAKING UNANNOUNCED VISITS AND INSPECTIONS OF THE FACILITY AT
ANY TIME. NOTWITHSTANDING ANY OTHER PROVISION OF STATE LAW TO THE
CONTRARY, THE COUNCIL MAY REQUEST AND THE DEPARTMENT SHALL SUBMIT TO THE
COUNCIL, TO THE EXTENT PERMITTED BY FEDERAL LAW, ALL INFORMATION IN THE
FORM AND MANNER AND AT SUCH TIMES AS THE COUNCIL MAY REQUIRE THAT IS
APPROPRIATE TO THE PURPOSES AND OPERATION OF THE COUNCIL. THE COUNCIL
SHALL BE SUBJECT TO THE SAME LAWS AS APPLY TO THE DEPARTMENT REGARDING
THE PROTECTION AND CONFIDENTIALITY OF THE INFORMATION MADE AVAILABLE TO
THE COUNCIL AND SHALL PREVENT ACCESS THERETO BY, OR THE DISTRIBUTION
THEREOF TO, PERSONS NOT AUTHORIZED BY LAW.
(C) APPROPRIATE STAFF WORKING IN SUCH FACILITIES SHALL RECEIVE
SPECIALIZED TRAINING TO ADDRESS WORKING WITH THE TYPES OF YOUTH PLACED
IN THE FACILITY, WHICH SHALL INCLUDE BUT NOT BE LIMITED TO, TRAINING ON
TACTICAL RESPONSES AND DE-ESCALATION TECHNIQUES. ALL STAFF OF THE FACIL-
ITY SHALL BE SUBJECT TO RANDOM DRUG TESTS.
2. THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL ASSIGN AN ASSIST-
ANT COMMISSIONER TO ASSIST THE DEPARTMENT, ON A PERMANENT BASIS, WITH
PROGRAMS OR SERVICES PROVIDED WITHIN SUCH FACILITIES.
3. THE DEPARTMENT, THE STATE COMMISSION OF CORRECTION AND THE OFFICE
OF CHILDREN AND FAMILY SERVICES SHALL JOINTLY ESTABLISH A PLACEMENT
CLASSIFICATION PROTOCOL TO BE USED TO DETERMINE THE APPROPRIATE LEVEL OF
CARE FOR EACH ADOLESCENT OFFENDER IN SUCH FACILITY. THE PROTOCOL SHALL
INCLUDE, BUT NOT NECESSARILY BE LIMITED TO, CONSIDERATION OF THE NATURE
OF THE YOUTH'S OFFENSE AND THE YOUTH'S HISTORY AND SERVICE NEEDS.
4. ANY NEW FACILITIES DEVELOPED BY THE DEPARTMENT IN CONSULTATION
WITH THE OFFICE OF CHILDREN AND FAMILY SERVICES TO SERVE THE YOUTH
COMMITTED AS ADOLESCENT OFFENDERS AS A RESULT OF RAISING THE AGE OF
JUVENILE JURISDICTION SHALL, TO THE EXTENT PRACTICABLE, CONSIST OF SMAL-
LER, MORE HOME-LIKE FACILITIES LOCATED NEAR THE YOUTHS' HOMES AND FAMI-
LIES THAT PROVIDE GENDER-RESPONSIVE PROGRAMMING, SERVICES AND TREATMENT
IN SMALL, CLOSELY SUPERVISED GROUPS THAT OFFER EXTENSIVE AND ON-GOING
INDIVIDUAL ATTENTION AND ENCOURAGE SUPPORTIVE PEER RELATIONSHIPS.
5. ADOLESCENT OFFENDERS COMMITTED OR TRANSFERRED TO THE FACILITY, AS
DEFINED IN THIS SECTION FOR COMMITTING A CRIME ON OR AFTER THEIR
SIXTEENTH BIRTHDAY WHO STILL HAVE TIME LEFT ON THEIR SENTENCES OF IMPRI-
SONMENT SHALL BE TRANSFERRED TO A NON-ADOLESCENT OFFENDER FACILITY IN
THE DEPARTMENT FOR CONFINEMENT PURSUANT TO THIS CHAPTER AFTER COMPLETING
TWO YEARS IN AN ADOLESCENT OFFENDER FACILITY UNLESS THEY ARE WITHIN FOUR
MONTHS OF COMPLETING THE IMPRISONMENT PORTION OF THEIR SENTENCE AND THE
DEPARTMENT DETERMINES, IN ITS DISCRETION, ON A CASE-BY-CASE BASIS THAT
THE YOUTH SHOULD BE PERMITTED TO REMAIN IN SUCH FACILITY FOR THE ADDI-
TIONAL SHORT PERIOD OF TIME NECESSARY TO ENABLE THEM TO COMPLETE THEIR
SENTENCE. IN MAKING SUCH A DETERMINATION, THE FACTORS THE DEPARTMENT MAY
CONSIDER INCLUDE, BUT ARE NOT LIMITED TO, THE AGE OF THE YOUTH, THE
AMOUNT OF TIME REMAINING ON THE YOUTH'S SENTENCE OF IMPRISONMENT, THE
LEVEL OF THE YOUTH'S PARTICIPATION IN THE PROGRAM, THE YOUTH'S EDUCA-
TIONAL AND VOCATIONAL PROGRESS, THE OPPORTUNITIES AVAILABLE TO THE YOUTH
THROUGH THE DEPARTMENT, AND THE LENGTH OF ANY APPLICABLE POST-RELEASE
SUPERVISION SENTENCE. NOTHING IN THIS SUBDIVISION SHALL AUTHORIZE A
YOUTH TO REMAIN IN SUCH FACILITY BEYOND HIS OR HER TWENTY-THIRD BIRTH-
DAY.
§ 81-b. The correction law is amended by adding a new section 78 to
read as follows:
S. 2009--C 245 A. 3009--C
§ 78. DISCHARGE PLANS. THE DEPARTMENT, IN CONSULTATION WITH THE OFFICE
OF CHILDREN AND FAMILY SERVICES, SHALL PROVIDE DISCHARGE PLANS FOR JUVE-
NILE OFFENDERS AND ADOLESCENT OFFENDERS WHO ARE RELEASED TO PAROLE OR
POST-RELEASE SUPERVISION, WHICH ARE TAILORED TO ADDRESS THEIR INDIVIDUAL
NEEDS. SUCH PLANS SHALL INCLUDE SERVICES DESIGNED TO PROMOTE PUBLIC
SAFETY AND THE SUCCESSFUL AND PRODUCTIVE REENTRY OF SUCH ADOLESCENTS
INTO SOCIETY.
§ 82. Subdivisions 2, 3, 7, 8 and 9 of section 508 of the executive
law, subdivision 2 as amended by chapter 572 of the laws of 1985, subdi-
vision 3 as added by chapter 481 of the laws of 1978 and renumbered by
chapter 465 of the laws of 1992, subdivision 7 as amended by section 97
of subpart B of part C of chapter 62 of the laws of 2011, subdivision 8
as added by chapter 560 of the laws of 1984 and subdivision 9 as amended
by chapter 37 of the laws of 2016, are amended to read as follows:
2. Juvenile offenders shall be confined in such facilities until the
age of twenty-one IN ACCORDANCE WITH THEIR SENTENCES, and shall not be
released, discharged or permitted home visits except pursuant to the
provisions of this section.
3. The [division] OFFICE OF CHILDREN AND FAMILY SERVICES shall report
in writing to the sentencing court and district attorney, not less than
once every six months during the period of confinement, on the status,
adjustment, programs and progress of the offender.
The office of children and family services may transfer an offender
not less than eighteen [nor more than twenty-one] years of age to the
department of corrections and community supervision if the commissioner
of the office certifies to the commissioner of corrections and community
supervision that there is no substantial likelihood that the youth will
benefit from the programs offered by office facilities.
7. While in the custody of the office of children and family services,
an offender shall be subject to the rules and regulations of the office,
except that his OR HER parole, temporary release and discharge shall be
governed by the laws applicable to inmates of state correctional facili-
ties and his OR HER transfer to state hospitals in the office of mental
health shall be governed by section five hundred nine of this chapter;
PROVIDED, HOWEVER, THAT AN OTHERWISE ELIGIBLE OFFENDER MAY RECEIVE THE
SIX-MONTH LIMITED CREDIT TIME ALLOWANCE FOR SUCCESSFUL PARTICIPATION IN
ONE OR MORE PROGRAMS DEVELOPED BY THE OFFICE OF CHILDREN AND FAMILY
SERVICES THAT ARE COMPARABLE TO THE PROGRAMS SET FORTH IN SECTION EIGHT
HUNDRED THREE-B OF THE CORRECTION LAW, TAKING INTO CONSIDERATION THE AGE
OF OFFENDERS. The commissioner of the office of children and family
services shall, however, establish and operate temporary release
programs at office of children and family services facilities for eligi-
ble juvenile offenders and contract with the department of corrections
and community supervision for the provision of parole supervision
services for temporary releasees. The rules and regulations for these
programs shall not be inconsistent with the laws for temporary release
applicable to inmates of state correctional facilities. For the purposes
of temporary release programs for juvenile offenders only, when referred
to or defined in article twenty-six of the correction law, "institution"
shall mean any facility designated by the commissioner of the office of
children and family services, "department" shall mean the office of
children and family services, "inmate" shall mean a juvenile offender
residing in an office of children and family services facility, and
"commissioner" shall mean the [director] COMMISSIONER of the office of
children and family services. Time spent in office of children and fami-
ly services facilities and in juvenile detention facilities shall be
S. 2009--C 246 A. 3009--C
credited towards the sentence imposed in the same manner and to the same
extent applicable to inmates of state correctional facilities.
8. Whenever a juvenile offender or a juvenile offender adjudicated a
youthful offender shall be delivered to the director of [a division for
youth] AN OFFICE OF CHILDREN AND FAMILY SERVICES facility pursuant to a
commitment to the [director of the division for youth] OFFICE OF CHIL-
DREN AND FAMILY SERVICES, the officer so delivering such person shall
deliver to such facility director a certified copy of the sentence
received by such officer from the clerk of the court by which such
person shall have been sentenced, a copy of the report of the probation
officer's investigation and report, any other pre-sentence memoranda
filed with the court, a copy of the person's fingerprint records, a
detailed summary of available medical records, psychiatric records and
reports relating to assaults, or other violent acts, attempts at suicide
or escape by the person while in the custody of a local detention facil-
ity.
9. Notwithstanding any provision of law, including section five
hundred one-c of this article, the office of children and family
services shall make records pertaining to a person convicted of a sex
offense as defined in subdivision (p) of section 10.03 of the mental
hygiene law available upon request to the commissioner of mental health
or the commissioner of THE OFFICE FOR PEOPLE WITH developmental disabil-
ities, as appropriate; a case review panel; and the attorney general; in
accordance with the provisions of article ten of the mental hygiene law.
§ 82-a. Subdivision 2 of section 529 of the executive law, as amended
by chapter 430 of the laws of 1991, is amended to read as follows:
2. Expenditures made by the [division for youth] OFFICE OF CHILDREN
AND FAMILY SERVICES for care, maintenance and supervision furnished
youth, including alleged and adjudicated juvenile delinquents and
persons in need of supervision, placed or referred, pursuant to titles
two or three of this article, and juvenile offenders, YOUTHFUL OFFENDERS
AND ADOLESCENT OFFENDERS committed pursuant to [section 70.05 of] the
penal law, in the [division's] OFFICE'S programs and facilities, shall
be subject to reimbursement to the state by the social services district
from which the youth was placed or by the social services district in
which the juvenile offender resided at the time of commitment, in
accordance with this section and the regulations of the [division]
OFFICE, as follows: fifty percent of the amount expended for care, main-
tenance and supervision of local charges including juvenile offenders.
§ 82-b. Subdivision A of section 218-a of the county law is amended by
adding a new paragraph 6 to read as follows:
6. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, COMMENCING OCTOBER
FIRST, TWO THOUSAND EIGHTEEN, A COUNTY MUST PROVIDE FOR ADEQUATE
DETENTION OF ALLEGED OR CONVICTED ADOLESCENT OFFENDERS IN A SPECIALIZED
SECURE DETENTION FACILITY FOR OLDER YOUTH WHO ARE ALLEGED OR CONVICTED
OF COMMITTING AN OFFENSE WHEN THEY WERE SIXTEEN YEARS OF AGE AND
COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, A COUNTY MUST PROVIDE
FOR ADEQUATE DETENTION OF ALLEGED OR CONVICTED ADOLESCENT OFFENDERS IN A
SPECIALIZED SECURE DETENTION FACILITY FOR OLDER YOUTH WHO ARE ALLEGED OR
CONVICTED OF COMMITTING AN OFFENSE WHEN THEY WERE SIXTEEN OR SEVENTEEN
YEARS OF AGE. SUCH FACILITY SHALL BE CERTIFIED AND REGULATED BY THE
OFFICE OF CHILDREN AND FAMILY SERVICES IN CONJUNCTION WITH THE STATE
COMMISSION OF CORRECTION. SUCH FACILITY SHALL: (I) HAVE ENHANCED SECURI-
TY FEATURES AND SPECIALLY TRAINED STAFF; AND (II) BE JOINTLY ADMINIS-
TERED BY THE AGENCY OF COUNTY GOVERNMENT DESIGNATED IN ACCORDANCE WITH
SUBDIVISION A OF THIS SECTION AND THE APPLICABLE COUNTY SHERIFF, WHICH
S. 2009--C 247 A. 3009--C
BOTH SHALL HAVE THE POWER TO PERFORM ALL ACTS NECESSARY TO CARRY OUT
THEIR DUTIES. THE COUNTY SHERIFF SHALL BE SUBJECT TO THE SAME LAWS THAT
APPLY TO THE DESIGNATED COUNTY AGENCY REGARDING THE PROTECTION AND
CONFIDENTIALITY OF THE INFORMATION ABOUT THE YOUTH IN SUCH FACILITY AND
SHALL PREVENT ACCESS THERETO BY, OR THE DISTRIBUTION THEREOF TO, PERSONS
NOT AUTHORIZED BY LAW.
§ 83. Intentionally omitted.
§ 84. Intentionally omitted.
§ 85. Intentionally omitted.
§ 86. Intentionally omitted.
§ 87. Intentionally omitted.
§ 88. Intentionally omitted.
§ 89. Intentionally omitted.
§ 90. Intentionally omitted.
§ 91. Intentionally omitted.
§ 92. Intentionally omitted.
§ 93. Intentionally omitted.
§ 94. Intentionally omitted.
§ 95. Intentionally omitted.
§ 96. Intentionally omitted.
§ 97. Intentionally omitted.
§ 98. Intentionally omitted.
§ 98-a. Intentionally omitted.
§ 98-b. Intentionally omitted.
§ 98-c. Intentionally omitted.
§ 99. Subdivision 1, the opening paragraph of subdivision 2 and
subparagraphs (i) and (iii) of paragraph (a) of subdivision 3 of section
529-b of the executive law, as added by section 3 of subpart B of part Q
of chapter 58 of the laws of 2011, are amended to read as follows:
1. (a) Notwithstanding any provision of law to the contrary, eligible
expenditures by an eligible municipality for services to divert youth at
risk of, alleged to be, or adjudicated as juvenile delinquents or
persons alleged or adjudicated to be in need of supervision, or youth
alleged to be or convicted as juvenile offenders, YOUTHFUL OFFENDERS OR
ADOLESCENT OFFENDERS from placement in detention or in residential care
shall be subject to state reimbursement under the supervision and treat-
ment services for juveniles program for up to sixty-two percent of the
municipality's expenditures, subject to available appropriations and
exclusive of any federal funds made available for such purposes, not to
exceed the municipality's distribution under the supervision and treat-
ment services for juveniles program.
(b) The state funds appropriated for the supervision and treatment
services for juveniles program shall be distributed to eligible munici-
palities by the office of children and family services based on a plan
developed by the office which may consider historical information
regarding the number of youth seen at probation intake for an alleged
act of delinquency, the number of youth remanded to detention, the
number of juvenile delinquents placed with the office, the number of
juvenile delinquents and persons in need of supervision placed in resi-
dential care with the municipality, the municipality's reduction in the
use of detention and residential placements, and other factors as deter-
mined by the office. Such plan developed by the office shall be subject
to the approval of the director of the budget. The office is authorized,
in its discretion, to make advance distributions to a municipality in
anticipation of state reimbursement.
S. 2009--C 248 A. 3009--C
As used in this section, the term "municipality" shall mean a county,
or a city having a population of one million or more, and "supervision
and treatment services for juveniles" shall mean community-based
services or programs designed to safely maintain youth in the community
pending a family court disposition or conviction in criminal court and
services or programs provided to youth adjudicated as juvenile delin-
quents or persons in need of supervision, or youth alleged to be juve-
nile offenders, YOUTHFUL OFFENDERS OR ADOLESCENT OFFENDERS to prevent
residential placement of such youth or a return to placement where such
youth have been released to the community from residential placement.
Supervision and treatment services for juveniles may include but are not
limited to services or programs that:
(i) an analysis that identifies the neighborhoods or communities from
which the greatest number of juvenile delinquents and persons in need of
supervision are remanded to detention or residentially placed;
(iii) a description of how the services and programs proposed for
funding will reduce the number of youth from the municipality who are
detained and residentially OR OTHERWISE placed; how such services and
programs are family-focused; and whether such services and programs are
capable of being replicated across multiple sites;
§ 100. The opening paragraph and paragraph (a) of subdivision 2 and
subdivisions 5 and 6 of section 530 of the executive law, the opening
paragraph of subdivision 2 as amended by section 4 of subpart B of part
Q of chapter 58 of the laws of 2011, paragraph (a) of subdivision 2 as
amended by section 1 of part M of chapter 57 of the laws of 2012, subdi-
vision 5 as amended by chapter 920 of the laws of 1982, subparagraphs 1,
2 and 4 of paragraph (a) and paragraph (b) of subdivision 5 as amended
by section 5 of subpart B of part Q of chapter 58 of the laws of 2011,
and subdivision 6 as amended by chapter 880 of the laws of 1976, are
amended and a new subdivision 8 is added to read as follows:
Expenditures made by municipalities in providing care, maintenance and
supervision to youth in detention facilities designated pursuant to
sections seven hundred twenty and SECTION 305.2 of the family court act
and certified by [the division for youth] OFFICE OF CHILDREN AND FAMILY
SERVICES, shall be subject to reimbursement by the state, as follows:
(a) Notwithstanding any provision of law to the contrary, eligible
expenditures by a municipality during a particular program year for the
care, maintenance and supervision in foster care programs certified by
the office of children and family services, certified or approved family
boarding homes, and non-secure detention facilities certified by the
office for those youth alleged to be persons in need of supervision or
adjudicated persons in need of supervision held pending transfer to a
facility upon placement; and in secure and non-secure detention facili-
ties certified by the office in accordance with section five hundred
three of this article for those youth alleged to be juvenile delin-
quents; adjudicated juvenile delinquents held pending transfer to a
facility upon placement, and juvenile delinquents held at the request of
the office of children and family services pending extension of place-
ment hearings or release revocation hearings or while awaiting disposi-
tion of such hearings; and youth alleged to be or convicted as juvenile
offenders, YOUTHFUL OFFENDERS AND ADOLESCENT OFFENDERS shall be subject
to state reimbursement for up to fifty percent of the municipality's
expenditures, exclusive of any federal funds made available for such
purposes, not to exceed the municipality's distribution from funds that
have been appropriated specifically therefor for that program year.
Municipalities shall implement the use of detention risk assessment
S. 2009--C 249 A. 3009--C
instruments in a manner prescribed by the office so as to inform
detention decisions. Notwithstanding any other provision of state law
to the contrary, data necessary for completion of a detention risk
assessment instrument may be shared among law enforcement, probation,
courts, detention administrators, detention providers, and the attorney
for the child upon retention or appointment; solely for the purpose of
accurate completion of such risk assessment instrument, and a copy of
the completed detention risk assessment instrument shall be made avail-
able to the applicable detention provider, the attorney for the child
and the court.
5. (a) Except as provided in paragraph (b) of this subdivision, care,
maintenance and supervision for the purpose of this section shall mean
and include only:
(1) temporary care, maintenance and supervision provided TO alleged
juvenile delinquents and persons in need of supervision in detention
facilities certified pursuant to sections seven hundred twenty and 305.2
of the family court act by the office of children and family services,
pending adjudication of alleged delinquency or alleged need of super-
vision by the family court, or pending transfer to institutions to which
committed or placed by such court or while awaiting disposition by such
court after adjudication or held pursuant to a securing order of a crim-
inal court if the person named therein as principal is under [sixteen]
SEVENTEEN YEARS OF AGE; or[,]
(1-A) COMMENCING ON OCTOBER FIRST, TWO THOUSAND NINETEEN, TEMPORARY
CARE, MAINTENANCE, AND SUPERVISION PROVIDED TO ALLEGED JUVENILE DELIN-
QUENTS IN DETENTION FACILITIES CERTIFIED BY THE OFFICE OF CHILDREN AND
FAMILY SERVICES, PENDING ADJUDICATION OF ALLEGED DELINQUENCY BY THE
FAMILY COURT, OR PENDING TRANSFER TO INSTITUTIONS TO WHICH COMMITTED OR
PLACED BY SUCH COURT OR WHILE AWAITING DISPOSITION BY SUCH COURT AFTER
ADJUDICATION OR HELD PURSUANT TO A SECURING ORDER OF A CRIMINAL COURT IF
THE PERSON NAMED THEREIN AS PRINCIPAL IS UNDER TWENTY-ONE; OR
(2) temporary care, maintenance and supervision provided juvenile
delinquents in approved detention facilities at the request of the
office of children and family services pending release revocation hear-
ings or while awaiting disposition after such hearings; or
(3) temporary care, maintenance and supervision in approved detention
facilities for youth held pursuant to the family court act or the inter-
state compact on juveniles, pending return to their place of residence
or domicile[.]; OR
(4) temporary care, maintenance and supervision provided youth
detained in foster care facilities or certified or approved family
boarding homes pursuant to article seven of the family court act.
(b) Payments made for reserved accommodations, whether or not in full
time use, approved AND CERTIFIED by the office of children and family
services and certified pursuant to sections seven hundred twenty and
305.2 of the family court act, in order to assure that adequate accommo-
dations will be available for the immediate reception and proper care
therein of youth for which detention costs are reimbursable pursuant to
paragraph (a) of this subdivision, shall be reimbursed as expenditures
for care, maintenance and supervision under the provisions of this
section, provided the office shall have given its prior approval for
reserving such accommodations.
6. The [director of the division for youth] OFFICE OF CHILDREN AND
FAMILY SERVICES may adopt, amend, or rescind all rules and regulations,
subject to the approval of the director of the budget and certification
S. 2009--C 250 A. 3009--C
to the chairmen of the senate finance and assembly ways and means
committees, necessary to carry out the provisions of this section.
8. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWENTY, THE STATE SHALL NOT REIMBURSE FOR THE COST OF THE
DETENTION OF ANY PERSON IN NEED OF SUPERVISION UNDER ARTICLE SEVEN OF
THE FAMILY COURT ACT.
§ 100-a. Section 153-k of the social services law is amended by adding
a new subdivision 12 to read as follows:
12. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ON OR AFTER JANUARY
FIRST, TWO THOUSAND TWENTY, THE STATE SHALL NOT REIMBURSE FOR THE COST
OF ANY PLACEMENT OF PERSONS IN NEED OF SUPERVISION UNDER ARTICLE SEVEN
OF THE FAMILY COURT ACT.
§ 100-b. Intentionally omitted.
§ 101. The executive law is amended by adding a new section 259-p to
read as follows:
§ 259-P. INTERSTATE DETENTION. (1) NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, A DEFENDANT SUBJECT TO SECTION TWO HUNDRED FIFTY-NINE-MM OF THIS
ARTICLE, MAY BE DETAINED AS AUTHORIZED BY THE INTERSTATE COMPACT FOR
ADULT OFFENDER SUPERVISION.
(2) A DEFENDANT SHALL BE DETAINED AT A LOCAL CORRECTIONAL FACILITY,
EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION THREE OF THIS SECTION.
(3) (A) A DEFENDANT SIXTEEN YEARS OF AGE OR YOUNGER, WHO ALLEGEDLY
COMMITS A CRIMINAL ACT OR VIOLATION OF HIS OR HER SUPERVISION ON OR
AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN OR (B) A DEFENDANT SEVENTEEN
YEARS OF AGE OR YOUNGER WHO ALLEGEDLY COMMITS A CRIMINAL ACT OR
VIOLATION OF HIS OR HER SUPERVISION ON OR AFTER OCTOBER FIRST, TWO THOU-
SAND NINETEEN, SHALL BE DETAINED IN A JUVENILE DETENTION FACILITY.
§ 102. Subdivision 4 of section 246 of the executive law, as amended
by section 10 of part D of chapter 56 of the laws of 2010, is amended to
read as follows:
4. An approved plan and compliance with standards relating to the
administration of probation services promulgated by the commissioner of
the division of criminal justice services shall be a prerequisite to
eligibility for state aid.
The commissioner of the division of criminal justice services may take
into consideration granting additional state aid from an appropriation
made for state aid for county probation services for counties or the
city of New York when a county or the city of New York demonstrates that
additional probation services were dedicated to intensive supervision
programs[,] AND intensive programs for sex offenders [or programs
defined as juvenile risk intervention services]. THE COMMISSIONER SHALL
GRANT ADDITIONAL STATE AID FROM AN APPROPRIATION DEDICATED TO JUVENILE
RISK INTERVENTION SERVICES COORDINATION BY PROBATION DEPARTMENTS WHICH
SHALL INCLUDE, BUT NOT BE LIMITED TO, PROBATION SERVICES PERFORMED UNDER
ARTICLE THREE OF THE FAMILY COURT ACT. The administration of such addi-
tional grants shall be made according to rules and regulations promul-
gated by the commissioner of the division of criminal justice services.
Each county and the city of New York shall certify the total amount
collected pursuant to section two hundred fifty-seven-c of this chapter.
The commissioner of the division of criminal justice services shall
thereupon certify to the comptroller for payment by the state out of
funds appropriated for that purpose, the amount to which the county or
the city of New York shall be entitled under this section. THE COMMIS-
SIONER SHALL, SUBJECT TO AN APPROPRIATION MADE AVAILABLE FOR SUCH
PURPOSE, ESTABLISH AND PROVIDE FUNDING TO PROBATION DEPARTMENTS FOR A
CONTINUUM OF EVIDENCE-BASED INTERVENTION SERVICES FOR YOUTH ALLEGED OR
S. 2009--C 251 A. 3009--C
ADJUDICATED JUVENILE DELINQUENTS PURSUANT TO ARTICLE THREE OF THE FAMILY
COURT ACT OR FOR ELIGIBLE YOUTH BEFORE OR SENTENCED UNDER THE YOUTH PART
IN ACCORDANCE WITH THE CRIMINAL PROCEDURE LAW. SUCH ADDITIONAL STATE
AID SHALL BE MADE IN AN AMOUNT NECESSARY TO PAY ONE HUNDRED PERCENT OF
THE EXPENDITURES FOR EVIDENCE-BASED PRACTICES AND JUVENILE RISK AND
EVIDENCE-BASED INTERVENTION SERVICES PROVIDED TO YOUTH SIXTEEN YEARS OF
AGE OR OLDER WHEN SUCH SERVICES WOULD NOT OTHERWISE HAVE BEEN PROVIDED
ABSENT THE PROVISIONS OF A CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN
THAT INCREASED THE AGE OF JUVENILE JURISDICTION.
§ 103. The second undesignated paragraph of subdivision 4 of section
246 of the executive law, as added by chapter 479 of the laws of 1970,
is amended to read as follows:
[The director shall thereupon certify to the comptroller for payment
by the state out of funds appropriated for that purpose, the amount to
which the county or the city of New York shall be entitled under this
section.]
THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES MAY TAKE
INTO CONSIDERATION GRANTING ADDITIONAL STATE AID FROM AN APPROPRIATION
MADE FOR STATE AID FOR COUNTY PROBATION SERVICES FOR COUNTIES OR THE
CITY OF NEW YORK WHEN A COUNTY OR THE CITY OF NEW YORK DEMONSTRATES THAT
ADDITIONAL PROBATION SERVICES WERE DEDICATED TO INTENSIVE SUPERVISION
PROGRAMS AND INTENSIVE PROGRAMS FOR SEX OFFENDERS. THE COMMISSIONER
SHALL GRANT ADDITIONAL STATE AID FROM AN APPROPRIATION DEDICATED TO
JUVENILE RISK INTERVENTION SERVICES COORDINATION BY PROBATION DEPART-
MENTS WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, PROBATION SERVICES
PERFORMED UNDER ARTICLE THREE OF THE FAMILY COURT ACT. THE ADMINIS-
TRATION OF SUCH ADDITIONAL GRANTS SHALL BE MADE ACCORDING TO RULES AND
REGULATIONS PROMULGATED BY THE COMMISSIONER OF THE DIVISION OF CRIMINAL
JUSTICE SERVICES. EACH COUNTY AND THE CITY OF NEW YORK SHALL CERTIFY THE
TOTAL AMOUNT COLLECTED PURSUANT TO SECTION TWO HUNDRED FIFTY-SEVEN-C OF
THIS CHAPTER. THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE
SERVICES SHALL THEREUPON CERTIFY TO THE COMPTROLLER FOR PAYMENT BY THE
STATE OUT OF FUNDS APPROPRIATED FOR THAT PURPOSE, THE AMOUNT TO WHICH
THE COUNTY OR THE CITY OF NEW YORK SHALL BE ENTITLED UNDER THIS SECTION.
THE COMMISSIONER SHALL, SUBJECT TO AN APPROPRIATION MADE AVAILABLE FOR
SUCH PURPOSE, ESTABLISH AND PROVIDE FUNDING TO PROBATION DEPARTMENTS FOR
A CONTINUUM OF EVIDENCE-BASED INTERVENTION SERVICES FOR YOUTH ALLEGED OR
ADJUDICATED JUVENILE DELINQUENTS PURSUANT TO ARTICLE THREE OF THE FAMILY
COURT ACT OR FOR ELIGIBLE YOUTH BEFORE OR SENTENCED UNDER THE YOUTH PART
IN ACCORDANCE WITH THE CRIMINAL PROCEDURE LAW.
§ 104. The state finance law is amended by adding a new section 54-m
to read as follows:
§ 54-M. LOCAL SHARE REQUIREMENTS ASSOCIATED WITH INCREASING THE AGE OF
JUVENILE JURISDICTION ABOVE FIFTEEN YEARS OF AGE. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, COUNTIES AND THE CITY OF NEW
YORK SHALL NOT BE REQUIRED TO CONTRIBUTE A LOCAL SHARE OF ELIGIBLE
EXPENDITURES THAT WOULD NOT HAVE BEEN INCURRED ABSENT THE PROVISIONS OF
A CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS SECTION
UNLESS THE MOST RECENT BUDGET ADOPTED BY A COUNTY THAT IS SUBJECT TO THE
PROVISIONS OF SECTION THREE-C OF THE GENERAL MUNICIPAL LAW EXCEEDED THE
TAX LEVY LIMIT PRESCRIBED IN SUCH SECTION OR THE LOCAL GOVERNMENT IS NOT
SUBJECT TO THE PROVISIONS OF SECTION THREE-C OF THE GENERAL MUNICIPAL
LAW; PROVIDED, HOWEVER, THAT THE STATE BUDGET DIRECTOR SHALL BE AUTHOR-
IZED TO WAIVE ANY LOCAL SHARE OF EXPENDITURES ASSOCIATED WITH A CHAPTER
OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT INCREASED THE AGE OF JUVENILE
JURISDICTION ABOVE FIFTEEN YEARS OF AGE, UPON A SHOWING OF FINANCIAL
S. 2009--C 252 A. 3009--C
HARDSHIP BY A COUNTY OR THE CITY OF NEW YORK UPON APPLICATION IN THE
FORM AND MANNER PRESCRIBED BY THE DIVISION OF THE BUDGET. IN EVALUATING
AN APPLICATION FOR A FINANCIAL HARDSHIP WAIVER, THE BUDGET DIRECTOR
SHALL CONSIDER THE INCREMENTAL COST TO THE LOCALITY RELATED TO INCREAS-
ING THE AGE OF JUVENILE JURISDICTION, CHANGES IN STATE OR FEDERAL AID
PAYMENTS, AND OTHER EXTRAORDINARY COSTS, INCLUDING THE OCCURRENCE OF A
DISASTER AS DEFINED IN PARAGRAPH A OF SUBDIVISION TWO OF SECTION TWENTY
OF THE EXECUTIVE LAW, REPAIR AND MAINTENANCE OF INFRASTRUCTURE, ANNUAL
GROWTH IN TAX RECEIPTS, INCLUDING PERSONAL INCOME, BUSINESS AND OTHER
TAXES, PREPAYMENT OF DEBT SERVICE AND OTHER EXPENSES, OR SUCH OTHER
FACTORS THAT THE DIRECTOR MAY DETERMINE.
§ 104-a. Notwithstanding any other provision of law to the contrary,
in accordance with the waiver provisions set forth in section 54-m of
the state finance law, state funding shall be available for one hundred
percent of a county's costs associated with transport of youth by the
applicable county sheriff that would not otherwise have occurred absent
the provisions of the chapter of the laws of two thousand seventeen that
added this section.
§ 104-b. Notwithstanding any other provision of law; state reimburse-
ment relating to the detention and placement of persons in need of
supervision shall not be available for costs on or after January 1,
2020.
§ 104-c. 1. There shall be a "raise the age implementation task
force," members of which will be assigned by the governor. Such task
force will be responsible for reporting to the governor, the speaker of
the assembly and the temporary president of the senate one year after
the effective date of the chapter of the laws of 2017 that added this
section. The task force shall have the following duties:
(A) monitoring the overall effectiveness of the law by reviewing the
state's progress in implementing the major components;
(B) evaluating the effectiveness of the local adoption and adherence
to the provisions of the law; and
(C) reviewing the sealing provisions including but not limited to an
analysis of the number of applicants, the number of individuals granted
sealing, and the overall effectiveness of the law's sealing require-
ments.
2. The task force members shall receive no remuneration for their
services as members.
3. The task force may create such committees as it deems necessary.
4. The task force shall provide an initial report on their findings on
or before August 1, 2019 with respect to the first phase of implementa-
tion and an additional report one year after with respect to the second
phase of implementation.
§ 105. Severability. If any clause, sentence, paragraph, subdivision,
section or part contained in any 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, subdivi-
sion, section or part contained in any part thereof directly involved in
the controversy in which such judgment shall have been rendered. It is
hereby declared to be the intent of the legislature that this act would
have been enacted even if such invalid provisions had not been included
herein.
§ 106. This act shall take effect immediately; provided that:
a. sections forty-eight and forty-eight-a of this act shall take
effect on the one hundred eightieth day after this act shall have become
S. 2009--C 253 A. 3009--C
a law and shall be deemed to apply to offenses committed prior to, on,
or after such effective date;
b. sections one through thirty, thirty-one-a, thirty-one-b, thirty-
two, thirty-five, thirty-six, thirty-eight, forty-a, forty-one, forty-
three, forty-four, fifty-six, fifty-six-a, fifty-six-b, fifty-seven,
fifty-nine, sixty-one through sixty-three, sixty-five, sixty-seven,
sixty-nine, seventy, seventy-two, seventy-five through seventy-eight,
seventy-nine, seventy-nine-b, eighty, eighty-one-b, eighty-two-a, nine-
ty-nine, one hundred, one hundred-a and one hundred one of this act
shall take effect October 1, 2018; provided however, that when the
applicability of such provisions are based on the conviction of a crime
or an act committed by a person who was seventeen years of age at the
time of such offense such provisions shall take effect October 1, 2019;
c. sections one hundred two and one hundred four shall take effect
April 1, 2018;
d. the amendments to subdivision 4 of section 353.5 of the family
court act made by section seventy-two of this act shall be subject to
the expiration and reversion of such subdivision pursuant to section 11
of subpart A of part G of chapter 57 of the laws of 2012, as amended,
when upon such date the provisions of section seventy-three of this act
shall take effect;
e. the amendments to the second undesignated paragraph of subdivision
4 of section 246 of the executive law made by section one hundred two of
this act shall be subject to the expiration and reversion of such undes-
ignated paragraph as provided in subdivision (aa) of section 427 of
chapter 55 of the laws of 1992, as amended, when upon such date section
one hundred three of this act shall take effect; provided, however if
such date of reversion is prior to April 1, 2018, section one hundred
three of this act shall take effect on April 1, 2018; and
f. the amendments to section 153-k of the social services law made by
section one hundred-a of this act shall not effect the repeal of such
section and shall be deemed to repeal therewith.
PART XXX
Section 1. The state comptroller is hereby authorized and directed to
loan money in accordance with the provisions set forth in subdivision 5
of section 4 of the state finance law to the following funds and/or
accounts:
1. Proprietary vocational school supervision account (20452).
2. Local government records management account (20501).
3. Child health plus program account (20810).
4. EPIC premium account (20818).
5. Education - New (20901).
6. VLT - Sound basic education fund (20904).
7. Sewage treatment program management and administration fund
(21000).
8. Hazardous bulk storage account (21061).
9. Federal grants indirect cost recovery account (21065).
10. Low level radioactive waste account (21066).
11. Recreation account (21067).
12. Public safety recovery account (21077).
13. Environmental regulatory account (21081).
14. Natural resource account (21082).
15. Mined land reclamation program account (21084).
16. Great lakes restoration initiative account (21087).
S. 2009--C 254 A. 3009--C
17. Environmental protection and oil spill compensation fund (21200).
18. Public transportation systems account (21401).
19. Metropolitan mass transportation (21402).
20. Operating permit program account (21451).
21. Mobile source account (21452).
22. Statewide planning and research cooperative system account
(21902).
23. New York state thruway authority account (21905).
24. Mental hygiene program fund account (21907).
25. Mental hygiene patient income account (21909).
26. Financial control board account (21911).
27. Regulation of racing account (21912).
28. New York Metropolitan Transportation Council account (21913).
29. State university dormitory income reimbursable account (21937).
30. Criminal justice improvement account (21945).
31. Environmental laboratory reference fee account (21959).
32. Clinical laboratory reference system assessment account (21962).
33. Indirect cost recovery account (21978).
34. High school equivalency program account (21979).
35. Multi-agency training account (21989).
36. Interstate reciprocity for post-secondary distance education
account (23800).
37. Bell jar collection account (22003).
38. Industry and utility service account (22004).
39. Real property disposition account (22006).
40. Parking account (22007).
41. Asbestos safety training program account (22009).
42. Batavia school for the blind account (22032).
43. Investment services account (22034).
44. Surplus property account (22036).
45. Financial oversight account (22039).
46. Regulation of Indian gaming account (22046).
47. Rome school for the deaf account (22053).
48. Seized assets account (22054).
49. Administrative adjudication account (22055).
50. Federal salary sharing account (22056).
51. New York City assessment account (22062).
52. Cultural education account (22063).
53. Local services account (22078).
54. DHCR mortgage servicing account (22085).
55. Department of motor vehicles compulsory insurance account (22087).
56. Housing indirect cost recovery account (22090).
57. DHCR-HCA application fee account (22100).
58. Low income housing monitoring account (22130).
59. Corporation administration account (22135).
60. Montrose veteran's home account (22144).
61. Deferred compensation administration account (22151).
62. Rent revenue other New York City account (22156).
63. Rent revenue account (22158).
64. Tax revenue arrearage account (22168).
65. State university general income offset account (22654).
66. Lake George park trust fund account (22751).
67. State police motor vehicle law enforcement account (22802).
68. Highway safety program account (23001).
69. DOH drinking water program account (23102).
70. NYCCC operating offset account (23151).
S. 2009--C 255 A. 3009--C
71. Commercial gaming revenue account (23701).
72. Commercial gaming regulation account (23702).
73. Highway use tax administration account (23801).
74. Highway and bridge capital account (30051).
75. Aviation purpose account (30053).
76. State university residence hall rehabilitation fund (30100).
77. State parks infrastructure account (30351).
78. Clean water/clean air implementation fund (30500).
79. Hazardous waste remedial cleanup account (31506).
80. Youth facilities improvement account (31701).
81. Housing assistance fund (31800).
82. Housing program fund (31850).
83. Highway facility purpose account (31951).
84. Information technology capital financing account (32215).
85. New York racing account (32213).
86. Capital miscellaneous gifts account (32214).
87. New York environmental protection and spill remediation account.
88. Mental hygiene facilities capital improvement fund (32300).
89. Correctional facilities capital improvement fund (32350).
90. New York State Storm Recovery Capital Fund (33000).
91. OGS convention center account (50318).
92. Empire Plaza Gift Shop (50327).
93. Centralized services fund (55000).
94. Archives records management account (55052).
95. Federal single audit account (55053).
96. Civil service EHS occupational health program account (55056).
97. Banking services account (55057).
98. Cultural resources survey account (55058).
99. Neighborhood work project account (55059).
100. Automation & printing chargeback account (55060).
101. OFT NYT account (55061).
102. Data center account (55062).
103. Intrusion detection account (55066).
104. Domestic violence grant account (55067).
105. Centralized technology services account (55069).
106. Labor contact center account (55071).
107. Human services contact center account (55072).
108. Tax contact center account (55073).
109. Executive direction internal audit account (55251).
110. CIO Information technology centralized services account (55252).
111. Health insurance internal service account (55300).
112. Civil service employee benefits division administrative account
(55301).
113. Correctional industries revolving fund (55350).
114. Employees health insurance account (60201).
115. Medicaid management information system escrow fund (60900).
116. Department of law civil recoveries account.
§ 1-a. The state comptroller is hereby authorized and directed to loan
money in accordance with the provisions set forth in subdivision 5 of
section 4 of the state finance law to any account within the following
federal funds, provided the comptroller has made a determination that
sufficient federal grant award authority is available to reimburse such
loans:
1. Federal USDA-food and nutrition services fund (25000).
2. Federal health and human services fund (25100).
3. Federal education fund (25200).
S. 2009--C 256 A. 3009--C
4. Federal block grant fund (25250).
5. Federal miscellaneous operating grants fund (25300).
6. Federal unemployment insurance administration fund (25900).
7. Federal unemployment insurance occupational training fund (25950).
8. Federal emergency employment act fund (26000).
9. Federal capital projects fund (31350).
§ 2. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, on
or before March 31, 2018, up to the unencumbered balance or the follow-
ing amounts:
Economic Development and Public Authorities:
1. $175,000 from the miscellaneous special revenue fund, underground
facilities safety training account (22172), to the general fund.
2. An amount up to the unencumbered balance from the miscellaneous
special revenue fund, business and licensing services account (21977),
to the general fund.
3. $14,810,000 from the miscellaneous special revenue fund, code
enforcement account (21904), to the general fund.
4. $3,000,000 from the general fund to the miscellaneous special
revenue fund, tax revenue arrearage account (22168).
Education:
1. $2,394,714,000 from the general fund to the state lottery fund,
education account (20901), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c of
the state finance law that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
2. $966,634,000 from the general fund to the state lottery fund, VLT
education account (20904), as reimbursement for disbursements made from
such fund for supplemental aid to education pursuant to section 92-c of
the state finance law that are in excess of the amounts deposited in
such fund for such purposes pursuant to section 1612 of the tax law.
3. Moneys from the state lottery fund (20900) up to an amount deposit-
ed in such fund pursuant to section 1612 of the tax law in excess of the
current year appropriation for supplemental aid to education pursuant to
section 92-c of the state finance law.
4. $300,000 from the New York state local government records manage-
ment improvement fund, local government records management account
(20501), to the New York state archives partnership trust fund, archives
partnership trust maintenance account (20351).
5. $900,000 from the general fund to the miscellaneous special revenue
fund, Batavia school for the blind account (22032).
6. $900,000 from the general fund to the miscellaneous special revenue
fund, Rome school for the deaf account (22053).
7. $343,400,000 from the state university dormitory income fund
(40350) to the miscellaneous special revenue fund, state university
dormitory income reimbursable account (21937).
8. $20,000,000 from any of the state education department special
revenue and internal service funds to the miscellaneous special revenue
fund, indirect cost recovery account (21978).
9. $8,318,000 from the general fund to the state university income
fund, state university income offset account (22654), for the state's
share of repayment of the STIP loan.
10. $40,000,000 from the state university income fund, state universi-
ty hospitals income reimbursable account (22656) to the general fund for
S. 2009--C 257 A. 3009--C
hospital debt service for the period April 1, 2017 through March 31,
2018.
11. An amount up to $13,540,000 from the general fund to the state
university income fund, state university general revenue account
(22653).
Environmental Affairs:
1. $16,000,000 from any of the department of environmental conserva-
tion's special revenue federal funds to the environmental conservation
special revenue fund, federal indirect recovery account (21065).
2. $5,000,000 from any of the department of environmental conserva-
tion's special revenue federal funds to the conservation fund (21150) as
necessary to avoid diversion of conservation funds.
3. $3,000,000 from any of the office of parks, recreation and historic
preservation capital projects federal funds and special revenue federal
funds to the miscellaneous special revenue fund, federal grant indirect
cost recovery account (22188).
4. $1,000,000 from any of the office of parks, recreation and historic
preservation special revenue federal funds to the miscellaneous special
revenue fund, I love NY water account (21930).
5. $28,000,000 from the general fund to the environmental protection
fund, environmental protection fund transfer account (30451).
6. $1,800,000 from the general fund to the hazardous waste remedial
fund, hazardous waste oversight and assistance account (31505).
Family Assistance:
1. $7,000,000 from any of the office of children and family services,
office of temporary and disability assistance, or department of health
special revenue federal funds and the general fund, in accordance with
agreements with social services districts, to the miscellaneous special
revenue fund, office of human resources development state match account
(21967).
2. $4,000,000 from any of the office of children and family services
or office of temporary and disability assistance special revenue federal
funds to the miscellaneous special revenue fund, family preservation and
support services and family violence services account (22082).
3. $18,670,000 from any of the office of children and family services,
office of temporary and disability assistance, or department of health
special revenue federal funds and any other miscellaneous revenues
generated from the operation of office of children and family services
programs to the general fund.
4. $140,000,000 from any of the office of temporary and disability
assistance or department of health special revenue funds to the general
fund.
5. $2,500,000 from any of the office of temporary and disability
assistance special revenue funds to the miscellaneous special revenue
fund, office of temporary and disability assistance program account
(21980).
6. $7,400,000 from any of the office of children and family services,
office of temporary and disability assistance, department of labor, and
department of health special revenue federal funds to the office of
children and family services miscellaneous special revenue fund, multi-
agency training contract account (21989).
7. $65,000,000 from the miscellaneous special revenue fund, youth
facility per diem account (22186), to the general fund.
8. $621,850 from the general fund to the combined gifts, grants, and
bequests fund, WB Hoyt Memorial account (20128).
S. 2009--C 258 A. 3009--C
9. $3,100,000 from the miscellaneous special revenue fund, state
central registry (22028), to the general fund.
General Government:
1. $1,566,000 from the miscellaneous special revenue fund, examination
and miscellaneous revenue account (22065) to the general fund.
2. $8,083,000 from the general fund to the health insurance revolving
fund (55300).
3. $192,400,000 from the health insurance reserve receipts fund
(60550) to the general fund.
4. $150,000 from the general fund to the not-for-profit revolving loan
fund (20650).
5. $150,000 from the not-for-profit revolving loan fund (20650) to the
general fund.
6. $3,000,000 from the miscellaneous special revenue fund, surplus
property account (22036), to the general fund.
7. $19,000,000 from the miscellaneous special revenue fund, revenue
arrearage account (22024), to the general fund.
8. $1,826,000 from the miscellaneous special revenue fund, revenue
arrearage account (22024), to the miscellaneous special revenue fund,
authority budget office account (22138).
9. $1,000,000 from the miscellaneous special revenue fund, parking
services account (22007), to the general fund, for the purpose of reim-
bursing the costs of debt service related to state parking facilities.
10. $21,783,000 from the general fund to the centralized services
fund, COPS account (55013).
11. $8,960,000 from the general fund to the agencies internal service
fund, central technology services account (55069), for the purpose of
enterprise technology projects.
12. $15,000,000 from the miscellaneous special revenue fund, workers'
compensation account (21995), to the miscellaneous capital projects
fund, workers' compensation board IT business process design fund,
(32218).
Health:
1. A transfer from the general fund to the combined gifts, grants and
bequests fund, breast cancer research and education account (20155), up
to an amount equal to the monies collected and deposited into that
account in the previous fiscal year.
2. A transfer from the general fund to the combined gifts, grants and
bequests fund, prostate cancer research, detection, and education
account (20183), up to an amount equal to the moneys collected and
deposited into that account in the previous fiscal year.
3. A transfer from the general fund to the combined gifts, grants and
bequests fund, Alzheimer's disease research and assistance account
(20143), up to an amount equal to the moneys collected and deposited
into that account in the previous fiscal year.
4. $30,555,000 from the HCRA resources fund (20800) to the miscella-
neous special revenue fund, empire state stem cell trust fund account
(22161).
5. $6,000,000 from the miscellaneous special revenue fund, certificate
of need account (21920), to the miscellaneous capital projects fund,
healthcare IT capital subfund (32216).
6. $2,000,000 from the miscellaneous special revenue fund, vital
health records account (22103), to the miscellaneous capital projects
fund, healthcare IT capital subfund (32216)
S. 2009--C 259 A. 3009--C
7. $2,000,000 from the miscellaneous special revenue fund, profes-
sional medical conduct account (22088), to the miscellaneous capital
projects fund, healthcare IT capital subfund (32216).
8. $76,021,000 from the HCRA resources fund (20800) to the capital
projects fund (30000).
9. $4,540,000 from the general fund to the medical marihuana trust
fund, health operation and oversight account (23755).
10. $1,086,000 from the miscellaneous special revenue fund, certif-
icate of need account (21920), to the general fund.
Labor:
1. $400,000 from the miscellaneous special revenue fund, DOL fee and
penalty account (21923), to the child performer's protection fund, child
performer protection account (20401).
2. $8,400,000 from the miscellaneous special revenue fund, DOL fee and
penalty account (21923), to the general fund.
3. $3,300,000 from the unemployment insurance interest and penalty
fund, unemployment insurance special interest and penalty account
(23601), to the general fund.
4. $5,000,000 from the miscellaneous special revenue fund, workers'
compensation account (21995), to the training and education program
occupation safety and health fund, occupational health inspection
account (21252).
Mental Hygiene:
1. $10,000,000 from the miscellaneous special revenue fund, mental
hygiene patient income account (21909), to the miscellaneous special
revenue fund, federal salary sharing account (22056).
2. $1,800,000,000 from the general fund to the miscellaneous special
revenue fund, mental hygiene patient income account (21909).
3. $1,700,000,000 from the general fund to the miscellaneous special
revenue fund, mental hygiene program fund account (21907).
4. $100,000,000 from the miscellaneous special revenue fund, mental
hygiene program fund account (21907), to the general fund.
5. $100,000,000 from the miscellaneous special revenue fund, mental
hygiene patient income account (21909), to the general fund.
6. $3,800,000 from the miscellaneous special revenue fund, mental
hygiene patient income account (21909), to the agencies internal service
fund, civil service EHS occupational health program account (55056).
7. $11,500,000 from the chemical dependence service fund, substance
abuse services fund account (22700), to the capital projects fund
(30000).
8. $3,500,000 from the chemical dependence service fund, substance
abuse services fund account (22700), to the mental hygiene capital
improvement fund (32305).
9. $15,000,000 from the chemical dependence service fund, substance
abuse services fund account (22700), to the miscellaneous special reven-
ue fund, mental hygiene program fund account (21907).
Public Protection:
1. $1,350,000 from the miscellaneous special revenue fund, emergency
management account (21944), to the general fund.
2. $2,087,000 from the general fund to the miscellaneous special
revenue fund, recruitment incentive account (22171).
3. $12,000,000 from the general fund to the correctional industries
revolving fund, correctional industries internal service account
(55350).
4. $3,000,000 from the federal miscellaneous operating grants fund,
DMNA damage account (25324), to the general fund.
S. 2009--C 260 A. 3009--C
5. $8,600,000 from the miscellaneous special revenue fund, criminal
justice improvement account (21945), to the general fund.
6. $112,420,000 from the state police motor vehicle law enforcement
and motor vehicle theft and insurance fraud prevention fund, state
police motor vehicle enforcement account (22802), to the general fund
for state operation expenses of the division of state police.
7. A transfer of the unencumbered balance from the miscellaneous
special revenue fund, seized assets account (22061), to the miscella-
neous special revenue fund, seized assets account (22054).
8. $117,500,000 from the general fund to the correctional facilities
capital improvement fund (32350).
9. $5,000,000 from the general fund to the dedicated highway and
bridge trust fund (30050) for the purpose of work zone safety activities
provided by the division of state police for the department of transpor-
tation.
10. $5,238,000 from the miscellaneous special revenue fund, statewide
public safety communications account (22123), to the capital projects
fund (30000).
11. $9,545,000 from the miscellaneous special revenue fund, legal
services assistance account (22096), to the general fund.
12. $1,000,000 from the general fund to the agencies internal service
fund, neighborhood work project account (55059).
13. $5,940,556 from the miscellaneous special revenue fund, finger-
print identification & technology account (21950), to the general fund.
14. $4,300,000 from the state police motor vehicle law enforcement and
motor vehicle theft and insurance fraud prevention fund, motor vehicle
theft and insurance fraud account (22801), to the general fund.
15. $50,000,000 from the miscellaneous special revenue fund, public
safety communications account (22123), to the general fund.
16. $2,000,000 from the general fund to the miscellaneous special
revenue fund, crimes against revenue program account (22015).
Transportation:
1. $17,672,000 from the federal miscellaneous operating grants fund to
the miscellaneous special revenue fund, New York Metropolitan Transpor-
tation Council account (21913).
2. $20,147,000 from the federal capital projects fund to the miscella-
neous special revenue fund, New York Metropolitan Transportation Council
account (21913).
3. $15,058,017 from the general fund to the mass transportation oper-
ating assistance fund, public transportation systems operating assist-
ance account (21401), of which $12,000,000 constitutes the base need for
operations.
4. $720,000,000 from the general fund to the dedicated highway and
bridge trust fund (30050).
5. $3,662,000 from the miscellaneous special revenue fund, accident
prevention course program account (22094), to the dedicated highway and
bridge trust fund (30050).
6. $3,065,000 from the miscellaneous special revenue fund, motorcycle
safety account (21976), to the dedicated highway and bridge trust fund
(30050).
7. $244,250,000 from the general fund to the MTA financial assistance
fund, mobility tax trust account (23651).
8. $5,000,000 from the miscellaneous special revenue fund, transporta-
tion regulation account (22067) to the dedicated highway and bridge
trust fund (30050), for disbursements made from such fund for motor
carrier safety that are in excess of the amounts deposited in the dedi-
S. 2009--C 261 A. 3009--C
cated highway and bridge trust fund (30050) for such purpose pursuant to
section 94 of the transportation law.
9. $114,000 from the miscellaneous special revenue fund, seized assets
account (21906), to the dedicated highway and bridge trust fund (30050).
10. $500,000 from the clean air fund, mobile source account (21452),
to the general fund.
11. $3,000,000 from the miscellaneous special revenue fund, traffic
adjudication account (22055), to the general fund.
12. $121,548,000 from the mass transportation operating assistance
fund, metropolitan mass transportation operating assistance account
(21402), to the capital projects fund (30000).
Miscellaneous:
1. $250,000,000 from the general fund to any funds or accounts for the
purpose of reimbursing certain outstanding accounts receivable balances.
2. $500,000,000 from the general fund to the debt reduction reserve
fund (40000).
3. $450,000,000 from the New York state storm recovery capital fund
(33000) to the revenue bond tax fund (40152).
4. $15,500,000 from the general fund, community projects account GG
(10256), to the general fund, state purposes account (10050).
§ 3. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, on or before March 31, 2018:
1. Upon request of the commissioner of environmental conservation, up
to $12,234,600 from revenues credited to any of the department of envi-
ronmental conservation special revenue funds, including $4,000,000 from
the environmental protection and oil spill compensation fund (21200),
and $1,793,600 from the conservation fund (21150), to the environmental
conservation special revenue fund, indirect charges account (21060).
2. Upon request of the commissioner of agriculture and markets, up to
$3,000,000 from any special revenue fund or enterprise fund within the
department of agriculture and markets to the general fund, to pay appro-
priate administrative expenses.
3. Upon request of the commissioner of agriculture and markets, up to
$2,000,000 from the state exposition special fund, state fair receipts
account (50051) to the miscellaneous capital projects fund, state fair
capital improvement account (32208).
4. Upon request of the commissioner of the division of housing and
community renewal, up to $6,221,000 from revenues credited to any divi-
sion of housing and community renewal federal or miscellaneous special
revenue fund to the miscellaneous special revenue fund, housing indirect
cost recovery account (22090).
5. Upon request of the commissioner of the division of housing and
community renewal, up to $5,500,000 may be transferred from any miscel-
laneous special revenue fund account, to any miscellaneous special
revenue fund.
6. Upon request of the commissioner of health up to $8,500,000 from
revenues credited to any of the department of health's special revenue
funds, to the miscellaneous special revenue fund, administration account
(21982).
§ 4. On or before March 31, 2018, the comptroller is hereby authorized
and directed to deposit earnings that would otherwise accrue to the
general fund that are attributable to the operation of section 98-a of
the state finance law, to the agencies internal service fund, banking
services account (55057), for the purpose of meeting direct payments
from such account.
S. 2009--C 262 A. 3009--C
§ 5. Notwithstanding any law to the contrary, upon the direction of
the director of the budget and upon requisition by the state university
of New York, the dormitory authority of the state of New York is
directed to transfer, up to $22,000,000 in revenues generated from the
sale of notes or bonds, the state university income fund general revenue
account (22653) for reimbursement of bondable equipment for further
transfer to the state's general fund.
§ 6. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and
upon consultation with the state university chancellor or his or her
designee, on or before March 31, 2018, up to $16,000,000 from the state
university income fund general revenue account (22653) to the state
general fund for debt service costs related to campus supported capital
project costs for the NY-SUNY 2020 challenge grant program at the
University at Buffalo.
§ 7. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget and
upon consultation with the state university chancellor or his or her
designee, on or before March 31, 2018, up to $6,500,000 from the state
university income fund general revenue account (22653) to the state
general fund for debt service costs related to campus supported capital
project costs for the NY-SUNY 2020 challenge grant program at the
University at Albany.
§ 8. Notwithstanding any law to the contrary, the state university
chancellor or his or her designee is authorized and directed to transfer
estimated tuition revenue balances from the state university collection
fund (61000) to the state university income fund, state university
general revenue offset account (22655) on or before March 31, 2018.
§ 9. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to $78,564,000 from the general fund to the state university income
fund, state university hospitals income reimbursable account (22656)
during the period July 1, 2017 through June 30, 2018 to reflect ongoing
state subsidy of SUNY hospitals and to pay costs attributable to the
SUNY hospitals' state agency status.
§ 10. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the director of the budget, up
to $1,015,990,300 from the general fund to the state university income
fund, state university general revenue offset account (22655) during the
period of July 1, 2017 through June 30, 2018 to support operations at
the state university.
§ 11. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state financial law, the comptroller is hereby author-
ized and directed to transfer, upon request of the director of the budg-
et, up to $100,000 from the general fund to the state university income
fund, state university general revenue offset account (22655) during the
period of April 1, 2017 through June 30, 2017 to support operations at
the state university.
§ 11-a. Notwithstanding any law to the contrary, and in accordance
with section 4 of the state financial law, the comptroller is hereby
authorized and directed to transfer, upon request of the director of the
budget, up to $20,000,000 from the general fund to the state university
S. 2009--C 263 A. 3009--C
income fund, state university general revenue offset account (22655)
during the period of July 1, 2017 to June 30, 2018 to support operations
at the state university in accordance with the maintenance of effort
pursuant to clause (v) of subparagraph (4) of paragraph h of subdivision
2 of section 355 of the education law.
§ 12. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, upon request of the state university chancel-
lor or his or her designee, up to $55,000,000 from the state university
income fund, state university hospitals income reimbursable account
(22656), for services and expenses of hospital operations and capital
expenditures at the state university hospitals; and the state university
income fund, Long Island veterans' home account (22652) to the state
university capital projects fund (32400) on or before June 30, 2018.
§ 13. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller, after consultation
with the state university chancellor or his or her designee, is hereby
authorized and directed to transfer moneys, in the first instance, from
the state university collection fund, Stony Brook hospital collection
account (61006), Brooklyn hospital collection account (61007), and Syra-
cuse hospital collection account (61008) to the state university income
fund, state university hospitals income reimbursable account (22656) in
the event insufficient funds are available in the state university
income fund, state university hospitals income reimbursable account
(22656) to permit the full transfer of moneys authorized for transfer,
to the general fund for payment of debt service related to the SUNY
hospitals. Notwithstanding any law to the contrary, the comptroller is
also hereby authorized and directed, after consultation with the state
university chancellor or his or her designee, to transfer moneys from
the state university income fund to the state university income fund,
state university hospitals income reimbursable account (22656) in the
event insufficient funds are available in the state university income
fund, state university hospitals income reimbursable account (22656) to
pay hospital operating costs or to permit the full transfer of moneys
authorized for transfer, to the general fund for payment of debt service
related to the SUNY hospitals on or before March 31, 2018.
§ 14. Notwithstanding any law to the contrary, upon the direction of
the director of the budget and the chancellor of the state university of
New York or his or her designee, and in accordance with section 4 of the
state finance law, the comptroller is hereby authorized and directed to
transfer monies from the state university dormitory income fund (40350)
to the state university residence hall rehabilitation fund (30100), and
from the state university residence hall rehabilitation fund (30100) to
the state university dormitory income fund (40350), in an amount not to
exceed $80 million from each fund.
§ 15. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer monies, upon request of the director of the
budget, on or before March 31, 2018, from and to any of the following
accounts: the miscellaneous special revenue fund, patient income account
(21909), the miscellaneous special revenue fund, mental hygiene program
fund account (21907), the miscellaneous special revenue fund, federal
salary sharing account (22056), or the general fund in any combination,
the aggregate of which shall not exceed $350 million.
§ 16. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
S. 2009--C 264 A. 3009--C
and directed to transfer, at the request of the director of the budget,
up to $500 million from the unencumbered balance of any special revenue
fund or account, agency fund or account, internal service fund or
account, enterprise fund or account, or any combination of such funds
and accounts, to the general fund. The amounts transferred pursuant to
this authorization shall be in addition to any other transfers expressly
authorized in the 2017-18 budget. Transfers from federal funds, debt
service funds, capital projects funds, the community projects fund, or
funds that would result in the loss of eligibility for federal benefits
or federal funds pursuant to federal law, rule, or regulation as assent-
ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws of
1951 are not permitted pursuant to this authorization.
§ 16-a. Notwithstanding any law to the contrary, and in accordance
with section 4 of the state finance law, the comptroller is hereby
authorized an directed to transfer, at the request of the director of
the budget, up to twenty million dollars ($20,000,000) from the unencum-
bered balance of any special revenue fund or account, or combination of
funds and accounts, to the community projects fund. The amounts trans-
ferred pursuant to this authorization shall be in addition to any other
transfers expressly authorized in the 2017-18 budget. Transfers from
federal funds, debt services funds, capital project funds, or funds that
would result in the loss of eligibility for federal benefits or federal
funds pursuant to federal law, rule, or regulation as assented to in
chapter 683 of the laws of 1938 and chapter 700 of the laws of 1951 are
not permitted pursuant to this authorization. The director of the budget
shall (a) have received a request in writing from one or both houses of
the legislature, and (b) notify both houses of the legislature in writ-
ing prior to initiating transfers pursuant to this authorization. The
comptroller shall provide the director of the budget, the chair of the
senate finance committee, and the chair of the assembly ways and means
committee with an accurate accounting and report of any transfers that
occur pursuant to this section on or before the fifteenth day of the
following month in which such transfers occur.
§ 17. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, at the request of the director of the budget,
up to $100 million from any non-general fund or account, or combination
of funds and accounts, to the miscellaneous special revenue fund, tech-
nology financing account (22207), the miscellaneous capital projects
fund, information technology capital financing account (32215), or the
centralized technology services account (55069), for the purpose of
consolidating technology procurement and services. The amounts trans-
ferred to the miscellaneous special revenue fund, technology financing
account (22207) pursuant to this authorization shall be equal to or less
than the amount of such monies intended to support information technolo-
gy costs which are attributable, according to a plan, to such account
made in pursuance to an appropriation by law. Transfers to the technolo-
gy financing account shall be completed from amounts collected by non-
general funds or accounts pursuant to a fund deposit schedule or perma-
nent statute, and shall be transferred to the technology financing
account pursuant to a schedule agreed upon by the affected agency
commissioner. Transfers from funds that would result in the loss of
eligibility for federal benefits or federal funds pursuant to federal
law, rule, or regulation as assented to in chapter 683 of the laws of
1938 and chapter 700 of the laws of 1951 are not permitted pursuant to
this authorization.
S. 2009--C 265 A. 3009--C
§ 18. Notwithstanding any other law to the contrary, up to $245
million of the assessment reserves remitted to the chair of the workers'
compensation board pursuant to subdivision 6 of section 151 of the work-
ers' compensation law shall, at the request of the director of the budg-
et, be transferred to the state insurance fund, for partial payment and
partial satisfaction of the state's obligations to the state insurance
fund under section 88-c of the workers' compensation law.
§ 19. Notwithstanding any law to the contrary, and in accordance with
section 4 of the state finance law, the comptroller is hereby authorized
and directed to transfer, at the request of the director of the budget,
up to $400 million from any non-general fund or account, or combination
of funds and accounts, to the general fund for the purpose of consol-
idating technology procurement and services. The amounts transferred
pursuant to this authorization shall be equal to or less than the amount
of such monies intended to support information technology costs which
are attributable, according to a plan, to such account made in pursuance
to an appropriation by law. Transfers to the general fund shall be
completed from amounts collected by non-general funds or accounts pursu-
ant to a fund deposit schedule. Transfers from funds that would result
in the loss of eligibility for federal benefits or federal funds pursu-
ant to federal law, rule, or regulation as assented to in chapter 683 of
the laws of 1938 and chapter 700 of the laws of 1951 are not permitted
pursuant to this authorization.
§ 20. Notwithstanding any provision of law, rule or regulation to the
contrary, the New York state energy research and development authority
is authorized and directed to make the following contributions to the
state treasury to the credit of the general fund on or before March 31,
2018: (a) $913,000; and (b) $23,000,000 from proceeds collected by the
authority from the auction or sale of carbon dioxide emission allowances
allocated by the department of environmental conservation.
§ 21. Subdivision 5 of section 97-rrr of the state finance law, as
amended by section 21 of part UU of chapter 54 of the laws of 2016, is
amended to read as follows:
5. Notwithstanding the provisions of section one hundred seventy-one-a
of the tax law, as separately amended by chapters four hundred eighty-
one and four hundred eighty-four of the laws of nineteen hundred eight-
y-one, and notwithstanding the provisions of chapter ninety-four of the
laws of two thousand eleven, or any other provisions of law to the
contrary, during the fiscal year beginning April first, two thousand
[sixteen] SEVENTEEN, the state comptroller is hereby authorized and
directed to deposit to the fund created pursuant to this section from
amounts collected pursuant to article twenty-two of the tax law and
pursuant to a schedule submitted by the director of the budget, up to
[$3,283,844,000] $2,679,997,000, as may be certified in such schedule as
necessary to meet the purposes of such fund for the fiscal year begin-
ning April first, two thousand [sixteen] SEVENTEEN.
§ 22. Notwithstanding any law to the contrary, the comptroller is
hereby authorized and directed to transfer, upon request of the director
of the budget, on or before March 31, 2018, the following amounts from
the following special revenue accounts to the capital projects fund
(30000), for the purposes of reimbursement to such fund for expenses
related to the maintenance and preservation of state assets:
1. $43,000 from the miscellaneous special revenue fund, administrative
program account (21982).
2. $1,478,000 from the miscellaneous special revenue fund, helen hayes
hospital account (22140).
S. 2009--C 266 A. 3009--C
3. $366,000 from the miscellaneous special revenue fund, New York city
veterans' home account (22141).
4. $513,000 from the miscellaneous special revenue fund, New York
state home for veterans' and their dependents at oxford account (22142).
5. $159,000 from the miscellaneous special revenue fund, western New
York veterans' home account (22143).
6. $323,000 from the miscellaneous special revenue fund, New York
state for veterans in the lower-hudson valley account (22144).
7. $2,550,000 from the miscellaneous special revenue fund, patron
services account (22163).
8. $41,930,000 from the miscellaneous special revenue fund, state
university dormitory income reimbursable account (21937).
9. $830,000 from the miscellaneous special revenue fund, long island
veterans' home account (22652).
10. $5,379,000 from the miscellaneous special revenue fund, state
university general income reimbursable account (22653).
11. $112,556,000 from the miscellaneous special revenue fund, state
university revenue offset account (22655).
12. $557,000 from the miscellaneous special revenue fund, state
university of New York tuition reimbursement account (22659).
§ 22-a. Intentionally omitted.
§ 22-b. Section 97-rrr of the state finance law, as amended by section
45 of part H of chapter 56 of the laws of 2000, is amended by adding a
new subdivision 4 to read as follows:
4. ANY AMOUNTS DISBURSED FROM SUCH FUND SHALL BE EXCLUDED FROM THE
CALCULATION OF ANNUAL SPENDING GROWTH IN STATE OPERATING FUNDS UNTIL
JUNE 30, 2019.
§ 22-c. Subdivision 1 of section 4 of section 1 of part D3 of chapter
62 of the laws of 2003 amending the general business law and other laws
relating to implementing the state fiscal plan for the 2003-2004 state
fiscal year, is amended to read as follows:
1. The state representative, upon the execution of a sale agreement on
behalf of the state may sell to the corporation, and the corporation may
purchase, for cash or other consideration and in one or more install-
ments, all or a portion of the state's share. Any such agreement shall
provide, among other matters, that the purchase price payable by the
corporation to the state for such state's share or portion thereof shall
consist of the net proceeds of the bonds issued to finance such purchase
price and the residual interests, if any. [The] NOTWITHSTANDING SECTION
121 OF THE STATE FINANCE LAW OR ANY OTHER LAW TO THE CONTRARY, THE resi-
dual interests shall be deposited into [the tobacco settlement fund
pursuant to section 92-x of the state finance law, unless otherwise
directed by statute] THE MEDICAID MANAGEMENT INFORMATION SYSTEM (MMIS)
STATEWIDE ESCROW FUND WITHIN THIRTY DAYS UPON THE AVAILABILITY OF SUCH
RESIDUAL INTERESTS TO FUND A PORTION OF THE CUMULATIVE NON-FEDERAL SHARE
OF EXPENSES RELATED TO THE STATE TAKEOVER OF THE LOCAL SHARE OF MEDICAID
GROWTH PURSUANT TO PART F OF CHAPTER 56 OF THE LAWS OF 2012. SUCH
DEPOSIT SHALL BE IN AN AMOUNT EQUAL TO (A) THE AMOUNT OF RESIDUAL INTER-
ESTS SCHEDULED FOR DEPOSIT INTO THE MMIS STATEWIDE ESCROW FUND IN THE
APPLICABLE YEAR'S ENACTED BUDGET FINANCIAL PLAN AS UPDATED OR (B) THE
TOTAL AMOUNT OF RESIDUAL INTERESTS AVAILABLE IF THE TOTAL AMOUNT OF SUCH
RESIDUAL INTERESTS IS LESS THAN THE TOTAL AMOUNT OF RESIDUAL INTERESTS
SCHEDULED FOR DEPOSIT INTO THE MMIS STATEWIDE ESCROW FUND IN THE APPLI-
CABLE YEAR'S ENACTED BUDGET FINANCIAL PLAN AS UPDATED. AT THE DISCRETION
OF THE STATE REPRESENTATIVE, ANY RESIDUAL INTERESTS WHICH EXCEED THE
AMOUNT SCHEDULED FOR DEPOSIT INTO THE MMIS STATEWIDE ESCROW FUND IN THE
S. 2009--C 267 A. 3009--C
APPLICABLE YEAR'S ENACTED BUDGET FINANCIAL PLAN AS UPDATED MAY EITHER BE
DEPOSITED INTO THE (I) MMIS STATEWIDE ESCROW FUND TO FUND A PORTION, AS
DETERMINED BY THE STATE REPRESENTATIVE, OF THE CUMULATIVE NON-FEDERAL
SHARE OF EXPENSES RELATED TO THE STATE TAKEOVER OF THE LOCAL SHARE OF
MEDICAID GROWTH, PURSUANT TO PART F OF CHAPTER 56 OF THE LAWS OF 2012,
OR (II) THE STATE GENERAL FUND; provided, however that any residual
interest derived from other assets shall be applied as directed by stat-
ute. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT USED FROM
SUCH DEPOSIT TO FUND A PORTION OF THE CUMULATIVE NON-FEDERAL SHARE OF
EXPENSES RELATED TO THE STATE TAKEOVER OF THE LOCAL SHARE OF MEDICAID
GROWTH SHALL BE PAID WITHOUT APPROPRIATION. Any such sale shall be
pursuant to one or more sale agreements which may contain such terms and
conditions deemed necessary by the state representative to carry out and
effectuate the purposes of this section, including covenants binding the
state in favor of the corporation and its assignees, including the
owners of its bonds such as covenants with respect to the enforcement at
the expense of the state of the payment provisions of the master settle-
ment agreement, the diligent enforcement at the expense of the state of
the qualifying statute, the application and use of the proceeds of the
sale of the state's share to preserve the tax-exemption on the bonds,
the interest on which is intended to be exempt from federal income tax,
issued to finance the purchase thereof and otherwise as provided in this
act. Notwithstanding the foregoing, neither the state representative nor
the corporation shall be authorized to make any covenant, pledge, prom-
ise or agreement purporting to bind the state with respect to pledged
tobacco revenues, except as otherwise specifically authorized by this
act.
§ 22-d. The state finance law is amended by adding a new section 99-aa
to read as follows:
§ 99-AA. RETIREE HEALTH BENEFIT TRUST FUND. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF THE DEPARTMENT OF
CIVIL SERVICE AND THE STATE COMPTROLLER A SPECIAL INVESTMENT TRUST FUND
TO BE KNOWN AS THE RETIREE HEALTH BENEFIT TRUST FUND, WHICH SHALL BE
CLASSIFIED AS A FIDUCIARY FUND TYPE.
2. FOR PURPOSES OF THIS SECTION: (A) "COMMISSIONER" SHALL MEAN THE
COMMISSIONER OF THE DEPARTMENT OF CIVIL SERVICE;
(B) "STATE" SHALL MEAN THE STATE OF NEW YORK;
(C) "FUND", OR "TRUST", OR "TRUST FUND" SHALL MEAN THE RETIREE HEALTH
BENEFIT TRUST FUND CREATED BY THIS SECTION; AND
(D) "RETIREE HEALTH BENEFITS" SHALL MEAN BENEFITS, EXCEPT PENSIONS OR
OTHER BENEFITS FUNDED THROUGH A PUBLIC RETIREMENT SYSTEM, PROVIDED OR TO
BE PROVIDED BY THE STATE AS COMPENSATION, WHETHER PURSUANT TO STATUTE,
CONTRACT OR OTHER LAWFUL AUTHORITY, TO ITS CURRENT OR FORMER OFFICERS OR
EMPLOYEES, OR THEIR FAMILIES OR BENEFICIARIES, AFTER SERVICE TO THE
STATE HAS ENDED, INCLUDING, BUT NOT LIMITED TO, HEALTH CARE BENEFITS.
3. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE RETI-
REE HEALTH BENEFIT TRUST FUND IS ESTABLISHED FOR THE EXCLUSIVE BENEFIT
OF RETIRED STATE EMPLOYEES AND THEIR DEPENDENTS.
(B) THE SOLE PURPOSE OF THE TRUST FUND ESTABLISHED PURSUANT TO SUBDI-
VISION ONE OF THIS SECTION SHALL BE TO FUND THE RETIREE HEALTH BENEFITS
OF RETIRED STATE EMPLOYEES AND THEIR DEPENDENTS.
4. (A) PAYMENTS INTO AND FROM THE TRUST FUND ESTABLISHED PURSUANT TO
SUBDIVISION ONE OF THIS SECTION SHALL BE MADE IN ACCORDANCE WITH THIS
SECTION.
(B) CONTRIBUTIONS TO THE TRUST, AND ANY INTEREST OR OTHER INCOME OR
EARNINGS ON CONTRIBUTIONS, SHALL BE IRREVOCABLE BEFORE ALL LIABILITIES
S. 2009--C 268 A. 3009--C
OF THE STATE GOVERNMENT FOR RETIREE HEALTH BENEFITS HAVE BEEN SATISFIED
AND SHALL BE SOLELY DEDICATED TO, AND USED SOLELY FOR, PROVIDING RETIREE
HEALTH BENEFITS AND PAYING APPROPRIATE AND REASONABLE EXPENSES OF ADMIN-
ISTERING THE TRUST. NO ASSETS, INCOME, EARNINGS OR DISTRIBUTIONS OF THE
TRUST SHALL BE SUBJECT TO ANY CLAIM OF CREDITORS OF THE STATE, OR TO
ASSIGNMENT OR EXECUTION, ATTACHMENT OR ANY OTHER CLAIM ENFORCEMENT PROC-
ESS INITIATED BY OR ON BEHALF OF SUCH CREDITORS. EXCEPT AS OTHERWISE
PROVIDED IN SUBDIVISION EIGHT OF THIS SECTION, THE COMMISSIONER SHALL
NOT BE RESPONSIBLE FOR THE ADEQUACY OF THE ASSETS OF THE TRUST TO MEET
ANY OTHER POST-EMPLOYMENT BENEFIT. THE TRUST MAY BE TERMINATED ONLY
WHEN ALL LIABILITIES OF THE STATE FOR RETIREE HEALTH BENEFITS HAVE BEEN
SATISFIED AND THERE IS NO PRESENT OR FUTURE OBLIGATION, CONTINGENT OR
OTHERWISE, OF THE STATE TO PROVIDE SUCH RETIREE HEALTH BENEFITS. UPON
SUCH TERMINATION, ANY REMAINING TRUST ASSETS, AFTER ANY PROPER EXPENSES
OF THE TRUST HAVE BEEN PAID, SHALL REVERT TO THE STATE.
(C) AT THE REQUEST OF THE DIRECTOR OF THE BUDGET, THE STATE COMP-
TROLLER SHALL TRANSFER MONIES FROM THE GENERAL FUND TO THE TRUST FUND UP
TO AND INCLUDING AN AMOUNT EQUIVALENT TO FIFTY ONE-HUNDREDTHS OF ONE PER
CENTUM OF THE TOTAL ACTUARIAL ACCRUED LIABILITY INCLUDED IN THE STATE OF
NEW YORK COMPREHENSIVE ANNUAL FINANCIAL REPORT.
(D) ANY USE OF FUNDS FOR RETIREE HEALTH BENEFITS FROM SUCH TRUST FUND
SHALL NOT BE SUBJECT TO AN APPROPRIATION AND SHALL BE TRANSFERRED BY THE
STATE COMPTROLLER, AT THE REQUEST OF THE DIRECTOR OF THE BUDGET, TO THE
EXTENT FUNDS ARE AVAILABLE IN SUCH TRUST FUND, TO THE HEALTH INSURANCE
FUND FOR THE SOLE AND EXCLUSIVE PURPOSE OF FUNDING RETIREE HEALTH BENE-
FITS. THE DIRECTOR OF THE BUDGET SHALL NOTIFY BOTH HOUSES OF THE LEGIS-
LATURE IN WRITING THIRTY DAYS PRIOR TO INITIATING TRANSFERS PURSUANT TO
THIS AUTHORIZATION.
5. INVESTMENTS. (A) THE COMMISSIONER MAY ESTABLISH A TRUST IN JOINT
CUSTODY WITH THE STATE COMPTROLLER FOR THE PURPOSE OF ACCUMULATING
ASSETS TO FUND THE COST OF PROVIDING RETIREE HEALTH BENEFITS.
(B) THE COMMISSIONER IS HEREBY DECLARED TO BE THE TRUSTEE OF THE TRUST
ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, AND THE COMMIS-
SIONER SHALL DELEGATE RESPONSIBILITY FOR MANAGING THE INVESTMENTS OF THE
TRUST FUND ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS SECTION TO
THE STATE COMPTROLLER. THE STATE COMPTROLLER SHALL MANAGE THE INVEST-
MENTS OF THE TRUST FUND ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS
SECTION IN A CAREFUL AND PRUDENT MANNER CONSISTENT WITH THE GUIDELINES
AND PROVISIONS OF SECTION NINETY-EIGHT THIS ARTICLE.
(C) ANY INTEREST OR OTHER INCOME OR EARNINGS RESULTING FROM THE
INVESTMENT OF ASSETS OF THE TRUST SHALL ACCRUE TO AND BECOME PART OF THE
ASSETS OF THE TRUST.
6. IN ACCORDANCE WITH PARAGRAPH (B) OF SUBDIVISION FIVE OF THIS
SECTION, THE STATE COMPTROLLER SHALL DEVELOP, IN CONSULTATION WITH THE
STATE HEALTH INSURANCE COUNCIL, A WRITTEN INVESTMENT POLICY FOR SELECT-
ING INVESTMENT OPTIONS IN A MANNER CONSISTENT WITH THE INVESTMENT
OPTIONS PRESCRIBED IN SECTION NINETY-EIGHT OF THIS ARTICLE SO THAT THE
STATE COMPTROLLER MAY BE ABLE TO INVEST FUND MONIES IN ACCORDANCE WITH
SUCH POLICY. SUCH POLICY SHALL INCLUDE A STATEMENT OF INVESTMENT OBJEC-
TIVES ADDRESSING, IN THE FOLLOWING ORDER OF PRIORITY, THE ABILITY TO
TIMELY MEET DISBURSEMENT REQUESTS WITHOUT FORCED SALE OF ASSETS, SAFETY
OF PRINCIPAL AND ATTAINMENT OF MARKET RATES OF RETURN.
7. NEITHER THE STATE NOR THE COMMISSIONER SHALL BE LIABLE FOR ANY LOSS
OR EXPENSE SUFFERED BY THE TRUST IN THE ABSENCE OF BAD FAITH, WILLFUL
MISCONDUCT OR INTENTIONAL WRONGDOING. THE COMMISSIONER SHALL BE CONSID-
ERED TO BE ACTING AS AN OFFICER OF THE STATE FOR PURPOSES OF SECTION
S. 2009--C 269 A. 3009--C
SEVENTEEN OF THE PUBLIC OFFICERS LAW, PROVIDED, HOWEVER, THAT THE COSTS
OF ANY DEFENSE OR INDEMNIFICATION OF THE COMMISSIONER ARISING FROM THE
EXERCISE OF THE FUNCTIONS OF TRUSTEE SHALL BE PAYABLE FROM THE ASSETS OF
THE TRUST.
8. NOTHING CONTAINED IN THIS SECTION SHALL BE INTERPRETED OR CONSTRUED
TO: (A) CREATE ANY OBLIGATION IN, IMPOSE ANY OBLIGATION ON, OR ALTER ANY
OBLIGATION OF THE STATE TO PROVIDE RETIREE HEALTH BENEFITS;
(B) LIMIT OR RESTRICT THE AUTHORITY OF THE STATE TO MODIFY OR ELIMI-
NATE RETIREE HEALTH BENEFITS;
(C) ASSURE OR DENY RETIREE HEALTH BENEFITS; OR
(D) REQUIRE THE STATE TO FUND ITS LIABILITY FOR RETIREE HEALTH BENE-
FITS.
§ 22-e. In the event that the federal budget or continuing resolutions
in force for federal fiscal years 2017 or 2018, or both, or federal
statutory or regulatory changes, reduce federal financial participation
in Medicaid funding to New York state or its subdivisions by $850
million or more, the director of the division of the budget shall notify
the temporary president of the senate and the speaker of the assembly in
writing that the federal actions will reduce expected funding to New
York state. The director of the division of the budget shall prepare a
plan that shall be submitted to the legislature, which shall (a) specify
the total amount of the reduction in federal financial participation in
Medicaid, (b) itemize the specific programs and activities that will be
affected by the reduction in federal financial participation in Medi-
caid, and (c) identify the general fund and state special revenue fund
appropriations and related disbursements that shall be reduced, and in
what program areas, provided, however, that such reductions to appropri-
ations and disbursements shall be applied equally and proportionally to
the programs affected by the reduction. Upon such submission, the legis-
lature shall have 90 days after such submission to either prepare its
own plan, which may be adopted by concurrent resolution passed by both
houses, or if after 90 days the legislature fails to adopt their own
plan, the reductions to the general fund and state special revenue fund
appropriations and related disbursements identified in the division of
the budget plan will go into effect automatically.
§ 22-f. In the event that the federal budget or continuing resolutions
in force for federal fiscal years 2017 or 2018, or both, or federal
statutory or regulatory changes, reduce federal financial participation
or other federal aid in funding to New York state that affects the state
operating funds financial plan by $850 million or more, exclusive of any
cuts to Medicaid, the director of the division of the budget shall noti-
fy the temporary president of the senate and the speaker of the assembly
in writing that the federal actions will reduce expected funding to New
York state. The director of the division of the budget shall prepare a
plan that shall be submitted to the legislature, which shall (a) specify
the total amount of the reduction in federal aid, (b) itemize the
specific programs and activities that will be affected by the federal
reductions, exclusive of Medicaid, and (c) identify the general fund and
state special revenue fund appropriations and related disbursements that
shall be reduced, and in what program areas, provided, however, that
such reductions to appropriations and disbursements shall be applied
equally and proportionally. Upon such submission, the legislature shall
have 90 days after such submission to either prepare its own plan, which
may be adopted by concurrent resolution passed by both houses, or if
after 90 days the legislature fails to adopt their own plan, the
reductions to the general fund and state special revenue fund appropri-
S. 2009--C 270 A. 3009--C
ations and related disbursements identified in the division of the budg-
et plan will go into effect automatically.
§ 23. Notwithstanding any other law, rule, or regulation to the
contrary, the state comptroller is hereby authorized and directed to use
any balance remaining in the mental health services fund debt service
appropriation, after payment by the state comptroller of all obligations
required pursuant to any lease, sublease, or other financing arrangement
between the dormitory authority of the state of New York as successor to
the New York state medical care facilities finance agency, and the
facilities development corporation pursuant to chapter 83 of the laws of
1995 and the department of mental hygiene for the purpose of making
payments to the dormitory authority of the state of New York for the
amount of the earnings for the investment of monies deposited in the
mental health services fund that such agency determines will or may have
to be rebated to the federal government pursuant to the provisions of
the internal revenue code of 1986, as amended, in order to enable such
agency to maintain the exemption from federal income taxation on the
interest paid to the holders of such agency's mental services facilities
improvement revenue bonds. Annually on or before each June 30th, such
agency shall certify to the state comptroller its determination of the
amounts received in the mental health services fund as a result of the
investment of monies deposited therein that will or may have to be
rebated to the federal government pursuant to the provisions of the
internal revenue code of 1986, as amended.
§ 24. Subdivision 1 of section 47 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, as amended by section 29 of part UU of chapter 54 of the
laws of 2016, is amended to read as follows:
1. Notwithstanding the provisions of any other law to the contrary,
the dormitory authority and the corporation are hereby authorized to
issue bonds or notes in one or more series for the purpose of funding
project costs for the office of information technology services, depart-
ment of law, and other state costs associated with such capital
projects. The aggregate principal amount of bonds authorized to be
issued pursuant to this section shall not exceed [three] FOUR hundred
[sixty-four] FIFTY million [eight] FIVE hundred forty thousand dollars,
excluding bonds issued to fund one or more debt service reserve funds,
to pay costs of issuance of such bonds, and bonds or notes issued to
refund or otherwise repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the dormitory authority and the corporation for principal,
interest, and related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be used to pay
debt service on such bonds.
§ 25. Subdivision 1 of section 16 of part D of chapter 389 of the laws
of 1997, relating to the financing of the correctional facilities
improvement fund and the youth facility improvement fund, as amended by
section 30 of part UU of chapter 54 of the laws of 2016, is amended to
read as follows:
1. Subject to the provisions of chapter 59 of the laws of 2000, but
notwithstanding the provisions of section 18 of section 1 of chapter 174
of the laws of 1968, the New York state urban development corporation is
S. 2009--C 271 A. 3009--C
hereby authorized to issue bonds, notes and other obligations in an
aggregate principal amount not to exceed seven billion [four] SEVEN
hundred [twenty-four] FORTY-ONE million [nine] ONE hundred ninety-nine
thousand dollars [$7,424,999,000] $7,741,199,000, and shall include all
bonds, notes and other obligations issued pursuant to chapter 56 of the
laws of 1983, as amended or supplemented. The proceeds of such bonds,
notes or other obligations shall be paid to the state, for deposit in
the correctional facilities capital improvement fund to pay for all or
any portion of the amount or amounts paid by the state from appropri-
ations or reappropriations made to the department of corrections and
community supervision from the correctional facilities capital improve-
ment fund for capital projects. The aggregate amount of bonds, notes or
other obligations authorized to be issued pursuant to this section shall
exclude bonds, notes or other obligations issued to refund or otherwise
repay bonds, notes or other obligations theretofore issued, the proceeds
of which were paid to the state for all or a portion of the amounts
expended by the state from appropriations or reappropriations made to
the department of corrections and community supervision; provided,
however, that upon any such refunding or repayment the total aggregate
principal amount of outstanding bonds, notes or other obligations may be
greater than seven billion [four] SEVEN hundred [twenty-four] FORTY-ONE
million [nine] ONE hundred ninety-nine thousand dollars [$7,424,999,000]
$7,741,199,000, only if the present value of the aggregate debt service
of the refunding or repayment bonds, notes or other obligations to be
issued shall not exceed the present value of the aggregate debt service
of the bonds, notes or other obligations so to be refunded or repaid.
For the purposes hereof, the present value of the aggregate debt service
of the refunding or repayment bonds, notes or other obligations and of
the aggregate debt service of the bonds, notes or other obligations so
refunded or repaid, shall be calculated by utilizing the effective
interest rate of the refunding or repayment bonds, notes or other obli-
gations, which shall be that rate arrived at by doubling the semi-annual
interest rate (compounded semi-annually) necessary to discount the debt
service payments on the refunding or repayment bonds, notes or other
obligations from the payment dates thereof to the date of issue of the
refunding or repayment bonds, notes or other obligations and to the
price bid including estimated accrued interest or proceeds received by
the corporation including estimated accrued interest from the sale ther-
eof.
§ 26. Paragraph (a) of subdivision 2 of section 47-e of the private
housing finance law, as amended by section 31 of part UU of chapter 54
of the laws of 2016, is amended to read as follows:
(a) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, in order to enhance and encourage the promotion of housing
programs and thereby achieve the stated purposes and objectives of such
housing programs, the agency shall have the power and is hereby author-
ized from time to time to issue negotiable housing program bonds and
notes in such principal amount as shall be necessary to provide suffi-
cient funds for the repayment of amounts disbursed (and not previously
reimbursed) pursuant to law or any prior year making capital appropri-
ations or reappropriations for the purposes of the housing program;
provided, however, that the agency may issue such bonds and notes in an
aggregate principal amount not exceeding [four] FIVE billion [six] THREE
hundred [ninety-seven] EIGHTY-FOUR million [four] ONE hundred [seventy-
four] NINETY-NINE thousand dollars, plus a principal amount of bonds
issued to fund the debt service reserve fund in accordance with the debt
S. 2009--C 272 A. 3009--C
service reserve fund requirement established by the agency and to fund
any other reserves that the agency reasonably deems necessary for the
security or marketability of such bonds and to provide for the payment
of fees and other charges and expenses, including underwriters'
discount, trustee and rating agency fees, bond insurance, credit
enhancement and liquidity enhancement related to the issuance of such
bonds and notes. No reserve fund securing the housing program bonds
shall be entitled or eligible to receive state funds apportioned or
appropriated to maintain or restore such reserve fund at or to a partic-
ular level, except to the extent of any deficiency resulting directly or
indirectly from a failure of the state to appropriate or pay the agreed
amount under any of the contracts provided for in subdivision four of
this section.
§ 27. Subdivision (b) of section 11 of chapter 329 of the laws of
1991, amending the state finance law and other laws relating to the
establishment of the dedicated highway and bridge trust fund, as amended
by section 32 of part UU of chapter 54 of the laws of 2016, is amended
to read as follows:
(b) Any service contract or contracts for projects authorized pursuant
to sections 10-c, 10-f, 10-g and 80-b of the highway law and section
14-k of the transportation law, and entered into pursuant to subdivision
(a) of this section, shall provide for state commitments to provide
annually to the thruway authority a sum or sums, upon such terms and
conditions as shall be deemed appropriate by the director of the budget,
to fund, or fund the debt service requirements of any bonds or any obli-
gations of the thruway authority issued to fund or to reimburse the
state for funding such projects having a cost not in excess of
[$9,147,234,000] $9,699,586,000 cumulatively by the end of fiscal year
[2016-17] 2017-18.
§ 28. Subdivision 1 of section 1689-i of the public authorities law,
as amended by section 33 of part UU of chapter 54 of the laws of 2016,
is amended to read as follows:
1. The dormitory authority is authorized to issue bonds, at the
request of the commissioner of education, to finance eligible library
construction projects pursuant to section two hundred seventy-three-a of
the education law, in amounts certified by such commissioner not to
exceed a total principal amount of one hundred [fifty-nine] EIGHTY-THREE
million dollars.
§ 29. Subdivision (a) of section 27 of part Y of chapter 61 of the
laws of 2005, relating to providing for the administration of certain
funds and accounts related to the 2005-2006 budget, as amended by
section 34 of part UU of chapter 54 of the laws of 2016, is amended to
read as follows:
(a) Subject to the provisions of chapter 59 of the laws of 2000, but
notwithstanding any provisions of law to the contrary, the urban devel-
opment corporation is hereby authorized to issue bonds or notes in one
or more series in an aggregate principal amount not to exceed
[$167,600,000] $173,600,000, excluding bonds issued to finance one or
more debt service reserve funds, to pay costs of issuance of such bonds,
and bonds or notes issued to refund or otherwise repay such bonds or
notes previously issued, for the purpose of financing capital projects
including IT initiatives for the division of state police, debt service
and leases; and to reimburse the state general fund for disbursements
made therefor. Such bonds and notes of such authorized issuer shall not
be a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
S. 2009--C 273 A. 3009--C
the state to such authorized issuer for debt service and related
expenses pursuant to any service contract executed pursuant to subdivi-
sion (b) of this section and such bonds and notes shall contain on the
face thereof a statement to such effect. Except for purposes of comply-
ing with the internal revenue code, any interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
§ 30. Section 44 of section 1 of chapter 174 of the laws of 1968,
constituting the New York state urban development corporation act, as
amended by section 35 of part UU of chapter 54 of the laws of 2016, is
amended to read as follows:
§ 44. Issuance of certain bonds or notes. 1. Notwithstanding the
provisions of any other law to the contrary, the dormitory authority and
the corporation are hereby authorized to issue bonds or notes in one or
more series for the purpose of funding project costs for the regional
economic development council initiative, the economic transformation
program, state university of New York college for nanoscale and science
engineering, projects within the city of Buffalo or surrounding envi-
rons, the New York works economic development fund, projects for the
retention of professional football in western New York, the empire state
economic development fund, the clarkson-trudeau partnership, the New
York genome center, the cornell university college of veterinary medi-
cine, the olympic regional development authority, projects at nano
Utica, onondaga county revitalization projects, Binghamton university
school of pharmacy, New York power electronics manufacturing consortium,
regional infrastructure projects, high technology manufacturing projects
in Chautauqua and Erie county, an industrial scale research and develop-
ment facility in Clinton county, upstate revitalization initiative
projects, market New York projects, fairground buildings, EQUIPMENT or
facilities used to house and promote agriculture, THE STATE FAIR, THE
EMPIRE STATE TRAIL, THE MOYNIHAN STATION DEVELOPMENT PROJECT, THE KINGS-
BRIDGE ARMORY PROJECT, STRATEGIC ECONOMIC DEVELOPMENT PROJECTS, THE
CULTURAL, ARTS AND PUBLIC SPACES FUND, WATER INFRASTRUCTURE IN THE CITY
OF AUBURN AND TOWN OF OWASCO, A LIFE SCIENCES LABORATORY PUBLIC HEALTH
INITIATIVE, NOT-FOR-PROFIT POUNDS, SHELTERS AND HUMANE SOCIETIES, ARTS
AND CULTURAL FACILITIES IMPROVEMENT PROGRAM, RESTORE NEW YORK'S COMMUNI-
TIES INITIATIVE, HEAVY EQUIPMENT, ECONOMIC DEVELOPMENT AND INFRASTRUC-
TURE PROJECTS, and other state costs associated with such projects. The
aggregate principal amount of bonds authorized to be issued pursuant to
this section shall not exceed [four] SIX billion [six] SEVEN hundred
[seventy-one] EIGHT million [seven] TWO hundred fifty-seven thousand
dollars, excluding bonds issued to fund one or more debt service reserve
funds, to pay costs of issuance of such bonds, and bonds or notes issued
to refund or otherwise repay such bonds or notes previously issued. Such
bonds and notes of the dormitory authority and the corporation shall not
be a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the dormitory authority and the corporation for principal,
interest, and related expenses pursuant to a service contract and such
bonds and notes shall contain on the face thereof a statement to such
effect. Except for purposes of complying with the internal revenue code,
any interest income earned on bond proceeds shall only be used to pay
debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the corporation in undertak-
ing the financing for project costs for the regional economic develop-
ment council initiative, the economic transformation program, state
S. 2009--C 274 A. 3009--C
university of New York college for nanoscale and science engineering,
projects within the city of Buffalo or surrounding environs, the New
York works economic development fund, projects for the retention of
professional football in western New York, the empire state economic
development fund, the clarkson-trudeau partnership, the New York genome
center, the cornell university college of veterinary medicine, the olym-
pic regional development authority, projects at nano Utica, onondaga
county revitalization projects, Binghamton university school of pharma-
cy, New York power electronics manufacturing consortium, regional
infrastructure projects, high technology manufacturing projects in Chau-
tauqua and Erie county, an industrial scale research and development
facility in Clinton county, upstate revitalization initiative projects,
market New York projects, fairground buildings, EQUIPMENT or facilities
used to house and promote agriculture, THE STATE FAIR, THE EMPIRE STATE
TRAIL, THE MOYNIHAN STATION DEVELOPMENT PROJECT, THE KINGSBRIDGE ARMORY
PROJECT, STRATEGIC ECONOMIC DEVELOPMENT PROJECTS, THE CULTURAL, ARTS AND
PUBLIC SPACES FUND, WATER INFRASTRUCTURE IN THE CITY OF AUBURN AND TOWN
OF OWASCO, A LIFE SCIENCES LABORATORY PUBLIC HEALTH INITIATIVE, NOT-FOR-
PROFIT POUNDS, SHELTERS AND HUMANE SOCIETIES, ARTS AND CULTURAL FACILI-
TIES IMPROVEMENT PROGRAM, RESTORE NEW YORK'S COMMUNITIES INITIATIVE,
HEAVY EQUIPMENT, ECONOMIC DEVELOPMENT AND INFRASTRUCTURE PROJECTS, and
other state costs associated with such projects, the director of the
budget is hereby authorized to enter into one or more service contracts
with the dormitory authority and the corporation, none of which shall
exceed thirty years in duration, upon such terms and conditions as the
director of the budget and the dormitory authority and the corporation
agree, so as to annually provide to the dormitory authority and the
corporation, in the aggregate, a sum not to exceed the principal, inter-
est, and related expenses required for such bonds and notes. Any service
contract entered into pursuant to this section shall provide that the
obligation of the state to pay the amount therein provided shall not
constitute a debt of the state within the meaning of any constitutional
or statutory provision and shall be deemed executory only to the extent
of monies available and that no liability shall be incurred by the state
beyond the monies available for such purpose, subject to annual appro-
priation by the legislature. Any such contract or any payments made or
to be made thereunder may be assigned and pledged by the dormitory
authority and the corporation as security for its bonds and notes, as
authorized by this section.
§ 31. Subdivisions 1 and 3 of section 1285-p of the public authorities
law, subdivision 1 as amended by section 33 of part I of chapter 60 of
the laws of 2015 and subdivision 3 as amended by section 36 of part UU
of chapter 54 of the laws of 2016, are amended to read as follows:
1. Subject to chapter fifty-nine of the laws of two thousand, but
notwithstanding any other provisions of law to the contrary, in order to
assist the corporation in undertaking the administration and the financ-
ing of the design, acquisition, construction, improvement, installation,
and related work for all or any portion of any of the following environ-
mental infrastructure projects and for the provision of funds to the
state for any amounts disbursed therefor: (a) projects authorized under
the environmental protection fund, or for which appropriations are made
to the environmental protection fund including, but not limited to
municipal parks and historic preservation, stewardship, farmland
protection, non-point source, pollution control, Hudson River Park, land
acquisition, and waterfront revitalization; (b) department of environ-
mental conservation capital appropriations for Onondaga Lake for certain
S. 2009--C 275 A. 3009--C
water quality improvement projects in the same manner as set forth in
paragraph (d) of subdivision one of section 56-0303 of the environmental
conservation law; (c) for the purpose of the administration, management,
maintenance, and use of the real property at the western New York nucle-
ar service center; (d) department of environmental conservation capital
appropriations for the administration, design, acquisition,
construction, improvement, installation, and related work on department
of environmental conservation environmental infrastructure projects; (e)
office of parks, recreation and historic preservation appropriations or
reappropriations from the state parks infrastructure fund; (f) capital
grants for the cleaner, greener communities program [and]; (g) capital
costs of water quality infrastructure projects AND (H) CAPITAL COSTS OF
CLEAN WATER INFRASTRUCTURE PROJECTS the director of the division of
budget and the corporation are each authorized to enter into one or more
service contracts, none of which shall exceed twenty years in duration,
upon such terms and conditions as the director and the corporation may
agree, so as to annually provide to the corporation in the aggregate, a
sum not to exceed the annual debt service payments and related expenses
required for any bonds and notes authorized pursuant to section twelve
hundred ninety of this title. Any service contract entered into pursuant
to this section shall provide that the obligation of the state to fund
or to pay the amounts therein provided for shall not constitute a debt
of the state within the meaning of any constitutional or statutory
provision and shall be deemed executory only to the extent of moneys
available for such purposes, subject to annual appropriation by the
legislature. Any such service contract or any payments made or to be
made thereunder may be assigned and pledged by the corporation as secu-
rity for its bonds and notes, as authorized pursuant to section twelve
hundred ninety of this title.
3. The maximum amount of bonds that may be issued for the purpose of
financing environmental infrastructure projects authorized by this
section shall be [two] FOUR billion [one] NINE hundred [eight] FIFTY-ONE
million [two] SEVEN hundred sixty thousand dollars, exclusive of bonds
issued to fund any debt service reserve funds, pay costs of issuance of
such bonds, and bonds or notes issued to refund or otherwise repay bonds
or notes previously issued. Such bonds and notes of the corporation
shall not be a debt of the state, and the state shall not be liable
thereon, nor shall they be payable out of any funds other than those
appropriated by the state to the corporation for debt service and
related expenses pursuant to any service contracts executed pursuant to
subdivision one of this section, and such bonds and notes shall contain
on the face thereof a statement to such effect.
§ 32. Subdivision 1 of section 45 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, as amended by section 37 of part UU of chapter 54 of the
laws of 2016, is amended to read as follows:
1. Notwithstanding the provisions of any other law to the contrary,
the urban development corporation of the state of New York is hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the implementation of a NY-SUNY and NY-CUNY
2020 challenge grant program subject to the approval of a NY-SUNY and
NY-CUNY 2020 plan or plans by the governor and either the chancellor of
the state university of New York or the chancellor of the city universi-
ty of New York, as applicable. The aggregate principal amount of bonds
authorized to be issued pursuant to this section shall not exceed
[$550,000,000] $660,000,000, excluding bonds issued to fund one or more
S. 2009--C 276 A. 3009--C
debt service reserve funds, to pay costs of issuance of such bonds, and
bonds or notes issued to refund or otherwise repay such bonds or notes
previously issued. Such bonds and notes of the corporation shall not be
a debt of the state, and the state shall not be liable thereon, nor
shall they be payable out of any funds other than those appropriated by
the state to the corporation for principal, interest, and related
expenses pursuant to a service contract and such bonds and notes shall
contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
§ 33. Subdivision (a) of section 48 of part K of chapter 81 of the
laws of 2002, providing for the administration of certain funds and
accounts related to the 2002-2003 budget, as amended by section 38 of
part UU of chapter 54 of the laws of 2016, is amended to read as
follows:
(a) Subject to the provisions of chapter 59 of the laws of 2000 but
notwithstanding the provisions of section 18 of the urban development
corporation act, the corporation is hereby authorized to issue bonds or
notes in one or more series in an aggregate principal amount not to
exceed [$197,000,000] $250,000,000 excluding bonds issued to fund one or
more debt service reserve funds, to pay costs of issuance of such bonds,
and bonds or notes issued to refund or otherwise repay such bonds or
notes previously issued, for the purpose of financing capital costs
related to homeland security and training facilities for the division of
state police, the division of military and naval affairs, and any other
state agency, including the reimbursement of any disbursements made from
the state capital projects fund, and is hereby authorized to issue bonds
or notes in one or more series in an aggregate principal amount not to
exceed [$509,600,000] $654,800,000, excluding bonds issued to fund one
or more debt service reserve funds, to pay costs of issuance of such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued, for the purpose of financing improvements to
State office buildings and other facilities located statewide, including
the reimbursement of any disbursements made from the state capital
projects fund. Such bonds and notes of the corporation shall not be a
debt of the state, and the state shall not be liable thereon, nor shall
they be payable out of any funds other than those appropriated by the
state to the corporation for debt service and related expenses pursuant
to any service contracts executed pursuant to subdivision (b) of this
section, and such bonds and notes shall contain on the face thereof a
statement to such effect.
§ 34. Subdivision 1 of section 386-b of the public authorities law, as
amended by section 39 of part UU of chapter 54 of the laws of 2016, is
amended to read as follows:
1. Notwithstanding any other provision of law to the contrary, the
authority, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of financing peace bridge projects and capital costs of
state and local highways, parkways, bridges, the New York state thruway,
Indian reservation roads, and facilities, and transportation infrastruc-
ture projects including aviation projects, non-MTA mass transit
projects, and rail service preservation projects, including work appur-
tenant and ancillary thereto. The aggregate principal amount of bonds
authorized to be issued pursuant to this section shall not exceed
[three] FOUR billion [sixty-five million dollars $3,065,000,000] THREE
S. 2009--C 277 A. 3009--C
HUNDRED SIXTY-FOUR MILLION DOLLARS $4,364,000,000, excluding bonds
issued to fund one or more debt service reserve funds, to pay costs of
issuance of such bonds, and to refund or otherwise repay such bonds or
notes previously issued. Such bonds and notes of the authority, the
dormitory authority and the urban development corporation shall not be a
debt of the state, and the state shall not be liable thereon, nor shall
they be payable out of any funds other than those appropriated by the
state to the authority, the dormitory authority and the urban develop-
ment corporation for principal, interest, and related expenses pursuant
to a service contract and such bonds and notes shall contain on the face
thereof a statement to such effect. Except for purposes of complying
with the internal revenue code, any interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
§ 35. Paragraph (c) of subdivision 19 of section 1680 of the public
authorities law, as amended by section 40 of part UU of chapter 54 of
the laws of 2016, is amended to read as follows:
(c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, the dormitory authority shall not issue any bonds for state
university educational facilities purposes if the principal amount of
bonds to be issued when added to the aggregate principal amount of bonds
issued by the dormitory authority on and after July first, nineteen
hundred eighty-eight for state university educational facilities will
exceed [eleven] TWELVE billion [six] THREE hundred [sixty-three] FORTY-
THREE million dollars; provided, however, that bonds issued or to be
issued shall be excluded from such limitation if: (1) such bonds are
issued to refund state university construction bonds and state universi-
ty construction notes previously issued by the housing finance agency;
or (2) such bonds are issued to refund bonds of the authority or other
obligations issued for state university educational facilities purposes
and the present value of the aggregate debt service on the refunding
bonds does not exceed the present value of the aggregate debt service on
the bonds refunded thereby; provided, further that upon certification by
the director of the budget that the issuance of refunding bonds or other
obligations issued between April first, nineteen hundred ninety-two and
March thirty-first, nineteen hundred ninety-three will generate long
term economic benefits to the state, as assessed on a present value
basis, such issuance will be deemed to have met the present value test
noted above. For purposes of this subdivision, the present value of the
aggregate debt service of the refunding bonds and the aggregate debt
service of the bonds refunded, shall be calculated by utilizing the true
interest cost of the refunding bonds, which shall be that rate arrived
at by doubling the semi-annual interest rate (compounded semi-annually)
necessary to discount the debt service payments on the refunding bonds
from the payment dates thereof to the date of issue of the refunding
bonds to the purchase price of the refunding bonds, including interest
accrued thereon prior to the issuance thereof. The maturity of such
bonds, other than bonds issued to refund outstanding bonds, shall not
exceed the weighted average economic life, as certified by the state
university construction fund, of the facilities in connection with which
the bonds are issued, and in any case not later than the earlier of
thirty years or the expiration of the term of any lease, sublease or
other agreement relating thereto; provided that no note, including
renewals thereof, shall mature later than five years after the date of
issuance of such note. The legislature reserves the right to amend or
repeal such limit, and the state of New York, the dormitory authority,
the state university of New York, and the state university construction
S. 2009--C 278 A. 3009--C
fund are prohibited from covenanting or making any other agreements with
or for the benefit of bondholders which might in any way affect such
right.
§ 36. Paragraph (c) of subdivision 14 of section 1680 of the public
authorities law, as amended by section 41 of part UU of chapter 54 of
the laws of 2016, is amended to read as follows:
(c) Subject to the provisions of chapter fifty-nine of the laws of two
thousand, (i) the dormitory authority shall not deliver a series of
bonds for city university community college facilities, except to refund
or to be substituted for or in lieu of other bonds in relation to city
university community college facilities pursuant to a resolution of the
dormitory authority adopted before July first, nineteen hundred eighty-
five or any resolution supplemental thereto, if the principal amount of
bonds so to be issued when added to all principal amounts of bonds
previously issued by the dormitory authority for city university commu-
nity college facilities, except to refund or to be substituted in lieu
of other bonds in relation to city university community college facili-
ties will exceed the sum of four hundred twenty-five million dollars and
(ii) the dormitory authority shall not deliver a series of bonds issued
for city university facilities, including community college facilities,
pursuant to a resolution of the dormitory authority adopted on or after
July first, nineteen hundred eighty-five, except to refund or to be
substituted for or in lieu of other bonds in relation to city university
facilities and except for bonds issued pursuant to a resolution supple-
mental to a resolution of the dormitory authority adopted prior to July
first, nineteen hundred eighty-five, if the principal amount of bonds so
to be issued when added to the principal amount of bonds previously
issued pursuant to any such resolution, except bonds issued to refund or
to be substituted for or in lieu of other bonds in relation to city
university facilities, will exceed seven billion [five] NINE hundred
[eighty-eight] EIGHTY-ONE million [four] NINE hundred [eleven] SIXTY-
EIGHT thousand dollars. The legislature reserves the right to amend or
repeal such limit, and the state of New York, the dormitory authority,
the city university, and the fund are prohibited from covenanting or
making any other agreements with or for the benefit of bondholders which
might in any way affect such right.
§ 37. Subdivision 10-a of section 1680 of the public authorities law,
as amended by section 42 of part UU of chapter 54 of the laws of 2016,
is amended to read as follows:
10-a. Subject to the provisions of chapter fifty-nine of the laws of
two thousand, but notwithstanding any other provision of the law to the
contrary, the maximum amount of bonds and notes to be issued after March
thirty-first, two thousand two, on behalf of the state, in relation to
any locally sponsored community college, shall be [eight] NINE hundred
[sixty-one] FOURTEEN million [four] FIVE hundred [fifty-four] NINETY
thousand dollars. Such amount shall be exclusive of bonds and notes
issued to fund any reserve fund or funds, costs of issuance and to
refund any outstanding bonds and notes, issued on behalf of the state,
relating to a locally sponsored community college.
§ 38. Subdivision 1 of section 17 of part D of chapter 389 of the laws
of 1997, relating to the financing of the correctional facilities
improvement fund and the youth facility improvement fund, as amended by
section 43 of part UU of chapter 54 of the laws of 2016, is amended to
read as follows:
1. Subject to the provisions of chapter 59 of the laws of 2000, but
notwithstanding the provisions of section 18 of section 1 of chapter 174
S. 2009--C 279 A. 3009--C
of the laws of 1968, the New York state urban development corporation is
hereby authorized to issue bonds, notes and other obligations in an
aggregate principal amount not to exceed six hundred [forty-seven]
EIGHTY-TWO million [sixty-five] NINE HUNDRED FIFTEEN thousand dollars
[($647,065,000)] ($682,915,000), which authorization increases the
aggregate principal amount of bonds, notes and other obligations author-
ized by section 40 of chapter 309 of the laws of 1996, and shall include
all bonds, notes and other obligations issued pursuant to chapter 211 of
the laws of 1990, as amended or supplemented. The proceeds of such
bonds, notes or other obligations shall be paid to the state, for depos-
it in the youth facilities improvement fund, to pay for all or any
portion of the amount or amounts paid by the state from appropriations
or reappropriations made to the office of children and family services
from the youth facilities improvement fund for capital projects. The
aggregate amount of bonds, notes and other obligations authorized to be
issued pursuant to this section shall exclude bonds, notes or other
obligations issued to refund or otherwise repay bonds, notes or other
obligations theretofore issued, the proceeds of which were paid to the
state for all or a portion of the amounts expended by the state from
appropriations or reappropriations made to the office of children and
family services; provided, however, that upon any such refunding or
repayment the total aggregate principal amount of outstanding bonds,
notes or other obligations may be greater than six hundred [forty-seven]
EIGHTY-TWO million [sixty-five] NINE HUNDRED FIFTEEN thousand dollars
[($647,065,000)] ($682,915,000), only if the present value of the aggre-
gate debt service of the refunding or repayment bonds, notes or other
obligations to be issued shall not exceed the present value of the
aggregate debt service of the bonds, notes or other obligations so to be
refunded or repaid. For the purposes hereof, the present value of the
aggregate debt service of the refunding or repayment bonds, notes or
other obligations and of the aggregate debt service of the bonds, notes
or other obligations so refunded or repaid, shall be calculated by
utilizing the effective interest rate of the refunding or repayment
bonds, notes or other obligations, which shall be that rate arrived at
by doubling the semi-annual interest rate (compounded semi-annually)
necessary to discount the debt service payments on the refunding or
repayment bonds, notes or other obligations from the payment dates ther-
eof to the date of issue of the refunding or repayment bonds, notes or
other obligations and to the price bid including estimated accrued
interest or proceeds received by the corporation including estimated
accrued interest from the sale thereof.
§ 39. Paragraph b of subdivision 2 of section 9-a of section 1 of
chapter 392 of the laws of 1973, constituting the New York state medical
care facilities finance agency act, as amended by section 44 of part UU
of chapter 54 of the laws of 2016, is amended to read as follows:
b. The agency shall have power and is hereby authorized from time to
time to issue negotiable bonds and notes in conformity with applicable
provisions of the uniform commercial code in such principal amount as,
in the opinion of the agency, shall be necessary, after taking into
account other moneys which may be available for the purpose, to provide
sufficient funds to the facilities development corporation, or any
successor agency, for the financing or refinancing of or for the design,
construction, acquisition, reconstruction, rehabilitation or improvement
of mental health services facilities pursuant to paragraph a of this
subdivision, the payment of interest on mental health services improve-
ment bonds and mental health services improvement notes issued for such
S. 2009--C 280 A. 3009--C
purposes, the establishment of reserves to secure such bonds and notes,
the cost or premium of bond insurance or the costs of any financial
mechanisms which may be used to reduce the debt service that would be
payable by the agency on its mental health services facilities improve-
ment bonds and notes and all other expenditures of the agency incident
to and necessary or convenient to providing the facilities development
corporation, or any successor agency, with funds for the financing or
refinancing of or for any such design, construction, acquisition, recon-
struction, rehabilitation or improvement and for the refunding of mental
hygiene improvement bonds issued pursuant to section 47-b of the private
housing finance law; provided, however, that the agency shall not issue
mental health services facilities improvement bonds and mental health
services facilities improvement notes in an aggregate principal amount
exceeding eight billion [twenty-one] THREE HUNDRED NINETY-TWO million
eight hundred fifteen thousand dollars, excluding mental health services
facilities improvement bonds and mental health services facilities
improvement notes issued to refund outstanding mental health services
facilities improvement bonds and mental health services facilities
improvement notes; provided, however, that upon any such refunding or
repayment of mental health services facilities improvement bonds and/or
mental health services facilities improvement notes the total aggregate
principal amount of outstanding mental health services facilities
improvement bonds and mental health facilities improvement notes may be
greater than eight billion [twenty-one] THREE HUNDRED NINETY-TWO million
eight hundred fifteen thousand dollars only if, except as hereinafter
provided with respect to mental health services facilities bonds and
mental health services facilities notes issued to refund mental hygiene
improvement bonds authorized to be issued pursuant to the provisions of
section 47-b of the private housing finance law, the present value of
the aggregate debt service of the refunding or repayment bonds to be
issued shall not exceed the present value of the aggregate debt service
of the bonds to be refunded or repaid. For purposes hereof, the present
values of the aggregate debt service of the refunding or repayment
bonds, notes or other obligations and of the aggregate debt service of
the bonds, notes or other obligations so refunded or repaid, shall be
calculated by utilizing the effective interest rate of the refunding or
repayment bonds, notes or other obligations, which shall be that rate
arrived at by doubling the semi-annual interest rate (compounded semi-
annually) necessary to discount the debt service payments on the refund-
ing or repayment bonds, notes or other obligations from the payment
dates thereof to the date of issue of the refunding or repayment bonds,
notes or other obligations and to the price bid including estimated
accrued interest or proceeds received by the authority including esti-
mated accrued interest from the sale thereof. Such bonds, other than
bonds issued to refund outstanding bonds, shall be scheduled to mature
over a term not to exceed the average useful life, as certified by the
facilities development corporation, of the projects for which the bonds
are issued, and in any case shall not exceed thirty years and the maxi-
mum maturity of notes or any renewals thereof shall not exceed five
years from the date of the original issue of such notes. Notwithstanding
the provisions of this section, the agency shall have the power and is
hereby authorized to issue mental health services facilities improvement
bonds and/or mental health services facilities improvement notes to
refund outstanding mental hygiene improvement bonds authorized to be
issued pursuant to the provisions of section 47-b of the private housing
finance law and the amount of bonds issued or outstanding for such
S. 2009--C 281 A. 3009--C
purposes shall not be included for purposes of determining the amount of
bonds issued pursuant to this section. The director of the budget shall
allocate the aggregate principal authorized to be issued by the agency
among the office of mental health, office for people with developmental
disabilities, and the office of alcoholism and substance abuse services,
in consultation with their respective commissioners to finance bondable
appropriations previously approved by the legislature.
§ 40. Intentionally omitted.
§ 41. Section 1680-r of the public authorities law, as amended by
section 40 of part I of chapter 60 of the laws of 2015, subdivision 1 as
amended by section 48 of part UU of chapter 54 of the laws of 2016, is
amended to read as follows:
§ 1680-r. Authorization for the issuance of bonds for the capital
restructuring financing program [and], the health care facility trans-
formation [program] PROGRAMS, AND THE ESSENTIAL HEALTH CARE PROVIDER
PROGRAM. 1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs for the capital restructuring
financing program for health care and related facilities licensed pursu-
ant to the public health law or the mental hygiene law and other state
costs associated with such capital projects [and], the health care
facility transformation [program] PROGRAMS, AND THE ESSENTIAL HEALTH
CARE PROVIDER PROGRAM. The aggregate principal amount of bonds author-
ized to be issued pursuant to this section shall not exceed two billion
[four] SEVEN hundred million dollars, excluding bonds issued to fund one
or more debt service reserve funds, to pay costs of issuance of such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued. Such bonds and notes of the dormitory
authority and the urban development corporation shall not be a debt of
the state, and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the state to
the dormitory authority and the urban development corporation for prin-
cipal, interest, and related expenses pursuant to a service contract and
such bonds and notes shall contain on the face thereof a statement to
such effect. Except for purposes of complying with the internal revenue
code, any interest income earned on bond proceeds shall only be used to
pay debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the urban development corpo-
ration in undertaking the financing for project costs for the capital
restructuring financing program for health care and related facilities
licensed pursuant to the public health law or the mental hygiene law and
other state costs associated with such capital projects [and], the
health care facility transformation [program] PROGRAMS, AND THE ESSEN-
TIAL HEALTH CARE PROVIDER PROGRAM, the director of the budget is hereby
authorized to enter into one or more service contracts with the dormito-
ry authority and the urban development corporation, none of which shall
exceed thirty years in duration, upon such terms and conditions as the
director of the budget and the dormitory authority and the urban devel-
opment corporation agree, so as to annually provide to the dormitory
authority and the urban development corporation, in the aggregate, a sum
not to exceed the principal, interest, and related expenses required for
such bonds and notes. Any service contract entered into pursuant to this
section shall provide that the obligation of the state to pay the amount
therein provided shall not constitute a debt of the state within the
S. 2009--C 282 A. 3009--C
meaning of any constitutional or statutory provision and shall be deemed
executory only to the extent of monies available and that no liability
shall be incurred by the state beyond the monies available for such
purpose, subject to annual appropriation by the legislature. Any such
contract or any payments made or to be made thereunder may be assigned
and pledged by the dormitory authority and the urban development corpo-
ration as security for its bonds and notes, as authorized by this
section.
§ 42. Section 50 of section 1 of chapter 174 of the laws of 1968
constituting the New York state urban development corporation act, as
added by section 46-b of part I of chapter 55 of the laws of 2014, is
amended to read as follows:
§ 50. 1. Notwithstanding the provisions of any other law to the
contrary, the dormitory authority and the urban development corporation
are hereby authorized to issue bonds or notes in one or more series for
the purpose of funding project costs undertaken by or on behalf of
special act school districts, state-supported schools for the blind and
deaf [and], approved private special education schools, NON-PUBLIC
SCHOOLS, COMMUNITY CENTERS, DAY CARE FACILITIES, and other state costs
associated with such capital projects. The aggregate principal amount of
bonds authorized to be issued pursuant to this section shall not exceed
[five] FIFTY-FIVE million dollars, excluding bonds issued to fund one
or more debt service reserve funds, to pay costs of issuance of such
bonds, and bonds or notes issued to refund or otherwise repay such bonds
or notes previously issued. Such bonds and notes of the dormitory
authority and the urban development corporation shall not be a debt of
the state, and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those appropriated by the state to
the dormitory authority and the urban development corporation for prin-
cipal, interest, and related expenses pursuant to a service contract and
such bonds and notes shall contain on the face thereof a statement to
such effect. Except for purposes of complying with the internal revenue
code, any interest income earned on bond proceeds shall only be used to
pay debt service on such bonds.
2. Notwithstanding any other provision of law to the contrary, in
order to assist the dormitory authority and the urban development corpo-
ration in undertaking the financing for project costs undertaken by or
on behalf of special act school districts, state-supported schools for
the blind and deaf and approved private special education schools, NON-
PUBLIC SCHOOLS, COMMUNITY CENTERS, DAY CARE FACILITIES, and other state
costs associated with such capital projects, the director of the budget
is hereby authorized to enter into one or more service contracts with
the dormitory authority and the urban development corporation, none of
which shall exceed thirty years in duration, upon such terms and condi-
tions as the director of the budget and the dormitory authority and the
urban development corporation agree, so as to annually provide to the
dormitory authority and the urban development corporation, in the aggre-
gate, a sum not to exceed the principal, interest, and related expenses
required for such bonds and notes. Any service contract entered into
pursuant to this section shall provide that the obligation of the state
to pay the amount therein provided shall not constitute a debt of the
state within the meaning of any constitutional or statutory provision
and shall be deemed executory only to the extent of monies available and
that no liability shall be incurred by the state beyond the monies
available for such purpose, subject to annual appropriation by the
legislature. Any such contract or any payments made or to be made there-
S. 2009--C 283 A. 3009--C
under may be assigned and pledged by the dormitory authority and the
urban development corporation as security for its bonds and notes, as
authorized by this section.
[3. Subdivisions 1 and 2 of this section shall take effect only in the
event that a chapter of the laws of 2014, enacting the "smart schools
bond act of 2014", is submitted to the people at the general election to
be held in November 2014 and is approved by a majority of all votes cast
for and against it at such election. Upon such approval, subdivisions 1
and 2 of this section shall take effect immediately. If such approval is
not obtained, subdivisions 1 and 2 of this section shall expire and be
deemed repealed.]
§ 42-a. Subdivision (a) of section 28 of part Y of chapter 61 of the
laws of 2005, relating to providing for the administration of certain
funds and accounts related to the 2005-2006 budget, as amended by
section 48 of part HH of chapter 57 of the laws of 2013, is amended to
read as follows:
(a) Subject to the provisions of chapter 59 of the laws of 2000, but
notwithstanding any provisions of law to the contrary, one or more
authorized issuers as defined by section 68-a of the state finance law
are hereby authorized to issue bonds or notes in one or more series in
an aggregate principal amount not to exceed [$27,000,000] $47,000,000,
excluding bonds issued to finance one or more debt service reserve
funds, to pay costs of issuance of such bonds, and bonds or notes issued
to refund or otherwise repay such bonds or notes previously issued, for
the purpose of financing capital projects for public protection facili-
ties in the Division of Military and Naval Affairs, debt service and
leases; and to reimburse the state general fund for disbursements made
therefor. Such bonds and notes of such authorized issuer shall not be a
debt of the state, and the state shall not be liable thereon, nor shall
they be payable out of any funds other than those appropriated by the
state to such authorized issuer for debt service and related expenses
pursuant to any service contract executed pursuant to subdivision (b) of
this section and such bonds and notes shall contain on the face thereof
a statement to such effect. Except for purposes of complying with the
internal revenue code, any interest income earned on bond proceeds shall
only be used to pay debt service on such bonds.
§ 42-b. Subdivision 1 of section 49 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, as amended by section 49 of part UU of chapter 54 of the
laws of 2016, is amended to read as follows:
1. Notwithstanding the provisions of any other law to the contrary,
the dormitory authority and the corporation are hereby authorized to
issue bonds or notes in one or more series for the purpose of funding
project costs for the state and municipal facilities program and other
state costs associated with such capital projects. The aggregate princi-
pal amount of bonds authorized to be issued pursuant to this section
shall not exceed one billion [five] NINE hundred [forty] TWENTY-FIVE
million dollars, excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the dormitory authority and the corpo-
ration shall not be a debt of the state, and the state shall not be
liable thereon, nor shall they be payable out of any funds other than
those appropriated by the state to the dormitory authority and the
corporation for principal, interest, and related expenses pursuant to a
service contract and such bonds and notes shall contain on the face
S. 2009--C 284 A. 3009--C
thereof a statement to such effect. Except for purposes of complying
with the internal revenue code, any interest income earned on bond
proceeds shall only be used to pay debt service on such bonds.
§ 42-c. Subdivision 1 of section 51 of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban development corpo-
ration act, as amended by section 50 of part UU of chapter 54 of the
laws of 2016, is amended to read as follows:
1. Notwithstanding the provisions of any other law to the contrary,
the dormitory authority and the urban development corporation are hereby
authorized to issue bonds or notes in one or more series for the purpose
of funding project costs for the nonprofit infrastructure capital
investment program and other state costs associated with such capital
projects. The aggregate principal amount of bonds authorized to be
issued pursuant to this section shall not exceed one hundred TWENTY
million dollars, excluding bonds issued to fund one or more debt service
reserve funds, to pay costs of issuance of such bonds, and bonds or
notes issued to refund or otherwise repay such bonds or notes previously
issued. Such bonds and notes of the dormitory authority and the urban
development corporation shall not be a debt of the state, and the state
shall not be liable thereon, nor shall they be payable out of any funds
other than those appropriated by the state to the dormitory authority
and the urban development corporation for principal, interest, and
related expenses pursuant to a service contract and such bonds and notes
shall contain on the face thereof a statement to such effect. Except for
purposes of complying with the internal revenue code, any interest
income earned on bond proceeds shall only be used to pay debt service on
such bonds.
§ 43. Paragraph (b) of subdivision 4 of section 72 of the state
finance law, as amended by section 27 of part I of chapter 55 of the
laws of 2014, is amended to read as follows:
(b) On or before the beginning of each quarter, the director of the
budget may certify to the state comptroller the estimated amount of
monies that shall be reserved in the general debt service fund for the
payment of debt service and related expenses payable by such fund during
each month of the state fiscal year, excluding payments due from the
revenue bond tax fund. Such certificate may be periodically updated, as
necessary. Notwithstanding any provision of law to the contrary, the
state comptroller shall reserve in the general debt service fund the
amount of monies identified on such certificate as necessary for the
payment of debt service and related expenses during the current or next
succeeding quarter of the state fiscal year. Such monies reserved shall
not be available for any other purpose. Such certificate shall be
reported to the chairpersons of the Senate Finance Committee and the
Assembly Ways and Means Committee. The provisions of this paragraph
shall expire June thirtieth, two thousand [seventeen] TWENTY.
§ 44. Intentionally omitted.
§ 45. Intentionally omitted.
§ 46. Intentionally omitted.
§ 47. Intentionally omitted.
§ 48. Paragraphs (a) and (g) of subdivision 2 of section 56 of the
state finance law, as amended by chapter 11 of the laws of 1994, are
amended to read as follows:
(a) Refunding bonds shall be issued only when the comptroller shall
have certified that, as a result of the refunding, there will be a debt
service savings to the state on a present value basis as a result of the
refunding transaction and that either (i) the refunding will benefit
S. 2009--C 285 A. 3009--C
state taxpayers over the life of the refunding bonds by achieving an
actual debt service savings each year OR STATE FISCAL YEAR during the
term to maturity of the refunding bonds when debt service on the refund-
ing bonds is expected to be paid from legislative appropriations or (ii)
debt service on the refunding bonds shall be payable in annual install-
ments of principal and interest which result in substantially level or
declining debt service payments pursuant to paragraph (b) of subdivision
two of section fifty-seven of this [chapter] ARTICLE. Such certif-
ication by the comptroller shall be conclusive as to matters contained
therein after the refunding bonds have been issued.
(g) Any refunding bonds issued pursuant to this section shall be paid
in annual installments which shall, so long as any refunding bonds are
outstanding, be made in each year OR STATE FISCAL YEAR in which install-
ments were due on the bonds to be refunded and shall be in an amount
which shall result in annual debt service payments which shall be less
in each year OR STATE FISCAL YEAR than the annual debt service payments
on the bonds to be refunded unless debt service on the refunding bonds
is payable in annual installments of principal and interest which will
result in substantially level or declining debt service payments pursu-
ant to paragraph (b) of subdivision two of section fifty-seven of this
[chapter] ARTICLE.
§ 49. Subdivisions 1, 2 and 6 of section 57 of the state finance law,
as amended by chapter 11 of the laws of 1994, are amended to read as
follows:
1. Whenever the legislature, after authorization of a bond issue by
the people at a general election, as provided by section eleven of arti-
cle seven of the STATE constitution, OR AS PROVIDED BY SECTION THREE OF
ARTICLE EIGHTEEN OF THE STATE CONSTITUTION, shall have authorized, by
one or more laws, the creation of a state debt or debts, bonds of the
state, to the amount of the debt or debts so authorized, shall be issued
and sold by the state comptroller. Any appropriation from the proceeds
of the sale of bonds, pursuant to this section, shall be deemed to be an
authorization for the creation of a state debt or debts to the extent of
such appropriation. The state comptroller may issue and sell a single
series of bonds pursuant to one or more such authorizations and for one
or more duly authorized works or purposes. As part of the proceedings
for each such issuance and sale of bonds, the state comptroller shall
designate the works or purposes for which they are issued. It shall not
be necessary for him to designate the works or purposes for which the
bonds are issued on the face of the bonds. The proceeds from the sale of
bonds for more than one work or purpose shall be separately accounted
for according to the works or purposes designated for such sale by the
comptroller and the proceeds received for each work or purpose shall be
expended only for such work or purpose. The bonds shall bear interest at
such rate or rates as in the judgment of the state comptroller may be
sufficient or necessary to effect a sale of the bonds, and such interest
shall be payable at least semi-annually, in the case of bonds with a
fixed interest rate, and at least annually, in the case of bonds with an
interest rate that varies periodically, in the city of New York unless
annual payments of principal and interest result in substantially level
or declining debt service payments over the life of an issue of bonds
pursuant to paragraph (b) of subdivision two of this section or unless
accrued interest is contributed to a sinking fund in accordance with
subdivision three of section twelve of article seven of the state
constitution, in which case interest shall be paid at such times and at
S. 2009--C 286 A. 3009--C
such places as shall be determined by the state comptroller prior to
issuance of the bonds.
2. Such bonds, or the portion thereof at any time issued, shall be
made payable (a) in equal annual principal installments or (b) in annual
installments of principal and interest which result in substantially
level or declining debt service payments, over the life of the bonds,
the first of which annual installments shall be payable not more than
one year from the date of issue and the last of which shall be payable
at such time as the comptroller may determine but not more than forty
years OR STATE FISCAL YEARS after the date of issue, NOT MORE THAN FIFTY
YEARS AFTER THE DATE OF ISSUE IN THE CASE OF HOUSING BONDS, AND NOT MORE
THAN TWENTY-FIVE YEARS IN THE CASE OF URBAN RENEWAL BONDS. Where bonds
are payable pursuant to paragraph (b) of this subdivision, except for
the year OR STATE FISCAL YEAR of initial issuance if less than a full
year of debt service is to become due in that year OR STATE FISCAL YEAR,
either (i) the greatest aggregate amount of debt service payable in any
YEAR OR STATE fiscal year shall not differ from the lowest aggregate
amount of debt service payable in any other YEAR OR STATE fiscal year by
more than five percent or (ii) the aggregate amount of debt service in
each YEAR OR STATE fiscal year shall be less than the aggregate amount
of debt service in the immediately preceding YEAR OR STATE fiscal year.
For purposes of this subdivision, debt service shall include all princi-
pal, redemption price, sinking fund installments or contributions, and
interest scheduled to become due. For purposes of determining whether
debt service is level or declining on bonds issued with a variable rate
of interest pursuant to paragraph b of subdivision four of this section,
the comptroller shall assume a market rate of interest as of the date of
issuance. Where the comptroller determines that interest on any bonds
shall be compounded and payable at maturity, such bonds shall be payable
only in accordance with paragraph (b) of this subdivision unless accrued
interest is contributed to a sinking fund in accordance with subdivision
three of section twelve of article seven of the state constitution. In
no case shall any bonds or portion thereof be issued for a period longer
than the probable life of the work or purpose, or part thereof, to which
the proceeds of the bonds are to be applied, or in the alternative, the
weighted average period of the probable life of the works or purposes to
which the proceeds of the bonds are to be applied taking into consider-
ation the respective amounts of bonds issued for each work or purpose,
as may be determined under section sixty-one of this [chapter] ARTICLE
and in accordance with the certificate of the commissioner of general
services, and/or the commissioner of transportation, state architect,
STATE COMMISSIONER OF HOUSING AND URBAN RENEWAL, or other authority, as
the case may be, having charge by law of the acquisition, construction,
work or improvement for which the debt was authorized. Such certificate
shall be filed in the office of the state comptroller and shall state
the group, or, where the probable lives of two or more separable parts
of the work or purposes are different, the groups, specified in such
section, for which the amount or amounts, shall be provided by the issu-
ance and sale of bonds. Weighted average period of probable life shall
be determined by computing the sum of the products derived from multi-
plying the dollar value of the portion of the debt contracted for each
work or purpose (or class of works or purposes) by the probable life of
such work or purpose (or class of works or purposes) and dividing the
resulting sum by the dollar value of the entire debt after taking into
consideration any original issue discount. Any costs of issuance
financed with bond proceeds shall be prorated among the various works or
S. 2009--C 287 A. 3009--C
purposes. Such bonds, or the portion thereof at any time sold, shall be
of such denominations, subject to the foregoing provisions, as the state
comptroller may determine. Notwithstanding the foregoing provisions of
this subdivision, the comptroller may issue all or a portion of such
bonds as serial debt, term debt or a combination thereof, maturing as
required by this subdivision, provided that the comptroller shall have
provided for the retirement each year OR STATE FISCAL YEAR, or otherwise
have provided for the payment of, through sinking fund installment
payments or otherwise, a portion of such term bonds in an amount meeting
the requirements of paragraph (a) or (b) of this subdivision or shall
have established a sinking fund and provided for contributions thereto
as provided in subdivision eight of this section and section twelve of
article seven of the state constitution.
6. Except with respect to bonds issued in the manner provided in para-
graph (c) of subdivision seven of this section, all bonds of the state
of New York which the comptroller of the state of New York is authorized
to issue and sell, shall be executed in the name of the state of New
York by the manual or facsimile signature of the state comptroller and
his seal (or a facsimile thereof) shall be thereunto affixed, imprinted,
engraved or otherwise reproduced. In case the state comptroller who
shall have signed and sealed any of the bonds shall cease to hold the
office of state comptroller before the bonds so signed and sealed shall
have been actually countersigned and delivered by the fiscal agent OR
TRUSTEE, such bonds may, nevertheless, be countersigned and delivered as
herein provided, and may be issued as if the state comptroller who
signed and sealed such bonds had not ceased to hold such office. Any
bond of a series may be signed and sealed on behalf of the state of New
York by such person as at the actual time of the execution of such bond
shall hold the office of comptroller of the state of New York, although
at the date of the bonds of such series such person may not have held
such office. The coupons to be attached to the coupon bonds of each
series shall be signed by the facsimile signature of the state comp-
troller of the state of New York or by any person who shall have held
the office of state comptroller of the state of New York on or after the
date of the bonds of such series, notwithstanding that such person may
not have been such state comptroller at the date of any such bond or may
have ceased to be such state comptroller at the date when any such bond
shall be actually countersigned and delivered. The bonds of each series
shall be countersigned with the manual signature of an authorized
employee of the fiscal agent OR TRUSTEE of the state of New York. No
bond and no coupon thereunto appertaining shall be valid or obligatory
for any purpose until such manual countersignature of an authorized
employee of the fiscal agent OR TRUSTEE of the state of New York shall
have been duly affixed to such bond.
§ 50. Sections 58, 59 and 60 of the state finance law are REPEALED.
§ 51. Section 62 of the state finance law, as amended by chapter 219
of the laws of 1999, is amended to read as follows:
§ 62. Replacement of lost certificates. The comptroller, who may act
through his duly authorized fiscal agent OR TRUSTEE appointed pursuant
to section sixty-five of this article, may issue to the lawful owner of
any certificate or bond issued by him in behalf of this state, which he
or such duly authorized fiscal agent OR TRUSTEE is satisfied, by due
proof filed in his office or with such duly authorized fiscal agent OR
TRUSTEE, has been lost or casually destroyed, a new certificate or bond,
corresponding in date, number and amount with the certificate or bond so
lost or destroyed, and expressing on its face that it is a renewed
S. 2009--C 288 A. 3009--C
certificate or bond. No such renewed certificate or bond shall be issued
unless sufficient security is given to satisfy the lawful claim of any
person to the original certificate or bond, or to any interest therein.
The comptroller shall report annually to the legislature the number and
amount of all renewed certificates or bonds so issued. If the renewed
certificate is issued by the state's duly authorized fiscal agent OR
TRUSTEE and such agent OR TRUSTEE agrees to be responsible for any loss
suffered as a result of unauthorized payment, the security shall be
provided to and approved by the fiscal agent OR TRUSTEE and no addi-
tional approval by the comptroller or the attorney general shall be
required.
§ 52. Section 65 of the state finance law, as amended by chapter 459
of the laws of 1948, subdivision 1 as amended by chapter 219 of the laws
of 1999, is amended to read as follows:
§ 65. Appointment of fiscal agent OR TRUSTEE; powers and duties. 1.
Notwithstanding any other provisions of this chapter, the comptroller,
on behalf of the state, may contract from time to time for a period or
periods not exceeding ten years each, except in the case of a bank or
trust company agreeing to act as issuing, paying and/or tender agent
with respect to a particular issue of variable interest rate bonds in
which case the comptroller, on behalf of the state, may contract for a
period not to exceed the term of such particular issue of bonds, with
one or more banks or trust companies located in the city of New York, to
act as fiscal agent, TRUSTEE, or agents of the state, and for the main-
tenance of an office for the registration, conversion, reconversion and
transfer of the bonds and notes of the state, including the preparation
and substitution of new bonds and notes, for the payment of the princi-
pal thereof and interest thereon, [and] for related services, AND TO
OTHERWISE EFFECTUATE THE POWERS AND DUTIES OF A FISCAL AGENT OR TRUSTEE
ON BEHALF OF THE STATE IN ALL SUCH RESPECTS AS MAY BE DETERMINED BY THE
COMPTROLLER FOR SUCH BONDS AND NOTES, and for the payment by the state
of such compensation therefor as the comptroller may determine. Any such
fiscal agent OR TRUSTEE may, where authorized pursuant to the terms of
its contract, accept delivery of obligations purchased by the state and
of securities deposited with the state pursuant to sections one hundred
five and one hundred six of this chapter and hold the same in safekeep-
ing, make delivery to purchasers of obligations sold by the state, and
accept deposit of such proceeds of sale without securing the same. Any
such contract may also provide that such fiscal agent OR TRUSTEE may,
upon the written instruction of the comptroller, deposit any obligations
or securities which it receives pursuant to such contract, in an account
with a federal reserve bank, to be held in such account in the form of
entries on the books of the federal reserve bank, and to be transferred
in the event of any assignment, sale, redemption, maturity or other
disposition of such obligations or securities, by entries on the books
of the federal reserve bank. Any such bank or trust company shall be
responsible to the people of this state for the faithful and safe
conduct of the business of said office, for the fidelity and integrity
of its officers and agents employed in such office, and for all loss or
damage which may result from any failure to discharge their duties, and
for any improper and incorrect discharge of those duties, and shall save
the state free and harmless from any and all loss or damage occasioned
by or incurred in the performance of such services. Any such contract
may be terminated by the comptroller at any time. In the event of any
change in any office maintained pursuant to any such contract, the comp-
S. 2009--C 289 A. 3009--C
troller shall give public notice thereof in such form as he may deter-
mine appropriate.
2. The comptroller shall prescribe rules and regulations for the
registration, conversion, reconversion and transfer of the bonds and
notes of the state, including the preparation and substitution of new
bonds, for the payment of the principal thereof and interest thereon,
and for other authorized services to be performed by such fiscal agent
OR TRUSTEE. Such rules and regulations, and all amendments thereof,
shall be prepared in duplicate, one copy of which shall be filed in the
office of the department of audit and control and the other in the
office of the department of state. A copy thereof may be filed as a
public record in such other offices as the comptroller may determine.
Such rules and regulations shall be obligatory on all persons having any
interests in bonds and notes of the state heretofore or hereafter
issued.
§ 53. Intentionally omitted.
§ 54. Subdivision 2 of section 365 of the public authorities law, as
separately amended by sections 349 and 381 of chapter 190 of the laws of
1990, is amended to read as follows:
2. The notes and bonds shall be authorized by resolution of the board,
shall bear such date or dates and mature at such time or times, in the
case of notes and any renewals thereof within five years after their
respective dates and in the case of bonds not exceeding forty years from
their respective dates, as such resolution or resolutions may provide.
The notes and bonds shall bear interest at such rate or rates, be in
such denominations, be in such form, either coupon or registered, carry
such registration privileges, be executed in such manner, be payable in
such medium of payment, at such place or places, and be subject to such
terms of redemption as such resolution or resolutions may provide. Bonds
and notes shall be sold by the authority, at public or private sale, at
such price or prices as the authority may determine. Bonds and notes of
the authority shall not be sold by the authority at private sale unless
such sale and the terms thereof have been approved in writing by the
comptroller, where such sale is not to the comptroller, or by the direc-
tor of the budget, where such sale is to the comptroller. [Bonds and
notes sold at public sale shall be sold by the comptroller, as agent of
the authority, in such manner as the authority, with the approval of the
comptroller, shall determine.]
§ 55. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2017; provided,
however, that the provisions of sections one, two, three, four, five,
six, seven, eight, thirteen, fourteen, fifteen, sixteen, seventeen,
eighteen, nineteen, twenty, twenty-one, twenty-two, twenty-two-e and
twenty-two-f of this act shall expire March 31, 2018 when upon such date
the provisions of such sections shall be deemed repealed; and provided,
further, that section twenty-two-c of this act shall expire March 31,
2021.
PART YYY
Section 1. Paragraph e of subdivision 1 of section 211-d of the educa-
tion law, as amended by section 1 of part A of chapter 54 of the laws of
2016, is amended to read as follows:
e. Notwithstanding paragraphs a and b of this subdivision, a school
district that submitted a contract for excellence for the two thousand
eight--two thousand nine school year shall submit a contract for excel-
S. 2009--C 290 A. 3009--C
lence for the two thousand nine--two thousand ten school year in
conformity with the requirements of subparagraph (vi) of paragraph a of
subdivision two of this section unless all schools in the district are
identified as in good standing and provided further that, a school
district that submitted a contract for excellence for the two thousand
nine--two thousand ten school year, unless all schools in the district
are identified as in good standing, shall submit a contract for excel-
lence for the two thousand eleven--two thousand twelve school year which
shall, notwithstanding the requirements of subparagraph (vi) of para-
graph a of subdivision two of this section, provide for the expenditure
of an amount which shall be not less than the product of the amount
approved by the commissioner in the contract for excellence for the two
thousand nine--two thousand ten school year, multiplied by the
district's gap elimination adjustment percentage and provided further
that, a school district that submitted a contract for excellence for the
two thousand eleven--two thousand twelve school year, unless all schools
in the district are identified as in good standing, shall submit a
contract for excellence for the two thousand twelve--two thousand thir-
teen school year which shall, notwithstanding the requirements of
subparagraph (vi) of paragraph a of subdivision two of this section,
provide for the expenditure of an amount which shall be not less than
the amount approved by the commissioner in the contract for excellence
for the two thousand eleven--two thousand twelve school year and
provided further that, a school district that submitted a contract for
excellence for the two thousand twelve--two thousand thirteen school
year, unless all schools in the district are identified as in good
standing, shall submit a contract for excellence for the two thousand
thirteen--two thousand fourteen school year which shall, notwithstanding
the requirements of subparagraph (vi) of paragraph a of subdivision two
of this section, provide for the expenditure of an amount which shall be
not less than the amount approved by the commissioner in the contract
for excellence for the two thousand twelve--two thousand thirteen school
year and provided further that, a school district that submitted a
contract for excellence for the two thousand thirteen--two thousand
fourteen school year, unless all schools in the district are identified
as in good standing, shall submit a contract for excellence for the two
thousand fourteen--two thousand fifteen school year which shall,
notwithstanding the requirements of subparagraph (vi) of paragraph a of
subdivision two of this section, provide for the expenditure of an
amount which shall be not less than the amount approved by the commis-
sioner in the contract for excellence for the two thousand thirteen--two
thousand fourteen school year; and provided further that, a school
district that submitted a contract for excellence for the two thousand
fourteen--two thousand fifteen school year, unless all schools in the
district are identified as in good standing, shall submit a contract for
excellence for the two thousand fifteen--two thousand sixteen school
year which shall, notwithstanding the requirements of subparagraph (vi)
of paragraph a of subdivision two of this section, provide for the
expenditure of an amount which shall be not less than the amount
approved by the commissioner in the contract for excellence for the two
thousand fourteen--two thousand fifteen school year; and provided
further that a school district that submitted a contract for excellence
for the two thousand fifteen--two thousand sixteen school year, unless
all schools in the district are identified as in good standing, shall
submit a contract for excellence for the two thousand sixteen--two thou-
sand seventeen school year which shall, notwithstanding the requirements
S. 2009--C 291 A. 3009--C
of subparagraph (vi) of paragraph a of subdivision two of this section,
provide for the expenditure of an amount which shall be not less than
the amount approved by the commissioner in the contract for excellence
for the two thousand fifteen--two thousand sixteen school year; AND
PROVIDED FURTHER THAT, A SCHOOL DISTRICT THAT SUBMITTED A CONTRACT FOR
EXCELLENCE FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL
YEAR, UNLESS ALL SCHOOLS IN THE DISTRICT ARE IDENTIFIED AS IN GOOD
STANDING, SHALL SUBMIT A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND
SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR WHICH SHALL, NOTWITHSTAND-
ING THE REQUIREMENTS OF SUBPARAGRAPH (VI) OF PARAGRAPH A OF SUBDIVISION
TWO OF THIS SECTION, PROVIDE FOR THE EXPENDITURE OF AN AMOUNT WHICH
SHALL BE NOT LESS THAN THE AMOUNT APPROVED BY THE COMMISSIONER IN THE
CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND
SEVENTEEN SCHOOL YEAR. For purposes of this paragraph, the "gap elimi-
nation adjustment percentage" shall be calculated as the sum of one
minus the quotient of the sum of the school district's net gap elimi-
nation adjustment for two thousand ten--two thousand eleven computed
pursuant to chapter fifty-three of the laws of two thousand ten, making
appropriations for the support of government, plus the school district's
gap elimination adjustment for two thousand eleven--two thousand twelve
as computed pursuant to chapter fifty-three of the laws of two thousand
eleven, making appropriations for the support of the local assistance
budget, including support for general support for public schools,
divided by the total aid for adjustment computed pursuant to chapter
fifty-three of the laws of two thousand eleven, making appropriations
for the local assistance budget, including support for general support
for public schools. Provided, further, that such amount shall be
expended to support and maintain allowable programs and activities
approved in the two thousand nine--two thousand ten school year or to
support new or expanded allowable programs and activities in the current
year.
§ 2. The education law is amended by adding a new section 2590-v to
read as follows:
§ 2590-V. NOTICE TO STUDENTS REGARDING CERTAIN TEST SCORES. THE OFFICE
OF THE CHANCELLOR SHALL INCLUDE A NOTICE IN THE OFFICIAL SCORE REPORT OF
ALL STUDENTS WHO RECEIVED A SCORE OF "ADVANCED" ON THE SEVENTH GRADE
STATE ASSESSMENT IN EITHER ENGLISH LANGUAGE ARTS OR MATHEMATICS, INFORM-
ING THE STUDENT OF OPPORTUNITIES TO APPLY FOR ADMISSION TO THE SPECIAL-
IZED HIGH SCHOOLS AUTHORIZED IN PARAGRAPH (B) OF SUBDIVISION ONE OF
SECTION TWENTY-FIVE HUNDRED NINETY-H OF THIS ARTICLE; PROVIDED THAT THE
CHANCELLOR SHALL ANNUALLY NOTIFY ALL SEVENTH GRADE STUDENTS OF OPPORTU-
NITIES TO APPLY FOR ADMISSION TO SUCH SCHOOLS.
§ 3. Subparagraph 3 of paragraph b of subdivision 16 of section 3641
of the education law, as added by section 2 of part C of chapter 56 of
the laws of 2014, is amended to read as follows:
(3) The smart schools review board shall review all smart schools
investment plans for compliance with all eligibility criteria and other
requirements set forth in the guidelines. The smart schools review board
may approve or reject such plans, or may return such plans to the school
district for modifications; PROVIDED THAT NOTWITHSTANDING ANY INCONSIST-
ENT PROVISION OF LAW, THE SMART SCHOOLS REVIEW BOARD SHALL APPROVE NO
SUCH PLAN FIRST SUBMITTED TO THE DEPARTMENT ON OR AFTER APRIL FIFTEENTH,
TWO THOUSAND SEVENTEEN, UNLESS SUCH PLAN CALCULATES THE AMOUNT OF CLASS-
ROOM TECHNOLOGY TO BE LOANED TO STUDENTS ATTENDING NONPUBLIC SCHOOLS
PURSUANT TO SECTION SEVEN HUNDRED FIFTY-FIVE OF THIS CHAPTER IN A MANNER
THAT INCLUDES THE AMOUNT BUDGETED BY THE SCHOOL DISTRICT FOR SERVERS,
S. 2009--C 292 A. 3009--C
WIRELESS ACCESS POINTS AND OTHER PORTABLE CONNECTIVITY DEVICES TO BE
ACQUIRED AS PART OF A SCHOOL CONNECTIVITY PROJECT. Upon approval, the
smart schools project or projects described in the investment plan shall
be eligible for smart schools grants. A smart schools project included
in a school district's smart schools investment plan shall not require
separate approval of the commissioner unless it is part of a school
construction project required to be submitted for approval of the
commissioner pursuant to section four hundred eight of this chapter
and/or subdivision six of section thirty-six hundred two of this arti-
cle. Any department, agency or public authority shall provide the smart
schools review board with any information it requires to fulfill its
duties pursuant to this subdivision.
§ 4. Subdivision 1 of section 2856 of the education law, as amended by
chapter 378 of the laws of 2007, paragraph (a) as amended and paragraph
(d) as added by section 3 of part BB of chapter 56 of the laws of 2014,
is amended to read as follows:
1. (a) The enrollment of students attending charter schools shall be
included in the enrollment, attendance, membership and, if applicable,
count of students with disabilities of the school district in which the
pupil resides. The charter school shall report all such data to the
school districts of residence in a timely manner. Each school district
shall report such enrollment, attendance and count of students with
disabilities to the department. The school district of residence shall
pay directly to the charter school for each student enrolled in the
charter school who resides in the school district the charter school
basic tuition, which shall be:
(i) for school years prior to the two thousand nine--two thousand ten
school year [and for school years following the two thousand sixteen--
two thousand seventeen school year], an amount equal to one hundred
percent of the amount calculated pursuant to paragraph f of subdivision
one of section thirty-six hundred two of this chapter for the school
district for the year prior to the base year increased by the percentage
change in the state total approved operating expense calculated pursuant
to paragraph t of subdivision one of section thirty-six hundred two of
this chapter from two years prior to the base year to the base year;
(ii) for the two thousand nine--two thousand ten school year, the
charter school basic tuition shall be the amount payable by such
district as charter school basic tuition for the two thousand eight--two
thousand nine school year;
(iii) for the two thousand ten--two thousand eleven through two thou-
sand thirteen--two thousand fourteen school years, the charter school
basic tuition shall be the basic tuition computed for the two thousand
ten--two thousand eleven school year pursuant to the provisions of
subparagraph (i) of this paragraph;
(iv) for the two thousand fourteen--two thousand fifteen, two thousand
fifteen--two thousand sixteen and two thousand sixteen--two thousand
seventeen school years, the charter school basic tuition shall be the
sum of the lesser of the charter school basic tuition computed for the
two thousand ten--two thousand eleven school year pursuant to the
provisions of subparagraph (i) of this paragraph or the charter school
basic tuition computed for the current year pursuant to the provisions
of subparagraph (i) of this paragraph plus the supplemental basic
tuition[.];
(V) FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,
THE CHARTER SCHOOL BASIC TUITION SHALL BE THE SUM OF (A) THE CHARTER
S. 2009--C 293 A. 3009--C
SCHOOL BASIC TUITION FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVEN-
TEEN SCHOOL YEAR PLUS (B) FIVE HUNDRED DOLLARS;
(VI) FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR,
THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED FOR THE BASE YEAR
MULTIPLIED BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
THE PERIOD COMMENCING WITH THE YEAR FIVE YEARS PRIOR TO THE BASE YEAR
AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS
CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE TOTAL APPROVED OPERATING
EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY PRECEDING YEAR, PROVIDED
THAT THE HIGHEST AND LOWEST ANNUAL QUOTIENTS SHALL BE EXCLUDED FROM THE
CALCULATION OF SUCH AVERAGE OR (B) THE QUOTIENT OF THE TOTAL GENERAL
FUND EXPENDITURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO AN
ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARA-
GRAPH B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS
CHAPTER PUBLISHED ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE
BASE YEAR DIVIDED BY THE TOTAL ESTIMATED PUBLIC ENROLLMENT FOR THE
SCHOOL DISTRICT PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION
THIRTY-SIX HUNDRED TWO OF THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE
YEAR.
(VII) FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR
THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED FOR THE BASE YEAR
MULTIPLIED BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
THE PERIOD COMMENCING WITH THE YEAR THREE YEARS PRIOR TO THE BASE YEAR
AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS
CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE TOTAL APPROVED OPERATING
EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY PRECEDING YEAR PROVIDED
THAT THE HIGHEST ANNUAL QUOTIENT CALCULATED PURSUANT TO THIS SUBPARA-
GRAPH SHALL BE REPLACED BY THE AVERAGE QUOTIENT CALCULATED PURSUANT TO
SUBPARAGRAPH (VI) OF THIS PARAGRAPH OR (B) THE QUOTIENT OF THE TOTAL
GENERAL FUND EXPENDITURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO
AN ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARA-
GRAPH B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS
CHAPTER PUBLISHED ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE
BASE YEAR DIVIDED BY THE TOTAL ESTIMATED PUBLIC ENROLLMENT FOR THE
SCHOOL DISTRICT PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION
THIRTY-SIX HUNDRED TWO OF THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE
YEAR.
(VIII) FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL
YEAR AND THEREAFTER, THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESS-
ER OF (A) THE PRODUCT OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED
FOR THE BASE YEAR MULTIPLIED BY (II) THE AVERAGE OF THE QUOTIENTS FOR
EACH SCHOOL YEAR IN THE PERIOD COMMENCING WITH THE YEAR THREE YEARS
PRIOR TO THE BASE YEAR AND FINISHING WITH THE YEAR PRIOR TO THE BASE
YEAR OF THE TOTAL APPROVED OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT
CALCULATED PURSUANT TO PARAGRAPH T OF SUBDIVISION ONE OF SECTION THIR-
TY-SIX HUNDRED TWO OF THIS CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE
TOTAL APPROVED OPERATING EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY
PRECEDING YEAR OR (B) THE QUOTIENT OF THE TOTAL GENERAL FUND EXPENDI-
TURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO AN ELECTRONIC DATA
FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARAGRAPH B OF SUBDIVI-
S. 2009--C 294 A. 3009--C
SION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER PUBLISHED
ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE BASE YEAR DIVIDED BY
THE TOTAL ESTIMATED PUBLIC ENROLLMENT FOR THE SCHOOL DISTRICT PURSUANT
TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF
THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE YEAR.
For the purposes of this subdivision, the "supplemental basic tuition"
shall be (A) for a school district for which the charter school basic
tuition computed for the current year is greater than or equal to the
charter school basic tuition for the two thousand ten--two thousand
eleven school year pursuant to the provisions of subparagraph (i) of
this paragraph, (1) for the two thousand fourteen--two thousand fifteen
school year two hundred and fifty dollars, and (2) for the two thousand
fifteen--two thousand sixteen school year three hundred and fifty
dollars, and (3) for the two thousand sixteen--two thousand seventeen
school year five hundred dollars, and (4) FOR THE TWO THOUSAND SEVEN-
TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR AND THEREAFTER, THE SUM OF (I)
THE SUPPLEMENTAL BASIC TUITION CALCULATED FOR THE TWO THOUSAND SIXTEEN-
-TWO THOUSAND SEVENTEEN SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS, AND
(B) FOR SCHOOL YEARS PRIOR TO THE TWO THOUSAND SEVENTEEN--TWO THOUSAND
EIGHTEEN SCHOOL YEAR, for a school district for which the charter school
basic tuition for the two thousand ten--two thousand eleven school year
is greater than the charter school basic tuition for the current year
pursuant to the provisions of subparagraph (i) of this paragraph, the
positive difference of the charter school basic tuition for the two
thousand ten--two thousand eleven school year minus the charter school
basic tuition for the current year pursuant to the provisions of subpar-
agraph (i) of this paragraph AND (C) FOR SCHOOL YEARS FOLLOWING THE TWO
THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEARS, FOR A SCHOOL
DISTRICT FOR WHICH THE CHARTER SCHOOL BASIC TUITION FOR THE TWO THOUSAND
TEN--TWO THOUSAND ELEVEN SCHOOL YEAR IS GREATER THAN THE CHARTER SCHOOL
BASIC TUITION FOR THE CURRENT YEAR PURSUANT TO THE PROVISIONS OF SUBPAR-
AGRAPH (I) OF THIS PARAGRAPH, THE SUM OF (I) THE SUPPLEMENTAL BASIC
TUITION CALCULATED FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN
SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS.
(b) The school district shall also pay directly to the charter school
any federal or state aid attributable to a student with a disability
attending charter school in proportion to the level of services for such
student with a disability that the charter school provides directly or
indirectly. Notwithstanding anything in this section to the contrary,
amounts payable pursuant to this subdivision from state or local funds
may be reduced pursuant to an agreement between the school and the char-
ter entity set forth in the charter. Payments made pursuant to this
subdivision shall be made by the school district in six substantially
equal installments each year beginning on the first business day of July
and every two months thereafter. Amounts payable under this subdivision
shall be determined by the commissioner. Amounts payable to a charter
school in its first year of operation shall be based on the projections
of initial-year enrollment set forth in the charter until actual enroll-
ment data is reported to the school district by the charter school. Such
projections shall be reconciled with the actual enrollment as actual
enrollment data is so reported and at the end of the school's first year
of operation and each subsequent year based on a final report of actual
enrollment by the charter school, and any necessary adjustments result-
ing from such final report shall be made to payments during the school's
following year of operation.
S. 2009--C 295 A. 3009--C
(c) Notwithstanding any other provision of this subdivision to the
contrary, payment of the federal aid attributable to a student with a
disability attending a charter school shall be made in accordance with
the requirements of section 8065-a of title twenty of the United States
code and sections 76.785-76.799 and 300.209 of title thirty-four of the
code of federal regulations.
(d) School districts shall be eligible for an annual apportionment
equal to the amount of the supplemental basic tuition [paid to] FOR the
charter school in the base year for the expenses incurred in the two
thousand fourteen--two thousand fifteen, two thousand fifteen--two thou-
sand sixteen, [and] two thousand sixteen--two thousand seventeen school
years AND THEREAFTER.
§ 4-a. Subdivision 1 of section 2856 of the education law, as amended
by section 22 of part A of chapter 58 of the laws of 2011, paragraph (a)
as amended and paragraph (c) as added by section 4 of part BB of chapter
56 of the laws of 2014, is amended to read as follows:
1. (a) The enrollment of students attending charter schools shall be
included in the enrollment, attendance and, if applicable, count of
students with disabilities of the school district in which the pupil
resides. The charter school shall report all such data to the school
districts of residence in a timely manner. Each school district shall
report such enrollment, attendance and count of students with disabili-
ties to the department. The school district of residence shall pay
directly to the charter school for each student enrolled in the charter
school who resides in the school district the charter school basic
tuition which shall be:
(i) for school years prior to the two thousand nine--two thousand ten
school year [and for school years following the two thousand sixteen--
two thousand seventeen school year], an amount equal to one hundred
percent of the amount calculated pursuant to paragraph f of subdivision
one of section thirty-six hundred two of this chapter for the school
district for the year prior to the base year increased by the percentage
change in the state total approved operating expense calculated pursuant
to paragraph t of subdivision one of section thirty-six hundred two of
this chapter from two years prior to the base year to the base year;
(ii) for the two thousand nine--two thousand ten school year, the
charter school basic tuition shall be the amount payable by such
district as charter school basic tuition for the two thousand eight--two
thousand nine school year;
(iii) for the two thousand ten--two thousand eleven through two thou-
sand thirteen--two thousand fourteen school years, the charter school
basic tuition shall be the basic tuition computed for the two thousand
ten--two thousand eleven school year pursuant to the provisions of
subparagraph (i) of this paragraph;
(iv) for the two thousand fourteen--two thousand fifteen, two thousand
fifteen--two thousand sixteen and two thousand sixteen--two thousand
seventeen school years, the charter school basic tuition shall be the
sum of the lesser of the charter school basic tuition computed for the
two thousand ten--two thousand eleven school year pursuant to the
provisions of subparagraph (i) of this paragraph or the charter school
basic tuition computed for the current year pursuant to the provisions
of subparagraph (i) of this paragraph plus the supplemental basic
tuition[.];
(V) FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,
THE CHARTER SCHOOL BASIC TUITION SHALL BE THE SUM OF (A) THE CHARTER
S. 2009--C 296 A. 3009--C
SCHOOL BASIC TUITION FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVEN-
TEEN SCHOOL YEAR PLUS (B) FIVE HUNDRED DOLLARS;
(VI) FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR,
THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED FOR THE BASE YEAR
MULTIPLIED BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
THE PERIOD COMMENCING WITH THE YEAR FIVE YEARS PRIOR TO THE BASE YEAR
AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS
CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE TOTAL APPROVED OPERATING
EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY PRECEDING YEAR, PROVIDED
THAT THE HIGHEST AND LOWEST ANNUAL QUOTIENTS SHALL BE EXCLUDED FROM THE
CALCULATION OF SUCH AVERAGE OR (B) THE QUOTIENT OF THE TOTAL GENERAL
FUND EXPENDITURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO AN
ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARA-
GRAPH B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS
CHAPTER PUBLISHED ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE
BASE YEAR DIVIDED BY THE TOTAL ESTIMATED PUBLIC ENROLLMENT FOR THE
SCHOOL DISTRICT PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION
THIRTY-SIX HUNDRED TWO OF THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE
YEAR.
(VII) FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR
THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED FOR THE BASE YEAR
MULTIPLIED BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
THE PERIOD COMMENCING WITH THE YEAR THREE YEARS PRIOR TO THE BASE YEAR
AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF THIS
CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE TOTAL APPROVED OPERATING
EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY PRECEDING YEAR PROVIDED
THAT THE HIGHEST ANNUAL QUOTIENT CALCULATED PURSUANT TO THIS SUBPARA-
GRAPH SHALL BE REPLACED BY THE AVERAGE QUOTIENT CALCULATED PURSUANT TO
SUBPARAGRAPH (VI) OF THIS PARAGRAPH OR (B) THE QUOTIENT OF THE TOTAL
GENERAL FUND EXPENDITURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO
AN ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARA-
GRAPH B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS
CHAPTER PUBLISHED ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE
BASE YEAR DIVIDED BY THE TOTAL ESTIMATED PUBLIC ENROLLMENT FOR THE
SCHOOL DISTRICT PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION
THIRTY-SIX HUNDRED TWO OF THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE
YEAR.
(VIII) FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL
YEAR AND THEREAFTER, THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESS-
ER OF (A) THE PRODUCT OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED
FOR THE BASE YEAR MULTIPLIED BY (II) THE AVERAGE OF THE QUOTIENTS FOR
EACH SCHOOL YEAR IN THE PERIOD COMMENCING WITH THE YEAR THREE YEARS
PRIOR TO THE BASE YEAR AND FINISHING WITH THE YEAR PRIOR TO THE BASE
YEAR OF THE TOTAL APPROVED OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT
CALCULATED PURSUANT TO PARAGRAPH T OF SUBDIVISION ONE OF SECTION THIR-
TY-SIX HUNDRED TWO OF THIS CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE
TOTAL APPROVED OPERATING EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY
PRECEDING YEAR OR (B) THE QUOTIENT OF THE TOTAL GENERAL FUND EXPENDI-
TURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO AN ELECTRONIC DATA
FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARAGRAPH B OF SUBDIVI-
S. 2009--C 297 A. 3009--C
SION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER PUBLISHED
ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE BASE YEAR DIVIDED BY
THE TOTAL ESTIMATED PUBLIC ENROLLMENT FOR THE SCHOOL DISTRICT PURSUANT
TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF
THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE YEAR.
For the purposes of this subdivision, the "supplemental basic tuition"
shall be (A) for a school district for which the charter school basic
tuition computed for the current year is greater than or equal to the
charter school basic tuition for the two thousand ten--two thousand
eleven school year pursuant to the provisions of subparagraph (i) of
this paragraph, (1) for the two thousand fourteen--two thousand fifteen
school year two hundred and fifty dollars, and (2) for the two thousand
fifteen--two thousand sixteen school year three hundred and fifty
dollars, and (3) for the two thousand sixteen--two thousand seventeen
school year five hundred dollars, and (4) FOR THE TWO THOUSAND SEVEN-
TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR AND THEREAFTER, THE SUM OF (I)
THE SUPPLEMENTAL BASIC TUITION CALCULATED FOR THE TWO THOUSAND SIXTEEN-
-TWO THOUSAND SEVENTEEN SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS, AND
(B) FOR SCHOOL YEARS PRIOR TO THE TWO THOUSAND SEVENTEEN--TWO THOUSAND
EIGHTEEN SCHOOL YEAR, for a school district for which the charter school
basic tuition for the two thousand ten--two thousand eleven school year
is greater than the charter school basic tuition for the current year
pursuant to the provisions of subparagraph (i) of this paragraph, the
positive difference of the charter school basic tuition for the two
thousand ten--two thousand eleven school year minus the charter school
basic tuition for the current year pursuant to the provisions of subpar-
agraph (i) of this paragraph AND (C) FOR SCHOOL YEARS FOLLOWING THE TWO
THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEARS, FOR A SCHOOL
DISTRICT FOR WHICH THE CHARTER SCHOOL BASIC TUITION FOR THE TWO THOUSAND
TEN--TWO THOUSAND ELEVEN SCHOOL YEAR IS GREATER THAN THE CHARTER SCHOOL
BASIC TUITION FOR THE CURRENT YEAR PURSUANT TO THE PROVISIONS OF SUBPAR-
AGRAPH (I) OF THIS PARAGRAPH, THE SUM OF (I) THE SUPPLEMENTAL BASIC
TUITION CALCULATED FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN
SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS.
(b) The school district shall also pay directly to the charter school
any federal or state aid attributable to a student with a disability
attending charter school in proportion to the level of services for such
student with a disability that the charter school provides directly or
indirectly. Notwithstanding anything in this section to the contrary,
amounts payable pursuant to this subdivision may be reduced pursuant to
an agreement between the school and the charter entity set forth in the
charter. Payments made pursuant to this subdivision shall be made by the
school district in six substantially equal installments each year begin-
ning on the first business day of July and every two months thereafter.
Amounts payable under this subdivision shall be determined by the
commissioner. Amounts payable to a charter school in its first year of
operation shall be based on the projections of initial-year enrollment
set forth in the charter. Such projections shall be reconciled with the
actual enrollment at the end of the school's first year of operation,
and any necessary adjustments shall be made to payments during the
school's second year of operation.
(c) School districts shall be eligible for an annual apportionment
equal to the amount of the supplemental basic tuition [paid to] FOR the
charter school in the base year for the expenses incurred in the two
thousand fourteen--two thousand fifteen, two thousand fifteen--two thou-
S. 2009--C 298 A. 3009--C
sand sixteen, [and] two thousand sixteen--two thousand seventeen school
years AND THEREAFTER.
§ 5. Clause (B) of subparagraph 5 of paragraph (e) of subdivision 3 of
section 2853 of the education law, as added by section 11 of part A of
chapter 54 of the laws of 2016, is amended to read as follows:
(B) [twenty] THIRTY percent of the product of the charter school's
basic tuition for the current school year and (i) for a new charter
school that first commences instruction on or after July first, two
thousand fourteen, the charter school's current year enrollment; or (ii)
for a charter school which expands its grade level, pursuant to this
article, the positive difference of the charter school's enrollment in
the current school year minus the charter school's enrollment in the
school year prior to the first year of the expansion.
§ 6. Intentionally omitted.
§ 7. Paragraph a of subdivision 33 of section 305 of the education
law, as amended by chapter 621 of the laws of 2003, is amended to read
as follows:
a. The commissioner shall establish procedures for the approval of
providers of supplemental educational services in accordance with the
provisions of subsection (e) of section one thousand one hundred sixteen
of the No Child Left Behind Act of 2001 and shall adopt regulations to
implement such procedures. Notwithstanding any other provision of state
or local law, rule or regulation to the contrary, any local educational
agency that receives federal funds pursuant to title I of the Elementary
and Secondary Education Act of nineteen hundred sixty-five, as amended,
shall be authorized to contract with the approved provider selected by a
student's parent, as such term is defined in subsection [thirty-one]
THIRTY-EIGHT of section [nine] EIGHT thousand one hundred one of the [No
Child Left Behind Act of 2001] ELEMENTARY AND SECONDARY EDUCATION ACT OF
NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, for the provision of supple-
mental educational services to the extent required under such section
one thousand one hundred sixteen. Eligible approved providers shall
include, but not be limited to, public schools, BOCES, institutions of
higher education, and community based organizations.
§ 8. Subdivision 7 of section 2802 of the education law, as amended by
chapter 425 of the laws of 2002, is amended to read as follows:
7. Notwithstanding any other provision of state or local law, rule or
regulation to the contrary, any student who attends a persistently
dangerous public elementary or secondary school, as determined by the
commissioner pursuant to paragraph a of this subdivision, or who is a
victim of a violent criminal offense, as defined pursuant to paragraph b
of this subdivision, that occurred on the grounds of a public elementary
or secondary school that the student attends, shall be allowed to attend
a safe public school within the local educational agency to the extent
required by section [ninety-five] EIGHTY-FIVE hundred thirty-two of the
[No Child Left Behind Act of 2001] ELEMENTARY AND SECONDARY EDUCATION
ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED.
a. The commissioner shall annually determine which public elementary
and secondary schools are persistently dangerous in accordance with
regulations of the commissioner developed in consultation with a repre-
sentative sample of local educational agencies. Such determination shall
be based on data submitted through the uniform violent incident report-
ing system over a period prescribed in the regulations, which shall not
be less than two years.
b. Each local educational agency required to provide unsafe school
choice shall establish procedures for determinations by the superinten-
S. 2009--C 299 A. 3009--C
dent of schools or other chief school officer of whether a student is
the victim of a violent criminal offense that occurred on school grounds
of the school that the student attends. Such superintendent of schools
or other chief school officer shall, prior to making any such determi-
nation, consult with any law enforcement agency investigating such
alleged violent criminal offense and consider any reports or records
provided by such agency. The trustees or board of education or other
governing board of a local educational agency may provide, by local rule
or by-law, for appeal of the determination of the superintendent of
schools to such governing board. Notwithstanding any other provision of
law to the contrary, the determination of such chief school officer
pursuant to this paragraph shall not have collateral estoppel effect in
any student disciplinary proceeding brought against the alleged victim
or perpetrator of such violent criminal offense. For purposes of this
subdivision, "violent criminal offense" shall mean a crime that involved
infliction of serious physical injury upon another as defined in the
penal law, a sex offense that involved forcible compulsion or any other
offense defined in the penal law that involved the use or threatened use
of a deadly weapon.
c. Each local educational agency, as defined in subsection [twenty-
six] THIRTY of section [ninety-one] EIGHTY-ONE hundred one of the [No
Child Left Behind Act of 2001] ELEMENTARY AND SECONDARY EDUCATION ACT OF
NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, that is required to provide
school choice pursuant to section [ninety-five] EIGHTY-FIVE hundred
thirty-two of the [No Child Left Behind Act of 2001] ELEMENTARY AND
SECONDARY EDUCATION ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED,
shall establish procedures for notification of parents of, or persons in
parental relation to, students attending schools that have been desig-
nated as persistently dangerous and parents of, or persons in parental
relation to, students who are victims of violent criminal offenses of
their right to transfer to a safe public school within the local educa-
tional agency and procedures for such transfer, except that nothing in
this subdivision shall be construed to require such notification where
there are no other public schools within the local educational agency at
the same grade level or such transfer to a safe public school within the
local educational agency is otherwise impossible or to require a local
educational agency that has only one public school within the local
educational agency or only one public school at each grade level to
develop such procedures. The commissioner shall be authorized to adopt
any regulations deemed necessary to assure that local educational agen-
cies implement the provisions of this subdivision.
§ 9. Subdivision 7 of section 3214 of the education law, as added by
chapter 101 of the laws of 2003, is amended to read as follows:
7. Transfer of disciplinary records. Notwithstanding any other
provision of law to the contrary, each local educational agency, as such
term is defined in subsection [twenty-six] THIRTY of section [ninety-
one] EIGHTY-ONE hundred one of the Elementary and Secondary Education
Act of 1965, as amended, shall establish procedures in accordance with
section [forty-one hundred fifty-five] EIGHTY-FIVE HUNDRED THIRTY-SEVEN
of the Elementary and Secondary Education Act of 1965, as amended, and
the Family Educational Rights and Privacy Act of 1974, to facilitate the
transfer of disciplinary records relating to the suspension or expulsion
of a student to any public or nonpublic elementary or secondary school
in which such student enrolls or seeks, intends or is instructed to
enroll, on a full-time or part-time basis.
S. 2009--C 300 A. 3009--C
§ 10. Certain apportionments payable to the Haverstraw-Stony Point
central school district shall be paid on an accelerated schedule as
follows:
a. (1) Notwithstanding any other provisions of law, for aid payable in
the school years 2017-2018 through 2046-2047 upon application to the
commissioner of education submitted not sooner than the second Monday in
June of the school year in which such aid is payable and not later than
the Friday following the third Monday in June of such school year, the
Haverstraw-Stony Point central school district shall be eligible to
receive an apportionment pursuant to this act in an amount equal to the
product of up to $2,000,000 and the quotient of the positive difference
of thirty minus the number of school years elapsed since the 2017-2018
school year divided by thirty.
(2) Funds apportioned pursuant to this subdivision shall be used for
services and expenses of the Haverstraw-Stony Point central school
district and shall be applied to support its educational programs and
any liability incurred by such school district in carrying out its func-
tions and responsibilities under the education law.
b. The claim for an apportionment to be paid to the Haverstraw-Stony
Point central school district pursuant to subdivision a of this section
shall be submitted to the commissioner of education on a form prescribed
for such purpose, and shall be payable upon determination by such
commissioner that the form has been submitted as prescribed. For each
school year in which application is made pursuant to subdivision a of
this section, such approved amount shall be payable on or before June
thirtieth of such school year upon the audit and warrant of the state
comptroller on vouchers certified or approved by the commissioner of
education in the manner prescribed by law from moneys in the state
lottery fund appropriated for general support of public schools and from
the general fund to the extent that the amount paid to the Haverstraw-
Stony Point central school district pursuant to this subdivision and
subdivision a of this section exceeds the amount of the lottery appor-
tionment, if any, due such school district pursuant to subparagraph 2 of
paragraph a of subdivision 1 of section 3609-a of the education law on
or before the last business day in September of such school year.
c. Notwithstanding the provisions of section 3609-a of the education
law, an amount equal to the amount paid to the Haverstraw-Stony Point
central school district during the base year pursuant to subdivisions a
and b of this section shall first be deducted from payments due during
the current school year pursuant to subparagraphs 1, 2, 3, 4 and 5 of
paragraph a of subdivision 1 of section 3609-a of the education law in
the following order: the lottery apportionment payable pursuant to
subparagraph 2 of such paragraph followed by the fixed fall payments
payable pursuant to subparagraph 4 of such paragraph, and any remainder
to be deducted from the individualized payments due to the district
pursuant to paragraph b of such subdivision shall be deducted on a chro-
nological basis starting with the earliest payment due the district.
d. Notwithstanding any other provisions of law, the sum of payments
made to the Haverstraw-Stony Point central school district during the
base year pursuant to subdivisions a and b of this section plus payments
made to such school district during the current year pursuant to section
3609-a of the education law shall be deemed to truly represent all aids
paid to such school district during the current school year pursuant to
such section 3609-a for the purposes of computing any adjustments to
such aids that may occur in a subsequent school year.
S. 2009--C 301 A. 3009--C
§ 10-a. Review of Haverstraw-Stony Point central school district
financial condition. The state comptroller shall conduct a comprehensive
review of the financial condition of the Haverstraw-Stony Point central
school district and shall report in writing on the results of such
review on or before January 1, 2018, to the director of the budget, the
commissioner of education, and chairs of the senate finance and assembly
ways and means committees. Such review shall include but not be limited
to analysis of the school district's budgets, operating results, fund
balances and reserves over the five most recent completed school years,
as well as the district's budget projections for the current school year
and the subsequent three year school years, and shall compare the
district's financial condition to that of other districts in the region.
§ 10-b. Special financing authority for the Haverstraw-Stony Point
central school district. a. Notwithstanding the provisions of any law to
the contrary, the dormitory authority is authorized, upon application by
the Haverstraw-Stony Point central school district, to issue bonds and
notes in one or more series, with terms not exceeding thirty years, for
purposes of refunding or refinancing debt issued by the school district
related to the repayment of a tax certiorari settlement agreement, the
total costs of which exceed the total annual school budget at the time
the school district applies for refinancing or refunding through the
authority. The aggregate principal amount of such bonds and notes shall
not exceed the total cost of refunding such debt as determined by the
authority and shall not be a debt of the state, and the state shall not
be liable thereon.
b. The total amount of the indebtedness which the Haverstraw-Stony
Point central school district shall refinance through the dormitory
authority shall be deemed to be indebtedness of the school district.
Such indebtedness shall be subject to applicable sections of the local
finance law, state finance law, and the constitution.
c. Notwithstanding the provisions of any general or special law to the
contrary, a period of probable usefulness of not to exceed thirty years
shall apply to any obligations of the Haverstraw-Stony Point central
school district either issued by the school district on its own or to
repay the dormitory authority or to any general obligation bonds issued
by the school district to secure bonds issued by the dormitory authori-
ty.
d. Notwithstanding the limitations or requirements of subdivision 1-a
of section 3651 of the education law, the Haverstraw-Stony Point central
school district may, without approval by the qualified voters of the
district, use monies in any reserve fund established by such district
pursuant to such subdivision of such section, to pay the principal of
and interest on any bonds issued by such district or the dormitory
authority for the object or purpose described in this section.
§ 11. Notwithstanding any provision of law to the contrary, the
commissioner of education may provide for the recovery of funds for a
penalty arising from a late final cost report pursuant to this section.
a. Definition. For the purposes of this section, "notification year"
shall mean the school year in which the school district was first noti-
fied by the commissioner of education of the calculation of a penalty
arising from a late final cost report.
b. Penalty eligibility. Only aid penalties arising from late final
cost reports (1) (i) for school construction projects approved by the
commissioner of education prior to July 1, 2011 where such penalty has
not yet been recovered by the commissioner of education or (ii) that are
already included within a multi-year recovery pursuant to a chapter of
S. 2009--C 302 A. 3009--C
law of the year 2013 or thereafter and (2) where such total penalty
exceeds six one-hundredths (0.06) of the school district's total general
fund expenditures for the base year of the notification year, shall be
eligible for the provisions of this section.
c. Recovery opt-in for certain districts. Any school district with an
eligible penalty that is already included within a multi-year recovery
of aid pursuant to a chapter of law of 2013 or thereafter may choose to
opt-in to the provisions of this section, provided that only the portion
of the total penalty that has not yet been recovered by the commissioner
of education shall be eligible for the provisions of this section.
d. Documentation. The commissioner of education shall determine the
documentation required from a school district to implement the
provisions of this section, and where documentation is required from a
school district to supplement the documentation already on file with the
commissioner, the commissioner shall determine the timeframe within
which such documentation must be submitted.
e. Aid penalty. For any district with eligible projects pursuant to
the provisions of this section, the commissioner of education shall
compute a total penalty and shall develop a schedule of no more than ten
years over which period such penalty shall be recovered, provided that:
(1) such scheduled penalties shall be deducted from the payments due
to such school district and payable in the month of June beginning in
the school year after the year in which this section shall have become a
law or the school year succeeding the notification year, whichever is
later;
(2) the amount recovered in the first year of the schedule shall equal
the sum of (A) two one-hundredths (0.02) of such district's total gener-
al fund expenditures for the year prior to the first year of such recov-
ery, plus (B) the amount that is recognized as a liability due to other
governments by the district for the year prior to the first year of such
recovery, plus (C) the positive remainder of the district's surplus
funds, as defined in section 1318 of the real property tax law, at the
close of the year prior to the first year of such recovery less the
product of the district's total general fund expenditures for the year
prior to the first year of such recovery multiplied by four one-hun-
dredths (0.04), provided that the amount recovered in such first year
shall not exceed the portion of the total penalty that has not yet been
recovered;
(3) the amount recovered in each subsequent year shall be recovered by
deducting such excess payments from the payments due to such school
district and payable in the month of June of subsequent years and shall
equal two one-hundredths (0.02) of such district's total general fund
expenditures for the year prior to the first year of such recovery,
provided that the amount recovered in each such subsequent year shall
not exceed the portion of the total penalty that has not yet been recov-
ered;
(4) there shall be no interest penalty assessed against such district
or collected by the state.
f. Remaining penalty. If after the end of the ten-year period there
remains any amount of penalty still to be recovered, the commissioner of
education shall forgo the recovery of such additional penalty and deem
the school district's obligation complete.
§ 12. Section 4 of chapter 425 of the laws of 2002, amending the
education law relating to the provision of supplemental educational
services, attendance at a safe public school and the suspension of
pupils who bring a firearm to or possess a firearm at a school, as
S. 2009--C 303 A. 3009--C
amended by section 35 of part A of chapter 54 of the laws of 2016, is
amended to read as follows:
§ 4. This act shall take effect July 1, 2002 and shall expire and be
deemed repealed June 30, [2017] 2018.
§ 13. Section 5 of chapter 101 of the laws of 2003, amending the
education law relating to the implementation of the No Child Left Behind
Act of 2001, as amended by section 36 of part A of chapter 54 of the
laws of 2016, is amended to read as follows:
§ 5. This act shall take effect immediately; provided that sections
one, two and three of this act shall expire and be deemed repealed on
June 30, [2017] 2018.
§ 14. Paragraph o of subdivision 1 of section 3602 of the education
law, as amended by section 15 of part A of chapter 54 of the laws of
2016, is amended to read as follows:
o. "English language learner count" shall mean the number of pupils
served in the base year in programs for pupils [with limited English
proficiency] WHO ARE ENGLISH LANGUAGE LEARNERS approved by the commis-
sioner pursuant to the provisions of this chapter and in accordance with
regulations adopted for such purpose.
§ 15. Paragraph b of subdivision 15 of section 2556 of the education
law, as added by section 20 of part A of chapter 57 of the laws of 2013,
is amended to read as follows:
b. On or before December thirty-first, two thousand [fourteen] SEVEN-
TEEN, the chancellor shall submit the inventory, report, and the recom-
mendations to minimize the number of transportable classroom units with-
in the city school district, compiled and developed pursuant to
paragraph a of this subdivision, to the governor, the temporary presi-
dent of the senate, the speaker of the assembly, the chairs of the
senate and assembly committees on education, and the department. ANNUAL-
LY, ON OR BEFORE DECEMBER THIRTY-FIRST, THE CHANCELLOR SHALL UPDATE SUCH
INVENTORY, REPORT AND RECOMMENDATIONS AND PROVIDE SUCH UPDATED INFORMA-
TION AND RECOMMENDATIONS TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRS OF THE SENATE AND ASSEM-
BLY COMMITTEES ON EDUCATION, AND THE DEPARTMENT.
§ 16. Paragraph q of subdivision 1 of section 3602 of the education
law, as amended by section 25 of part A of chapter 58 of the laws of
2011, is amended to read as follows:
q. "Poverty count" shall mean the sum of the product of the lunch
count multiplied by sixty-five percent, plus the product of the census
count multiplied by sixty-five percent, where:
(i) "Lunch count" shall mean the product of the public school enroll-
ment of the school district on the date enrollment was counted in
accordance with this subdivision for the base year multiplied by the
three-year average free and reduced price lunch percent; and
(ii) "Census count" shall mean the product of the public school
enrollment of the school district on the date enrollment was counted in
accordance with this subdivision for the base year multiplied by THE
CENSUS 2000 POVERTY RATE.
(III) "CENSUS 2000 POVERTY RATE" SHALL MEAN the quotient of the number
of persons aged five to seventeen within the school district, based on
the [most recent] decennial census CONDUCTED IN THE YEAR TWO THOUSAND as
tabulated by the National Center on Education Statistics, who were
enrolled in public schools and whose families had incomes below the
poverty level, divided by the total number of persons aged five to
seventeen within the school district, based on such decennial census,
S. 2009--C 304 A. 3009--C
who were enrolled in public schools, computed to four decimals without
rounding.
(IV) "SELECTED POVERTY RATE" SHALL MEAN: (A) FOR SCHOOL DISTRICTS WITH
HIGH CONCENTRATIONS OF NONPUBLIC STUDENTS, THE GREATER OF THE CENSUS
2000 POVERTY RATE OR THE THREE-YEAR AVERAGE SMALL AREA INCOME AND POVER-
TY ESTIMATE POVERTY RATE; AND (B) FOR ALL OTHER SCHOOL DISTRICTS, THE
THREE-YEAR AVERAGE SMALL AREA INCOME AND POVERTY ESTIMATE POVERTY RATE.
FOR THE PURPOSES OF THIS SUBPARAGRAPH, "THREE-YEAR AVERAGE SMALL AREA
INCOME AND POVERTY ESTIMATE POVERTY RATE" SHALL EQUAL THE QUOTIENT OF
(1) THE SUM OF THE NUMBER OF PERSONS AGED FIVE TO SEVENTEEN WITHIN THE
SCHOOL DISTRICT, BASED ON THE SMALL AREA INCOME AND POVERTY ESTIMATES
PRODUCED BY THE UNITED STATES CENSUS BUREAU, WHOSE FAMILIES HAD INCOMES
BELOW THE POVERTY LEVEL FOR THE YEAR TWO YEARS PRIOR TO THE YEAR IN
WHICH THE BASE YEAR BEGAN, PLUS SUCH NUMBER FOR THE YEAR THREE YEARS
PRIOR TO THE YEAR IN WHICH THE BASE YEAR BEGAN, PLUS SUCH NUMBER FOR THE
YEAR FOUR YEARS PRIOR TO THE YEAR IN WHICH THE BASE YEAR BEGAN, DIVIDED
BY (2) THE SUM OF THE TOTAL NUMBER OF PERSONS AGED FIVE TO SEVENTEEN
WITHIN THE SCHOOL DISTRICT, BASED ON SUCH CENSUS BUREAU ESTIMATES, FOR
THE YEAR TWO YEARS PRIOR TO THE YEAR IN WHICH THE BASE YEAR BEGAN, PLUS
SUCH TOTAL NUMBER FOR THE YEAR THREE YEARS PRIOR TO THE YEAR IN WHICH
THE BASE YEAR BEGAN, PLUS SUCH TOTAL NUMBER FOR THE YEAR FOUR YEARS
PRIOR TO THE YEAR IN WHICH THE BASE YEAR BEGAN, COMPUTED TO FOUR DECI-
MALS WITHOUT ROUNDING.
(V) "SCHOOL DISTRICTS WITH HIGH CONCENTRATIONS OF NONPUBLIC STUDENTS"
SHALL MEAN ANY DISTRICT WHERE: (A) THE QUOTIENT ARRIVED AT WHEN DIVIDING
(1) THE SUM OF THE ENROLLMENTS IN GRADES KINDERGARTEN THROUGH TWELVE IN
THE BASE YEAR CALCULATED PURSUANT TO SUBPARAGRAPHS FIVE AND SIX OF PARA-
GRAPH N OF THIS SUBDIVISION BY (2) THE RESIDENT PUBLIC SCHOOL DISTRICT
ENROLLMENT IN THE BASE YEAR COMPUTED PURSUANT TO SUBPARAGRAPHS FOUR,
FIVE, AND SIX OF PARAGRAPH N OF THIS SUBDIVISION IS GREATER THAN
FIFTEEN-HUNDREDTHS (0.15); AND (B) THE THREE-YEAR AVERAGE SMALL AREA
INCOME AND POVERTY ESTIMATE POVERTY RATE IS GREATER THAN TEN PERCENT
(0.10).
§ 16-a. Subdivision 4 of section 3602 of the education law, as amended
by section 5-a of part A of chapter 56 of the laws of 2015, the opening
paragraph, subparagraph 1 of paragraph a, clause (ii) of subparagraph 2
of paragraph b and paragraph d as amended and paragraph b-2 as added by
section 7 of part A of chapter 54 of the laws of 2016, paragraph e as
added by section 8 of part A of chapter 54 of the laws of 2016, is
amended to read as follows:
4. Total foundation aid. In addition to any other apportionment
pursuant to this chapter, a school district, other than a special act
school district as defined in subdivision eight of section four thousand
one of this chapter, shall be eligible for total foundation aid equal to
the product of total aidable foundation pupil units multiplied by the
district's selected foundation aid, which shall be the greater of five
hundred dollars ($500) or foundation formula aid, provided, however that
for the two thousand seven--two thousand eight through two thousand
eight--two thousand nine school years, no school district shall receive
total foundation aid in excess of the sum of the total foundation aid
base for aid payable in the two thousand seven--two thousand eight
school year computed pursuant to subparagraph (i) of paragraph j of
subdivision one of this section, plus the phase-in foundation increase
computed pursuant to paragraph b of this subdivision, and provided
further that for the two thousand twelve--two thousand thirteen school
year, no school district shall receive total foundation aid in excess of
S. 2009--C 305 A. 3009--C
the sum of the total foundation aid base for aid payable in the two
thousand eleven--two thousand twelve school year computed pursuant to
subparagraph (ii) of paragraph j of subdivision one of this section,
plus the phase-in foundation increase computed pursuant to paragraph b
of this subdivision, and provided further that for the two thousand
thirteen--two thousand fourteen school year and thereafter, no school
district shall receive total foundation aid in excess of the sum of the
total foundation aid base computed pursuant to subparagraph (ii) of
paragraph j of subdivision one of this section, plus the phase-in foun-
dation increase computed pursuant to paragraph b of this subdivision,
and provided further that for the two thousand sixteen--two thousand
seventeen school year, no eligible school districts shall receive total
foundation aid in excess of the sum of the total foundation aid base
computed pursuant to subparagraph (ii) of paragraph j of subdivision one
of this section plus the sum of (A) the phase-in foundation increase,
(B) the executive foundation increase with a minimum increase pursuant
to paragraph b-2 of this subdivision, and (C) an amount equal to "COMMU-
NITY SCHOOLS AID" in the computer listing produced by the commissioner
in support of the executive budget request for the two thousand
sixteen--two thousand seventeen school year and entitled "BT161-7",
where (1) "eligible school district" shall be defined as a district with
(a) an unrestricted aid increase of less than seven percent (0.07) and
(b) a three year average free and reduced price lunch percent greater
than fifteen percent (0.15), and (2) "unrestricted aid increase" shall
mean the quotient arrived at when dividing (a) the sum of the executive
foundation aid increase plus the gap elimination adjustment for the base
year, by (b) the difference of foundation aid for the base year less the
gap elimination adjustment for the base year, and (3) "executive founda-
tion increase" shall mean the difference of (a) the amounts set forth
for each school district as "FOUNDATION AID" under the heading "2016-17
ESTIMATED AIDS" in the school aid computer listing produced by the
commissioner in support of the executive budget request for the two
thousand sixteen--two thousand seventeen school year and entitled
"BT161-7" less (b) the amounts set forth for each school district as
"FOUNDATION AID" under the heading "2015-16 BASE YEAR AIDS" in such
computer listing and provided further that total foundation aid shall
not be less than the product of the total foundation aid base computed
pursuant to paragraph j of subdivision one of this section and the due-
minimum percent which shall be, for the two thousand twelve--two thou-
sand thirteen school year, one hundred and six-tenths percent (1.006)
and for the two thousand thirteen--two thousand fourteen school year for
city school districts of those cities having populations in excess of
one hundred twenty-five thousand and less than one million inhabitants
one hundred and one and one hundred and seventy-six thousandths percent
(1.01176), and for all other districts one hundred and three-tenths
percent (1.003), and for the two thousand fourteen--two thousand fifteen
school year one hundred and eighty-five hundredths percent (1.0085), and
for the two thousand fifteen--two thousand sixteen school year, one
hundred thirty-seven hundredths percent (1.0037), subject to allocation
pursuant to the provisions of subdivision eighteen of this section and
any provisions of a chapter of the laws of New York as described there-
in, nor more than the product of such total foundation aid base and one
hundred fifteen percent FOR ANY SCHOOL YEAR OTHER THAN THE TWO THOUSAND
SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR, provided, however, that
for the two thousand sixteen--two thousand seventeen school year such
maximum shall be no more than the sum of (i) the product of such total
S. 2009--C 306 A. 3009--C
foundation aid base and one hundred fifteen percent plus (ii) the execu-
tive foundation increase and plus (iii) "COMMUNITY SCHOOLS AID" in the
computer listing produced by the commissioner in support of the execu-
tive budget request for the two thousand sixteen--two thousand seventeen
school year and entitled "BT161-7" and provided further that for the two
thousand nine--two thousand ten through two thousand eleven--two thou-
sand twelve school years, each school district shall receive total foun-
dation aid in an amount equal to the amount apportioned to such school
district for the two thousand eight--two thousand nine school year
pursuant to this subdivision. Total aidable foundation pupil units shall
be calculated pursuant to paragraph g of subdivision two of this
section. For the purposes of calculating aid pursuant to this subdivi-
sion, aid for the city school district of the city of New York shall be
calculated on a citywide basis.
a. Foundation formula aid. Foundation formula aid shall equal the
remainder when the expected minimum local contribution is subtracted
from the product of the foundation amount, the regional cost index, and
the pupil need index, or: (foundation amount x regional cost index x
pupil need index)- expected minimum local contribution.
(1) The foundation amount shall reflect the average per pupil cost of
general education instruction in successful school districts, as deter-
mined by a statistical analysis of the costs of special education and
general education in successful school districts, provided that the
foundation amount shall be adjusted annually to reflect the percentage
increase in the consumer price index as computed pursuant to section two
thousand twenty-two of this chapter, provided that for the two thousand
eight--two thousand nine school year, for the purpose of such adjust-
ment, the percentage increase in the consumer price index shall be
deemed to be two and nine-tenths percent (0.029), and provided further
that the foundation amount for the two thousand seven--two thousand
eight school year shall be five thousand two hundred fifty-eight
dollars, and provided further that for the two thousand seven--two thou-
sand eight through two thousand [sixteen] SEVENTEEN--two thousand
[seventeen] EIGHTEEN school years, the foundation amount shall be
further adjusted by the phase-in foundation percent established pursuant
to paragraph b of this subdivision.
(2) The regional cost index shall reflect an analysis of labor market
costs based on median salaries in professional occupations that require
similar credentials to those of positions in the education field, but
not including those occupations in the education field, provided that
the regional cost indices for the two thousand seven--two thousand eight
school year and thereafter shall be as follows:
Labor Force Region Index
Capital District 1.124
Southern Tier 1.045
Western New York 1.091
Hudson Valley 1.314
Long Island/NYC 1.425
Finger Lakes 1.141
Central New York 1.103
Mohawk Valley 1.000
North Country 1.000
(3) The pupil need index shall equal the sum of one plus the extraor-
dinary needs percent, provided, however, that the pupil need index shall
not be less than one nor more than two. The extraordinary needs percent
S. 2009--C 307 A. 3009--C
shall be calculated pursuant to paragraph w of subdivision one of this
section.
(4) The expected minimum local contribution shall equal the lesser of
(i) the product of (A) the quotient arrived at when the selected actual
valuation is divided by total wealth foundation pupil units, multiplied
by (B) the product of the local tax factor, multiplied by the income
wealth index, or (ii) the product of (A) the product of the foundation
amount, the regional cost index, and the pupil need index, multiplied by
(B) the positive difference, if any, of one minus the state sharing
ratio for total foundation aid. The local tax factor shall be estab-
lished by May first of each year by determining the product, computed to
four decimal places without rounding, of ninety percent multiplied by
the quotient of the sum of the statewide average tax rate as computed by
the commissioner for the current year in accordance with the provisions
of paragraph e of subdivision one of section thirty-six hundred nine-e
of this part plus the statewide average tax rate computed by the commis-
sioner for the base year in accordance with such provisions plus the
statewide average tax rate computed by the commissioner for the year
prior to the base year in accordance with such provisions, divided by
three, provided however that for the two thousand seven--two thousand
eight school year, such local tax factor shall be sixteen thousandths
(0.016), and provided further that for the two thousand eight--two thou-
sand nine school year, such local tax factor shall be one hundred
fifty-four ten thousandths (0.0154). The income wealth index shall be
calculated pursuant to paragraph d of subdivision three of this section,
provided, however, that for the purposes of computing the expected mini-
mum local contribution the income wealth index shall not be less than
sixty-five percent (0.65) and shall not be more than two hundred percent
(2.0) and provided however that such income wealth index shall not be
more than ninety-five percent (0.95) for the two thousand eight--two
thousand nine school year, and provided further that such income wealth
index shall not be less than zero for the two thousand thirteen--two
thousand fourteen school year. The selected actual valuation shall be
calculated pursuant to paragraph c of subdivision one of this section.
Total wealth foundation pupil units shall be calculated pursuant to
paragraph h of subdivision two of this section.
b. Phase-in foundation increase. (1) The phase-in foundation increase
shall equal the product of the phase-in foundation increase factor
multiplied by the positive difference, if any, of (i) the product of the
total aidable foundation pupil units multiplied by the district's
selected foundation aid less (ii) the total foundation aid base computed
pursuant to paragraph j of subdivision one of this section.
(2) (i) Phase-in foundation percent. The phase-in foundation percent
shall equal one hundred thirteen and fourteen one hundredths percent
(1.1314) for the two thousand eleven--two thousand twelve school year,
one hundred ten and thirty-eight hundredths percent (1.1038) for the two
thousand twelve--two thousand thirteen school year, one hundred seven
and sixty-eight hundredths percent (1.0768) for the two thousand thir-
teen--two thousand fourteen school year, one hundred five and six
hundredths percent (1.0506) for the two thousand fourteen--two thousand
fifteen school year, and one hundred two and five tenths percent
(1.0250) for the two thousand fifteen--two thousand sixteen school year.
(ii) Phase-in foundation increase factor. For the two thousand
eleven--two thousand twelve school year, the phase-in foundation
increase factor shall equal thirty-seven and one-half percent (0.375)
and the phase-in due minimum percent shall equal nineteen and forty-one
S. 2009--C 308 A. 3009--C
hundredths percent (0.1941), for the two thousand twelve--two thousand
thirteen school year the phase-in foundation increase factor shall equal
one and seven-tenths percent (0.017), for the two thousand thirteen--two
thousand fourteen school year the phase-in foundation increase factor
shall equal (1) for a city school district in a city having a population
of one million or more, five and twenty-three hundredths percent
(0.0523) or (2) for all other school districts zero percent, for the two
thousand fourteen--two thousand fifteen school year the phase-in founda-
tion increase factor shall equal (1) for a city school district of a
city having a population of one million or more, four and thirty-two
hundredths percent (0.0432) or (2) for a school district other than a
city school district having a population of one million or more for
which (A) the quotient of the positive difference of the foundation
formula aid minus the foundation aid base computed pursuant to paragraph
j of subdivision one of this section divided by the foundation formula
aid is greater than twenty-two percent (0.22) and (B) a combined wealth
ratio less than thirty-five hundredths (0.35), seven percent (0.07) or
(3) for all other school districts, four and thirty-one hundredths
percent (0.0431), and for the two thousand fifteen--two thousand sixteen
school year the phase-in foundation increase factor shall equal: (1) for
a city school district of a city having a population of one million or
more, thirteen and two hundred seventy-four thousandths percent
(0.13274); or (2) for districts where the quotient arrived at when
dividing (A) the product of the total aidable foundation pupil units
multiplied by the district's selected foundation aid less the total
foundation aid base computed pursuant to paragraph j of subdivision one
of this section divided by (B) the product of the total aidable founda-
tion pupil units multiplied by the district's selected foundation aid is
greater than nineteen percent (0.19), and where the district's combined
wealth ratio is less than thirty-three hundredths (0.33), seven and
seventy-five hundredths percent (0.0775); or (3) for any other district
designated as high need pursuant to clause (c) of subparagraph two of
paragraph c of subdivision six of this section for the school aid
computer listing produced by the commissioner in support of the enacted
budget for the two thousand seven--two thousand eight school year and
entitled "SA0708", four percent (0.04); or (4) for a city school
district in a city having a population of one hundred twenty-five thou-
sand or more but less than one million, fourteen percent (0.14); or (5)
for school districts that were designated as small city school districts
or central school districts whose boundaries include a portion of a
small city for the school aid computer listing produced by the commis-
sioner in support of the enacted budget for the two thousand fourteen--
two thousand fifteen school year and entitled "SA1415", four and seven
hundred fifty-one thousandths percent (0.04751); or (6) for all other
districts one percent (0.01), and for the two thousand sixteen--two
thousand seventeen school year THE FOUNDATION AID PHASE-IN INCREASE
FACTOR shall equal for an eligible school district the greater of: (1)
for a city school district in a city with a population of one million or
more, seven and seven hundred eighty four thousandths percent (0.07784);
or (2) for a city school district in a city with a population of more
than two hundred fifty thousand but less than one million as of the most
recent federal decennial census, seven and three hundredths percent
(0.0703); or (3) for a city school district in a city with a population
of more than two hundred thousand but less than two hundred fifty thou-
sand as of the most recent federal decennial census, six and seventy-two
hundredths percent (0.0672); or (4) for a city school district in a city
S. 2009--C 309 A. 3009--C
with a population of more than one hundred fifty thousand but less than
two hundred thousand as of the most recent federal decennial census, six
and seventy-four hundredths percent (0.0674); or (5) for a city school
district in a city with a population of more than one hundred twenty-
five thousand but less than one hundred fifty thousand as of the most
recent federal decennial census, nine and fifty-five hundredths percent
(0.0955); or (6) for school districts that were designated as small city
school districts or central school districts whose boundaries include a
portion of a small city for the school aid computer listing produced by
the commissioner in support of the enacted budget for the two thousand
fourteen--two thousand fifteen school year and entitled "SA141-5" with a
combined wealth ratio less than one and four tenths (1.4), nine percent
(0.09), provided, however, that for such districts that are also
districts designated as high need urban-suburban pursuant to clause (c)
of subparagraph two of paragraph c of subdivision six of this section
for the school aid computer listing produced by the commissioner in
support of the enacted budget for the two thousand seven--two thousand
eight school year and entitled "SA0708", nine and seven hundred and
nineteen thousandths percent (0.09719); or (7) for school districts
designated as high need rural pursuant to clause (c) of subparagraph two
of paragraph c of subdivision six of this section for the school aid
computer listing produced by the commissioner in support of the enacted
budget for the two thousand seven--two thousand eight school year and
entitled "SA0708", thirteen and six tenths percent (0.136); or (8) for
school districts designated as high need urban-suburban pursuant to
clause (c) of subparagraph two of paragraph c of subdivision six of this
section for the school aid computer listing produced by the commissioner
in support of the enacted budget for the two thousand seven--two thou-
sand eight school year and entitled "SA0708", seven hundred nineteen
thousandths percent (0.00719); or (9) for all other eligible school
districts, forty-seven hundredths percent (0.0047), PROVIDED FURTHER
THAT FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR
THE FOUNDATION AID INCREASE PHASE-IN FACTOR SHALL EQUAL (1) FOR SCHOOL
DISTRICTS WITH A CENSUS 2000 POVERTY RATE COMPUTED PURSUANT TO PARAGRAPH
Q OF SUBDIVISION ONE OF THIS SECTION EQUAL TO OR GREATER THAN TWENTY-SIX
PERCENT (0.26), TEN AND THREE-TENTHS PERCENT (0.103), OR (2) FOR A
SCHOOL DISTRICT IN A CITY WITH A POPULATION IN EXCESS OF ONE MILLION OR
MORE, SEVENTEEN AND SEVENTY-SEVEN ONE-HUNDREDTHS PERCENT (0.1777), OR
(3) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF MORE THAN
TWO HUNDRED FIFTY THOUSAND BUT LESS THAN ONE MILLION, AS OF THE MOST
RECENT DECENNIAL CENSUS, TWELVE AND SIXTY-NINE HUNDREDTHS PERCENT
(0.1269) OR (4) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION
OF MORE THAN ONE HUNDRED FIFTY THOUSAND BUT LESS THAN TWO HUNDRED THOU-
SAND, AS OF THE MOST RECENT FEDERAL DECENNIAL CENSUS, TEN AND SEVENTY-
EIGHT ONE HUNDREDTHS PERCENT (0.1078), OR (5) FOR A CITY SCHOOL DISTRICT
IN A CITY WITH A POPULATION OF MORE THAN ONE HUNDRED TWENTY-FIVE THOU-
SAND BUT LESS THAN ONE HUNDRED FIFTY THOUSAND AS OF THE MOST RECENT
FEDERAL DECENNIAL CENSUS, NINETEEN AND ONE HUNDRED EIGHT ONE-THOUSANDTHS
PERCENT (0.19108), OR (6) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A
POPULATION OF MORE THAN TWO HUNDRED THOUSAND BUT LESS THAN TWO HUNDRED
FIFTY THOUSAND AS OF THE MOST RECENT FEDERAL DECENNIAL CENSUS, TEN AND
SIX-TENTHS PERCENT (0.106), OR (7) FOR ALL OTHER DISTRICTS, FOUR AND
EIGHTY-SEVEN ONE-HUNDREDTHS PERCENT (0.0487), and for the [two thousand
seventeen--two thousand eighteen] TWO THOUSAND EIGHTEEN--TWO THOUSAND
NINETEEN school year and thereafter the commissioner shall annually
determine the phase-in foundation increase factor subject to allocation
S. 2009--C 310 A. 3009--C
pursuant to the provisions of subdivision eighteen of this section and
any provisions of a chapter of the laws of New York as described there-
in.
b-1. Notwithstanding any other provision of law to the contrary, for
the two thousand seven--two thousand eight school year and thereafter,
the additional amount payable to each school district pursuant to this
subdivision in the current year as total foundation aid, after deducting
the total foundation aid base, shall be deemed a state grant in aid
identified by the commissioner for general use for purposes of section
seventeen hundred eighteen of this chapter.
b-2. Due minimum for the two thousand sixteen--two thousand seventeen
school year. Notwithstanding any other provision of law to the contrary,
for the two thousand sixteen--two thousand seventeen school year the
total foundation aid shall not be less than the sum of the total founda-
tion aid base computed pursuant to paragraph j of subdivision one of
this section plus the due minimum for the two thousand sixteen--two
thousand seventeen school year, where such due minimum shall equal the
difference of (1) the product of (A) two percent (0.02) multiplied by
(B) the difference of total foundation aid for the base year less the
gap elimination adjustment for the base year, less (2) the sum of (A)
the difference of the amounts set forth for each school district as
"FOUNDATION AID" under the heading "2016-17 ESTIMATED AIDS" in the
school aid computer listing produced by the commissioner in support of
the executive budget request for the two thousand sixteen--two thousand
seventeen school year and entitled "BT161-7" less the amounts set forth
for each school district as "FOUNDATION AID" under the heading "2015-16
BASE YEAR AIDS" in such computer listing plus (B) the gap elimination
adjustment for the base year.
B-3. DUE MINIMUM FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
SCHOOL YEAR. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR THE
TOTAL FOUNDATION AID SHALL NOT BE LESS THAN (A) THE SUM OF THE TOTAL
FOUNDATION AID BASE COMPUTED PURSUANT TO PARAGRAPH J OF SUBDIVISION ONE
OF THIS SECTION PLUS THE PRODUCT OF (I) THE DIFFERENCE OF THE AMOUNT SET
FORTH FOR SUCH SCHOOL DISTRICT AS "FOUNDATION AID" UNDER THE HEADING
"2017-18 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY
THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET REQUEST FOR THE TWO
THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR AND ENTITLED
"BT171-8" LESS THE AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT AS "FOUNDA-
TION AID" UNDER THE HEADING "2016-17 BASE YEAR AIDS" IN THE SCHOOL AID
COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE EXECU-
TIVE BUDGET REQUEST FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGH-
TEEN SCHOOL YEAR AND ENTITLED "BT171-8" MULTIPLIED BY (II) ONE AND EIGH-
TEEN ONE-HUNDREDTHS (1.18), OR (B) THE PRODUCT OF FORTY-FOUR AND
SEVENTY-FIVE ONE-HUNDREDTHS PERCENT (0.4475) MULTIPLIED BY TOTAL FOUNDA-
TION AID AS COMPUTED PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION, OR (C)
THE SUM OF THE TOTAL FOUNDATION AID BASE COMPUTED PURSUANT TO PARAGRAPH
J OF SUBDIVISION ONE OF THIS SECTION PLUS THE DUE MINIMUM FOR THE TWO
THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR, WHERE SUCH DUE
MINIMUM SHALL EQUAL (1) FOR SCHOOL DISTRICTS WITH A CENSUS 2000 POVERTY
RATE COMPUTED PURSUANT TO PARAGRAPH Q OF SUBDIVISION ONE OF THIS
SECTION, EQUAL TO OR GREATER THAN ELEVEN AND NINE-TENTHS PERCENT
(0.119), THE PRODUCT OF THE FOUNDATION AID BASE FOR THE TWO THOUSAND
SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR COMPUTED PURSUANT TO
SUBPARAGRAPH (III) OF PARAGRAPH J OF SUBDIVISION ONE OF THIS SECTION
MULTIPLIED BY THREE HUNDRED THIRTY-FIVE TEN-THOUSANDTHS (0.0335), OR (2)
S. 2009--C 311 A. 3009--C
FOR ALL OTHER SCHOOL DISTRICTS THE PRODUCT OF THE FOUNDATION AID BASE
FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR
COMPUTED PURSUANT TO SUBPARAGRAPH (III) OF PARAGRAPH J OF SUBDIVISION
ONE OF THIS SECTION MULTIPLIED BY TWO AND SEVENTY-FOUR ONE-HUNDREDTHS
PERCENT (0.0274).
B-4. ADDITIONAL INCREASE FOR THE TWO THOUSAND SEVENTEEN-TWO THOUSAND
EIGHTEEN SCHOOL YEAR. FOR THE TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGH-
TEEN SCHOOL YEAR, ANY SCHOOL DISTRICT ELIGIBLE TO RECEIVE A PHASE-IN
FOUNDATION INCREASE PURSUANT TO THIS SUBDIVISION SHALL RECEIVE AN ADDI-
TIONAL FOUNDATION INCREASE EQUAL TO THE SUM OF TIERS A, B, C, AND D AS
DEFINED HEREIN.
(I) TIER A. FOR ALL SCHOOL DISTRICTS OTHER THAN A DISTRICT WITHIN A
CITY WITH A POPULATION OF ONE MILLION OR MORE, WITH A COMBINED WEALTH
RATIO LESS THAN TWO (2.0), WHERE EITHER (A) THE QUOTIENT ARRIVED AT BY
DIVIDING THE ENGLISH LANGUAGE LEARNER COUNT PURSUANT TO PARAGRAPH O OF
SUBDIVISION ONE OF THIS SECTION FOR THE BASE YEAR BY THE PUBLIC SCHOOL
DISTRICT ENROLLMENT FOR THE BASE YEAR PURSUANT TO PARAGRAPH N OF SUBDI-
VISION ONE OF THIS SECTION IS GREATER THAN TWO ONE-HUNDREDTHS (0.02) OR
(B) THE QUOTIENT ARRIVED AT BY DIVIDING THE DIFFERENCE OF THE ENGLISH
LANGUAGE LEARNER COUNT PURSUANT TO PARAGRAPH O OF SUBDIVISION ONE OF
THIS SECTION FOR THE BASE YEAR LESS SUCH COUNT FOR ONE YEAR PRIOR TO THE
BASE YEAR BY THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR ONE YEAR PRIOR TO
THE BASE YEAR PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION
IS GREATER THAN ONE ONE-THOUSANDTH (0.001), TIER A SHALL EQUAL THE PROD-
UCT OF (A) THE DIFFERENCE OF TWO MINUS THE COMBINED WEALTH RATIO MULTI-
PLIED BY (B) ONE HUNDRED DOLLARS ($100.00) MULTIPLIED BY (C) THE ENGLISH
LANGUAGE LEARNER COUNT FOR THE BASE YEAR.
(II) TIER B. FOR ANY SCHOOL DISTRICT (A) WHERE THE AMOUNT SET FORTH AS
"25% LIMIT CAP ON INCREASE" ON THE COMPUTER FILE PRODUCED BY THE COMMIS-
SIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOUSAND SEVEN--TWO
THOUSAND EIGHT SCHOOL YEAR AND ENTITLED "SA070-8" IS LESS THAN ZERO AND
(B) WITH A COMBINED WEALTH RATIO COMPUTED PURSUANT TO PARAGRAPH C OF
SUBDIVISION THREE OF THIS SECTION GREATER THAN ONE (1.0), TIER B SHALL
EQUAL THE PRODUCT OF (A) THE SUM OF (1) THE DIFFERENCE OF TOTAL FOUNDA-
TION AID LESS THE FOUNDATION AID BASE PLUS (2) THE DIFFERENCE OF THE
AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT AS "FOUNDATION AID" UNDER THE
HEADING "2017-18 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING
PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET REQUEST
AND ENTITLED "BT1718" LESS THE FOUNDATION AID BASE MULTIPLIED BY (B) TEN
AND TWO-TENTHS PERCENT (0.102).
(III) TIER C. FOR ALL SCHOOL DISTRICTS WITH A COMBINED WEALTH RATIO
FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION
THREE OF THIS SECTION LESS THAN ONE (1.0), TIER C SHALL BE THE GREATER
OF (A) FOR DISTRICTS THAT WERE DESIGNATED AS SMALL CITY SCHOOL DISTRICTS
OR CENTRAL SCHOOL DISTRICTS WHOSE BOUNDARIES INCLUDE A PORTION OF A
SMALL CITY FOR THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMIS-
SIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOUSAND FOURTEEN--
TWO THOUSAND FIFTEEN SCHOOL YEAR AND ENTITLED "SA1415", THE PRODUCT OF
THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR THE BASE YEAR PURSUANT TO
PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION MULTIPLIED BY ONE HUNDRED
SIXTY-SEVEN DOLLARS AND FORTY CENTS ($167.40) OR (B) FOR SCHOOL
DISTRICTS WITH A SPARSITY FACTOR AS SET FORTH ON THE COMPUTER LISTING
PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE
TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR AND ENTITLED
"SA171-8" OF GREATER THAN ZERO, THE PRODUCT OF THE PUBLIC SCHOOL
S. 2009--C 312 A. 3009--C
DISTRICT ENROLLMENT FOR THE BASE YEAR MULTIPLIED BY ONE HUNDRED EIGHTY-
EIGHT DOLLARS ($188.00).
(IV) TIER D. FOR ALL SCHOOL DISTRICTS, OTHER THAN DISTRICTS WITHIN A
CITY WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE THOUSAND OR MORE, WITH
A SELECTED POVERTY RATE OF GREATER THAN EIGHTEEN HUNDREDTHS (0.18), TIER
D SHALL EQUAL THE PRODUCT OF THE SELECTED POVERTY RATE MULTIPLIED BY THE
SCHOOL DISTRICT PUBLIC ENROLLMENT FOR THE BASE YEAR MULTIPLIED BY TWO
HUNDRED FORTY DOLLARS ($240.00), PROVIDED, HOWEVER, THAT FOR DISTRICTS
WITHIN A CITY WITH A POPULATION OF GREATER THAN ONE HUNDRED TWENTY-FIVE
THOUSAND BUT LESS THAN ONE MILLION AND A SELECTED POVERTY RATE OF GREAT-
ER THAN EIGHTEEN HUNDREDTHS (0.18), TIER D SHALL EQUAL THE PRODUCT OF
THE SELECTED POVERTY RATE MULTIPLIED BY SCHOOL DISTRICT PUBLIC ENROLL-
MENT FOR THE BASE YEAR MULTIPLIED BY THREE HUNDRED FORTY-FOUR DOLLARS
($344.00), AND FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF
ONE MILLION OR MORE, TIER D SHALL EQUAL THE PRODUCT OF THE SELECTED
POVERTY RATE MULTIPLIED BY SCHOOL DISTRICT PUBLIC ENROLLMENT FOR THE
BASE YEAR MULTIPLIED BY TWENTY-NINE CENTS ($0.29).
c. Public excess cost aid setaside. Each school district shall set
aside from its total foundation aid computed for the current year pursu-
ant to this subdivision an amount equal to the product of: (i) the
difference between the amount the school district was eligible to
receive in the two thousand six--two thousand seven school year pursuant
to or in lieu of paragraph six of subdivision nineteen of this section
as such paragraph existed on June thirtieth, two thousand seven, minus
the amount such district was eligible to receive pursuant to or in lieu
of paragraph five of subdivision nineteen of this section as such para-
graph existed on June thirtieth, two thousand seven, in such school
year, and (ii) the sum of one and the percentage increase in the consum-
er price index for the current year over such consumer price index for
the two thousand six--two thousand seven school year, as computed pursu-
ant to section two thousand twenty-two of this chapter. Notwithstanding
any other provision of law to the contrary, the public excess cost aid
setaside shall be paid pursuant to section thirty-six hundred nine-b of
this part.
d. For the two thousand fourteen--two thousand fifteen through two
thousand [sixteen] SEVENTEEN--two thousand [seventeen] EIGHTEEN school
years a city school district of a city having a population of one
million or more may use amounts apportioned pursuant to this subdivision
for afterschool programs.
e. Community schools aid set-aside. Each school district shall set
aside from its total foundation aid computed for the current year pursu-
ant to this subdivision an amount equal to [the following amount, if
any, for such district and] THE SUM OF (I) THE AMOUNT, IF ANY, SET FORTH
FOR SUCH DISTRICT AS "COMMUNITY SCHL AID (BT1617)" IN THE DATA FILE
PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE
TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR AND ENTITLED
"SA161-7" AND (II) THE AMOUNT, IF ANY, SET FORTH FOR SUCH DISTRICT AS
"COMMUNITY SCHL INCR" IN THE DATA FILE PRODUCED BY THE COMMISSIONER IN
SUPPORT OF THE EXECUTIVE BUDGET REQUEST FOR THE TWO THOUSAND SEVENTEEN-
-TWO THOUSAND EIGHTEEN SCHOOL YEAR AND ENTITLED "BT171-8". EACH SCHOOL
DISTRICT shall use [the] SUCH "COMMUNITY SCHL AID (BT1617)" amount [so
set aside] to support the transformation of school buildings into commu-
nity hubs to deliver co-located or school-linked academic, health,
mental health, nutrition, counseling, legal and/or other services to
students and their families, including but not limited to providing a
community school site coordinator, or to support other costs incurred to
S. 2009--C 313 A. 3009--C
maximize students' academic achievement[:]. EACH SCHOOL DISTRICT SHALL
USE SUCH "COMMUNITY SCHL INCR" AMOUNT TO SUPPORT THE TRANSFORMATION OF
SCHOOL BUILDINGS INTO COMMUNITY HUBS TO DELIVER CO-LOCATED OR SCHOOL
LINKED ACADEMIC, HEALTH, MENTAL HEALTH SERVICES AND PERSONNEL, AFTER-
SCHOOL PROGRAMMING, DUAL LANGUAGE PROGRAMS, NUTRITION, COUNSELING, LEGAL
AND/OR OTHER SERVICES TO STUDENTS AND THEIR FAMILIES, INCLUDING BUT NOT
LIMITED TO PROVIDING A COMMUNITY SCHOOL SITE COORDINATOR AND PROGRAMS
FOR ENGLISH LANGUAGE LEARNERS, OR TO SUPPORT OTHER COSTS INCURRED TO
MAXIMIZE STUDENTS' ACADEMIC ACHIEVEMENT, PROVIDED HOWEVER THAT A SCHOOL
DISTRICT WHOSE "COMMUNITY SCHL INCR" AMOUNT EXCEEDS ONE MILLION DOLLARS
($1,000,000) SHALL USE AN AMOUNT EQUAL TO THE GREATER OF ONE HUNDRED
FIFTY THOUSAND DOLLARS ($150,000) OR TEN PERCENT OF SUCH "COMMUNITY SCHL
INCR" AMOUNT TO SUPPORT SUCH TRANSFORMATION AT SCHOOLS WITH EXTRAOR-
DINARY HIGH LEVELS OF STUDENT NEED AS IDENTIFIED BY THE COMMISSIONER,
SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET.
[Addison $132,624
Adirondack $98,303
Afton $62,527
Albany $2,696,127
Albion $171,687
Altmar-Parish-Williamstown $154,393
Amityville $140,803
Amsterdam $365,464
Andover $41,343
Auburn $211,759
Ausable Valley $82,258
Avoca $40,506
Batavia $116,085
Bath $139,788
Beacon $87,748
Beaver River $67,970
Beekmantown $98,308
Belfast $44,520
Belleville Henderson $21,795
Binghamton $477,949
Bolivar-Richburg $102,276
Bradford $28,058
Brasher Falls $146,944
Brentwood $2,089,437
Bridgewater-West Winfield (Mt. Markham) $101,498
Brocton $63,939
Brookfield $24,973
Brushton-Moira $102,613
Buffalo $12,524,617
Camden $243,929
Campbell-Savona $81,862
Canajoharie $78,428
Canaseraga $24,622
Candor $69,400
Canisteo-Greenwood $105,783
Carthage $273,578
Cassadaga Valley $99,547
Catskill $69,599
Cattaraugus-Little Valley $89,771
Central Islip $650,359
Central Valley $154,059
S. 2009--C 314 A. 3009--C
Charlotte Valley $27,925
Chateaugay $43,580
Cheektowaga-Sloan $68,242
Chenango Valley $46,359
Cherry Valley-Springfield $29,704
Cincinnatus $71,378
Clifton-Fine $17,837
Clyde-Savannah $84,797
Clymer $28,267
Cohoes $110,625
Copenhagen $35,037
Copiague $308,995
Cortland $147,875
Crown Point $24,277
Cuba-Rushford $67,917
Dalton-Nunda (Keshequa) $65,630
Dansville $136,766
De Ruyter $38,793
Deposit $37,615
Dolgeville $82,884
Downsville $10,000
Dundee $59,404
Dunkirk $224,658
East Ramapo (Spring Valley) $360,848
Edmeston $30,288
Edwards-Knox $95,261
Elizabethtown-Lewis $14,844
Ellenville $128,950
Elmira $501,348
Fallsburg $111,523
Fillmore $84,252
Forestville $34,773
Fort Edward $32,403
Fort Plain $86,187
Franklin $19,086
Franklinville $84,503
Freeport $479,702
Friendship $51,013
Fulton $241,424
Genesee Valley $65,066
Geneva $146,409
Georgetown-South Otselic $34,626
Gilbertsville-Mount Upton $30,930
Glens Falls Common $10,000
Gloversville $257,549
Gouverneur $197,139
Gowanda $122,173
Granville $86,044
Green Island $17,390
Greene $87,782
Hadley-Luzerne $37,868
Hammond $18,750
Hancock $34,174
Hannibal $149,286
Harpursville $89,804
Hempstead $3,123,056
S. 2009--C 315 A. 3009--C
Herkimer $64,467
Hermon-Dekalb $49,211
Heuvelton $53,905
Hinsdale $47,128
Hornell $152,327
Hudson $86,263
Hudson Falls $125,709
Indian River $404,452
Jamestown $422,610
Jasper-Troupsburg $65,899
Jefferson $22,350
Johnson $179,735
Johnstown $98,329
Kingston $241,138
Kiryas Joel $10,000
La Fargeville $36,602
Lackawanna $293,188
Lansingburgh $170,080
Laurens $32,110
Liberty $141,704
Lisbon $56,498
Little Falls $76,292
Livingston Manor $32,996
Lowville $117,907
Lyme $15,856
Lyons $89,298
Madison $43,805
Madrid-Waddington $59,412
Malone $241,483
Marathon $79,560
Margaretville $10,000
Massena $227,985
Mcgraw $51,558
Medina $135,337
Middleburgh $58,936
Middletown $683,511
Milford $28,281
Monticello $185,418
Moriah $76,592
Morris $45,012
Morristown $25,106
Morrisville-Eaton $62,490
Mt Morris $58,594
Mt Vernon $517,463
New York City $28,491,241
Newark $137,556
Newburgh $837,244
Newfield $60,998
Niagara Falls $733,330
North Rose-Wolcott $107,958
Northern Adirondack $84,115
Norwich $155,921
Norwood-Norfolk $116,262
Odessa-Montour $70,110
Ogdensburg $126,942
Olean $129,603
S. 2009--C 316 A. 3009--C
Oppenheim-Ephratah-St. Johnsville $86,646
Otego-Unadilla $72,613
Oxford Acad & Central Schools $80,443
Parishville-Hopkinton $35,003
Peekskill $230,795
Penn Yan $71,001
Pine Valley (South Dayton) $67,455
Plattsburgh $75,055
Poland $37,498
Port Chester-Rye $241,428
Port Jervis $189,220
Poughkeepsie $1,747,582
Prattsburgh $35,110
Pulaski $89,146
Putnam $10,000
Randolph $88,646
Red Creek $87,007
Remsen $32,650
Rensselaer $74,616
Richfield Springs $37,071
Ripley $18,495
Rochester $7,624,908
Rome $369,655
Romulus $22,112
Roosevelt $353,005
Salamanca $139,051
Salmon River $200,831
Sandy Creek $72,287
Schenectady $642,884
Schenevus $29,516
Scio $47,097
Sharon Springs $26,994
Sherburne-Earlville $154,286
Sherman $45,067
Sidney $98,699
Silver Creek $68,538
Sodus $100,038
Solvay $85,506
South Kortright $23,420
South Lewis $95,627
South Seneca $49,768
Spencer-Van Etten $76,108
St Regis Falls $30,078
Stamford $20,137
Stockbridge Valley $38,537
Syracuse $10,186,478
Ticonderoga $36,467
Tioga $99,411
Troy $277,420
Unadilla Valley $90,571
Uniondale $362,887
Utica $273,267
Van Hornesville-Owen D. Young $18,604
Walton $82,541
Warrensburg $57,996
Waterloo $123,111
S. 2009--C 317 A. 3009--C
Watertown $222,343
Watervliet $94,487
Waverly $120,319
Wayland-Cohocton $125,273
Wellsville $114,359
West Canada Valley $58,917
Westbury $403,563
Westfield $46,542
Whitehall $46,192
Whitesville $26,719
Whitney Point $152,109
William Floyd $492,842
Worcester $26,862
Wyandanch $402,010
Yonkers $4,286,726
Yorkshire-Pioneer $210,306]
§ 17. Section 3 of chapter 507 of the laws of 1974, relating to
providing for the apportionment of state monies to certain nonpublic
schools, to reimburse them for their expenses in complying with certain
state requirements for the administration of state testing and evalu-
ation programs and for participation in state programs for the reporting
of basic educational data, as amended by chapter 903 of the laws of
1984, is amended to read as follows:
§ 3. Apportionment. a. The commissioner shall annually apportion to
each qualifying school, for school years beginning on and after July
first, nineteen hundred seventy-four, an amount equal to the actual cost
incurred by each such school during the preceding school year for
providing services required by law to be rendered to the state in
compliance with the requirements of the state's pupil evaluation
program, the basic educational data system, regents examinations, the
statewide evaluation plan, the uniform procedure for pupil attendance
reporting, THE STATE'S IMMUNIZATION PROGRAM and other similar state
prepared examinations and reporting procedures.
b. The commissioner shall annually apportion to each qualifying school
in the cities of New York, Buffalo and Rochester, for school years
beginning on or after July first[, nineteen hundred eighty-four] TWO
THOUSAND SIXTEEN, an amount equal to the actual cost incurred[, up to
sixty cents per pupil,] by each such school during the preceding school
year in meeting the recording and reporting requirements of the state
school immunization program, PROVIDED THAT THE STATE'S LIABILITY SHALL
BE LIMITED TO THE AMOUNT APPROPRIATED FOR THIS PURPOSE.
§ 18. The education law is amended by adding a new section 3037 to
read as follows:
§ 3037. GRANTS FOR HIRING TEACHERS. 1. FOR PURPOSES OF THIS SECTION,
THE FOLLOWING TERM SHALL HAVE THE FOLLOWING MEANING: "ELIGIBLE TEACHER"
SHALL MEAN AN INDIVIDUAL THAT: (A) IS CERTIFIED TO TEACH IN NEW YORK
STATE PURSUANT TO SECTION THREE THOUSAND FOUR OF THIS ARTICLE; OR HOLDS
A MASTER'S DEGREE OR PH.D. IN MATHEMATICS, SCIENCE, TECHNOLOGY OR EDUCA-
TION; OR HOLDS A BACHELOR'S DEGREE IN MATHEMATICS, SCIENCE, TECHNOLOGY
OR EDUCATION AND IS CURRENTLY ENROLLED IN A MASTER'S OR PH.D. PROGRAM
IN MATHEMATICS, SCIENCE, TECHNOLOGY OR EDUCATION WITHIN FIVE YEARS FROM
THE LATER OF THE EFFECTIVE DATE OF THIS SECTION OR THE EMPLOYMENT START
DATE WITH THE NONPUBLIC SCHOOL, (B) TEACHES MATHEMATICS, SCIENCE OR
TECHNOLOGY IN ANY GRADES FROM THREE THROUGH TWELVE, AND (C) IS EMPLOYED
BY A NONPUBLIC SCHOOL.
S. 2009--C 318 A. 3009--C
2. (A) WITHIN AMOUNTS APPROPRIATED THEREFOR, NONPUBLIC SCHOOLS SHALL,
UPON APPLICATION, BE REIMBURSED BY THE DEPARTMENT FOR THE SALARIES OF
ELIGIBLE TEACHERS. EACH SCHOOL WHICH SEEKS A REIMBURSEMENT PURSUANT TO
THIS SECTION SHALL SUBMIT TO THE OFFICE OF RELIGIOUS AND INDEPENDENT
SCHOOLS AN APPLICATION THEREFOR, TOGETHER WITH SUCH ADDITIONAL DOCUMENTS
AS THE COMMISSIONER MAY REASONABLY REQUIRE, AT SUCH TIMES, IN SUCH FORM
AND CONTAINING SUCH INFORMATION AS THE COMMISSIONER MAY PRESCRIBE BY
REGULATION. APPLICATIONS FOR REIMBURSEMENT PURSUANT TO THIS SECTION
MUST BE RECEIVED BY AUGUST FIRST OF EACH YEAR FOR SCHOOLS TO BE REIM-
BURSED FOR THE SALARIES OF ELIGIBLE TEACHERS IN THE PRIOR YEAR.
(B) PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, REIMBURSEMENT FOR
ELIGIBLE TEACHERS SHALL BE THE AVERAGE COMPARABLE TEACHER SALARY AND
PERSONAL SERVICE, PER SUBJECT AREA, OF PUBLIC SCHOOL TEACHERS IN THE
SCHOOL DISTRICT IN WHICH SUCH NONPUBLIC SCHOOLS ARE LOCATED, MULTIPLIED
BY THE PERCENTAGE OF FULL TIME EQUIVALENT SECULAR INSTRUCTIONAL HOURS
COMPLETED IN THE SCHOOL DAY PER SUBJECT AREA. REIMBURSEMENTS SHALL NOT
BE PROVIDED FOR ELIGIBLE TEACHERS WHO PROVIDE INSTRUCTION IN MATHEMAT-
ICS, SCIENCE OR TECHNOLOGY IF SUCH TEACHERS ALSO PROVIDE NON-SECULAR
INSTRUCTION IN ANY CAPACITY.
(C) IN THE EVENT THAT THE APPLICATIONS FOR REIMBURSEMENT UNDER THIS
SECTION EXCEED THE APPROPRIATION AVAILABLE FOR THIS PROGRAM, THEN EACH
APPLICANT SHALL ONLY BE REIMBURSED AN AMOUNT EQUAL TO THE PERCENTAGE
THAT EACH SUCH APPLICANT REPRESENTS TO THE TOTAL OF ALL APPLICATIONS
SUBMITTED.
3. THE COMMISSIONER MAY PROMULGATE ANY RULES OR REGULATIONS NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS SECTION.
§ 19. Paragraph (a) of subdivision 1 of section 2590-c of the educa-
tion law, as amended by chapter 345 of the laws of 2009, is amended to
read as follows:
(a) Nine voting members shall be parents whose children are attending
a school OR A PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL under the
jurisdiction of the community district, or have attended a school OR A
PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL under the jurisdiction of
the community district within the preceding two years, and shall be
selected by the presidents and officers of the parents' association or
parent-teachers' association. Such members shall serve for a term of two
years. Presidents and officers of parents' associations or parent-
teachers' associations who are candidates in the selection process
pursuant to this section shall not be eligible to cast votes in such
selection process. The association shall elect a member to vote in the
place of each such president or officer for the purposes of the
selection process. PROVIDED, HOWEVER, THAT A PARENT OF A PRE-KINDERGAR-
TEN PUPIL SHALL VACATE HIS OR HER MEMBERSHIP ON SUCH COMMUNITY DISTRICT
EDUCATION COUNCIL WHERE THE PARENT NO LONGER HAS A CHILD THAT ATTENDS A
SCHOOL OR PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL UNDER THE JURIS-
DICTION OF THE COMMUNITY DISTRICT.
§ 20. Subdivisions 1 and 2 of section 4101 of the education law,
subdivision 1 as amended by chapter 387 of the laws of 1954 and subdivi-
sion 2 as amended by section 30 of part B of chapter 57 of the laws of
2008, are amended to read as follows:
1. The commissioner of education shall establish schools in such plac-
es and maintain such courses of instruction therein for the education of
the Indian children of the state as he OR SHE shall deem necessary. He
OR SHE shall have general supervision of such education and shall cause
to be erected where necessary convenient and suitable school buildings
for the accommodation of all the Indian children of the state.
S. 2009--C 319 A. 3009--C
2. [The] NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGU-
LATION TO THE CONTRARY, THE commissioner in his OR HER discretion may,
instead of establishing schools and maintaining courses of instruction
therein for the education of the Indian children of the state, contract,
FOR A PERIOD OF UP TO TEN YEARS, with any school district for the educa-
tion of such Indian children. The consideration for any such contract
shall not exceed the total cost to the school district of the education
of Indian children pursuant to such contract, less any public moneys
received by the school district by reason of the attendance of such
Indian children in regular day school, except any public moneys received
by the district as a building quota pursuant to the provisions of subdi-
vision six-a of section thirty-six hundred two of this chapter. The
commissioner of taxation and finance shall pay on the warrant of the
comptroller bills, for the costs and expenses attending such contract,
approved by the commissioner of education from the appropriation for the
support and education of Indian children. In carrying out the provisions
of this article the commissioner, notwithstanding any other provision of
law, may lease any school ground, site or building established for a
reservation and owned by the state of New York to any school district
upon such terms and conditions as he OR SHE shall deem necessary,
convenient and proper. Nothing herein contained shall alter the title of
the Indians to their lands.
§ 21. Section 4119 of the education law, as added by chapter 387 of
the laws of 1954, is amended to read as follows:
§ 4119. School district may contract to educate Indian children.
Notwithstanding any other provision of law, the trustee, trustees or
board of education of any school district shall have power to contract
with the commissioner of education for the instruction of Indian chil-
dren FOR A PERIOD OF TEN YEARS. Notwithstanding any other provision of
law, the trustee, trustees or board of education of any school district
shall have authority to lease a site or school building owned by the
state of New York whether located on or off an Indian reservation and
such trustee, trustees or board of education shall have authority to
maintain school in such building notwithstanding the fact that such
building may not be located within the district boundary lines of such
school district.
§ 22. The closing paragraph of subdivision 5-a of section 3602 of the
education law, as amended by section 2 of part A of chapter 54 of the
laws of 2016, is amended to read as follows:
For the two thousand eight--two thousand nine school year, each school
district shall be entitled to an apportionment equal to the product of
fifteen percent and the additional apportionment computed pursuant to
this subdivision for the two thousand seven--two thousand eight school
year. For the two thousand nine--two thousand ten through two thousand
[sixteen] SEVENTEEN--two thousand [seventeen] EIGHTEEN school years,
each school district shall be entitled to an apportionment equal to the
amount set forth for such school district as "SUPPLEMENTAL PUB EXCESS
COST" under the heading "2008-09 BASE YEAR AIDS" in the school aid
computer listing produced by the commissioner in support of the budget
for the two thousand nine--two thousand ten school year and entitled
"SA0910".
§ 23. Paragraph b of subdivision 6-c of section 3602 of the education
law, as amended by section 24 of part A of chapter 54 of the laws of
2016, is amended to read as follows:
b. For projects approved by the commissioner authorized to receive
additional building aid pursuant to this subdivision for the purchase of
S. 2009--C 320 A. 3009--C
stationary metal detectors, security cameras or other security devices
approved by the commissioner that increase the safety of students and
school personnel, provided that for purposes of this paragraph such
other security devices shall be limited to electronic security systems
and hardened doors, and provided that for projects approved by the
commissioner on or after the first day of July two thousand thirteen and
before the first day of July two thousand [seventeen] EIGHTEEN such
additional aid shall equal the product of (i) the building aid ratio
computed for use in the current year pursuant to paragraph c of subdivi-
sion six of this section plus ten percentage points, except that in no
case shall this amount exceed one hundred percent, and (ii) the actual
approved expenditures incurred in the base year pursuant to this subdi-
vision, provided that the limitations on cost allowances prescribed by
paragraph a of subdivision six of this section shall not apply, and
provided further that any projects aided under this paragraph must be
included in a district's school safety plan. The commissioner shall
annually prescribe a special cost allowance for metal detectors, and
security cameras, and the approved expenditures shall not exceed such
cost allowance.
§ 24. Subdivision 12 of section 3602 of the education law is amended
by adding a new undesignated paragraph to read as follows:
FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,
EACH SCHOOL DISTRICT SHALL BE ENTITLED TO AN APPORTIONMENT EQUAL TO THE
AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT AS "ACADEMIC ENHANCEMENT"
UNDER THE HEADING "2016-17 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER
LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE BUDGET FOR THE
TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR AND ENTITLED
"SA161-7", AND SUCH APPORTIONMENT SHALL BE DEEMED TO SATISFY THE STATE
OBLIGATION TO PROVIDE AN APPORTIONMENT PURSUANT TO SUBDIVISION EIGHT OF
SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTICLE.
§ 25. The opening paragraph of subdivision 16 of section 3602 of the
education law, as amended by section 4 of part A of chapter 54 of the
laws of 2016, is amended to read as follows:
Each school district shall be eligible to receive a high tax aid
apportionment in the two thousand eight--two thousand nine school year,
which shall equal the greater of (i) the sum of the tier 1 high tax aid
apportionment, the tier 2 high tax aid apportionment and the tier 3 high
tax aid apportionment or (ii) the product of the apportionment received
by the school district pursuant to this subdivision in the two thousand
seven--two thousand eight school year, multiplied by the due-minimum
factor, which shall equal, for districts with an alternate pupil wealth
ratio computed pursuant to paragraph b of subdivision three of this
section that is less than two, seventy percent (0.70), and for all other
districts, fifty percent (0.50). Each school district shall be eligible
to receive a high tax aid apportionment in the two thousand nine--two
thousand ten through two thousand twelve--two thousand thirteen school
years in the amount set forth for such school district as "HIGH TAX AID"
under the heading "2008-09 BASE YEAR AIDS" in the school aid computer
listing produced by the commissioner in support of the budget for the
two thousand nine--two thousand ten school year and entitled "SA0910".
Each school district shall be eligible to receive a high tax aid appor-
tionment in the two thousand thirteen--two thousand fourteen through
[two thousand sixteen--two thousand seventeen] TWO THOUSAND SEVENTEEN--
TWO THOUSAND EIGHTEEN school years equal to the greater of (1) the
amount set forth for such school district as "HIGH TAX AID" under the
heading "2008-09 BASE YEAR AIDS" in the school aid computer listing
S. 2009--C 321 A. 3009--C
produced by the commissioner in support of the budget for the two thou-
sand nine--two thousand ten school year and entitled "SA0910" or (2) the
amount set forth for such school district as "HIGH TAX AID" under the
heading "2013-14 ESTIMATED AIDS" in the school aid computer listing
produced by the commissioner in support of the executive budget for the
2013-14 fiscal year and entitled "BT131-4".
§ 26. Subdivision 10 of section 3602-e of the education law, as
amended by section 22 of part B of chapter 57 of the laws of 2008, the
opening paragraph as amended by section 5 of part A of chapter 54 of the
laws of 2016, is amended to read as follows:
10. Universal prekindergarten aid. Notwithstanding any provision of
law to the contrary, (I) for aid payable in the two thousand eight--two
thousand nine school year, the grant to each eligible school district
for universal prekindergarten aid shall be computed pursuant to this
subdivision, and (II) for the two thousand nine--two thousand ten and
two thousand ten--two thousand eleven school years, each school district
shall be eligible for a maximum grant equal to the amount computed for
such school district for the base year in the electronic data file
produced by the commissioner in support of the two thousand nine--two
thousand ten education, labor and family assistance budget, provided,
however, that in the case of a district implementing programs for the
first time or implementing expansion programs in the two thousand eight-
-two thousand nine school year where such programs operate for a minimum
of ninety days in any one school year as provided in section 151-1.4 of
the regulations of the commissioner, for the two thousand nine--two
thousand ten and two thousand ten--two thousand eleven school years,
such school district shall be eligible for a maximum grant equal to the
amount computed pursuant to paragraph a of subdivision nine of this
section in the two thousand eight--two thousand nine school year, and
(III) for the two thousand eleven--two thousand twelve school year each
school district shall be eligible for a maximum grant equal to the
amount set forth for such school district as "UNIVERSAL PREKINDERGARTEN"
under the heading "2011-12 ESTIMATED AIDS" in the school aid computer
listing produced by the commissioner in support of the enacted budget
for the 2011-12 school year and entitled "SA111-2", and (IV) for two
thousand twelve--two thousand thirteen through two thousand sixteen--two
thousand seventeen school years each school district shall be eligible
for a maximum grant equal to the greater of [(i)] (A) the amount set
forth for such school district as "UNIVERSAL PREKINDERGARTEN" under the
heading "2010-11 BASE YEAR AIDS" in the school aid computer listing
produced by the commissioner in support of the enacted budget for the
2011-12 school year and entitled "SA111-2", or [(ii)] (B) the amount set
forth for such school district as "UNIVERSAL PREKINDERGARTEN" under the
heading "2010-11 BASE YEAR AIDS" in the school aid computer listing
produced by the commissioner on May fifteenth, two thousand eleven
pursuant to paragraph b of subdivision twenty-one of section three
hundred five of this chapter, AND (V) FOR THE TWO THOUSAND SEVENTEEN--
TWO THOUSAND EIGHTEEN SCHOOL YEAR, EACH SCHOOL DISTRICT SHALL BE ELIGI-
BLE TO RECEIVE A GRANT AMOUNT EQUAL TO THE SUM OF (A) THE AMOUNT SET
FORTH FOR SUCH SCHOOL DISTRICT AS "UNIVERSAL PREKINDERGARTEN" UNDER THE
HEADING "2016-17 ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING
PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE
TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR AND ENTITLED
"SA161-7" PLUS (B) THE AMOUNT AWARDED TO SUCH SCHOOL DISTRICT FOR THE
PRIORITY FULL-DAY PREKINDERGARTEN AND EXPANDED HALF-DAY PREKINDERGARTEN
GRANT PROGRAM FOR HIGH NEED STUDENTS FOR THE TWO THOUSAND SIXTEEN--TWO
S. 2009--C 322 A. 3009--C
THOUSAND SEVENTEEN SCHOOL YEAR PURSUANT TO CHAPTER FIFTY-THREE OF THE
LAWS OF TWO THOUSAND THIRTEEN, AND (VI) FOR THE TWO THOUSAND EIGHTEEN--
TWO THOUSAND NINETEEN SCHOOL YEAR, EACH SCHOOL DISTRICT SHALL BE ELIGI-
BLE TO RECEIVE A GRANT AMOUNT EQUAL TO THE SUM OF (A) THE AMOUNT SET
FORTH FOR SUCH SCHOOL DISTRICT AS "UNIVERSAL PREKINDERGARTEN" IN THE
SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF
THE ENACTED BUDGET FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
SCHOOL YEAR PLUS (B) THE AMOUNT AWARDED TO SUCH SCHOOL DISTRICT FOR THE
FEDERAL PRESCHOOL DEVELOPMENT EXPANSION GRANT FOR THE TWO THOUSAND
SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR PURSUANT TO THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA), SECTIONS 14005, 14006, AND
14013, TITLE XIV, (PUBLIC LAW 112-10), AS AMENDED BY SECTION 1832(B) OF
DIVISION B OF THE DEPARTMENT OF DEFENSE AND FULL-YEAR CONTINUING APPRO-
PRIATIONS ACT, 2011 (PUB. L. 112-10), AND THE DEPARTMENT OF EDUCATION
APPROPRIATIONS ACT, 2012 (TITLE III DIVISION F OF PUB. L. 112-74, THE
CONSOLIDATED APPROPRIATIONS ACT, 2012), AND (VII) FOR THE TWO THOUSAND
NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR, EACH SCHOOL DISTRICT SHALL BE
ELIGIBLE TO RECEIVE A GRANT AMOUNT EQUAL TO THE SUM OF (A) THE AMOUNT
SET FORTH FOR SUCH SCHOOL DISTRICT AS "UNIVERSAL PREKINDERGARTEN ALLO-
CATION" ON THE COMPUTER FILE PRODUCED BY THE COMMISSIONER IN SUPPORT OF
THE ENACTED BUDGET FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
SCHOOL YEAR PLUS (B) THE AMOUNT AWARDED TO SUCH SCHOOL DISTRICT FOR THE
EXPANDED PREKINDERGARTEN PROGRAM FOR THREE AND FOUR YEAR-OLDS FOR THE
TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR PURSUANT TO
CHAPTER SIXTY-ONE OF THE LAWS OF TWO THOUSAND FIFTEEN PLUS (C) THE
AMOUNT AWARDED TO SUCH SCHOOL DISTRICT FOR THE EXPANDED PREKINDERGARTEN
FOR THREE-YEAR-OLDS IN HIGH NEED DISTRICTS PROGRAM FOR THE TWO THOUSAND
EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR PURSUANT TO CHAPTER FIFTY-
THREE OF THE LAWS OF TWO THOUSAND SIXTEEN PLUS (D) THE AMOUNT AWARDED TO
SUCH SCHOOL DISTRICT FOR THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE-
AND FOUR-YEAR-OLDS FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
SCHOOL YEAR PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN
PLUS (E) THE AMOUNT AWARDED TO SUCH SCHOOL DISTRICT, SUBJECT TO AN
AVAILABLE APPROPRIATION, THROUGH THE PRE-KINDERGARTEN EXPANSION GRANT
FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR,
PROVIDED THAT SUCH SCHOOL DISTRICT HAS MET ALL REQUIREMENTS PURSUANT TO
THIS SECTION, AND (VIII) FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWEN-
TY-ONE SCHOOL YEAR AND THEREAFTER, EACH SCHOOL DISTRICT SHALL BE ELIGI-
BLE TO RECEIVE A GRANT AMOUNT EQUAL TO THE SUM OF (A) THE AMOUNT SET
FORTH FOR SUCH SCHOOL DISTRICT AS "UNIVERSAL PREKINDERGARTEN ALLOCATION"
ON THE COMPUTER FILE PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE
ENACTED BUDGET FOR THE PRIOR YEAR PLUS (B) THE AMOUNT AWARDED TO SUCH
SCHOOL DISTRICT, SUBJECT TO AN AVAILABLE APPROPRIATION, THROUGH THE
PRE-KINDERGARTEN EXPANSION GRANT FOR THE PRIOR YEAR, PROVIDED THAT SUCH
SCHOOL DISTRICT HAS MET ALL REQUIREMENTS PURSUANT TO THIS SECTION, and
provided further that the maximum grant shall not exceed the total actu-
al grant expenditures incurred by the school district in the current
school year as approved by the commissioner.
a. Each school district shall be eligible to [receive a grant amount
equal to the sum of (i) its prekindergarten aid base plus (ii) the prod-
uct of its selected aid per prekindergarten pupil multiplied by the
positive difference, if any of the number of aidable prekindergarten
pupils served in the current year, as determined pursuant to regulations
of the commissioner, less the base aidable prekindergarten pupils calcu-
lated pursuant to this subdivision for the two thousand seven--two thou-
sand eight school year, based on data on file for the school aid comput-
S. 2009--C 323 A. 3009--C
er listing produced by the commissioner in support of the enacted budget
for the two thousand seven--two thousand eight school year and entitled
"SA070-8". Provided, however, that in computing an apportionment pursu-
ant to this paragraph, for districts where the number of aidable prekin-
dergarten pupils served is less than the number of unserved prekinder-
garten pupils, such grant amount shall be the lesser of such sum
computed pursuant to this paragraph or the maximum allocation computed
pursuant to subdivision nine of this section] SERVE THE SUM OF (I) FULL-
DAY PREKINDERGARTEN PUPILS PLUS (II) HALF-DAY PREKINDERGARTEN PUPILS.
b. For purposes of paragraph a of this subdivision:
(i) "Selected aid per prekindergarten pupil" shall equal the greater
of (A) the product of five-tenths and the school district's selected
foundation aid for the current year, or (B) the aid per prekindergarten
pupil calculated pursuant to this subdivision for the two thousand six-
two thousand seven school year, based on data on file for the school aid
computer listing produced by the commissioner in support of the enacted
budget for the two thousand six--two thousand seven school year and
entitled "SA060-7"; provided, however, that in the two thousand eight--
two thousand nine school year, a city school district in a city having a
population of one million inhabitants or more shall not be eligible to
select aid per prekindergarten pupil pursuant to clause (A) of this
subparagraph;
(ii) ["Base aidable prekindergarten pupils". "Base aidable prekinder-
garten pupils" shall equal the sum of the base aidable prekindergarten
pupils calculated pursuant to this subdivision for the base year, based
on data on file for the school aid computer listing produced by the
commissioner in support of the enacted budget for the base year, plus
the additional aidable prekindergarten pupils calculated pursuant to
this subdivision for the base year, based on data on file for the school
aid computer listing produced by the commissioner in support of the
enacted budget for the base year;] "FULL-DAY PREKINDERGARTEN PUPILS"
SHALL EQUAL:
FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR THE
SUM OF, FROM THE PRIORITY FULL-DAY PREKINDERGARTEN PROGRAM, (A) THE
MAXIMUM AIDABLE PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE IN THE BASE
YEAR PLUS (B) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY PREKINDERGARTEN
PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL IN THE BASE YEAR;
FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR THE
SUM OF, FROM EACH OF (A) THE PROGRAMS PURSUANT TO THIS SECTION AND (B)
THE FEDERAL PRESCHOOL DEVELOPMENT EXPANSION GRANT, (1) THE MAXIMUM AIDA-
BLE FULL-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE
IN THE BASE YEAR PLUS (2) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY PREKIN-
DERGARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL IN THE
BASE YEAR;
FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR THE SUM
OF, FROM EACH OF (A) THE PROGRAMS PURSUANT TO THIS SECTION, (B) THE
EXPANDED PREKINDERGARTEN PROGRAM, (C) THE EXPANDED PREKINDERGARTEN FOR
THREE-YEAR-OLDS, (D) THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND
FOUR-YEAR-OLDS, AND (E) THE PREKINDERGARTEN EXPANSION GRANT, (1) THE
MAXIMUM AIDABLE FULL-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGI-
BLE TO SERVE IN THE BASE YEAR, PLUS (2) THE MAXIMUM AIDABLE NUMBER OF
HALF-DAY PREKINDERGARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGAR-
TEN PUPIL IN THE BASE YEAR;
FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR AND
THEREAFTER THE SUM OF, FROM EACH OF (A) THE PROGRAMS PURSUANT TO THIS
SECTION AND (B) THE PRE-KINDERGARTEN EXPANSION GRANT, (1) THE MAXIMUM
S. 2009--C 324 A. 3009--C
AIDABLE FULL-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO
SERVE IN THE BASE YEAR, PLUS (2) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY
PREKINDERGARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL
IN THE BASE YEAR;
(iii) "HALF-DAY PREKINDERGARTEN PUPILS" SHALL EQUAL:
FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR THE
SUM OF THE MAXIMUM AIDABLE HALF-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT
WAS ELIGIBLE TO SERVE FOR THE BASE YEAR FROM (A) THE PROGRAM PURSUANT TO
THIS SECTION PLUS SUCH PUPILS FROM (B) THE PRIORITY FULL-DAY PREKINDER-
GARTEN PROGRAM, LESS THE MAXIMUM AIDABLE NUMBER OF HALF-DAY PREKINDER-
GARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL UNDER THE
PRIORITY FULL-DAY PREKINDERGARTEN PROGRAM FOR THE BASE YEAR;
FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR THE
MAXIMUM AIDABLE HALF-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGI-
BLE TO SERVE FOR THE BASE YEAR FROM (A) THE PROGRAM PURSUANT TO THIS
SECTION LESS (B) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY PREKINDERGARTEN
PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL UNDER THE FEDERAL
PRESCHOOL DEVELOPMENT EXPANSION GRANT FOR THE BASE YEAR;
FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR THE SUM
OF THE MAXIMUM AIDABLE HALF-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS
ELIGIBLE TO SERVE FOR THE BASE YEAR FROM (A) THE PROGRAM PURSUANT TO
THIS SECTION PLUS SUCH PUPILS FROM (B) THE EXPANDED PREKINDERGARTEN
PROGRAM PLUS SUCH PUPILS FROM (C) THE EXPANDED PREKINDERGARTEN FOR
THREE-YEAR-OLDS PLUS SUCH PUPILS FROM (D) THE EXPANDED PREKINDERGARTEN
PROGRAM FOR THREE- AND FOUR-YEAR-OLDS PLUS SUCH PUPILS FROM (E) THE
PREKINDERGARTEN EXPANSION GRANT, LESS THE SUM OF THE MAXIMUM AIDABLE
NUMBER OF HALF-DAY PREKINDERGARTEN PUPILS CONVERTED INTO A FULL-DAY
PREKINDERGARTEN PUPIL UNDER EACH OF (1) THE EXPANDED PREKINDERGARTEN
PROGRAM PLUS SUCH PUPILS FROM (2) THE EXPANDED PREKINDERGARTEN FOR
THREE-YEAR-OLDS PLUS SUCH PUPILS FROM (3) THE EXPANDED PREKINDERGARTEN
PROGRAM FOR THREE- AND FOUR-YEAR-OLDS PLUS SUCH PUPILS FROM (4) THE
PREKINDERGARTEN EXPANSION GRANT FOR THE BASE YEAR;
FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR AND
THEREAFTER THE SUM OF THE MAXIMUM AIDABLE HALF-DAY PREKINDERGARTEN
PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE FOR THE BASE YEAR FROM (A)
THE PROGRAM PURSUANT TO THIS SECTION PLUS SUCH PUPILS FROM (B) THE PRE-
KINDERGARTEN EXPANSION GRANT, LESS THE MAXIMUM AIDABLE NUMBER OF HALF-
DAY PREKINDERGARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN
PUPIL UNDER THE PREKINDERGARTEN EXPANSION GRANT FOR THE BASE YEAR;
(IV) "Unserved prekindergarten pupils" shall mean the product of
eighty-five percent multiplied by the positive difference, if any,
between the sum of the public school enrollment and the nonpublic school
enrollment of children attending full day and half day kindergarten
programs in the district in the year prior to the base year less the
number of resident children who attain the age of four before December
first of the base year, who were served during such school year by a
prekindergarten program approved pursuant to section forty-four hundred
ten of this chapter, where such services are provided for more than four
hours per day;
[(iv) "Additional aidable prekindergarten pupils". For the two thou-
sand seven--two thousand eight through two thousand eight--two thousand
nine school years, "additional aidable prekindergarten pupils" shall
equal the product of (A) the positive difference, if any, of the
unserved prekindergarten pupils less the base aidable prekindergarten
pupils multiplied by (B) the prekindergarten phase-in factor;
S. 2009--C 325 A. 3009--C
(v) the "prekindergarten aid base" shall mean the sum of the amounts
the school district received for the two thousand six--two thousand
seven school year for grants awarded pursuant to this section and for
targeted prekindergarten grants;
(vi) The "prekindergarten phase-in factor". For the two thousand
eight--two thousand nine school year, the prekindergarten phase-in
factor shall equal the positive difference, if any, of the pupil need
index computed pursuant to subparagraph three of paragraph a of subdivi-
sion four of section thirty-six hundred two of this part less one,
provided, however, that: (A) for any district where (1) the maximum
allocation computed pursuant to subdivision nine of this section for the
base year is greater than zero and (2) the amount allocated pursuant to
this subdivision for the base year, based on data on file for the school
aid computer listing produced by the commissioner on February fifteenth
of the base year, pursuant to paragraph b of subdivision twenty-one of
section three hundred five of this chapter, is greater than the positive
difference, if any, of such maximum allocation for the base year less
twenty-seven hundred, the prekindergarten phase-in factor shall not
exceed eighteen percent, and shall not be less than ten percent, and (B)
for any district not subject to the provisions of clause (A) of this
subparagraph where (1) the amount allocated pursuant to this subdivision
for the base year is equal to zero or (2) the amount allocated pursuant
to this section for the base year, based on data on file for the school
aid computer listing produced by the commissioner on February fifteenth
of the base year, pursuant to paragraph b of subdivision twenty-one of
section three hundred five of this chapter, is less than or equal to the
amount allocated pursuant to this section for the year prior to the base
year, based on data on file for the school aid computer listing produced
by the commissioner on February fifteenth of the base year, pursuant to
paragraph b of subdivision twenty-one of section three hundred five of
this chapter, the prekindergarten phase-in factor shall equal zero, and
(C) for any district not subject to the provisions of clause (A) or (B)
of this subparagraph, the prekindergarten phase-in factor shall not
exceed thirteen percent, and shall not be less than seven percent;
(vii) "Base year" shall mean the base year as defined pursuant to
subdivision one of section thirty-six hundred two of this part.]
(V) "PREKINDERGARTEN MAINTENANCE OF EFFORT BASE" SHALL MEAN THE NUMBER
OF ELIGIBLE TOTAL FULL-DAY PREKINDERGARTEN PUPILS SET FORTH FOR THE
DISTRICT IN THIS PARAGRAPH PLUS THE PRODUCT OF ONE HALF (0.5) MULTIPLIED
BY THE NUMBER OF ELIGIBLE TOTAL HALF-DAY PREKINDERGARTEN PUPILS SET
FORTH FOR THE DISTRICT IN THIS PARAGRAPH;
(VI) "CURRENT YEAR PREKINDERGARTEN PUPILS SERVED" SHALL MEAN THE SUM
OF FULL DAY PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR PLUS THE
PRODUCT OF ONE HALF (0.5) MULTIPLIED BY THE HALF DAY PREKINDERGARTEN
PUPILS IN THE CURRENT YEAR LESS THE HALF-DAY CONVERSION OVERAGE;
(VII) "HALF-DAY CONVERSION OVERAGE" SHALL EQUAL, FOR DISTRICTS THAT
SERVE GREATER THAN THIRTY PERCENT FEWER FULL-DAY PREKINDERGARTEN PUPILS
DURING THE CURRENT YEAR THAN THE NUMBER OF TOTAL ELIGIBLE FULL-DAY PREK-
INDERGARTEN PUPILS SET FORTH FOR THE DISTRICT IN PARAGRAPH B OF SUBDIVI-
SION TEN OF THIS SECTION DUE TO THE CONVERSION OF FULL-DAY TO HALF-DAY
SLOTS, THE DIFFERENCE OF THE PRODUCT OF SEVEN-TENTHS MULTIPLIED BY THE
TOTAL ELIGIBLE FULL-DAY PREKINDERGARTEN PUPILS ROUNDED DOWN TO THE NEAR-
EST WHOLE NUMBER, LESS THE NUMBER OF FULL-DAY PREKINDERGARTEN PUPILS
ACTUALLY SERVED. PROVIDED THAT A DISTRICT MAY APPLY TO THE COMMISSIONER
FOR A HARDSHIP WAIVER THAT WOULD ALLOW A DISTRICT TO CONVERT MORE THAN
THIRTY PERCENT OF FULL-DAY PREKINDERGARTEN SLOTS TO HALF-DAY SLOTS AND
S. 2009--C 326 A. 3009--C
RECEIVE FUNDING FOR SUCH SLOTS. SUCH WAIVER SHALL BE GRANTED UPON A
DEMONSTRATION BY THE SCHOOL DISTRICT THAT DUE TO A SIGNIFICANT CHANGE IN
THE RESOURCES AVAILABLE TO THE SCHOOL DISTRICT AND ABSENT A WAIVER TO
ALLOW THE CONVERSION OF MORE THAN THIRTY PERCENT OF FULL-DAY PREKINDER-
GARTEN SLOTS TO HALF-DAY SLOTS, THE SCHOOL DISTRICT WOULD BE UNABLE TO
SERVE SUCH PUPILS IN PREKINDERGARTEN PROGRAMS, WITHOUT CAUSING SIGNIF-
ICANT DISRUPTION TO OTHER DISTRICT PROGRAMMING;
(VIII) "MAINTENANCE OF EFFORT FACTOR" SHALL MEAN THE QUOTIENT ARRIVED
AT WHEN DIVIDING THE CURRENT YEAR PREKINDERGARTEN PUPILS SERVED BY THE
PREKINDERGARTEN MAINTENANCE OF EFFORT BASE.
FOR THE PURPOSES OF THIS PARAGRAPH:
(A) "PRIORITY FULL-DAY PREKINDERGARTEN PROGRAM" SHALL MEAN THE PRIORI-
TY FULL-DAY PREKINDERGARTEN AND EXPANDED HALF-DAY PREKINDERGARTEN GRANT
PROGRAM FOR HIGH NEED STUDENTS PURSUANT TO CHAPTER FIFTY-THREE OF THE
LAWS OF TWO THOUSAND THIRTEEN;
(B)"FEDERAL PRESCHOOL DEVELOPMENT EXPANSION GRANT" SHALL MEAN THE
FEDERAL PRESCHOOL DEVELOPMENT EXPANSION GRANT PURSUANT TO THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA), SECTIONS 14005, 14006, AND
14013, TITLE XIV, (PUBLIC LAW 112-10), AS AMENDED BY SECTION 1832(B) OF
DIVISION B OF THE DEPARTMENT OF DEFENSE AND FULL-YEAR CONTINUING APPRO-
PRIATIONS ACT, 2011 (PUB. L. 112-10), AND THE DEPARTMENT OF EDUCATION
APPROPRIATIONS ACT, 2012 (TITLE III DIVISION F OF PUB. L. 112-74, THE
CONSOLIDATED APPROPRIATIONS ACT, 2012);
(C) "EXPANDED PREKINDERGARTEN PROGRAM" SHALL MEAN THE EXPANDED PREKIN-
DERGARTEN PROGRAM FOR THREE- AND FOUR YEAR-OLDS PURSUANT TO CHAPTER
SIXTY-ONE OF THE LAWS OF TWO THOUSAND FIFTEEN;
(D) "EXPANDED PREKINDERGARTEN FOR THREE-YEAR-OLDS" SHALL MEAN THE
EXPANDED PREKINDERGARTEN FOR THREE-YEAR-OLDS IN HIGH NEED DISTRICTS
PROGRAM PURSUANT TO CHAPTER FIFTY-THREE OF THE LAWS OF TWO THOUSAND
SIXTEEN;
(E) "EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-YEAR-OLDS"
SHALL MEAN THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-
YEAR-OLDS PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN;
(F) "PREKINDERGARTEN EXPANSION GRANT" SHALL MEAN THE PREKINDERGARTEN
EXPANSION GRANT FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
SCHOOL YEAR AND THEREAFTER, TO THE EXTENT SUCH PROGRAM WAS AVAILABLE
SUBJECT TO APPROPRIATION, AND PROVIDED THAT SUCH SCHOOL DISTRICT HAS MET
ALL REQUIREMENTS PURSUANT TO THIS SECTION.
c. Notwithstanding any other provision of this section, the total
grant payable pursuant to this section shall equal the lesser of: (i)
the total grant amounts computed pursuant to this subdivision for the
current year, based on data on file with the commissioner as of Septem-
ber first of the school year immediately following or (ii) the total
actual grant expenditures incurred by the school district as approved by
the commissioner.
D. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, APPORTIONMENTS
UNDER THIS SECTION GREATER THAN THE AMOUNTS PROVIDED IN THE TWO THOUSAND
SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR SHALL ONLY BE USED TO
SUPPLEMENT AND NOT SUPPLANT CURRENT LOCAL EXPENDITURES OF STATE OR LOCAL
FUNDS ON PREKINDERGARTEN PROGRAMS AND THE NUMBER OF SLOTS IN SUCH
PROGRAMS FROM SUCH SOURCES. CURRENT LOCAL EXPENDITURES SHALL INCLUDE ANY
LOCAL EXPENDITURES OF STATE OR LOCAL FUNDS USED TO SUPPLEMENT OR EXTEND
SERVICES PROVIDED DIRECTLY OR VIA CONTRACT TO ELIGIBLE CHILDREN ENROLLED
IN A UNIVERSAL PREKINDERGARTEN PROGRAM PURSUANT TO THIS SECTION.
S. 2009--C 327 A. 3009--C
§ 27. Subdivision 11 of section 3602-e of the education law, as
amended by section 10-b of part A of chapter 57 of the laws of 2012, is
amended to read as follows:
11. [Notwithstanding the provisions of subdivision ten of this
section, where the district serves fewer children during the current
year than the lesser of the children served in the two thousand ten--two
thousand eleven school year or its base aidable prekindergarten pupils
computed for the two thousand seven--two thousand eight school year, the
school district shall have its apportionment reduced in an amount
proportional to such deficiency in the current year or in the succeeding
school year, as determined by the commissioner, except such reduction
shall not apply to school districts which have fully implemented a
universal pre-kindergarten program by making such program available to
all eligible children. Expenses incurred by the school district in
implementing a pre-kindergarten program plan pursuant to this subdivi-
sion shall be deemed ordinary contingent expenses.] MAINTENANCE OF
EFFORT REDUCTION. WHERE A SCHOOL DISTRICT'S CURRENT YEAR PREKINDERGARTEN
PUPILS SERVED IS LESS THAN ITS PREKINDERGARTEN MAINTENANCE OF EFFORT
BASE, THE SCHOOL DISTRICT SHALL HAVE ITS CURRENT YEAR APPORTIONMENT
REDUCED BY THE PRODUCT OF THE MAINTENANCE OF EFFORT FACTOR COMPUTED IN
PARAGRAPH B OF SUBDIVISION TEN OF THIS SECTION MULTIPLIED BY THE GRANT
AMOUNT IT WAS ELIGIBLE TO RECEIVE PURSUANT TO SUBDIVISION TEN OF THIS
SECTION.
§ 28. Paragraphs b and f of subdivision 12 of section 3602-e of the
education law, as amended by section 19 of part B of chapter 57 of the
laws of 2007, are amended to read as follows:
b. [minimum] curriculum standards [that] CONSISTENT WITH THE NEW YORK
STATE PREKINDERGARTEN EARLY LEARNING STANDARDS TO ensure that such
programs have strong instructional content that is integrated with the
school district's instructional program in grades kindergarten [though]
THROUGH twelve;
f. time requirements which reflect the needs of the individual school
districts for flexibility, but meeting a minimum weekly time require-
ment; PROVIDED, HOWEVER, THAT THE MINIMUM WEEKLY TIME REQUIREMENT FOR
FULL-DAY PROGRAMS SHALL BE TWENTY-FIVE HOURS, AND THE WEEKLY MINIMUM
TIME REQUIREMENT FOR HALF-DAY PROGRAMS SHALL BE TWELVE AND ONE-HALF
HOURS;
§ 28-a. Paragraphs d-1 and d-2 of subdivision 12 of section 3602-e of
the education law, as amended by section 10-c of part A of chapter 57 of
the laws of 2012, are amended to read as follows:
d-1. guidelines which allow personnel employed by an eligible agency
that is collaborating with a school district to provide prekindergarten
services and licensed by an agency other than the department, to meet
the staff qualifications prescribed by the licensing or registering
agency; provided however, a written plan is established for prekinder-
garten teachers to obtain a certificate valid for service in early
childhood grades within five years after commencing employment, or by
June thirtieth, two thousand [seventeen] TWENTY, whichever is later,
PROVIDED THAT DISTRICTS MUST SUBMIT A REPORT TO THE COMMISSIONER REGARD-
ING (I) BARRIERS TO CERTIFICATION, IF ANY, (II) THE NUMBER OF UNCERTI-
FIED TEACHERS TEACHING PRE-KINDERGARTEN IN THE DISTRICT, INCLUDING THOSE
EMPLOYED BY A COMMUNITY-BASED ORGANIZATION, (III) HOW LONG SUCH TEACHERS
HAVE BEEN EMPLOYED UNDER TRANSITIONAL GUIDELINES, AND (IV) THE EXPECTED
CERTIFICATION COMPLETION DATE OF SUCH TEACHERS; PROVIDED FURTHER THAT BY
FEBRUARY FIRST, TWO THOUSAND EIGHTEEN, THE COMMISSIONER SHALL APPROVE
AND SUBMIT TO THE CHAIRS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND
S. 2009--C 328 A. 3009--C
THE SENATE FINANCE COMMITTEE AND TO THE DIRECTOR OF THE BUDGET A REPORT
CONTAINING THE INFORMATION PURSUANT TO THIS PARAGRAPH;
d-2. guidelines which allow personnel employed by an eligible agency
that is collaborating with a school district to provide prekindergarten
services and not licensed or registered by the department or other agen-
cy, to meet the staff qualifications prescribed by such eligible agency;
provided however, a written plan is established for prekindergarten
teachers to obtain a certificate valid for service in early childhood
grades within five years after commencing employment, or by June thirti-
eth, two thousand [seventeen] TWENTY, whichever is later, PROVIDED THAT
DISTRICTS MUST SUBMIT A REPORT TO THE COMMISSIONER REGARDING (I) BARRI-
ERS TO CERTIFICATION, IF ANY, (II) THE NUMBER OF UNCERTIFIED TEACHERS
TEACHING PRE-KINDERGARTEN IN THE DISTRICT, INCLUDING THOSE EMPLOYED BY A
COMMUNITY-BASED ORGANIZATION, (III) HOW LONG SUCH TEACHERS HAVE BEEN
EMPLOYED UNDER TRANSITIONAL GUIDELINES, AND (IV) THE EXPECTED CERTIF-
ICATION COMPLETION DATE OF SUCH TEACHERS; PROVIDED FURTHER THAT BY
FEBRUARY FIRST, TWO THOUSAND EIGHTEEN, THE COMMISSIONER SHALL APPROVE
AND SUBMIT TO THE CHAIRS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND
THE SENATE FINANCE COMMITTEE AND TO THE DIRECTOR OF THE BUDGET A REPORT
CONTAINING THE INFORMATION PURSUANT TO THIS PARAGRAPH;
§ 28-b. Subdivision 4 of section 51 of part B of chapter 57 of the
laws of 2008 amending the education law relating to the universal pre-
kindergarten program, as amended by section 23 of part A of chapter 57
of the laws of 2012, is amended to read as follows:
4. section [23] TWENTY-THREE of this act shall take effect July 1,
2008 and shall expire and be deemed repealed June 30, [2017] 2020;
§ 29. Subdivision 14 of section 3602-e of the education law, as
amended by section 19 of part B of chapter 57 of the laws of 2007, is
amended to read as follows:
14. On February fifteenth, two thousand, and annually thereafter, the
commissioner and the board of regents shall include in its annual report
to the legislature AND THE GOVERNOR, information on school districts
receiving grants under this section; the amount of each grant; a
description of the program that each grant supports and an assessment by
the commissioner of the extent to which the program meets measurable
outcomes required by the grant program or regulations of such commis-
sioner; and any other relevant information, WHICH SHALL INCLUDE BUT NOT
BE LIMITED TO THE FOLLOWING:
A. (I) THE TOTAL NUMBER OF STUDENTS SERVED IN STATE-FUNDED DISTRICT-
OPERATED PREKINDERGARTEN PROGRAMS, (II) THE TOTAL NUMBER OF STUDENTS
SERVED IN STATE-FUNDED COMMUNITY-BASED PREKINDERGARTEN PROGRAMS, (III)
THE TOTAL NUMBER OF STUDENTS SERVED IN STATE-FUNDED HALF-DAY PREKINDER-
GARTEN PROGRAMS, AND (IV) THE TOTAL NUMBER OF STUDENTS SERVED IN STATE-
FUNDED FULL-DAY PREKINDERGARTEN PROGRAMS;
B. (I) THE TOTAL NUMBER OF STUDENTS SERVED IN STATE, FEDERAL AND
LOCALLY FUNDED DISTRICT-OPERATED PREKINDERGARTEN PROGRAMS, (II) THE
TOTAL NUMBER OF STUDENTS SERVED IN STATE, FEDERAL AND LOCALLY FUNDED
COMMUNITY-BASED PREKINDERGARTEN PROGRAMS, (III) THE TOTAL NUMBER OF
STUDENTS SERVED IN STATE, FEDERAL AND LOCALLY FUNDED HALF-DAY PREKINDER-
GARTEN PROGRAMS, AND (IV) THE TOTAL NUMBER OF STUDENTS SERVED IN STATE,
FEDERAL AND LOCALLY FUNDED FULL-DAY PREKINDERGARTEN PROGRAMS;
C. THE TOTAL SPENDING ON PREKINDERGARTEN PROGRAMS FROM STATE, FEDERAL,
AND LOCAL SOURCES;
D. THE TOTAL NUMBER OF STUDENTS ON A DISTRICT WAIT LIST FOR A PREKIN-
DERGARTEN SLOT IN A STATE-FUNDED PREKINDERGARTEN PROGRAM; AND
S. 2009--C 329 A. 3009--C
E. FOR EACH PROGRAM DESCRIBED IN SUBPARAGRAPHS (I), (II), (III) AND
(IV) OF PARAGRAPH A OF THIS SUBDIVISION, AND SUBPARAGRAPHS (I), (II),
(III) AND (IV) OF PARAGRAPH B OF THIS SUBDIVISION, THE TOTAL NUMBER OF
STUDENTS SERVED WITH DISABILITIES THAT HAVE AN INDIVIDUALIZED EDUCATION
PLAN AND, OF THOSE, THE TOTAL NUMBER OF STUDENTS REQUIRING ANY OF THE
FOLLOWING APPROVED SERVICES: SPECIAL EDUCATION ITINERANT SERVICES;
SPECIAL CLASS IN AN INTEGRATED SETTING; OR A SPECIAL CLASS. Such report
shall also contain any recommendations to improve or otherwise change
the program.
§ 30. Section 3602-e of the education law is amended by adding two new
subdivisions 17 and 18 to read as follows:
17. APPROVED QUALITY INDICATORS. A SCHOOL DISTRICT RECEIVING FUNDING
PURSUANT TO THIS SECTION SHALL AGREE TO ADOPT APPROVED QUALITY INDICA-
TORS WITHIN TWO YEARS, INCLUDING, BUT NOT LIMITED TO, VALID AND RELIABLE
MEASURES OF ENVIRONMENTAL QUALITY, THE QUALITY OF TEACHER-STUDENT INTER-
ACTIONS AND CHILD OUTCOMES, AND ENSURE THAT ANY SUCH ASSESSMENT OF CHILD
OUTCOMES SHALL NOT BE USED TO MAKE HIGH-STAKES EDUCATIONAL DECISIONS FOR
INDIVIDUAL CHILDREN.
18. UNIVERSAL PREKINDERGARTEN EXPANSION GRANTS. SUBJECT TO AVAILABLE
APPROPRIATION, ANY ADDITIONAL FUNDING FOR PRE-KINDERGARTEN IN THE TWO
THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR AND THEREAFTER
SHALL BE MADE AVAILABLE FOR ADDITIONAL GRANTS FOR PRE-KINDERGARTEN
PROGRAMS.
§ 31. Subdivision 16 of section 3602-ee of the education law, as
amended by section 23 of part A of chapter 54 of the laws of 2016, is
amended to read as follows:
16. The authority of the department to administer the universal full-
day pre-kindergarten program shall expire June thirtieth, two thousand
[seventeen] EIGHTEEN; provided that the program shall continue and
remain in full effect.
§ 31-a. Paragraph (c) of subdivision 8 of section 3602-ee of the
education law, as added by section 1 of part CC of chapter 56 of the
laws of 2014, is amended to read as follows:
(c) (I) for eligible agencies as defined in paragraph b of subdivision
one of section thirty-six hundred two-e of this part that are not
schools, a bachelor's degree in early childhood education or a related
field and a written plan to obtain a certification valid for service in
the early childhood grades as follows:
[(i)] (1) for teachers hired on or after the effective date of this
section as the teacher for a universal full-day pre-kindergarten class-
room, within three years after commencing employment, at which time such
certification shall be required for employment; and
[(ii)] (2) for teachers hired by such provider prior to the effective
date of this section for other early childhood care and education
programs, no later than June thirtieth, two thousand seventeen, at which
time such certification shall be required for employment.
(II) PROVIDED THAT, NOTWITHSTANDING ANY PROVISIONS OF THIS PARAGRAPH
TO THE CONTRARY, FOR THE TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGHTEEN
SCHOOL YEAR, AN EXEMPTION TO THE CERTIFICATION REQUIREMENT OF SUBPARA-
GRAPH (I) OF THIS PARAGRAPH MAY BE MADE FOR A TEACHER WITHOUT CERTIF-
ICATION VALID FOR SERVICE IN THE EARLY CHILDHOOD GRADES WHO POSSESSES A
WRITTEN PLAN TO OBTAIN CERTIFICATION AND WHO HAS REGISTERED IN THE
ASPIRE WORKFORCE REGISTRY AS REQUIRED UNDER REGULATIONS OF THE COMMIS-
SIONER OF THE OFFICE OF CHILDREN AND FAMILY SERVICES. NOTWITHSTANDING
ANY EXEMPTION PROVIDED BY THIS SUBPARAGRAPH, CERTIFICATION SHALL BE
S. 2009--C 330 A. 3009--C
REQUIRED FOR EMPLOYMENT NO LATER THAN JUNE THIRTIETH, TWO THOUSAND EIGH-
TEEN.
§ 31-b. Section 3602-ee of the education law is amended by adding a
new subdivision 17 to read as follows:
17. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY,
FOR THE PURPOSES OF DETERMINING THE PREKINDERGARTEN ALLOCATION ON THE
ELECTRONIC DATA FILE PREPARED BY THE COMMISSIONER PURSUANT TO SUBDIVI-
SION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER FOR THE
TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND THEREAFTER,
THE COMMISSIONER IS DIRECTED TO INCLUDE THE GRANT AMOUNTS AWARDED PURSU-
ANT TO THIS SECTION IN THE AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT AS
"UNIVERSAL PRE-KINDERGARTEN."
§ 32. Subdivision 21 of section 305 of the education law is amended by
adding a new paragraph d to read as follows:
D. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY,
FOR THE PURPOSES OF (I) DETERMINING THE BASE YEAR LEVEL OF GENERAL
SUPPORT FOR PUBLIC SCHOOLS PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION
FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR AND
THEREAFTER, THE COMMISSIONER IS DIRECTED TO INCLUDE THE STATE-FUNDED
GRANT AMOUNTS ALLOCATED PURSUANT TO SUBDIVISION TEN OF SECTION THIRTY-
SIX HUNDRED TWO-E OF THIS CHAPTER WHERE SUCH STATE-FUNDED GRANTS HAD
PREVIOUSLY BEEN ALLOCATED TO DISTRICTS BY MEANS OTHER THAN GENERAL
SUPPORT FOR PUBLIC SCHOOLS, AND (II) FOR THE PURPOSES OF DETERMINING
BOTH THE BASE YEAR AND CURRENT YEAR LEVELS OF GENERAL SUPPORT FOR PUBLIC
SCHOOLS PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION FOR THE TWO THOUSAND
NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND THEREAFTER, THE COMMIS-
SIONER IS ALSO DIRECTED TO INCLUDE GRANT AMOUNTS PURSUANT TO SECTION
THIRTY-SIX HUNDRED TWO-EE OF THIS CHAPTER, PROVIDED THAT, NOTWITHSTAND-
ING ANY PROVISION OF LAW TO THE CONTRARY, SUCH BASE YEAR GRANT AMOUNTS
SHALL NOT BE INCLUDED IN: (1) THE ALLOWABLE GROWTH AMOUNT COMPUTED
PURSUANT TO PARAGRAPH DD OF SUBDIVISION ONE OF SECTION THIRTY-SIX
HUNDRED TWO OF THIS CHAPTER, (2) THE PRELIMINARY GROWTH AMOUNT COMPUTED
PURSUANT TO PARAGRAPH FF OF SUBDIVISION ONE OF SECTION THIRTY-SIX
HUNDRED TWO OF THIS CHAPTER, AND (3) THE ALLOCABLE GROWTH AMOUNT
COMPUTED PURSUANT TO PARAGRAPH GG OF SUBDIVISION ONE OF SECTION THIRTY-
SIX HUNDRED TWO OF THIS CHAPTER, AND SHALL NOT BE CONSIDERED, AND SHALL
NOT BE AVAILABLE FOR INTERCHANGE WITH, GENERAL SUPPORT FOR PUBLIC
SCHOOLS.
§ 33. The opening paragraph of section 3609-a of the education law, as
amended by section 10 of part A of chapter 54 of the laws of 2016, is
amended to read as follows:
For aid payable in the two thousand seven--two thousand eight school
year through the two thousand [sixteen] SEVENTEEN--two thousand [seven-
teen] EIGHTEEN school year, "moneys apportioned" shall mean the lesser
of (i) the sum of one hundred percent of the respective amount set forth
for each school district as payable pursuant to this section in the
school aid computer listing for the current year produced by the commis-
sioner in support of the budget which includes the appropriation for the
general support for public schools for the prescribed payments and indi-
vidualized payments due prior to April first for the current year plus
the apportionment payable during the current school year pursuant to
subdivision six-a and subdivision fifteen of section thirty-six hundred
two of this part minus any reductions to current year aids pursuant to
subdivision seven of section thirty-six hundred four of this part or any
deduction from apportionment payable pursuant to this chapter for
collection of a school district basic contribution as defined in subdi-
S. 2009--C 331 A. 3009--C
vision eight of section forty-four hundred one of this chapter, less any
grants provided pursuant to subparagraph two-a of paragraph b of subdi-
vision four of section ninety-two-c of the state finance law, less any
grants provided pursuant to subdivision six of section ninety-seven-nnnn
of the state finance law, less any grants provided pursuant to subdivi-
sion twelve of section thirty-six hundred forty-one of this article, or
(ii) the apportionment calculated by the commissioner based on data on
file at the time the payment is processed; provided however, that for
the purposes of any payments made pursuant to this section prior to the
first business day of June of the current year, moneys apportioned shall
not include any aids payable pursuant to subdivisions six and fourteen,
if applicable, of section thirty-six hundred two of this part as current
year aid for debt service on bond anticipation notes and/or bonds first
issued in the current year or any aids payable for full-day kindergarten
for the current year pursuant to subdivision nine of section thirty-six
hundred two of this part. The definitions of "base year" and "current
year" as set forth in subdivision one of section thirty-six hundred two
of this part shall apply to this section. [For aid payable in the two
thousand sixteen--two thousand seventeen school year, reference to such
"school aid computer listing for the current year" shall mean the print-
outs entitled "SA161-7".] FOR AID PAYABLE IN THE TWO THOUSAND SEVEN-
TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR, REFERENCE TO SUCH "SCHOOL AID
COMPUTER LISTING FOR THE CURRENT YEAR" SHALL MEAN THE PRINTOUTS ENTITLED
"SA171-8".
§ 34. Paragraph b of subdivision 2 of section 3612 of the education
law, as amended by section 26 of part A of chapter 54 of the laws of
2016, is amended to read as follows:
b. Such grants shall be awarded to school districts, within the limits
of funds appropriated therefor, through a competitive process that takes
into consideration the magnitude of any shortage of teachers in the
school district, the number of teachers employed in the school district
who hold temporary licenses to teach in the public schools of the state,
the number of provisionally certified teachers, the fiscal capacity and
geographic sparsity of the district, the number of new teachers the
school district intends to hire in the coming school year and the number
of summer in the city student internships proposed by an eligible school
district, if applicable. Grants provided pursuant to this section shall
be used only for the purposes enumerated in this section. Notwithstand-
ing any other provision of law to the contrary, a city school district
in a city having a population of one million or more inhabitants receiv-
ing a grant pursuant to this section may use no more than eighty percent
of such grant funds for any recruitment, retention and certification
costs associated with transitional certification of teacher candidates
for the school years two thousand one--two thousand two through [two
thousand sixteen--two thousand seventeen] TWO THOUSAND SEVENTEEN--TWO
THOUSAND EIGHTEEN.
§ 35. Subdivision 6 of section 4402 of the education law, as amended
by section 27 of part A of chapter 54 of the laws of 2016, is amended to
read as follows:
6. Notwithstanding any other law, rule or regulation to the contrary,
the board of education of a city school district with a population of
one hundred twenty-five thousand or more inhabitants shall be permitted
to establish maximum class sizes for special classes for certain
students with disabilities in accordance with the provisions of this
subdivision. For the purpose of obtaining relief from any adverse fiscal
impact from under-utilization of special education resources due to low
S. 2009--C 332 A. 3009--C
student attendance in special education classes at the middle and
secondary level as determined by the commissioner, such boards of educa-
tion shall, during the school years nineteen hundred ninety-five--nine-
ty-six through June thirtieth, two thousand [seventeen] EIGHTEEN of the
[two thousand sixteen--two thousand seventeen] TWO THOUSAND SEVENTEEN--
TWO THOUSAND EIGHTEEN school year, be authorized to increase class sizes
in special classes containing students with disabilities whose age rang-
es are equivalent to those of students in middle and secondary schools
as defined by the commissioner for purposes of this section by up to but
not to exceed one and two tenths times the applicable maximum class size
specified in regulations of the commissioner rounded up to the nearest
whole number, provided that in a city school district having a popu-
lation of one million or more, classes that have a maximum class size of
fifteen may be increased by no more than one student and provided that
the projected average class size shall not exceed the maximum specified
in the applicable regulation, provided that such authorization shall
terminate on June thirtieth, two thousand. Such authorization shall be
granted upon filing of a notice by such a board of education with the
commissioner stating the board's intention to increase such class sizes
and a certification that the board will conduct a study of attendance
problems at the secondary level and will implement a corrective action
plan to increase the rate of attendance of students in such classes to
at least the rate for students attending regular education classes in
secondary schools of the district. Such corrective action plan shall be
submitted for approval by the commissioner by a date during the school
year in which such board increases class sizes as provided pursuant to
this subdivision to be prescribed by the commissioner. Upon at least
thirty days notice to the board of education, after conclusion of the
school year in which such board increases class sizes as provided pursu-
ant to this subdivision, the commissioner shall be authorized to termi-
nate such authorization upon a finding that the board has failed to
develop or implement an approved corrective action plan.
§ 36. Hendrick Hudson central school district energy system tax
stabilization reserve fund. (a) Definitions. As used in this section:
(i) "Board of education" or "board" means the board of education of
the Hendrick Hudson central school district.
(ii) "Energy system tax stabilization reserve fund" means the energy
system tax stabilization fund established pursuant to this section.
(iii) "School district" or "district" means the Hendrick Hudson
central school district.
(b) The board of education is hereby authorized to establish an energy
system tax stabilization reserve fund to lessen or prevent increases in
the school district's real property tax levy resulting from decreases in
revenue due to the closure of the Indian Point nuclear power plant
provided, however, that no such fund shall be established unless
approved by a majority vote of the voters present and voting on a sepa-
rate ballot proposition therefor at either a special district meeting
which the board of education may call for such purpose or at the annual
district meeting and election, to be noticed and conducted in either
case in accordance with article 41 of the education law. Such separate
proposition shall set forth the maximum allowable balance to be deposit-
ed and held in the energy system tax stabilization reserve fund. Moneys
shall be paid into and withdrawn from the fund and the fund shall be
administered as follows:
(i) The board of education is hereby authorized to make payments into
the energy system tax stabilization reserve fund in an amount not to
S. 2009--C 333 A. 3009--C
exceed the balance over any maximum allowable balance in the district's
unassigned fund balance and from any reserve funds authorized or
required by law in amounts which the board of education shall determine
are not reasonably necessary for the purpose of such fund or funds and
which accrued prior to the establishment of the energy system tax
stabilization reserve fund, provided that no such payment from any unas-
signed fund balance or any reserve fund shall cause the balance of the
energy system tax stabilization reserve fund to exceed the amount
approved in the ballot proposal pursuant to this section.
(ii) Moneys may be withdrawn from the energy system tax stabilization
reserve fund for any fiscal year to be expended for any lawful purpose.
Withdrawals from the fund shall be disclosed in a manner consistent with
the required disclosures of similar reserve funds held by the district,
including disclosures required by the property tax report card prepared
by the district pursuant to the provisions of subdivision 7 of section
1716 of the education law; and deposits and withdrawals made in each
fiscal year shall be subject to the district's annual budget approval
process.
§ 37. Subparagraph (i) of paragraph a of subdivision 10 of section
4410 of the education law is amended by adding a new clause (D) to read
as follows:
(D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
THE CONTRARY, COMMENCING WITH THE TWO THOUSAND EIGHTEEN--TWO THOUSAND
NINETEEN SCHOOL YEAR, APPROVED PRESCHOOL INTEGRATED SPECIAL CLASS
PROGRAMS SHALL BE REIMBURSED FOR SUCH SERVICES BASED ON AN ALTERNATIVE
METHODOLOGY FOR REIMBURSEMENT TO BE ESTABLISHED BY THE COMMISSIONER. IN
DEVELOPING SUCH METHODOLOGY THE COMMISSIONER SHALL SEEK INPUT FROM
STAKEHOLDERS THAT WOULD BE IMPACTED BY SUCH ALTERNATIVE METHODOLOGY.
THE ALTERNATIVE METHODOLOGY, SUBJECT TO THE APPROVAL OF THE DIRECTOR OF
THE BUDGET, SHALL BE PROPOSED BY THE DEPARTMENT NO LATER THAN APRIL
FIRST, TWO THOUSAND EIGHTEEN.
§ 38. Subdivision a of section 5 of chapter 121 of the laws of 1996,
relating to authorizing the Roosevelt union free school district to
finance deficits by the issuance of serial bonds, as amended by section
44 of part A of chapter 54 of the laws of 2016, is amended to read as
follows:
a. Notwithstanding any other provisions of law, upon application to
the commissioner of education submitted not sooner than April first and
not later than June thirtieth of the applicable school year, the Roose-
velt union free school district shall be eligible to receive an appor-
tionment pursuant to this chapter for salary expenses, including related
benefits, incurred between April first and June thirtieth of such school
year. Such apportionment shall not exceed: for the 1996-97 school year
through the [2016-17] 2017-18 school year, four million dollars
($4,000,000); for the [2017-18] 2018-19 school year, three million
dollars ($3,000,000); for the [2018-19] 2019-20 school year, two million
dollars ($2,000,000); for the [2019-20] 2020-21 school year, one million
dollars ($1,000,000); and for the [2020-21] 2021-22 school year, zero
dollars. Such annual application shall be made after the board of
education has adopted a resolution to do so with the approval of the
commissioner of education.
§ 39. Subparagraph (ii) of paragraph (a) of subdivision 9 of section
103 of the general municipal law, as amended by chapter 62 of the laws
of 2016, is amended to read as follows:
(ii) such association of producers or growers is comprised of owners
of farms who also operate such farms and have combined to fill the order
S. 2009--C 334 A. 3009--C
of a school district, and where such order is for [twenty-five thousand]
FIFTY THOUSAND dollars or less as herein authorized, provided however,
that a school district may apply to the commissioner of education for
permission to purchase orders of more than [twenty-five thousand] FIFTY
THOUSAND dollars from an association of owners of such farms when no
other producers or growers have offered to sell to such school;
§ 40. Section 7 of chapter 472 of the laws of 1998, amending the
education law relating to the lease of school buses by school districts,
as amended by section 18 of part A of chapter 56 of the laws of 2015, is
amended to read as follows:
§ 7. This act shall take effect September 1, 1998, and shall expire
and be deemed repealed September 1, [2017] 2019.
§ 41. Subdivision 6-a of section 140 of chapter 82 of the laws of
1995, amending the education law and certain other laws relating to
state aid to school districts and the appropriation of funds for the
support of government, as amended by section 17-a of part A of chapter
57 of the laws of 2012, is amended to read as follows:
(6-a) Section seventy-three of this act shall take effect July 1, 1995
and shall be deemed repealed June 30, [2017] 2022;
§ 42. Intentionally omitted.
§ 43. Intentionally omitted.
§ 44. Subdivision b of section 2 of chapter 756 of the laws of 1992,
relating to funding a program for work force education conducted by the
consortium for worker education in New York city, as amended by section
28 of part A of chapter 54 of the laws of 2016, is amended to read as
follows:
b. Reimbursement for programs approved in accordance with subdivision
a of this section for [the 2012--2013 school year shall not exceed 63.3
percent of the lesser of such approvable costs per contact hour or
twelve dollars and thirty-five cents per contact hour, reimbursement for
the 2013--2014 school year shall not exceed 62.3 percent of the lesser
of such approvable costs per contact hour or twelve dollars and sixty-
five cents per contact hour, reimbursement for the 2014--2015 school
year shall not exceed 61.6 percent of the lesser of such approvable
costs per contact hour or thirteen dollars per contact hour, reimburse-
ment for] the 2015--2016 school year shall not exceed 60.7 percent of
the lesser of such approvable costs per contact hour or thirteen dollars
and forty cents per contact hour, [and] reimbursement for the 2016--2017
school year shall not exceed 60.3 percent of the lesser of such approva-
ble costs per contact hour or thirteen dollars ninety cents per contact
hour, AND REIMBURSEMENT FOR THE 2017--2018 SCHOOL YEAR SHALL NOT EXCEED
60.4 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS PER CONTACT HOUR OR
THIRTEEN DOLLARS AND NINETY CENTS PER CONTACT HOUR, where a contact hour
represents sixty minutes of instruction services provided to an eligible
adult. Notwithstanding any other provision of law to the contrary, [for
the 2012--2013 school year such contact hours shall not exceed one
million six hundred sixty-four thousand five hundred thirty-two
(1,664,532) hours; whereas for the 2013--2014 school year such contact
hours shall not exceed one million six hundred forty-nine thousand seven
hundred forty-six (1,649,746) hours; whereas for the 2014--2015 school
year such contact hours shall not exceed one million six hundred twen-
ty-five thousand (1,625,000) hours; whereas] for the 2015--2016 school
year such contact hours shall not exceed one million five hundred nine-
ty-nine thousand fifteen (1,599,015) hours; whereas for the 2016--2017
school year such contact hours shall not exceed one million five hundred
fifty-one thousand three hundred twelve (1,551,312); AND FOR THE
S. 2009--C 335 A. 3009--C
2017--2018 SCHOOL YEAR SUCH CONTACT HOURS SHALL NOT EXCEED ONE MILLION
FIVE HUNDRED FORTY-NINE THOUSAND FOUR HUNDRED SIXTY-THREE (1,549,463).
Notwithstanding any other provision of law to the contrary, the appor-
tionment calculated for the city school district of the city of New York
pursuant to subdivision 11 of section 3602 of the education law shall be
computed as if such contact hours provided by the consortium for worker
education, not to exceed the contact hours set forth herein, were eligi-
ble for aid in accordance with the provisions of such subdivision 11 of
section 3602 of the education law.
§ 45. Section 4 of chapter 756 of the laws of 1992, relating to fund-
ing a program for work force education conducted by the consortium for
worker education in New York city, is amended by adding a new subdivi-
sion v to read as follows:
V. THE PROVISIONS OF THIS SUBDIVISION SHALL NOT APPLY AFTER THE
COMPLETION OF PAYMENTS FOR THE 2017--2018 SCHOOL YEAR. NOTWITHSTANDING
ANY INCONSISTENT PROVISIONS OF LAW, THE COMMISSIONER OF EDUCATION SHALL
WITHHOLD A PORTION OF EMPLOYMENT PREPARATION EDUCATION AID DUE TO THE
CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK TO SUPPORT A PORTION OF THE
COSTS OF THE WORK FORCE EDUCATION PROGRAM. SUCH MONEYS SHALL BE CREDITED
TO THE ELEMENTARY AND SECONDARY EDUCATION FUND-LOCAL ASSISTANCE ACCOUNT
AND SHALL NOT EXCEED THIRTEEN MILLION DOLLARS ($13,000,000).
§ 46. Section 6 of chapter 756 of the laws of 1992, relating to fund-
ing a program for work force education conducted by the consortium for
worker education in New York city, as amended by section 30 of part A of
chapter 54 of the laws of 2016, is amended to read as follows:
§ 6. This act shall take effect July 1, 1992, and shall be deemed
repealed on June 30, [2017] 2018.
§ 47. Subdivisions 22 and 24 of section 140 of chapter 82 of the laws
of 1995, amending the education law and certain other laws relating to
state aid to school districts and the appropriation of funds for the
support of government, as amended by section 33 of part A of chapter 54
of the laws of 2016, are amended to read as follows:
(22) sections one hundred twelve, one hundred thirteen, one hundred
fourteen, one hundred fifteen and one hundred sixteen of this act shall
take effect on July 1, 1995; provided, however, that section one hundred
thirteen of this act shall remain in full force and effect until July 1,
[2017] 2018 at which time it shall be deemed repealed;
(24) sections one hundred eighteen through one hundred thirty of this
act shall be deemed to have been in full force and effect on and after
July 1, 1995; provided further, however, that the amendments made pursu-
ant to section one hundred twenty-four of this act shall be deemed to be
repealed on and after July 1, [2017] 2018;
§ 48. Paragraphs (a-1) and (b) of section 5 of chapter 89 of the laws
of 2016 relating to supplementary funding for dedicated programs for
public school students in the East Ramapo central school district, are
amended to read as follows:
(a-1) The East Ramapo central school district shall be eligible to
receive reimbursement [from such funds made available] pursuant to
[paragraph (a) of] this [section] ACT, SUBJECT TO AVAILABLE APPROPRI-
ATION, for its approved expenditures IN THE TWO THOUSAND SIXTEEN--TWO
THOUSAND SEVENTEEN SCHOOL YEAR AND THEREAFTER on services to improve and
enhance the educational opportunities of students attending the public
schools in such district. Such services shall include, but not be limit-
ed to, reducing class sizes, expanding academic and enrichment opportu-
nities, establishing and expanding kindergarten programs, expanding
extracurricular opportunities and providing student support services,
S. 2009--C 336 A. 3009--C
provided, however, transportation services and expenses shall not be
eligible for reimbursement from such funds.
(b) In order to receive such funds, the school district in consulta-
tion with the monitor or monitors shall develop a long term strategic
academic and fiscal improvement plan within 6 months from the enactment
of this act AND SHALL ANNUALLY REVISE SUCH PLAN BY OCTOBER FIRST OF EACH
YEAR THEREAFTER. Such plan, INCLUDING SUCH ANNUAL REVISIONS THERETO,
shall be submitted to the commissioner for approval and shall include a
set of goals with appropriate benchmarks and measurable objectives and
identify strategies to address areas where improvements are needed in
the district, including but not limited to its financial stability,
academic opportunities and outcomes, education of students with disabil-
ities, education of English language learners, and shall ensure compli-
ance with all applicable state and federal laws and regulations. This
improvement plan shall also include a comprehensive expenditure plan
that will describe how the funds made available to the district pursuant
to this section will be spent IN THE APPLICABLE SCHOOL YEAR. The
comprehensive expenditure plan shall ensure that funds supplement, not
supplant, expenditures from local, state and federal funds for services
provided to public school students, EXCEPT THAT SUCH FUNDS MAY BE USED
TO CONTINUE SERVICES FUNDED PURSUANT TO THIS ACT IN PRIOR YEARS. Such
expenditure plan shall be developed AND ANNUALLY REVISED in consultation
with the monitor or monitors appointed by the commissioner. The board of
education of the East Ramapo central school district must ANNUALLY
conduct a public hearing on the expenditure plan and shall consider the
input of the community before adopting such plan. Such expenditure plan
shall also be made publicly available and shall be ANNUALLY submitted
along with comments made by the community to the commissioner for
approval once the plan is finalized. Upon review of the improvement
plan and the expenditure plan, required to be submitted pursuant to this
subdivision or section seven of this act, the commissioner shall approve
or deny such plan in writing and, if denied, shall include the reasons
therefor. The district in consultation with the monitors may resubmit
such plan or plans with any needed modifications thereto.
§ 49. Section 8 of chapter 89 of the laws of 2016 relating to supple-
mentary funding for dedicated programs for public school students in the
East Ramapo central school district, is amended to read as follows:
§ 8. This act shall take effect July 1, 2016 and shall expire and be
deemed repealed June 30, [2017] 2018.
§ 50. Section 12 of chapter 147 of the laws of 2001, amending the
education law relating to conditional appointment of school district,
charter school or BOCES employees, as amended by section 34 of part A of
chapter 54 of the laws of 2016, is amended to read as follows:
§ 12. This act shall take effect on the same date as chapter 180 of
the laws of 2000 takes effect, and shall expire July 1, [2017] 2018 when
upon such date the provisions of this act shall be deemed repealed.
§ 51. School bus driver training. In addition to apportionments other-
wise provided by section 3602 of the education law, for aid payable in
the 2017--2018 school year, the commissioner of education shall allocate
school bus driver training grants to school districts and boards of
cooperative educational services pursuant to sections 3650-a, 3650-b and
3650-c of the education law, or for contracts directly with not-for-pro-
fit educational organizations for the purposes of this section. Such
payments shall not exceed four hundred thousand dollars ($400,000) per
school year.
S. 2009--C 337 A. 3009--C
§ 52. Special apportionment for salary expenses. a. Notwithstanding
any other provision of law, upon application to the commissioner of
education, not sooner than the first day of the second full business
week of June 2018 and not later than the last day of the third full
business week of June 2018, a school district eligible for an apportion-
ment pursuant to section 3602 of the education law shall be eligible to
receive an apportionment pursuant to this section, for the school year
ending June 30, 2018, for salary expenses incurred between April 1 and
June 30, 2017 and such apportionment shall not exceed the sum of (i) the
deficit reduction assessment of 1990--1991 as determined by the commis-
sioner of education, pursuant to paragraph f of subdivision 1 of section
3602 of the education law, as in effect through June 30, 1993, plus (ii)
186 percent of such amount for a city school district in a city with a
population in excess of 1,000,000 inhabitants, plus (iii) 209 percent of
such amount for a city school district in a city with a population of
more than 195,000 inhabitants and less than 219,000 inhabitants accord-
ing to the latest federal census, plus (iv) the net gap elimination
adjustment for 2010--2011, as determined by the commissioner of educa-
tion pursuant to chapter 53 of the laws of 2010, plus (v) the gap elimi-
nation adjustment for 2011--2012 as determined by the commissioner of
education pursuant to subdivision 17 of section 3602 of the education
law, and provided further that such apportionment shall not exceed such
salary expenses. Such application shall be made by a school district,
after the board of education or trustees have adopted a resolution to do
so and in the case of a city school district in a city with a population
in excess of 125,000 inhabitants, with the approval of the mayor of such
city.
b. The claim for an apportionment to be paid to a school district
pursuant to subdivision a of this section shall be submitted to the
commissioner of education on a form prescribed for such purpose, and
shall be payable upon determination by such commissioner that the form
has been submitted as prescribed. Such approved amounts shall be paya-
ble on the same day in September of the school year following the year
in which application was made as funds provided pursuant to subparagraph
(4) of paragraph b of subdivision 4 of section 92-c of the state finance
law, on the audit and warrant of the state comptroller on vouchers
certified or approved by the commissioner of education in the manner
prescribed by law from moneys in the state lottery fund and from the
general fund to the extent that the amount paid to a school district
pursuant to this section exceeds the amount, if any, due such school
district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
section 3609-a of the education law in the school year following the
year in which application was made.
c. Notwithstanding the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be deducted from the
following payments due the school district during the school year
following the year in which application was made pursuant to subpara-
graphs (1), (2), (3), (4) and (5) of paragraph a of subdivision 1 of
section 3609-a of the education law in the following order: the lottery
apportionment payable pursuant to subparagraph (2) of such paragraph
followed by the fixed fall payments payable pursuant to subparagraph (4)
of such paragraph and then followed by the district's payments to the
teachers' retirement system pursuant to subparagraph (1) of such para-
graph, and any remainder to be deducted from the individualized payments
due the district pursuant to paragraph b of such subdivision shall be
S. 2009--C 338 A. 3009--C
deducted on a chronological basis starting with the earliest payment due
the district.
§ 53. Special apportionment for public pension accruals. a. Notwith-
standing any other provision of law, upon application to the commission-
er of education, not later than June 30, 2018, a school district eligi-
ble for an apportionment pursuant to section 3602 of the education law
shall be eligible to receive an apportionment pursuant to this section,
for the school year ending June 30, 2018 and such apportionment shall
not exceed the additional accruals required to be made by school
districts in the 2004--2005 and 2005--2006 school years associated with
changes for such public pension liabilities. The amount of such addi-
tional accrual shall be certified to the commissioner of education by
the president of the board of education or the trustees or, in the case
of a city school district in a city with a population in excess of
125,000 inhabitants, the mayor of such city. Such application shall be
made by a school district, after the board of education or trustees have
adopted a resolution to do so and in the case of a city school district
in a city with a population in excess of 125,000 inhabitants, with the
approval of the mayor of such city.
b. The claim for an apportionment to be paid to a school district
pursuant to subdivision a of this section shall be submitted to the
commissioner of education on a form prescribed for such purpose, and
shall be payable upon determination by such commissioner that the form
has been submitted as prescribed. Such approved amounts shall be payable
on the same day in September of the school year following the year in
which application was made as funds provided pursuant to subparagraph
(4) of paragraph b of subdivision 4 of section 92-c of the state finance
law, on the audit and warrant of the state comptroller on vouchers
certified or approved by the commissioner of education in the manner
prescribed by law from moneys in the state lottery fund and from the
general fund to the extent that the amount paid to a school district
pursuant to this section exceeds the amount, if any, due such school
district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
section 3609-a of the education law in the school year following the
year in which application was made.
c. Notwithstanding the provisions of section 3609-a of the education
law, an amount equal to the amount paid to a school district pursuant to
subdivisions a and b of this section shall first be deducted from the
following payments due the school district during the school year
following the year in which application was made pursuant to subpara-
graphs (1), (2), (3), (4) and (5) of paragraph a of subdivision 1 of
section 3609-a of the education law in the following order: the lottery
apportionment payable pursuant to subparagraph (2) of such paragraph
followed by the fixed fall payments payable pursuant to subparagraph (4)
of such paragraph and then followed by the district's payments to the
teachers' retirement system pursuant to subparagraph (1) of such para-
graph, and any remainder to be deducted from the individualized payments
due the district pursuant to paragraph b of such subdivision shall be
deducted on a chronological basis starting with the earliest payment due
the district.
§ 54. a. Notwithstanding any other law, rule or regulation to the
contrary, any moneys appropriated to the state education department may
be suballocated to other state departments or agencies, as needed, to
accomplish the intent of the specific appropriations contained therein.
b. Notwithstanding any other law, rule or regulation to the contrary,
moneys appropriated to the state education department from the general
S. 2009--C 339 A. 3009--C
fund/aid to localities, local assistance account-001, shall be for
payment of financial assistance, as scheduled, net of disallowances,
refunds, reimbursement and credits.
c. Notwithstanding any other law, rule or regulation to the contrary,
all moneys appropriated to the state education department for aid to
localities shall be available for payment of aid heretofore or hereafter
to accrue and may be suballocated to other departments and agencies to
accomplish the intent of the specific appropriations contained therein.
d. Notwithstanding any other law, rule or regulation to the contrary,
moneys appropriated to the state education department for general
support for public schools may be interchanged with any other item of
appropriation for general support for public schools within the general
fund local assistance account office of prekindergarten through grade
twelve education programs.
§ 55. Notwithstanding the provision of any law, rule, or regulation to
the contrary, the city school district of the city of Rochester, upon
the consent of the board of cooperative educational services of the
supervisory district serving its geographic region may purchase from
such board for the 2017--2018 school year, as a non-component school
district, services required by article 19 of the education law.
§ 56. The amounts specified in this section shall be set aside from
the state funds which each such district is receiving from the total
foundation aid: for the purpose of the development, maintenance or
expansion of magnet schools or magnet school programs for the 2017--2018
school year. To the city school district of the city of New York there
shall be paid forty-eight million one hundred seventy-five thousand
dollars ($48,175,000) including five hundred thousand dollars ($500,000)
for the Andrew Jackson High School; to the Buffalo city school district,
twenty-one million twenty-five thousand dollars ($21,025,000); to the
Rochester city school district, fifteen million dollars ($15,000,000);
to the Syracuse city school district, thirteen million dollars
($13,000,000); to the Yonkers city school district, forty-nine million
five hundred thousand dollars ($49,500,000); to the Newburgh city school
district, four million six hundred forty-five thousand dollars
($4,645,000); to the Poughkeepsie city school district, two million four
hundred seventy-five thousand dollars ($2,475,000); to the Mount Vernon
city school district, two million dollars ($2,000,000); to the New
Rochelle city school district, one million four hundred ten thousand
dollars ($1,410,000); to the Schenectady city school district, one
million eight hundred thousand dollars ($1,800,000); to the Port Chester
city school district, one million one hundred fifty thousand dollars
($1,150,000); to the White Plains city school district, nine hundred
thousand dollars ($900,000); to the Niagara Falls city school district,
six hundred thousand dollars ($600,000); to the Albany city school
district, three million five hundred fifty thousand dollars
($3,550,000); to the Utica city school district, two million dollars
($2,000,000); to the Beacon city school district, five hundred sixty-six
thousand dollars ($566,000); to the Middletown city school district,
four hundred thousand dollars ($400,000); to the Freeport union free
school district, four hundred thousand dollars ($400,000); to the Green-
burgh central school district, three hundred thousand dollars
($300,000); to the Amsterdam city school district, eight hundred thou-
sand dollars ($800,000); to the Peekskill city school district, two
hundred thousand dollars ($200,000); and to the Hudson city school
district, four hundred thousand dollars ($400,000). Notwithstanding the
provisions of this section, a school district receiving a grant pursuant
S. 2009--C 340 A. 3009--C
to this section may use such grant funds for: (i) any instructional or
instructional support costs associated with the operation of a magnet
school; or (ii) any instructional or instructional support costs associ-
ated with implementation of an alternative approach to reduction of
racial isolation and/or enhancement of the instructional program and
raising of standards in elementary and secondary schools of school
districts having substantial concentrations of minority students. The
commissioner of education shall not be authorized to withhold magnet
grant funds from a school district that used such funds in accordance
with this paragraph, notwithstanding any inconsistency with a request
for proposals issued by such commissioner. For the purpose of attendance
improvement and dropout prevention for the 2017--2018 school year, for
any city school district in a city having a population of more than one
million, the setaside for attendance improvement and dropout prevention
shall equal the amount set aside in the base year. For the 2017--2018
school year, it is further provided that any city school district in a
city having a population of more than one million shall allocate at
least one-third of any increase from base year levels in funds set aside
pursuant to the requirements of this subdivision to community-based
organizations. Any increase required pursuant to this subdivision to
community-based organizations must be in addition to allocations
provided to community-based organizations in the base year. For the
purpose of teacher support for the 2017--2018 school year: to the city
school district of the city of New York, sixty-two million seven hundred
seven thousand dollars ($62,707,000); to the Buffalo city school
district, one million seven hundred forty-one thousand dollars
($1,741,000); to the Rochester city school district, one million seven-
ty-six thousand dollars ($1,076,000); to the Yonkers city school
district, one million one hundred forty-seven thousand dollars
($1,147,000); and to the Syracuse city school district, eight hundred
nine thousand dollars ($809,000). All funds made available to a school
district pursuant to this section shall be distributed among teachers
including prekindergarten teachers and teachers of adult vocational and
academic subjects in accordance with this section and shall be in addi-
tion to salaries heretofore or hereafter negotiated or made available;
provided, however, that all funds distributed pursuant to this section
for the current year shall be deemed to incorporate all funds distrib-
uted pursuant to former subdivision 27 of section 3602 of the education
law for prior years. In school districts where the teachers are repres-
ented by certified or recognized employee organizations, all salary
increases funded pursuant to this section shall be determined by sepa-
rate collective negotiations conducted pursuant to the provisions and
procedures of article 14 of the civil service law, notwithstanding the
existence of a negotiated agreement between a school district and a
certified or recognized employee organization.
§ 57. Support of public libraries. The moneys appropriated for the
support of public libraries by a chapter of the laws of 2017 enacting
the aid to localities budget shall be apportioned for the 2017-2018
state fiscal year in accordance with the provisions of sections 271,
272, 273, 282, 284, and 285 of the education law as amended by the
provisions of this chapter and the provisions of this section, provided
that library construction aid pursuant to section 273-a of the education
law shall not be payable from the appropriations for the support of
public libraries and provided further that no library, library system or
program, as defined by the commissioner of education, shall receive less
total system or program aid than it received for the year 2001-2002
S. 2009--C 341 A. 3009--C
except as a result of a reduction adjustment necessary to conform to the
appropriations for support of public libraries. Notwithstanding any
other provision of law to the contrary the moneys appropriated for the
support of public libraries for the year 2017-2018 by a chapter of the
laws of 2017 enacting the education, labor and family assistance budget
shall fulfill the state's obligation to provide such aid and, pursuant
to a plan developed by the commissioner of education and approved by the
director of the budget, the aid payable to libraries and library systems
pursuant to such appropriations shall be reduced proportionately to
assure that the total amount of aid payable does not exceed the total
appropriations for such purpose.
§ 58. Subdivision 11 of section 94 of part C of chapter 57 of the laws
of 2004, relating to the support of education, as amended by section
22-a of part A of chapter 56 of the laws of 2014, is amended to read as
follows:
11. section seventy-one of this act shall expire and be deemed
repealed June 30, [2017] 2020;
§ 59. Section 2 of chapter 658 of the laws of 2002, amending the
education law relating to citizenship requirements for permanent certif-
ication as a teacher, as amended by chapter 289 of the laws of 2012, is
amended to read as follows:
§ 2. This act shall take effect immediately, and shall expire and be
deemed repealed November 30, [2017] 2022.
§ 60. Paragraph a-1 of subdivision 11 of section 3602 of the education
law, as amended by section 45 of part A of chapter 54 of the laws of
2016, is amended to read as follows:
a-1. Notwithstanding the provisions of paragraph a of this subdivi-
sion, for aid payable in the school years two thousand--two thousand one
through two thousand nine--two thousand ten, and two thousand eleven--
two thousand twelve through two thousand [sixteen] SEVENTEEN--two thou-
sand [seventeen] EIGHTEEN, the commissioner may set aside an amount not
to exceed two million five hundred thousand dollars from the funds
appropriated for purposes of this subdivision for the purpose of serving
persons twenty-one years of age or older who have not been enrolled in
any school for the preceding school year, including persons who have
received a high school diploma or high school equivalency diploma but
fail to demonstrate basic educational competencies as defined in regu-
lation by the commissioner, when measured by accepted standardized
tests, and who shall be eligible to attend employment preparation educa-
tion programs operated pursuant to this subdivision.
§ 61. Paragraph b of subdivision 21 of section 305 of the education
law, as added by chapter 474 of the laws of 1996, is amended to read as
follows:
b. The commissioner shall periodically prepare an updated electronic
data file containing actual and estimated data relating to apportion-
ments due and owing during the current school year and projections of
such apportionments for the following school year to school districts
and boards of cooperative educational services from the general support
for public schools, growth and boards of cooperative educational
services appropriations on the following dates: November fifteenth, or
such alternative date as may be requested by the director of the budget
for the purpose of preparation of the executive budget; February
fifteenth, or such alternative date as may be jointly requested by the
chair of the senate finance committee and the chair of the assembly ways
and means committee; and May fifteenth. FOR THE PURPOSES OF USING ESTI-
MATED DATA FOR PROJECTIONS OF APPORTIONMENTS FOR THE FOLLOWING SCHOOL
S. 2009--C 342 A. 3009--C
YEAR, WHEN NO SPECIFIC APPORTIONMENT HAS YET BEEN MADE FOR SUCH SCHOOL
YEAR, BUT SUCH APPORTIONMENT HAS A HISTORY OF ANNUAL REAUTHORIZATION,
THE COMMISSIONER SHALL ESTIMATE THE APPORTIONMENT AT THE SAME LEVEL AS
THE PRECEDING SCHOOL YEAR, SUBJECT TO THE ANNUAL APPROVAL OF THE DIREC-
TOR OF THE BUDGET, THE CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND
THE CHAIRPERSON OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
§ 62. Severability. The provisions of this act shall be severable, and
if the application of any clause, sentence, paragraph, subdivision,
section or part of this act to any person or circumstance shall be
adjudged by any court of competent jurisdiction to be invalid, such
judgment shall not necessarily affect, impair or invalidate the applica-
tion of any such clause, sentence, paragraph, subdivision, section, part
of this act or remainder thereof, as the case may be, to any other
person or circumstance, but shall be confined in its operation to the
clause, sentence, paragraph, subdivision, section or part thereof
directly involved in the controversy in which such judgment shall have
been rendered.
§ 63. This act shall take effect immediately, and shall be deemed to
have been in full force and effect on and after April 1, 2017, provided,
however, that:
1. sections one, two, five, sixteen, sixteen-a, twenty-two, twenty-
three, twenty-four, twenty-five, twenty-six, twenty-seven, twenty-eight,
twenty-nine, thirty, thirty-one, thirty-one-a, thirty-one-b, thirty-two,
thirty-three, thirty-four, thirty-five, thirty-eight, forty-eight,
fifty-one, fifty-five, fifty-six, sixty and sixty-one of this act shall
take effect July 1, 2017;
2. the amendments to chapter 756 of the laws of 1992, relating to
funding a program for work force education conducted by a consortium for
worker education in New York City, made by sections forty-four and
forty-five of this act, shall not affect the repeal of such chapter and
shall be deemed repealed therewith;
3. the amendments to chapter 89 of the laws of 2016, relating to
supplementary funding for dedicated programs for public school students
in the East Ramapo central school district, made by section forty-eight
of this act shall not affect the repeal of such chapter and shall be
deemed repealed therewith;
4. the amendments to subdivision 33 of section 305 of the education
law, made by section seven of this act, shall not affect the repeal of
such subdivision and shall be deemed repealed therewith;
5. the amendments to subdivision 7 of section 2802 of the education
law, made by section eight of this act, shall not affect the repeal of
such subdivision and shall be deemed repealed therewith;
6. the amendments to subdivision 7 of section 3214 of the education
law, made by section nine of this act, shall not affect the repeal of
such subdivision and shall be deemed repealed therewith;
7. the amendments to section 2590-c of the education law made by
section nineteen of this act shall not affect the repeal of such section
and shall be deemed repealed therewith;
8. the amendments to subdivision 1 of section 2856 of the education
law made by section four of this act shall be subject to the expiration
and reversion of such subdivision pursuant to subdivision d of section
27 of chapter 378 of the laws of 2007, as amended, when upon such date
the provisions of section four-a of this act shall take effect;
9. the amendments to paragraphs d-1 and d-2 of subdivision 12 of
section 3602-e of the education law made by section twenty-eight-a of
S. 2009--C 343 A. 3009--C
this act shall not affect the repeal of such paragraphs and shall be
deemed repealed therewith; and
10. the amendments to paragraph b-1 of subdivision 4 of section 3602
of the education law made by section sixteen-a of this act shall not
affect the expiration of such paragraph and shall expire therewith.
§ 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 YYY of this act shall
be as specifically set forth in the last section of such Parts.
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